Buying out now or wait till end of lease? Any difference?

[LOW4LYF]

So long story short: I need to buy out my F82. My lease ends in June, my current mileage is 3600.

Is there any financial difference between buying out now or just wait till spring and buy it out later?

Thanks

[PshhhhhMW]

Since your mileage is so low I dont think it would make that much of a difference. I think if your mileage was closer to the lease allowance you might be able to negotiate a better buyout price..

[///M4ster Yoda]

Originally Posted by PshhhhhMW

Since your mileage is so low I dont think it would make that much of a difference. I think if your mileage was closer to the lease allowance you might be able to negotiate a better buyout price..

From my understanding that can no longer happen. BMW is not "allowing" dealers to give different (lower) buyout prices on leases any longer. The residual value is the price

[LOW4LYF]

Originally Posted by ///M4ster Yoda

From my understanding that can no longer happen. BMW is not "allowing" dealers to give different (lower) buyout prices on leases any longer. The residual value is the price

Can it be higher?

So they gonna take my current mileage to calculate my buyout?

[jjrandorin]

Originally Posted by ///M4ster Yoda

From my understanding that can no longer happen. BMW is not "allowing" dealers to give different (lower) buyout prices on leases any longer. The residual value is the price

This is true as of right now, but could of course change at any time.

OP you can get a buyout price at any time by contacting BMW FS. The difference between now and the end of the lease is going to be negligible... BUT...

You are not getting out of those payments that exist between now and the end of your lease.

your buyout price will the sum total of:

1. The sum total of your remaining payments between now and the end of your lease
2. The residual amount quoted on your lease
3. any lease end fees etc as applicable


The difference between buying it out NOW and buying it out at the end of the lease is, in both cases you are paying for the entire set of "months of rent", but if you buy it NOW you will be paying for months of rent that you have not used yet, if that makes sense.

If your lease ends in June, and you have not made january's payment yet, you will have jan - mays payments + your residual + any misc fees.

There is no financial benefit to you in buying it now vs waiting. There may be some other reason "you have to buy out your lease" but financially you will not save by doing it now vs later.

[LOW4LYF]

Okay, thanks for the information!

According to my BMW the Residual Value is
$50,091.00 before tax. I'm guessing that's my price if I buy it out by end of the lease. My question is... Is this amount firm? Or can it be higher due to low milage?

Thanks

[jjrandorin]

Originally Posted by LOW4LYF

Okay, thanks for the information!

According to my BMW the Residual Value is
$50,091.00 before tax. I'm guessing that's my price if I buy it out by end of the lease. My question is... Is this amount firm? Or can it be higher due to low milage?

Thanks

The residual amount is firm, and they wont adjust it because your mileage is low (or if your mileage was high.. but if it was high they would just charge you for the additional miles).

So, your residual is 50,091 and dont forget to add in the cost of your remaining payments into your buyout price as I said. Whatever your monthly payment is, times however many payments you actually have left.

[LOW4LYF]

Originally Posted by jjrandorin

The residual amount is firm, and they wont adjust it because your mileage is low (or if your mileage was high.. but if it was high they would just charge you for the additional miles).

So, your residual is 50,091 and dont forget to add in the cost of your remaining payments into your buyout price as I said. Whatever your monthly payment is, times however many payments you actually have left.

Thanks for clarifying

[85Shark]

There is some financial savings if you buy out the lease early. Essentially, you will save the monthly financing charge plus your state's Sales Tax on the financing charge. You will have to pay your last 5 payments, but only the depreciation portion.

You can calculate your monthly depreciation as follows (I'll use my 2016 M4 lease as an example):

Cap cost: $71,425
Less residual: 47,967
= Depreciaton: 23,458
Mo. Depr. 651.61 ($23,458 / 36)
Mo. Financing 134.91
Ca. sales tax. 64.89
Total payment. $851.41

Pre-payment savings would be 134.91 + 11.13 (8.25% CA tax) x number of remaining payments.

Your account statement shows your monthly lease payment and sales tax. You can calculate the monthly financing charge by deducting the monthly depreciation (calculated above) from the lease payment prior to sales tax.

My lease payoff would be $47,967 + (651.61 x remaining payments). Hope this helps.

[Ibiza]

OP your BMW FS account should have a "buy out now" price tab. It's best to buy out now rather than latter.