[Lease Transfer FEELER] 2018 M3 CS - $1049/mo 12k/36, $107k

[jmg]

Contemplating lease transferring my 2018 M3 CS! Just wanted to gauge interest. Here are the details:

MSRP: $106,845.00
Monthly Payment: $1049.76 (not including tax)
Lease Maturity: 1/27/2022 (36 months)
Lease Miles: 12,000 mi/year
Current Mileage: 1416 mi



Options:

Lime Rock Grey Paint - Only 81 in the US

Executive Package - Heads-Up Display, Power Rear Sunshade, Manual Rear Side Window Shades, Parking Distance Control (with rear camera standard), Adaptive Full LED Lights, Auto High Beams



Misc Additions:

BMW Maintenance Plan - This is additional plan which covers consumables not normally covered by BMW Ultimate Care like the brakes, wipers and clutch. It was an additional $600 that is reflected in the lease payment ($16/mo). Edit - it has been brought to my attention that the Maintenance Plan costs $700 to transfer to a new owner. I would be willing to split the cost if that is the case.

Legacy Black License Plates - These have already been ordered and I have already paid the additional registration fee for the year.



Photos:

Sticker by JMG, on Flickr[/url]

Profile by JMG, on Flickr

Rear by JMG, on Flickr

Interior Drivers by JMG, on Flickr

Interior Passenger by JMG, on Flickr

[jmg]

Originally Posted by PureModelsOnly

Aw why so soon?

I love the car, but I'm looking for a 2 door to widen the gap between my M3 and daily driver.

[SushiM3]

You might want to check whether the maintenance plan transfers when doing a lease transfer. The regular ultimate care does not, unless the new owner pays a fee (700$).
Great deal though, GLWS!

[jmg]

Originally Posted by SushiM3

You might want to check whether the maintenance plan transfers when doing a lease transfer. The regular ultimate care does not, unless the new owner pays a fee (700$).
Great deal though, GLWS!

Hmmm... is that a new thing? I did a lease transfer a few years ago and it was transferrable with no fee. It was for a 2015 though. Either way, I'd be willing to split the cost with the new owner.

[tooshay]

2017 and up, maintenance doesn’t transfer to new owner for free

[jmg]

Originally Posted by tooshay

2017 and up, maintenance doesn’t transfer to new owner for free

Good to know. I would split with the new owner. Post corrected.

[Budget M3]

What’s the residual at the end of the lease?

[jmg]

Originally Posted by Budget M3

What's the residual at the end of the lease?

12k/36 is 60%
$64,107

[Budget M3]

Originally Posted by jmg

12k/36 is 60%
$64,107

Thx! Those numbers don’t work for me, but hopefully someone else can take advantage. Good luck!

[jmg]

Originally Posted by Budget M3

Thx! Those numbers don’t work for me, but hopefully someone else can take advantage. Good luck!

Out of curiosity, what numbers would have worked?

[Budget M3]

Originally Posted by jmg

Out of curiosity, what numbers would have worked?

60% of cap cost after incentives would be closer to what I would need for my situation. I plan to keep the car for the long haul so lease buy out would have to be really low for me. Good deal for someone who plans to turn in at end of lease though!

[jmg]

Originally Posted by Budget M3

60% of cap cost after incentives would be closer to what I would need for my situation. I plan to keep the car for the long haul so lease buy out would have to be really low for me. Good deal for someone who plans to turn in at end of lease though!

Incentives are $3500 lease cash plus $1000 loyalty. 60% of MSRP after incentives would be $61,395.

[Budget M3]

Originally Posted by jmg

Incentives are $3500 lease cash plus $1000 loyalty. 60% of MSRP after incentives would be $61,395.

To clarify, for me that would have to also include dealer contribution for a 2018 model. Something closer to cap cost of $90k and 60% residual would tempt me.

[jmg]

Originally Posted by Budget M3

To clarify, for me that would have to also include dealer contribution for a 2018 model. Something closer to cap cost of $90k and 60% residual would tempt me.

I have never bought out a lease so this is unfamiliar territory. 60% RV is applied to the MSRP of $106,825. However, my lease payment is calculated from the cap cost ($92k), not MSRP. My contract says that the Purchase Option at End Of Lease Term is $64k, which is 60% of MSRP, not Cap Cost. If it was based on Cap Cost it should be $55k, not $64k. Does that mean that if I buy at lease term, I'm essentially stripping away all the discounts and incentives I had applied to the lease?

Interestingly, and in contradiction to my lease contract, when I request a Lease Payoff quote, it comes out to Cap Cost minus monthly payments I have already made. If that is accurate, then the Lease Payoff is 60% of cap cost, not MSRP. I know this because my lease payoff is $90k and the car was stickered $107k and it's only been 2 months.

[Budget M3]

Originally Posted by jmg

If it was based on Cap Cost it should be $55k, not $64k. Does that mean that if I buy at lease term, I'm essentially stripping away all the discounts and incentives I had applied to the lease?

Interestingly, and in contradiction to my lease contract, when I request a Lease Payoff quote, it comes out to Cap Cost minus monthly payments I have already made. If that is accurate, then the Lease Payoff is 60% of cap cost, not MSRP.

Correct. Buy out at lease term is like you never got a discount and you pay more for the car in the long run (at least in this case). I don’t know for sure without reading your contract, but I suspect that buyout a month before lease termination may still be based on cap cost minus payments to-date which would likely be MUCH better than the contract residual value a month later.

[jmg]

Originally Posted by Budget M3

Correct. Buy out at lease term is like you never got a discount and you pay more for the car in the long run (at least in this case). I don’t know for sure without reading your contract, but I suspect that buyout a month before lease termination may still be based on cap cost minus payments to-date which would likely be MUCH better than the contract residual value.

Thanks for the clarification. Yes, it seems payoff is $55k right before lease term.

[LVI]

Originally Posted by Budget M3

To clarify, for me that would have to also include dealer contribution for a 2018 model. Something closer to cap cost of $90k and 60% residual would tempt me.

you don't understand leasing. This car has exactly that -- a cap cost in the low $90k range and has a 60% residual, so you should be tempted.

[LVI]

Originally Posted by Budget M3

Correct. Buy out at lease term is like you never got a discount and you pay more for the car in the long run (at least in this case). I don’t know for sure without reading your contract, but I suspect that buyout a month before lease termination may still be based on cap cost minus payments to-date which would likely be MUCH better than the contract residual value a month later.

wrong

[LVI]

Originally Posted by jmg

I have never bought out a lease so this is unfamiliar territory. 60% RV is applied to the MSRP of $106,825. However, my lease payment is calculated from the cap cost ($92k), not MSRP. My contract says that the Purchase Option at End Of Lease Term is $64k, which is 60% of MSRP, not Cap Cost. If it was based on Cap Cost it should be $55k, not $64k. Does that mean that if I buy at lease term, I'm essentially stripping away all the discounts and incentives I had applied to the lease?

Interestingly, and in contradiction to my lease contract, when I request a Lease Payoff quote, it comes out to Cap Cost minus monthly payments I have already made. If that is accurate, then the Lease Payoff is 60% of cap cost, not MSRP. I know this because my lease payoff is $90k and the car was stickered $107k and it's only been 2 months.

You are not losing any discounts and incentives if you buy out the lease, at any point, period. The discounts were applied against MSRP. If you buy out the lease, the buyout figure is derived from the cap cost (i.e. MSRP minus discounts and incentives) and residual. The residual number is based on MSRP so the calculus should be remaining lease payments + residual value (60% of MSRP) = payoff.

Budget M3 is asking for something that is impossible on a CS. There is no such thing as a residual of 60% of CAP cost anyway, since that's not how leases work, and that's not how manufacturers set residuals. Residuals are based off of MSRP, and he is obviously looking at the wrong car with that $54K figure in mind.

[LVI]

Originally Posted by jmg

Thanks for the clarification. Yes, it seems payoff is $55k right before lease term.

no, payoff is residual + any remaining lease payments. the calculation may be a bit more involved (i.e. PV of lease payment total discounted for the interest/money factor, etc.) but this should be described in the lease agreement. The residual plus payments remaining should get you close enough though.

[jmg]

Originally Posted by lawrence1

You are not losing any discounts and incentives if you buy out the lease, at any point, period. The discounts were applied against MSRP. If you buy out the lease, the buyout figure is derived from the cap cost (i.e. MSRP minus discounts and incentives) and residual. The residual number is based on MSRP so the calculus should be remaining lease payments + residual value (60% of MSRP) = payoff.

EDIT: Nevermind, I get it now. Lease payoff is the residual plus payments due.

Originally Posted by lawrence1

Budget M3 is asking for something that is impossible on a CS. There is no such thing as a residual of 60% of CAP cost anyway, since that's not how leases work, and that's not how manufacturers set residuals. Residuals are based off of MSRP, and he is obviously looking at the wrong car with that $54K figure in mind.

I think you are right, which is why I asked for what he was looking for.

Makes me wonder why anyone would buy out a lease unless you can renegotiate the price. Rent charge on the lease makes it hard to swallow.

[LVI]

Originally Posted by jmg

EDIT: Nevermind, I get it now. Lease payoff is the residual plus payments due.



I think you are right, which is why I asked for what he was looking for.

Makes me wonder why anyone would buy out a lease unless you can renegotiate the price. Rent charge on the lease makes it hard to swallow.

Right. Renegotiating the residual or payoff is guaranteed to be a non starter so far out from lease end.

My guess is many lease first if they are unsure whether they will like the car, end up liking it and buy out at the end. Some can also take advantage of the tax write-off and then buy out at the end. Then you also have those who are "stretching" and are after the lowest payment possible ... lease first for 3 yrs, then finance again when buying out. This is of course the least cost effective way to acquire a car but i'm sure it happens. I can think of a few other scenarios where residuals are set low or accumulated mileage ends up way less than the lease allows, thus substantial equity is built up over the lease term.

anyhow, nice car! i hope you find a good home for it!