Your thoughts about purchasing when lease ends...

[Alvinized52]

This is my first ///M car. 3yrs ago, I wasnt quite sure I was going to like it, So I decided to leased it under my biz... That way i can write it off and have the option to return it if it didnt work out. Well, I fell in love with the car within the first week of driving it. I originally intended to keep it stock but I couldn't resist the urge to lower it. Of course, one thing leads to another as Im sure most of you in here know. Fast forward 3yrs later, I think I went way overboard with mods... beyond most for sure! And my lease ends in August. LOL. My car is babied with a little under 14k miles on it. I still love the car and leaning on keeping it after lease ends... mostly because im too lazy to restore back to stock and I would hate to partout my tastefully modded M4.

What would you do if you were in my situation? Do you think its a mistake to keep the car? Or a bigger mistake to return the car given the low mileage and mods? Any of you guys know if I can even negotiate the residual /buyout price lower given the low mileage?!
My current residual value on contract is $48K... is this good?

Just added some pics. Build thread link below my signature. Also my Instagram is @ste4lthedF82 for more pics.

**Btw, I would very much appreciate it if we keep this from becoming another "Lease VS Purchase" thread. There are already plenty of threads for that discussion.

[itrocks4u]

Where is the link to thread with your mods. We can assess if you should buy it or not.

On a serious note if you've babied the car, just keep it. 14K miles is nothing over 3 years. Maybe consider warranty but with that low miles, how handy would it be over the next few years.

On a more serious note, need the link.

[itrocks4u]

Holy just saw your build. Definitely keep it.

If you plan to part out dibs on headlights and steering wheel.

[RickFLM4]

Unless it was in an accident, it sounds to me like a good candidate to buy out.

[RobbyMack]

De mod, lease new M through your business add old parts to new. Honestly the tax advantage to leasing through the business makes the most sense vs buying. But assuming you're paying cash for the buy out then it's not a terrible idea if you don't want to de mod. If you have to finance the buy out then no because you're (generally, ymmv) paying a ton more than necessary in interest over longer term.

[G35POPPEDMYCHERRY]

def keep it. i leased with intention to buyout. ended up being only a few hundred more than a 5yr/0.9% finance lol. ill be under 20k at the end of 3yrs as well. will be buying out...very torn on getting it CPO'd. car has been good to me, might be cheaper to underwrite it myself

[gatorfast]

Definitely keep it. You love it and have it set up the way you want it.

[Alvinized52]

Originally Posted by itrocks4u

Where is the link to thread with your mods. We can assess if you should buy it or not.

On a serious note if you've babied the car, just keep it. 14K miles is nothing over 3 years. Maybe consider warranty but with that low miles, how handy would it be over the next few years.

On a more serious note, need the link.

I have my build thread link under my signature.

[Alvinized52]

Originally Posted by RickFLM4

Unless it was in an accident, it sounds to me like a good candidate to buy out.

No accidents... no issues. Garage kept. Never tracked. Never Launched. Hardly driven cuz i work 2 blocks away... and i work too much plus i have an E46 daily. Lol. Car is in perfect shape. Sometimes i wonder why I even got it in the first place. LOL. Most of the mileage is from car meets and auto shows. Ive had 3 oil changes within 13k miles.... and about to get one more before lease ends. (Since it been a year since the last one)

[Alvinized52]

Originally Posted by G35POPPEDMYCHERRY

def keep it. i leased with intention to buyout. ended up being only a few hundred more than a 5yr/0.9% finance lol. ill be under 20k at the end of 3yrs as well. will be buying out...very torn on getting it CPO'd. car has been good to me, might be cheaper to underwrite it myself

Yeah... torn about CPO and extended warranty as well. Not sure it will be woth it to get in my situation. What other options are there?

[G35POPPEDMYCHERRY]

Originally Posted by Alvinized52

Yeah... torn about CPO and extended warranty as well. Not sure it will be woth it to get in my situation. What other options are there?

I hear third party is cheaper and can cover the main nuts and bolts ie the powertrain. I really doubt I'm going to CPO it...the main reason being I want to tune it lol.

[Alvinized52]

Originally Posted by G35POPPEDMYCHERRY

def keep it. i leased with intention to buyout. ended up being only a few hundred more than a 5yr/0.9% finance lol. ill be under 20k at the end of 3yrs as well. will be buying out...very torn on getting it CPO'd. car has been good to me, might be cheaper to underwrite it myself

If you dont mind.... Where did you get your financing from after lease? I dont know the best way to handle it. Its my first lease... let alone a buy out.

[Alvinized52]

Originally Posted by G35POPPEDMYCHERRY

I hear third party is cheaper and can cover the main nuts and bolts ie the powertrain. I really doubt I'm going to CPO it...the main reason being I want to tune it lol.

How do you get 3rd party coverage?

[G35POPPEDMYCHERRY]

Originally Posted by Alvinized52

How do you get 3rd party coverage?

https://www.endurancewarranty.com/qu...mc=263-_-t3720

now I have not had experience with it, maybe someone can chime in.

this or just not insuring. for us who don't put much mileage on the car, the CPO cost can easily inflate the vehicle 2-3k, but that can be offset with your low mileage.

[Alvinized52]

Originally Posted by RobbyMack

De mod, lease new M through your business add old parts to new. Honestly the tax advantage to leasing through the business makes the most sense vs buying. But assuming you're paying cash for the buy out then it's not a terrible idea if you don't want to de mod. If you have to finance the buy out then no because you're (generally, ymmv) paying a ton more than necessary in interest over longer term.

All True... though if i do buy it, it will be under my biz as well... So i can write off depreciation. I could buy it all cash... but rather use that for more mods. Lol

[LOW4LYF]

Doing the same thing. 3K Miles in two years

[Wmf80]

Buy it out.

[Vitacura]

That is one sharp looking car!

Around 90 days prior to lease maturity, BMW dealers can get a number different from the residual to purchase the vehicle from BMWFS. (Dynamic pricing based on mileage, market and other factors) Some dealers will hold firm and sell at residual, others will slightly mark up the price they can get the car for and sell it to you at a lower than residual price. So any negotiation has to go through a dealership and not BMWFS, but it is possible to purchase your car near lease end for below the residual in the lease contract.

Hope this helps!

[Bluesummer]

here's what I would do if I were you:

1. negotiate another M4 with the dealer and get an order number
2. call up BMWFS to extend your lease based on aprox. arrival day of your new car
3. call up your shop and let them know you are going to be removing and installing the same parts on the new car
4. return the car to stock 1 month before returning the car.
5. get the new car and relive the modding phase all over again

[BMW Morgan]

It will be tough to get the buy out negotiated with the car having such low mileage.... but maybe the market changes by then. Typically the dealer can “purchase” the vehicle for MMR and resell to the customer at that number or mark it up.

Good luck.

[Graves]

I leased mine with the plans on buying it at lease end. Mine will not be a daily driver until I return to the states after 3 years in Germany. With the money and time you have in it I would definitely buy. But that's just me.

[Alvinized52]

Originally Posted by Vitacura

That is one sharp looking car!

Around 90 days prior to lease maturity, BMW dealers can get a number different from the residual to purchase the vehicle from BMWFS. (Dynamic pricing based on mileage, market and other factors) Some dealers will hold firm and sell at residual, others will slightly mark up the price they can get the car for and sell it to you at a lower than residual price. So any negotiation has to go through a dealership and not BMWFS, but it is possible to purchase your car near lease end for below the residual in the lease contract.

Hope this helps!

Thanks! Based on what you said.... My logic tells me that my low mileage will likely hurt me more than help me in this scenario. I doubt I will be able to lower my residual that much if at all...since the resale value of my car will be pretty good because of the low miles.