[Maui Boy]

I have 14 months left on a 2012 328i Coupe lease. I'm at 32,000 miles with 36,000 allowed. Obviously I'm going to blow the miles. My options are buy extra miles now for about $3,000, or buy car at lease end for residual price of $28,000. I'm also thinking of buying out lease now for pay-off price of $35,000 and get loan that will only cover retail value and I would have to come up with the rest in cash. I really like the car and was thinking of buying it anyway. Is this a good idea - buying out now? I'm concerned about the value of this car now verses at lease end in 2015.

[CJ421]

Call BMW FS and ask, but I'd say why not just continue the lease payments until buyout, then get a loan. I doubt you would save money by buying it out now (if that's even possible).

[D's Bimmer]

You will never save money buying out a lease early. The buyout value includes all remaining interest on lease still owing. Add the fact that you will start paying interest on the buyout loan now means you will be paying more interest than if you just bought it out at lease end.

The reasons you would still consider buying out the car sooner include a material spread in interest rates that benefit you over the amortization of the vehicle or possibly to get into a lower monthly payment to free up present cash flow.

[Maui Boy]

Reasons I would consider buying out now is lower monthly payment and start paying off new loan now while the car still has good value (reasonable milege, might be easier to get a good loan now). If I wait until lease end the car would have way more mileage, close to 50,000, and who knows what the retail value will be on a E92 then.

[upstatedoc]

Boy these leases are a good deal...

For the dealer.

[Jdub679]

Originally Posted by Maui Boy

Reasons I would consider buying out now is lower monthly payment and start paying off new loan now while the car still has good value (reasonable milege, might be easier to get a good loan now). If I wait until lease end the car would have way more mileage, close to 50,000, and who knows what the retail value will be on a E92 then.

I bought out my lease at the end of my lease (with about 2 payments left). You do not want to buy out your lease too early. Your car may break before then, or for some other reason you may not want it anymore. If you are even considering purchasing the car, don't buy the miles either. You can purchase miles almost all the way up until the end of the lease. Lastly, if you buy out your lease, your payments will almost always be HIGHER. Your residual will not be the final price. There will be all remaining payments + taxes as well, and what if you want a warranty (which is a great idea with a used BMW). If you CPO, you can get 0.9% financing, but there is a cost to CPO as well.

[divisionbell77]

Originally Posted by upstatedoc

Boy these leases are a good deal...

For the dealer.

If done properly, the buyer can come out a head in the head. Yes, it is the exception to the rule, but it is possible.

[s!ke]

You could get a really nice 335 for 30-35k. I wouldn't buy out a 328 for that.