Lease coming to an end....buy vs return?

[flpnout]

My 2.5 years lease is coming to an end in 2 months and I'm on the fence on keeping the Z4 or returning it. I was hoping to see some articles about an LCI/refresh to chart out the changes for 2013 if any. Or if a Z4-M maybe on the horizon? For those that have leases due to expire, has BMW contacted you on any offers like a "pull ahead" program, lowered residual value or include CPO to keep your car?

I've never kept any of my prior leases. For some reason, I'm feeling a bit attached to this Z4. This is the first time I am having hard time deciding. I thought about asking to extend my lease out another 6 months. And if possible, I would like my residual lowered incase I decide to purchase it then.

If I turn it in, my Eisenmann Race Exhaust, M-Bumper, Gloss black performance grills, 3D Design diffuser go on sale in case anyone LOCAL is interested...

[STOOF]

Whats your buyout?

[flpnout]

Residual Value is $40,100.

[STOOF]

Well, its somewhat on point to current market value. If youre willing to either risk keeping the car out of warranty, or purchase extended warranty it may be worth it to keep it.

Otherwise I wouldnt. Why not just extend it 6 months and see how you feel about it then.

If you do return it, id be interested in the diffuser.

[rchaas]

I'm in the same situation. They have offered to lower the residual, although they haven't yet made a firm offer. I think I'd like to keep it and make it a project car...ESS stage 2, FMIC, exhaust, coil overs, etc and have some fun with it. I held off on upgrades since it was a lease car and knew I'd be faced with just these issues.

Or....get an M3? or something even more of a splurge...just can't decide.

Might be interested in your exhaust (and diffuser) if you decide to walk away, flpnout.

[flpnout]

If they lower the residual to $35k I would buy it. But I highly doubt they will. They haven't called me yet. Who offered lower residual, BMW Financials or BMW dealership? Did that include CPO warranty?

[richard in NC]

I'll be there in 4 months. I will likely just turn it in. I'm thinking M3 this time or wait and save my pennies for an M5. I'd do that once the X5 lease ends next summer.

I did buy out my '02 M5. I got it CPO'd at the same time. The dealer arranged a "sell/buy" deal. I signed both seller and buyer papers. That was necessary since I was waay over mileage and would have paid a ton as a lease return.

[rchaas]

Who offered lower residual, BMW Financials or BMW dealership? Did that include CPO warranty?

So far, the dealer has said they'll "make me a good deal". I have been buying BMW's from them for some time now, and each time I buy, the deals get a bit better. They are not known for deep discounts, so we'll see what they offer. I am not sure about the CPO warranty, but its a great suggestion. $35K would be an excellent deal, but i'll be surprised if they offer anything below 38K.

[flpnout]

I just got back from a dealership. I spoke to the Sales Manager and he said he would probably be able to offer some discount and have it CPO, but would prefer I wait closer to turn in so he could try to get me an aggressive discount. I'll check back with him in April. He also likes the way my car looks and if I turn it in, he said I could leave it as is if I don't want to deal with the hassle of removing the parts.

I don't know....after driving it with the top down today, I'm still loving this car!

[z4z4z4]

The suspense has a grip on me. I say continue to enjoy your beautiful ride. A few personal mods to refresh the love relationship.

[rchaas]

The suspense has a grip on me.

LOL. My turn-in is in three weeks, so I think its time to seek an "aggresive discount"! I agree, I think i'd like to continue the love affair. Top down motoring is the best!!

[Mr. ///M3 RD]

flpnout,

I say extend the lease or purchase this fine car think of the money you already put on the table so far including the mods.

It's a great car the right exterior and interior colour combination and think of it TopDown weather is just around the corner

Good Luck making your final decision ... then have fun negotiating ...

[35iDriver]

Originally Posted by rchaas

So far, the dealer has said they'll "make me a good deal". I have been buying BMW's from them for some time now, and each time I buy, the deals get a bit better. They are not known for deep discounts, so we'll see what they offer. I am not sure about the CPO warranty, but its a great suggestion. $35K would be an excellent deal, but i'll be surprised if they offer anything below 38K.

The dealer will make you an offer that is good... FOR THEM. Then, you want to counter-offer, and continue to negotiate until the deal is good....FOR YOU.

[flpnout]

Thanks for feedback peeps! I am leaning towards keeping the car. I'll just have to see what the offer/counter-offer turns out to be and if it makes sense financially.

[HerrK]

Personally I never understood how a lease made finacial sense unless you are/were able to write off the cost as a business expense. So I asked myself is there some other way leasing makes sense? Did a quick web search and came up with this article. Maybe this is leasing vs ownership 101 but I thought it was interesting.

http://www.leaseguide.com/lease03.htm

Now I know why I've never leased a car before. I fall into the long term ownership with no monthly payments, work on my own vehicle for the most part, like to do long term life testing, and ocasssionally make mods.

Best of luck with your decision.

[flpnout]

I like leasing as I have a history of changing cars every 2 to 3 years. I've had leases where I got tired of the car within the first year and placed them on swapalease.com. This is the first time I've been sort of attached to a car to want to keep it longer. It is also the first time I every modified a car with an exhaust/Dinan tune. Usually I only have the windows tinted as a mod.

[rchaas]

I too frequently switch cars, and like to get new ones. So, leasing has made sense for me in the past. However, I have never bought a car at the end of a lease until now...definitely not a win from a financial standpoint...but in this case, maybe a happy ending for all concerned! I might get bored after another year or two, but for now I am really enjoying the car.

[35iDriver]

If you are going to buy your car at the end of the lease, basically what you are doing is turning in your car at lease end, then buying your own used car back from the dealer. If they sell it to you for the market value and give you a competitive inrterest rate then you are OK. If they need to sell it to you for more than market value and are not giving you a good interest rate, because they are too greedy, then walk away.

Unless you have a good sized down payment, it would seem to make more sense to just extend the lease term.

[ring007]

If you decide to keep it, make sure to get a great buyout price because once all the '11s start coming back to dealers in 12-16 months from the crazy stupid cheap 24 month lease BMW offered last spring, the resale value on the Z4s is going to tank because NO ONE is going to buy those cars at the end with their 79-82% residuals and the dealers and BMWFS are going to be stuck with a lot of cars. The market will be flooded with lease return inventory driving down trade and whole sale prices.

[timwhayden]

I have one of the '11 cheap leases and I agree with the above post. I am wondering if when the time comes to turn mine in in 1.5 yrs if they will significantly come off the residual since they will be stuck with so many of them to sell at retail which by then will probably be much less than 78-82% of new. Would they rather put them on the lot and lose money or just sell it to me and save the expense of retailing it...

[stickshifter69]

I say keep the Zed! Looks like you spent $$ modifying it. Isn't it hard to let go of something so beautifully personalized? I''m just saying'!

[stickshifter69]

Originally Posted by flpnout

My 2.5 years lease is coming to an end in 2 months and I'm on the fence on keeping the Z4 or returning it. I was hoping to see some articles about an LCI/refresh to chart out the changes for 2013 if any. Or if a Z4-M maybe on the horizon?

Sounds like you like your Z4 but want a Z4-M. Since you have an E92 M3, and the body is getting a bit on, just take the V8 out and drop it in the Z4! There's a change for you to consider!