Need End Lease/puchase Advise

[glaucman]

2002 540iA Sport/43500 miles/3yr-45000mile lease ends 24 December 2004.

I would like to purchase this car and need advice on the best method.

(a)pay the residual, $32,000+tax, and only maintain the remaining BMW warranty of 4yr/48000mi.

(b)pay the residual and purchase a warranty for a 3rd party vendor like WarrantyDirect.

©turn in the car to the dealer, have it become a Certified Preowned BMW and then by it back. I am told I would pay for whatever the necesary repairs would be and I would have the BMW backed CPO warranty which is 3yr/100,000mi.

Thanks in advance.

['89 635 csi]

Originally posted by glaucman@Dec 16 2004, 06:29 AM
2002 540iA Sport/43500 miles/3yr-45000mile lease ends 24 December 2004.

I would like to purchase this car and need advice on the best method.

(a)pay the residual, $32,000+tax, and only maintain the remaining BMW warranty of 4yr/48000mi.

(b)pay the residual and purchase a warranty for a 3rd party vendor like WarrantyDirect.

©turn in the car to the dealer, have it become a Certified Preowned BMW and then by it back. I am told I would pay for whatever the necesary repairs would be and I would have the BMW backed CPO warranty which is 3yr/100,000mi.

Thanks in advance.

[snapback]251965[/snapback]

I would do whatever it takes to get it certified! Even if that means paying a little more.

[billB]

Glaucman

A point or two to remember:
A. Since interest rates are not crucial in the lease like it is in purchases. The main concern is what percentage of your 540 price you have already paid over the lease period. Probably you had $700-$1000 a month plus the down payment?
B. Check to see if your 540 is worth more and/or less than its residual value "as specified in your lease". Some times people get a head of their lease in terms of residual, simply, because BMWs don’t depreciate that much in value compared with other cars. As such, your car residual value may be less than what your 540 is actually worth!
Meanwhile give it a click here and I hope it will help you in taking the right decision http://www.leaseguide.com./
regards
billb

[Andryuha]

Just to throw in my 2cents: Pay for the car gith away if you got the money, and dont lease it. You WILL lose money if you lease it. Personally, I pay cash for my cars, cause I hate being in debt, or owing somebody money

[glaucman]

Well here was my deal on the aforementioned 2002 540iA. I assumed ownership yesterday.

The dealer inspected the vehicle and found no issues or concerns. He then stated I could purchase the car for the residual + $350 diposition fee + $1300.00 CPO fee. I countered with the residual fee - $1300 CPO and reminded him that the disposition fee at the end of the lease was for the cost of reselling the vehicle which was not an issue since I was a ready buyer. He took it and I got the car for $1300 less than the residual fee. This amount is well below the current Kelly BB value and I have the CPO warranty. I feel this was a win-win deal and am comfortable with it.

Thanks for the advise from all.

[billB]

Originally posted by glaucman@Dec 22 2004, 02:19 PM
Well here was my deal on the aforementioned 2002 540iA.* I assumed ownership yesterday.

The dealer inspected the vehicle and found no issues or concerns.* He then stated I could purchase the car for the residual + $350 diposition fee + $1300.00 CPO fee.* I countered with the residual fee - $1300 CPO and reminded him that the disposition fee at the end of the lease was for the cost of reselling the vehicle which was not an issue since I was a ready buyer.* He took it and I got the car for $1300 less than the residual fee.* This amount is well below the current Kelly BB value and I have the CPO warranty.* I feel this was a win-win deal and am comfortable with it.

Thanks for the advise from all.

[snapback]256230[/snapback]

Congratulation and Good for u don't forget the extended warranty (many tricks and many fine prints) wishing the best.

P.S. A long Island/NY dealer sold me an extended policy for $1200 2 years ago, not only I was not able to use it, I couldn't cancel it after 2 months. Co. had 800 # with no human beings to talk to.
regards
billb