Quote:
Originally Posted by itrocks4u
Hello everyone,
Hope all is well.
Given Covid-19, I'm in a situation where I'm only at 5,000 miles on my 19 M4 CS out of 20,000, when I should have been at about 12,500. From the looks of it, I'd be lucky if I can do 10,000. So I started to think if I should instead buy the car out. Reading numerous threads from the forums, there are variations on forum members' thoughts whether buying out the car is a good idea or bad.
Assuming a low money factor (or say 0% interest), my understanding is that whether buying outright or leasing first and then buying at the end of the lease period should have no difference. For e.g. if the car has MSRP of $100,000 that was negotiated down to $80,000. With a residual of $60,000 and $20,000 in payments, it should bring me back to $80,000 out of pocket if I was to lease and buy. So there really is no difference. The key is to compare the residual value to the market value at the end of the lease e.g. is the residual is $60,000 and market is at $50,000, it wouldn't make sense to buy.
Would appreciate any thoughts on this from your experiences.
NOTE: From numerous threats it also says dealers NO LONGER negotiate buy back. BMWFS may give some discount but not to rely on it.
Poll added for fun.
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Residual vrs market is key. Wait till end of the term then go from there. Everything is negotiable especially if you have a vehicle a dealer really wants.