"HoustonRunner" (houstonrunner)
06/14/2018 at 10:52 • Filed to: None
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"HoustonRunner" (houstonrunner)
06/14/2018 at 10:52 • Filed to: None | 0
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Turning in my leased 2015 328i sedan at the end of this month, so out of curiosity looked up the market value and my payoff amount (if I was to purchase, which I am definitely not). Ticking the boxes on Edmunds I got about $25k retail, maybe $27k CPO. My payoff would be about $31k. BMW FS is going to take a bath on this one. Picture of the sedan for your time.
I will definitely look it up to see the price they end up putting on it when they post if for sale.
(If you are interested, it is a 328i M Sport, 6 speed manual, leather, adaptive headlights, and parking sensors, and Advantage BMW Houston should have it in inventory by early July.)
WilliamsSW
> HoustonRunner
06/14/2018 at 11:11 |
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That gap is intentional in order to move metal up front. BMW and others have been subsidizing leases that way for years.
I just turned in a Lexus with a $35k buyout, and the car retails for maybe $32k or so.
The fact that everyone wants crossovers doesn’t help the math for BMW either, but consider it money saved on your part (or risk avoided if you had bought the car originally).
What’s next??
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HoustonRunner
> WilliamsSW
06/14/2018 at 11:15 |
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Agree, but I think your point on crossover popularity is driving that gap even further apart then it was when I started the lease 3 years ago.
Supreme Chancellor and Glorious Leader SaveTheIntegras
> HoustonRunner
06/14/2018 at 11:18 |
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I wish my boss would okay me buying bmw’s, but even he knows they’re financial death traps
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WilliamsSW
> HoustonRunner
06/14/2018 at 11:26 |
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Very true- the gap on my car was between my buyout and a CPO car. The CPO car includes dealer profit and reconditioning costs.
The true apples to apples gap is probably $6k or so on my car. I’m guessing that Lexus expected that gap to be $2-3k maybe. The rest is probably due to Xovers.
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HoustonRunner
> Supreme Chancellor and Glorious Leader SaveTheIntegras
06/14/2018 at 11:43 |
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I have a very soft spot for BMW’s, and even though it is just the 2.0 4cyl turbo it is a hoot to drive. But I would NOT have purchased it new, and I wouldn’t even buy it for the retail value now.
Leasing has been interesting though. It has a rattle in the back seat that has been there for about a year. If I owned it I’d hunt that rattle down the day I first heard it. Since it is a lease my attitude is “eh, oh well, only have to live with it for X more months.”
E92M3
> HoustonRunner
06/14/2018 at 11:44 |
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Are they really taking a bath though? Have you calculated your total lease cost? My bet is that it was more than the 3 years of depreciation (MSRP-todays retail price).
Especially once you factor in you could of negotiated a purchase price below MSRP. Let’s be conservative and say MSRP-$3000-$25000. That would be the depreciation in 3 years if you purchased the car (instead if leased). Compare that number to your money down + all lease payments + any fees due at lease end.
E90M3
> HoustonRunner
06/14/2018 at 12:24 |
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Advantage BMW Houston? Is that on Gray street? If so, I almost bought an M3 from them.
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HoustonRunner
> E92M3
06/14/2018 at 14:17 |
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Good point.
Quick math - I paid about $13.5k payments, plus they gave me $6k for my trade in , and $350 return fee. MSRP was $47k, so based on that they have $27k left in it. Now they probably only got $4k at auction for the 120k mile GTI I traded in, but they also aren’t out the MSRP for the car, so you have a good point.
I still believe BMW FS went into this with a depreciation curve that showed the 328 would be worth more than $27k to them in 2018 based on the 2015 sedan market. When I started the lease there were regular messages on the BWM forums about being contacted from BMW FS for early turn in bonuses because they could flip the cars easily. I think I was offered something minimal like $2k “customer loyalty” if I wanted to re-up in another BMW.
Which brings an interesting question (maybe for Tom McParland) - how have depreciation curves for sedan leases changed in the last 2-4 years with the CUV takeover?
BTW - replacing the 328 will be a minivan....but that is a post for a different day.
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HoustonRunner
> E90M3
06/14/2018 at 14:19 |
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Yes. Overall I’ve had a very good experience with them.
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HoustonRunner
> HoustonRunner
06/14/2018 at 14:20 |
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OK, totally did not know this would also be a FP topic...my 328 taking home a solid 4th place!
https://jalopnik.com/these-are-the-late-model-cars-with-the-highest-deprecia-1826829308
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E92M3
> HoustonRunner
06/14/2018 at 14:47 |
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I’d say that’s a fair deal for both parties. It would of cost you about the same if you’d had bought it. But now you can just give it back instead of having the hassle of trying to sell it.
I wish Honda had a fair deal on the Ridgeline. They want $500 a month plus $3k down, but it only depreciates about $250 a month in the first 3 years.