12-28-2021, 03:43 AM | #1 |
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I think I値l be buying out my lease
I have grown accustomed to getting a new car every 36 months. However I cannot see paying substantially more for a less equipped vehicle.
My lease is up in June and I got an email to come in early. Car is MSRP and non marked up MF for repeat customers. The lease price works out to $ 350 more a month for a less equipped vehicle. It just bothers me to pay top dollar And sales tax on an inflated number. Buying is not better and maybe worse bc then you own the car (depreciating asset) at a higher price and will be worse off when you try to sell it when the market reverts. I get that certain features are gone due to chip shortages but paying so much more for a leased vehicle makes zero sense to me. Unless my dealer comes back with a deal before June I値l be buying my lease out in June. I do like my car and I値l just add a BMW warranty. When the market corrects or my car wears out I値l revisit leasing. |
12-28-2021, 01:00 PM | #2 | |
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12-28-2021, 03:00 PM | #3 |
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I could not agree more. Funny once I told my Sales person I was not ordering a car because of the inflated price and missing features (on the 540) they told me if I wanted to bump up to the M550 some of those missing features would be present. (Surround view cameras). I said thanks but no thanks unless we can get close to my old lease price with tire insurance and extended maintenance ( wearitems -brake pads /wipers ect).
Also told him If the features come back before June (on a 540) and we can do another 8% off deal with loyalty and whatever Other programs call me. Otherwise I知 not interested in a new lease at this time at these prices. I have also for the first time called other dealers to tell them what I知 looking for and he knows whomever comes through first earns the business. He knows I drive by another BMW dealer to get to him everytime I go to his dealership. I told him I知 not angry with him or the dealer. If this is the new normal OK I知 not buying/leasing. I don稚 need to get upside down on a vehicle purchase or nailed on a higher lease bc of supply tightness. Not to mention the extra sales tax on the inflated price. I believe if we don稚 buy or lease new cars at these inflated prices, the prices will once again get back to below MSRP. If they won稚 value a loyal customer or can稚 OK- I値l buy out my lease. |
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12-28-2021, 03:27 PM | #4 |
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I would not buy or lease anything while dealerships are just raking in cash because they can. Pay your lease off and own it.
I read a JP Morgan article last week where one of their top analysts forecast the chip shortage to stabilize around Summer 2022. They went on to say that once this happens the Dealerships will have incredible deals on used vehicles sitting on the lots due to the influx of new vehicles swarming in. |
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12-28-2021, 04:53 PM | #5 |
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Holding out if the correct approach IMHO.
I wouldn't participate in this market. The rules are being rewritten and in times of flux like this is when you'll get hosed the most... We don't know what the new "normal" will look like for cars. Perhaps the manufacturers will keep supplies short and move more to an order model to keep prices up. One things for sure though the space is very competitive so once things start to finally stabilize you'll see that competitive drive push things into a better place. If prices don't come back down I feel we'll see other enhancements come up to "justify" the uptick. Like longer warranties as standard and etc. With the G60 coming being announced sometime next year I imagine (as it should be staring production in 2023). It just makes sense to sit this whole thing out... |
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12-28-2021, 05:55 PM | #6 |
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MSRP at base money factor sounds pretty decent given today痴 environment to be honest. I suspect the residual on your lease will be pretty high so I wonder if that buyout will be favorable, especially if you don稚 plan to keep it for a long time afterwards.
I can understand where you池e coming from though. I知 on a $600/mo lease for a $75k MSRP car. I fear that the era of these cheap leases is over. Right now there痴 a lot of tough talk from the industry about how they will not chase volume as aggressively even after the chip shortage abates. I suspect that even when my lease is up in Oct 2023, pricing won稚 be much better. If that痴 the case I will probably get a Lexus and become a long term owner. |
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12-30-2021, 12:27 PM | #7 |
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I gave up the lease on my 540i because even at today's inflated used car prices, the residual/buyout was still above market rates. If I didn't have my M4, then I probably would have bought the car, but I didn't need to.
I suspect that eventually things will return to normal. The manufacturers want to sell as many cars as they possibly can. They need to maximize return on the huge investments that they've made in manufacturing plants, staffing and R&D. You can't do that simply by reducing incentives, you do it by making more product. The dealerships are probably doing nearly as well as before, as they are able to maximize profits selling half as many cars, but not the manufacturers.
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01-03-2022, 03:27 AM | #9 |
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Very good point. One of my best friends who works in the car industry here in the UK is saying that many people are buying used cars on finance and when the market drops they will be worthless.
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01-03-2022, 06:11 AM | #10 |
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Well suspect that when these chip shortages stop (2022?? Who knows!) then I guess they will fall back to their pre chip shortages market prices so yes I guess buying used now could see a larger depreciation drop than usual.
I have my 2017 540 from new , it only has 23k miles on it so I am planning to keep mine for time being Items putting me off buying new at present include :- Chip shortages - not getting desired spec of car or delay Speed limiters coming in on new cars from march in the EU (not sure exactly how they will be implemented yet) LCI g30 doesn't really appeal , 550 is only model of interest but a lot of cash and some thing I don't like about it compared to pre LCI 5 series g60, will have to wait on that given above items. Not keen on where bmw are going at the moment with things like non circular steering wheels and touch screens for a absolutely everything - think they moved away from good ergonomics to gimmicks which seems fashionable now.( how can ergonomics be a fashionable thing?!) |
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01-07-2022, 02:27 AM | #11 |
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OP, We are in same situation as yours with my wife's 19 540i. Her lease is up in August, but she is hesitant to buy. lease numbers don't make sense at all in the BMW world right now. I am telling her maybe we should get a Tycan for now, or finance a new 540i, but it will not hold value since the new model is coming next year.
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01-07-2022, 09:31 AM | #12 |
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With everything going on, the price I negotiated (well below MSRP), the finance rate of just .9% and the current value of used cars, the wife and I decided to just purchase and NOT lease the 540i we ordered back in Aug of 2021. We were leaning towards our first ever lease.
Delivery is set for Mon. Jan. 10. |
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01-12-2022, 01:57 AM | #13 | |
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Is the tacan in the same price range monthly as a 540 ?
Porsche usually is higher. Is there an awd tacan ? I have not shopped it at all. Quote:
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01-15-2022, 03:47 AM | #14 | ||
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01-15-2022, 05:58 AM | #15 |
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Thanks for the help.
Is the Porsche well optioned ? I know those get crazy. Price seems too good is why I知 asking. |
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01-15-2022, 03:14 PM | #16 | |
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01-15-2022, 04:00 PM | #17 |
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Not totally up on the abbreviations
Are the brakes PCCB brakes ? Or something different Are the surround view cameras and auto brake intervention standard ? Thanks |
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