[joebiron]

Signed a 3 year 15k mile lease in Jan 2021 on a gorgeous M340i xdrive.

I got the 15k mile lease because I was anticipating a return to pre-covid commutes, but I took a job working remotely 6 months ago, so at this point I've only put 16k miles on it in 20 months, I'll probably be under 22k miles by the lease end date.

My residual is about $35k. My buyout quote right now is about $43k, and same-year, same-mileage vehicles in my area are selling for about $54k.

Since I'll likely want to purchase the vehicle anyway when my lease is up in Jan 2024, should I just go for it right now versus paying my monthly lease payment?

What would be the downside/upside of pulling the trigger now versus waiting, especially since I kinda want a pickup truck given my commute and lifestyle situation change (as gorgeous as this car is... ).

thanks for any thoughts.

[TurtleBoy]

It all depends on your MF, current interest rates and your best guess of future interest rates. I bought out my X5 lease 10 months early and saved quite a bit doing so.

While the interest rate you will get is probably higher than the MF it will likely be quite a bit lower than what you will get in another year and half.

[joebiron]

Originally Posted by TurtleBoy

It all depends on your MF, current interest rates and your best guess of future interest rates. I bought out my X5 lease 10 months early and saved quite a bit doing so.

While the interest rate you will get is probably higher than the MF it will likely be quite a bit lower than what you will get in another year and half.

That’s a great point. I guess much of it also has to do with the state of the car market a year from now. My plan would be to buy the M340 at my locked in low buyout price, shop for a Tacoma, then sell the m340 at hopefully a bit of a profit assuming the used market values are still relatively high, as they certainly are now. Toyota seems to be bounced back from the chip shortage, but BMW is also saying they will be out of the pinch this year. Lots of moving parts to this. Maybe I’ll spent the next year test driving midsize pickups and watching the market.

Crazy though that a 2 year old M340i is selling for just $5k under its 2021 MSRP! Seems like I should be able to capitalize on that.

[TurtleBoy]

Used car prices are dropping, down about 11% so far this year, and that will continue.

Neither of them will be close to back to normal this year, maybe another year or so. Toyota sales have plummeted since they can't produce vehicles given the shortages.

[mondayze]

Originally Posted by TurtleBoy

Toyota sales have plummeted since they can't produce vehicles given the shortages.

And they mark up vehicles by $50k lol

[Goldyeti]

is there a benefit to buying the lease out before the end of the lease? I thought of doing the same, I have a 2020 m340i with about 17k miles on it. 16 months left in the lease and the payout is about 47k, on the car that was about 65k(53k after negotiations/downpayment and fees)

[TurtleBoy]

Originally Posted by rlkant18

is there a benefit to buying the lease out before the end of the lease? I thought of doing the same, I have a 2020 m340i with about 17k miles on it. 16 months left in the lease and the payout is about 47k, on the car that was about 65k(55k after negotiations)

There definitely can be an advantage. Just have to run the numbers and see. I saved about $900 or so doing it early. Of course now things are different, since you likely have a lower MF than the going rates. I had cash not getting much of a return so it made sense to use it eliminate the higher MF I had.