Switching from Lease to Loan

[Nevervana]

Okay after all that researching, the thousands of dollars I would have to pay just to switch from one lease to a new lease, wasn't worth it.

I washed my car again and it looked literally showroom new. What am I, greedy? Why not switch to a loan and enjoy the lower payments?

So my questions have now changed:

1) I have the option to bring my 2006 BMW to a dealer and sell it to them. They would in turn "BMW Certify" it and sell it back to me at current market value. This option involves a $2500 certification fee, but I am already approved because the dealership controls approval if I go to the dealer.

2) I have the option to call BMW Financial and simply express to them that I want to switch to a loan at the end of my lease. This option does not include a guarantee'd approval, and they would need to re-run my credit and determine if I qualify.

The dealer states there is a promotion going for 2006 certified pre-owned six series of a rate of 2.9%.

I dont know if I'd get that, going directly through BMW Financial, but I would assume so?

I guess I should get all the information first, but is there anything im missing?

At first I was set on going to the dealer and doing the buy option. But it seems like that would be fairly stupid if I get the same rate without having to pay $2500 to certify it.

I think I also get an extended warranty if I do the buy option. Comes with the certification.

[boxboss]

Okay after all that researching, the thousands of dollars I would have to pay just to switch from one lease to a new lease, wasn't worth it.

I washed my car again and it looked literally showroom new. What am I, greedy? Why not switch to a loan and enjoy the lower payments?

So my questions have now changed:

1) I have the option to bring my 2006 BMW to a dealer and sell it to them. They would in turn "BMW Certify" it and sell it back to me at current market value. This option involves a $2500 certification fee, but I am already approved because the dealership controls approval if I go to the dealer.

2) I have the option to call BMW Financial and simply express to them that I want to switch to a loan at the end of my lease. This option does not include a guarantee'd approval, and they would need to re-run my credit and determine if I qualify.

The dealer states there is a promotion going for 2006 certified pre-owned six series of a rate of 2.9%.

I dont know if I'd get that, going directly through BMW Financial, but I would assume so?

I guess I should get all the information first, but is there anything im missing?

At first I was set on going to the dealer and doing the buy option. But it seems like that would be fairly stupid if I get the same rate without having to pay $2500 to certify it.

I think I also get an extended warranty if I do the buy option. Comes with the certification.
I might be missing something, but why would you want to pay to have it CPO'd? I mean, what do you care? You know the car better than anyone else. I understand wanting a CPO'd for a car you don't know, but not the one you currently have.

All promotions originate through BMWFS, so if there is a promo rate, you'll get it by going through BMWFS.

Buy the extended warranty just before your lease expires then call BMWFS and get the promo loan for the residual.

[Ramphaus]

I might be missing something, but why would you want to pay to have it CPO'd? I mean, what do you care? You know the car better than anyone else. I understand wanting a CPO'd for a car you don't know, but not the one you currently have.

All promotions originate through BMWFS, so if there is a promo rate, you'll get it by going through BMWFS.

Buy the extended warranty just before your lease expires then call BMWFS and get the promo loan for the residual.

+2^43,112,608

[Nevervana]

The logic is that in order to get the 2.9 % it has to be on a certified preowned 2006 six series...

[bdaw]

The logic is that in order to get the 2.9 % it has to be on a certified preowned 2006 six series...

I guess the confusion is that the loan would go through BMWFS for the 2.9%. The dealer told you "they would approve the loan" if you went back to them, yet they are still using BMWFS' money to make the loan. Otherwise they are using their own private financing to resell it to you at BMWFS rate. Either way it is going on your credit.

It sounds like the dealership is making sure you don't shop around by feeding you full of expectations without any guarantee of follow through.

[Gran Turismo]

What about option 3: Switching to a new lease contract about the SAME car based on the considerably lower car (residual) values?
Is it really relevant WHO previously owned the car regarding this 2.9% promotion?

[bdaw]

What about option 3: Switching to a new lease contract about the SAME car based on the considerably lower car (residual) values?
Is it really relevant WHO previously owned the car regarding this 2.9% promotion?

i don't think it's relivant who owned the car to qualify for the 2.9%, just as long as it comes from a BMW dealership with BMWFS and is CPOed by the dealer.

[boxboss]

i don't think it's relivant who owned the car to qualify for the 2.9%, just as long as it comes from a BMW dealership with BMWFS and is CPOed by the dealer.
If the cost to CPO is $2500, which I can't see including the extended warranty/maintenance as those are ~$5k by themselves, he would need to run the numbers to see if a traditional loan from his bank/credit union would be more than the 2.9% + $2500.

I'd be very cautious selling it back to the dealer then repurchasing it.

[CH650]

If the cost to CPO is $2500, which I can't see including the extended warranty/maintenance as those are ~$5k by themselves, he would need to run the numbers to see if a traditional loan from his bank/credit union would be more than the 2.9% + $2500.

I'd be very cautious selling it back to the dealer then repurchasing it.

I'd be curiuos what the difference between the buy-back price and the CPO fair market value is going to be? Possibley the amount of the warranty/maintennance and then some?

I have about 3,000 miles to go before my warranty expires and in need to purchase an extended one. I'll do a search on the site first but while I'm doing that, has anyone had any experience on purchasing one?

[D!Tailed]

I realize it's not BWM, but I was able to do CPO on the VW Touareg I used to have. The certification cost made it so that they could CPO the car as opposed to selling it as a Used car. They made a little more money on it that way, but the extending of the warantee was covered by VW. I think VW looks at it and assumes that if the car goes through the CPO inspection that it is in good enough shape that it won't cost them tons in warantee maintenance in the long run.

So I wouldn't be surprised if the certification cost was the only cost to get the extended warantee. Seems like a great deal to me.

[NoM6D]

D! - has your sig slowed down, or is my computer off?

[D!Tailed]

D! - has your sig slowed down, or is my computer off?

:greenlaff:

[Richard in NC]

I'd be curiuos what the difference between the buy-back price and the CPO fair market value is going to be? Possibley the amount of the warranty/maintennance and then some?

I have about 3,000 miles to go before my warranty expires and in need to purchase an extended one. I'll do a search on the site first but while I'm doing that, has anyone had any experience on purchasing one?

I did that on the '02 M5. The turn in, CPO, buy back deal. I think the CPO cost was $2000. The CPO provides an extended warranty that paid for itself within 1 year.

The only down side is realizing how much you are paying for the car over a 7/8 year period. Although I traded for the 650i in 2 years after the buyout.
It worked out to 5 years of payments resulting in a small equity in the car versus an over mileage lease that I would have paid a big mileage penalty.

[Jen K]

hmmm...I was thinking of turning my lease into a loan. The current M6 finance rate is 0.9% right? I need to call the dealer and work on that. I currently have 17k miles on my car and it will be at 19k by the time 1 year of the lease is over and I paid for 45k for 3 years. At that rate, I'd be paying for 12k miles extra at least end plus my warranty would have runout at 50k. so, at 12k extra miles at 0.20 per mile, that would only be 2400.00 extra? Right? I would like to keep my car until the lease ends, but I also would like an X6 M...

[Nevervana]

Okay I confirmed with BMWFS that i will NOT get the 2.9% rate unless it is negotiated through the dealer and certified. If I go through BMWFS they said the rate is something like 6.9%.

So to simplify all your comments above, I basically add in the $2500 certification fee, and see if that ends up being cheaper than 6.9% right? Which it is ...

His numbers based on current car value were $970 a month (versus $1451 a month im paying now - WOW!) ... in 4 months when my lease ends, car will be worth even less and payment even less. - Awesome! Same exact car, still looks showroom new, and Im getting 600+ off my payment ....

I seem to remember going at it with a couple guys on this board who told me transitioning from a lease to a loan never results in much of a payment difference.

Someone said certification should only be $2000 ... is that right?

-N-