[RJC-1]

Need to make a decision on keeping my '19 M850 vs leasing a 23.

You can see the specs of my car in my sig and it currently only has 2351 miles. My car has essentially been flawless thus far, it's pristine and I luv it (one of my favorites). But my lease is coming due, and my local dealer (good people) has offered me a decent deal (in today's insane world) on ordering a new '23 with no addendums, and .00040 over the base MF buy rate, which for those that want to know, for a '23 coupe is .00190. I'm also looking at about +$8,000 in positive equity if I sell it to the dealer vs turning it in. When I got the car, it was 12/2019 and I got ~18% off msrp, plus the base buy rate on the MF (grand slam deal), but as we all know BMW has reduced the price of coupe's since then by ~$12k negatively affecting my resale value, which would have been even better if that didn't happen, but it at least helps with getting a new one at msrp.

One of the things I'd need to do if I buy out my car, is get an extended warranty, and I'd want one directly from BMW, what I understand is, this needs to be done before mine runs out late next year, and they are purchased through a dealer and not BMW directly.

Questions: Do I have the above correct re the warranty, and what are the terms/coverage and current cost for these (I'm estimating $5k)? I did some math; keeping the car assuming it further depreciates by 40% from its current buyout in three more years, paying the sales tax, adding in the warranty, adding in a conservative loss of those investable dollars, and new tires at one point, I'd come out ahead buying it out by about $20k vs leasing (that includes factoring the +$8k in positive equity I'd get back if i leased). Is the assumption of 40% in further depreciation 3 years from now sound about right, or should I figure 50%?

If I did order another one, it would essentially be the same, except I'd change the interior from all-black to either black with the M piping, or the Fiona red/black.

Appreciate any input on pros cons to buying out vs leasing, and am I missing anything?

[Ghostrider641]

Only 2300 miles….it’s barely broken in…

[hinckley]

I'm not answering your question, but can you sell it to the dealer directly without going through BMWFS? First I've heard of that.

[RJC-1]

Originally Posted by hinckley

I'm not answering your question, but can you sell it to the dealer directly without going through BMWFS? First I've heard of that.

If that's the case I'd buy it and then sell to them

[RJC-1]

Originally Posted by Ghostrider641

Only 2300 miles….it's barely broken in…

Still smells new inside 🙂

[snowbimmer]

Originally Posted by RJC-1

Still smells new inside ��

Hahaha - you're 26 months in at 2,351 miles. I went thru 2,351 on day 6 when I got my M850 in April. You gotta get out more.

Anyway, this seems like a no-brainer. You didn't say what your lease terms were (how many miles/yr and your residual). If you did 10k/yr lease (which, apparently for you, would be extreme overkill), they would give you a residual in the 60% range - a value that you could buy the car out at. You are not even driving 100 miles/mo, so even worst case scenario has you at only 3,000 at turn in come December. Seems like your car would be worth way more than the buyout. Miles will be the biggest determinant of a cars value - of which you have none, basically. You got 18% off (20k or so?) at purchase, which really helps you when you factor in the 12k price deduction since and the recent price increases. You also were factoring in tires in your costs - you'd probably need a new set sometime around 2030.

You're also buying a car for 60% of its purchase price - and it will be yours. A new lease has you spending 40% of the new price over the next 3 years and walking away with zero again at lease end. And the cost of lease money is way higher than 2.5 years ago.

So, I'd buy it. The warranty will give you piece of mind, but you are probably a long way from ever needing it.

Just curious: You say the M850 is one of your favorites - favorites in the cars you have owned, or a favorite in your current stable? My M850 is one of my favorites, too. And I've done a couple F90s. It's just a great car to drive. I go to the store 2 miles away and take 20 miles to get back home. It's probably why I'll be at 15,000 miles by the end of Sep after 5 months of ownership. Now I'm the one that has to be thinking about tires

[claykin]

If you're happy with your car, consider the buyout. Especially if you've got decent equity after paying sales tax.

At the time of buyout the dealer finance people will offer you extended warranty options. You can also balance that price with asking them to CPO the car which will give you an additional 12 months of warranty (however, it's a bit more restrictive of a warranty than the new car warranty). Usually CPO doesn't make sense but ask.

The BMW extended warranties are pretty good but they're pricey. I'd say you'll be looking at $6K all in for top coverage. Other than BMW, look at Endurance warranties. They have a good reputation and I recall they work well with dealers to get claims approved and using oem parts....

Ask your SA what he thinks.

[RJC-1]

Originally Posted by snowbimmer

Hahaha - you're 26 months in at 2,351 miles. I went thru 2,351 on day 6 when I got my M850 in April. You gotta get out more.
LOL, other vehicles but I do need to drive the 850 more

Anyway, this seems like a no-brainer. You didn't say what your lease terms were (how many miles/yr and your residual). If you did 10k/yr lease (which, apparently for you, would be extreme overkill), they would give you a residual in the 60% range - a value that you could buy the car out at. You are not even driving 100 miles/mo, so even worst case scenario has you at only 3,000 at turn in come December. Seems like your car would be worth way more than the buyout. Miles will be the biggest determinant of a cars value - of which you have none, basically. You got 18% off (20k or so?) at purchase, which really helps you when you factor in the 12k price deduction since and the recent price increases. You also were factoring in tires in your costs - you'd probably need a new set sometime around 2030.LOL

Original lease 36mo 10k, new one 36mo 7.5k . They are telling me they'd pay $8k over buyout but I'd bet selling privately could get more, how does the sales tax enter into this equation then?

You're also buying a car for 60% of its purchase price - and it will be yours. A new lease has you spending 40% of the new price over the next 3 years and walking away with zero again at lease end. And the cost of lease money is way higher than 2.5 years ago.Yes it's a huge difference now, plus no giant discount as before, Iam considering either one pay lease or MSD's can do up to 7 so I'm advised which will get the MF down a good amount

So, I'd buy it. The warranty will give you piece of mind, but you are probably a long way from ever needing it. After doing the math and knowing this particular car has been virtually trouble free, I tend to agree, I guess I should see what the private party value would be first, how would you get this, Edmunds?

Just curious: You say the M850 is one of your favorites - favorites in the cars you have owned, or a favorite in your current stable? Both, the best direct comp was either my '17 MBS550 Coupe and '12 Jag XKR portfolio both bought new and both large lux GT's My M850 is one of my favorites, too. And I've done a couple F90s. It's just a great car to drive. I go to the store 2 miles away and take 20 miles to get back home. It's probably why I'll be at 13,000 miles by the end of Sep after 5 months of ownership. Now I'm the one that has to be thinking about tires Nice, I just find the M850 has the lux I need, compliant, yet comfy ride, smooth shifting, and lots of underrated power (did you see the dyno results of a stock M850 posted here some time ago ~600hp bone stock)

Thanks for the feedback here, very much appreciated

[RNemesisN63]

Definitely following this thread. I'm aways from lease end but in the same boat. Already thinking about keeping or turning it in. Depends on what comes down the pipeline with the 8 series if it's worth it. Mines a 2022 M850. I will say if they ditch the 8 I'm keeping. Only have 3700 miles in 9 months. Leases aren't looking favorable at least for the foreseeable future.

[RJC-1]

Originally Posted by claykin

If you're happy with your car, consider the buyout. Especially if you've got decent equity after paying sales tax.

At the time of buyout the dealer finance people will offer you extended warranty options. You can also balance that price with asking them to CPO the car which will give you an additional 12 months of warranty (however, it's a bit more restrictive of a warranty than the new car warranty). Usually CPO doesn't make sense but ask.

The BMW extended warranties are pretty good but they're pricey. I'd say you'll be looking at $6K all in for top coverage. Other than BMW, look at Endurance warranties. They have a good reputation and I recall they work well with dealers to get claims approved and using oem parts....

Ask your SA what he thinks.

Good info thanks

[Ben_K]

Originally Posted by snowbimmer

Hahaha - you're 26 months in at 2,351 miles. I went thru 2,351 on day 6 when I got my M850 in April.

Snowbimmer, you have me beat. It'll take me about 5 weeks to hit that mile mark.

[RJC-1]

Originally Posted by RNemesisN63

Definitely following this thread. I'm aways from lease end but in the same boat. Already thinking about keeping or turning it in. Depends on what comes down the pipeline with the 8 series if it's worth it. Mines a 2022 M850. I will say if they ditch the 8 I'm keeping. Only have 3700 miles in 9 months. Leases aren't looking favorable at least for the foreseeable future.

Agree. Is yours a coupe/vert or GC? Sounds like the coupe and vert may go away , and the better selling more family oriented 4 door version will stay.

[snowbimmer]

Originally Posted by Ben_K

Snowbimmer, you have me beat. It'll take me about 5 weeks to hit that mile mark.

Ha................what can I say? I like to drive fun cars.

[Ben_K]

Originally Posted by snowbimmer

Ha................what can I say? I like to drive fun cars.

You mean there is something else but fun cars to drive?

[BMWGirlFL]

My BMW Garage shows extended warranty pricing online. My understanding is BMW is the provider/obligor but the contract form identifies a third party administrator.



Click around bottom of warranty & service page:

[RJC-1]

Originally Posted by BMWGirlFL

My BMW Garage shows extended warranty pricing online. My understanding is BMW is the provider/obligor but the contract form identifies a third party administrator.

Attachment 2955869

Click around bottom of warranty & service page:

Attachment 2955871

Thanks will check it out

[bloozemanAZ]

Originally Posted by RJC-1

Thanks will check it out

Thanks for the tip and for platinum coverage on my 2020 M850i it's either a 7yr/75K or 7yr/100K package. Doubt I'll see 75K but for the cost difference would likely go 100K just to be safe.

[bloozemanAZ]

Originally Posted by RJC-1

Need to make a decision on keeping my '19 M850 vs leasing a 23.

You can see the specs of my car in my sig and it currently only has 2351 miles. My car has essentially been flawless thus far, it's pristine and I luv it (one of my favorites). But my lease is coming due, and my local dealer (good people) has offered me a decent deal (in today's insane world) on ordering a new '23 with no addendums, and .00040 over the base MF buy rate, which for those that want to know, for a '23 coupe is .00190. I'm also looking at about +$8,000 in positive equity if I sell it to the dealer vs turning it in. When I got the car, it was 12/2019 and I got ~18% off msrp, plus the base buy rate on the MF (grand slam deal), but as we all know BMW has reduced the price of coupe's since then by ~$12k negatively affecting my resale value, which would have been even better if that didn't happen, but it at least helps with getting a new one at msrp.

As you know I'm in the same boat and have been offered a 23 coupe at MSRP vs any ADM. That said although I didn't take a 2019 at the 15% off plus deals given there was nothing on the ground that met my specs. However, even with my 6% of MSRP for the 2020 custom order thanks to the global supply chain issues, inflated use car prices (based on the former), etc. I am still positively right side up for my residual to buy out the car.

I've decided to do so and will roll the dice on what 2024 may bring in the BMW 8-series world plus others on my shortlist (including the new SL AMGs)

Originally Posted by RJC-1

One of the things I'd need to do if I buy out my car, is get an extended warranty, and I'd want one directly from BMW, what I understand is, this needs to be done before mine runs out late next year, and they are purchased through a dealer and not BMW directly.

There are two trains of thought when it comes to an extended warranty, i.e, go with one or become self insured (aka squirl some $ away to cover the eventual maintenance costs). For my prior Lexus life I went self insured as it was a no-brainer to do so. For BMW I'm actually considering it and posted on the thread after BMWGirlFL highlighted the cost is buried in the car's My Garage profile.

To your point it requires doing so prior to the manufacturer warranty expiring so my cost may go up but I have through 2023 to make that decision. I also did extensive research for my buddy buying a 2018 M3C and in that Zurich's extended warranty was the winner.

Originally Posted by RJC-1

Questions: Do I have the above correct re the warranty, and what are the terms/coverage and current cost for these (I'm estimating $5k)? I did some math; keeping the car assuming it further depreciates by 40% from its current buyout in three more years, paying the sales tax, adding in the warranty, adding in a conservative loss of those investable dollars, and new tires at one point, I'd [...]

See my other post for my M850i through BMW. Definitely go platinum and that results in two offerings: 7yr/75K or 7yr/100K but both are well beyond $5K aka double that. That said there is a CA dealer on the forums that offers discounts on BMW's extended warranties. Technically the price is negotiable but most dealers won't budge. Will look up his info as found it when researching the 2018 M3 for my buddy.

[RJC-1]

Originally Posted by bloozemanAZ

Thanks for the tip and for platinum coverage on my 2020 M850i it's either a 7yr/75K or 7yr/100K package. Doubt I'll see 75K but for the cost difference would likely go 100K just to be safe.

Did you see a 5-year option for the 850? Since I'm only at ~2300 miles now and have another 1.4 years of warranty left I don't/doubt I'll need a lot of mileage/years. Also plan on keeping the car for the next 2-3 years tops. Thoughts?

[RJC-1]

Ok I got into My Garage and here's what mine looks like for an extnd warranty:

[BMWGirlFL]

Real choice to me is would I rather be sorry I did or sorry I didn't. Will seriously consider BMW Platinum if I keep mine long term but would not spend for lower coverage levels. Pretty sure stores have sample contracts and there's a provision for prorated refunds. Please share the form if anyone's research gets that far.

[RJC-1]

I can't seem to find a full description of what the Platinum warranty covers on the MyBMW site, but I did find this on the web:

BMW Platinum Warranty
The platinum plan is the most comprehensive level of extended coverage offered by the automaker. The platinum plan covers major components like the engine, transmission, fuel system, cooling system, electrical system, air conditioning, braking system, and steering. This plan has very few exclusions, as it combines the features of the Gold and Powertrain plus plan and adds coverage for the navigation, entertainment, and audio systems. Additionally, the platinum plan adds limited coverage for your BMW’s interior and exterior. It may not cover some suspension components.