[80_Mark]

I have a very loaded 2021 Alpine m40i with a lease that ends in March and I am debating what to do next.

The auto market has been very dynamic so I no longer have any equity to leverage in my current x3. The dealer said my assessed residual value is about $1k less than my $38,500 buy out. With interest rates, even with 8% off, a new lease would be around $275 more than we’re paying now.

The only things that would be value adds in the new model would be the better driving assistance which I use a a lot. The mild hybrid sounds more complicated than good but I’m curious if I would see significant gains at stop-and-go speeds. During the week we do short trips that average 15 miles/hour.

$38,500 seems like a good deal for my x3 that will have about $29k miles and I have the peace of mind of knowing its history. What would you do?

[brettl]

I’d buy it out. No good lease deals right now. If you like the car keep it. There are mild upgrades, but there is also some decontent issues too. Little things you might miss from what I understand.

[avi66]

Originally Posted by 80_Mark

I have a very loaded 2021 Alpine m40i with a lease that ends in March and I am debating what to do next.

The auto market has been very dynamic so I no longer have any equity to leverage in my current x3. The dealer said my assessed residual value is about $1k less than my $38,500 buy out. With interest rates, even with 8% off, a new lease would be around $275 more than we’re paying now.

The only things that would be value adds in the new model would be the better driving assistance which I use a a lot. The mild hybrid sounds more complicated than good but I’m curious if I would see significant gains at stop-and-go speeds. During the week we do short trips that average 15 miles/hour.

$38,500 seems like a good deal for my x3 that will have about $29k miles and I have the peace of mind of knowing its history. What would you do?

How would you finance the buy out and at what cost ? Are you also planning to extend warranty ?

The MHEV is essentially a more powerful starter motor and additional battery, which can assist the ICE by providing instant torque. So smoother auto start/stop, and more immediate pickup. Beyond, that it just blends into the background.

I use DAP and find the semi autonomous driving mode really useful on long journeys, and stop/go traffic jams lol.

[positiveions]

I turned my ‘21 in and got a new 2024 ,$ 5k off, 2.99% 60 months and the color that I like.

[Sportstick]

The mild hybrid introduces a lithium ion battery into your garage. Depending how you assess risk/benefit, the issue of thermal runaway and self-ignition may factor into your decision. It weighed into my eventual vehicle and engine selection.

https://www.autoevolution.com/news/2...fe-216613.html

[gphin]

Originally Posted by 80_Mark

I have a very loaded 2021 Alpine m40i with a lease that ends in March and I am debating what to do next.

The auto market has been very dynamic so I no longer have any equity to leverage in my current x3. The dealer said my assessed residual value is about $1k less than my $38,500 buy out. With interest rates, even with 8% off, a new lease would be around $275 more than we’re paying now.

The only things that would be value adds in the new model would be the better driving assistance which I use a a lot. The mild hybrid sounds more complicated than good but I’m curious if I would see significant gains at stop-and-go speeds. During the week we do short trips that average 15 miles/hour.

$38,500 seems like a good deal for my x3 that will have about $29k miles and I have the peace of mind of knowing its history. What would you do?

I live in the Philadelphia area and looking to buy a used 21-22 M40. Depending on condition and options, I might be willing to pay you more than your $38,500 buy out if you want to make some money towards a new one. Email me at gphin305@yahoo.com if interested in discussing. PS...I'm in Florida now but returning mid March.

[80_Mark]

Originally Posted by avi66

I live in the Philadelphia area and looking to buy a used 21-22 M40. Depending on condition and options, I might be willing to pay you more than your $38,500 buy out if you want to make some money towards a new one. Email me at gphin305@yahoo.com if interested in discussing.

Probably a tough deal to thread when you consider that I would need to pay taxes. If I decide to return the vehicle in March, I can give you a heads up. It will go to BMW of Reading.

[80_Mark]

Originally Posted by avi66

How would you finance the buy out and at what cost ? Are you also planning to extend warranty ?

The MHEV is essentially a more powerful starter motor and additional battery, which can assist the ICE by providing instant torque. So smoother auto start/stop, and more immediate pickup. Beyond, that it just blends into the background.

I use DAP and find the semi autonomous driving mode really useful on long journeys, and stop/go traffic jams lol.

I would go through my credit union and finance half the buy out at 6%. I would wait a year and assess the warranty situation. I know it’s not a 4Runner but I’d have a tough time dropping $4k plus to insure a car that has been rock solid with a ubiquitous drivetrain.

I’m more persuaded by the updated DAP then the mild hybrid. MHEV might be a point against for a car that I’d own.

[avi66]

Originally Posted by 80_Mark

I would go through my credit union and finance half the buy out at 6%. I would wait a year and assess the warranty situation. I know it’s not a 4Runner but I’d have a tough time dropping $4k plus to insure a car that has been rock solid with a ubiquitous drivetrain.

I’m more persuaded by the updated DAP than the mild hybrid. MHEV might be a point against for a car that I’d own.

Personally, I’d look at some of the low cost lease (I thinks that’s what you call a PCP in the USA) deals (2.9%?) and try a few brokers/dealers to get an idea of what’s available on trade and new car.

The biggest issue in my experience when modern BMW’s age isn’t the mechanical aspect but the tech and electronics, which can render the rock solid and ubiquitous drivetrain a lump of dead mental.

There is a massive amount of electronic systems in all G01 model years, and when it goes wrong it can be massively complex and expensive to fix, and may render the car un drivable.

[gphin]

Originally Posted by 80_Mark

Probably a tough deal to thread when you consider that I would need to pay taxes. If I decide to return the vehicle in March, I can give you a heads up. It will go to BMW of Reading.

Thanks for reply. Yes, you would have to pay taxes but I would avoid dealer mark up and add on fees so I'd make sure you would be whole. Bottomline, if your vehicle is what I'm looking for, I'd make sure we both come out ahead as opposed to the dealer. Again, let me know if you would like to discuss when appropriate via my email. Thanks for dealer heads up.

[80_Mark]

Originally Posted by gphin

Thanks for reply. Yes, you would have to pay taxes but I would avoid dealer mark up and add on fees so I'd make sure you would be whole. Bottomline, if your vehicle is what I'm looking for, I'd make sure we both come out ahead as opposed to the dealer. Again, let me know if you would like to discuss when appropriate via my email. Thanks for dealer heads up.

Sounds good. I’ll give you a heads up if I decide to drop it at lease end.

[dmicah]

I went from a 20 to a 23 and wish I'd been able to keep the 20 (it got rear-ended). The mild hybrid doesn't seem to increase performance except in terms of the smoothness of the auto start/stop. The DAP stuff is real, but not meaningful to me as it seems to be to you.

[80_Mark]

Originally Posted by avi66

Personally, I’d look at some of the low cost lease (I thinks that’s what you call a PCP in the USA) deals (2.9%?) and try a few brokers/dealers to get an idea of what’s available on trade and new car.

The biggest issue in my experience when modern BMW’s age isn’t the mechanical aspect but the tech and electronics, which can render the rock solid and ubiquitous drivetrain a lump of dead mental.

There is a massive amount of electronic systems in all G01 model years, and when it goes wrong it can be massively complex and expensive to fix, and may render the car un drivable.

Honestly, I’m not that worried. These have been out since 2018 and a lot of technical complexities were present in earlier forms in the f series. I’m sure some brick but it’s not something I see often in the forums.

The cost of a 3 yr loan on my my buyout is very similar to the cost of the lease on a 2024 and I can probably get my insurance premiums lowered since it’s no longer new. It’s tough to justify a new one through that lens.

[EWL5]

If you do buy out your lease, I assume you will also want to factor in the cost of an extended warranty? Going commando (no warranty after factory one runs out) is not recommended!

[80_Mark]

Originally Posted by EWL5

If you do buy out your lease, I assume you will also want to factor in the cost of an extended warranty? Going commando (no warranty after factory one runs out) is not recommended!

It’s cross my mind but if I buy it out, I still have a year to decide. The cost delta is significant so even with $4500 warranty that gets me to 7 years, it would make financial sense.

More than likely we’d sell it at 5 or 6 years. We do a lot of short urban drives that average 17mpg, so if they come out with a sporty phev version of the x3 or even better, a wagon, I’ll probably be back on the lease train.

[g11hoonigan]

Originally Posted by EWL5

If you do buy out your lease, I assume you will also want to factor in the cost of an extended warranty? Going commando (no warranty after factory one runs out) is not recommended!

Or live dangerously like me who owns a 7-er with no extended warranty

[EWL5]

Originally Posted by 80_Mark

It’s cross my mind but if I buy it out, I still have a year to decide. The cost delta is significant so even with $4500 warranty that gets me to 7 years, it would make financial sense.

More than likely we’d sell it at 5 or 6 years. We do a lot of short urban drives that average 17mpg, so if they come out with a sporty phev version of the x3 or even better, a wagon, I’ll probably be back on the lease train.

If that's what they quoted you for extended warranty, you can probably do better w/the dealer rep in this forum who's helped quite a bit of members. Go here for the thread and make sure to check the last page for updates!

https://f30.bimmerpost.com/forums/sh....php?t=1670964

[Chitown_vroom]

Originally Posted by EWL5

If you do buy out your lease, I assume you will also want to factor in the cost of an extended warranty? Going commando (no warranty after factory one runs out) is not recommended!

Much like you can’t change the laws of gravity, you can’t change the basic fact that extended warranties (which are actually just insurance policies) exist to be a profit center for those that sell them. The house wins more than they pay out. Take the cost you are quoted and put it in a savings account (or investment depending on your risk tolerance) to use for covered repairs. Most likely you will at least break even but with a real possibility to have money leftover, especially when you consider compounding interest/returns while the money is parked.

[bocabimmer]

Originally Posted by g11hoonigan

Or live dangerously like me who owns a 7-er with no extended warranty

That’s plain nuts. 😝

I’ve owned 5 BMWs out of warranty. Some were good, others not so much. The key for me was knowing their history. The ones I was confident in early on were the reliable ones. The ones I hadn’t quite done my homework on were quick to go.

[avi66]

Originally Posted by bocabimmer

That’s plain nuts. 😝

I’ve owned 5 BMWs out of warranty. Some were good, others not so much. The key for me was knowing their history. The ones I was confident in early on were the reliable ones. The ones I hadn’t quite done my homework on were quick to go.

IMO it's a lottery for each car.

I've had cars that have been solid for 4-5 years, and then things like electronics start to play up and fail. The diagnostic and repair bills can be eye-watering.

[EWL5]

Originally Posted by Chitown_vroom

Much like you can’t change the laws of gravity, you can’t change the basic fact that extended warranties (which are actually just insurance policies) exist to be a profit center for those that sell them. The house wins more than they pay out. Take the cost you are quoted and put it in a savings account (or investment depending on your risk tolerance) to use for covered repairs. Most likely you will at least break even but with a real possibility to have money leftover, especially when you consider compounding interest/returns while the money is parked.

What you're saying makes a lot of financial sense and I agree that if you're comfortable playing the probabilities, that is the way to go!

Unfortunately, not too many folks have financial discipline or know-how!

[Jen4BMW]

If it were me with a 2021 coming off lease I’d ratchet up my negotiation skills and turn my X3 M40i in for either:
2024 X3 M40i $70K
2024 X5 40i Msport $80K
2024 Porsche Macan S $80-$85K

I’d want at least a few grand in equity at lease turn from my dealership assuming my 2021 was in truly “pristine condition” and assuming I was leasing another BMW from them. Your X3 has pretty low miles for a 2021 so it should sell fast. How are the tires? Any scratches or dings? Stealerships always way under value your lease equity unless you arm yourself with research and push them.

Look at what they’re selling used 2021’s for on their lot and shoot for $4-$5K under. I’ll bet they ask $45-48K when your M40i hits their lot. You can always go to another dealership if yours is being stingy.

On a 2024 I’d want 7-8% off a 2024 X3 or X5 after everything is said and I’d want the lowest MF available not a marked up one. You can’t over pay for a new X3 because the new G45 is coming for the 2025 model year= extra depreciation.

OP- I’ am on my 3rd X3. I can tell you that all 3 vehicles above are quite a bit better than your 2021 X3 in almost every way with arguably the loss of buttons and exhaust sound that comes with these newer models. Of course you’ll pay but life is short. Let us know what you end up doing.