6th month left of m5 lease

6th month left of m5 lease

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forest172

Original Poster:

687 posts

205 months

Sunday 15th March 2015
quotequote all
Had a letter today from BMW giving me a few options. Obviously hand the car back. Can buy it or 60 days before hand back extend it for another year. Which I'd probably like to do

But 60 days doesn't give me many alternatives if they refuse to extend the lease. Do the payments tend to be the same? I remember when getting quotes 3 year lease was cheaper than 2 by about £20

Edited by forest172 on Sunday 15th March 09:45

Schermerhorn

4,342 posts

188 months

Sunday 15th March 2015
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What happens if you give the car back, does it just then become an AUC car?

PHlL

1,538 posts

138 months

Sunday 15th March 2015
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Schermerhorn said:
What happens if you give the car back, does it just then become an AUC car?
Goes back to BMWFS. Provided it is of a decent condition, gets sold within the retailer network so will then become a AUC yes.

HoHoHo

14,980 posts

249 months

Sunday 15th March 2015
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How time flies and I'm glad I took a 36 month lease!

It will be interesting to see what value they place on the vehicle if you wish to buy it and if you hand ot back how they assess condition and ant claims.

I'm going to be in the same situation in 12 months but will need to make a decision pretty quickly if I want to go for a different car.

Currently thinking M6 but that will depend on any deals on the table.

kippaxking

185 posts

219 months

Sunday 15th March 2015
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Interesting. My lease expires in October and I really can't think of anything I want to replace it with. There are deals on E63 AMGs, RS4 Avants and Maseratis but the M5 is still the better car.

My problem is I've overdone the miles by approx 2k per year so will already be taking a hit in October. You also need to weigh up the cost of servicing, tyres, brakes, etc. It may make better financial sense (or man maths!) to hand it back and get a new one. In a more exciting colour!

Maybe wait and see what the 2nd quarter lease deals are like in a few weeks....


W8PMC

3,345 posts

237 months

Monday 16th March 2015
quotequote all
forest172 said:
Had a letter today from BMW giving me a few options. Obviously hand the car back. Can buy it or 60 days before hand back extend it for another year. Which I'd probably like to do

But 60 days doesn't give me many alternatives if they refuse to extend the lease. Do the payments tend to be the same? I remember when getting quotes 3 year lease was cheaper than 2 by about £20

Edited by forest172 on Sunday 15th March 09:45
Is yours on a Lease Purchase? I was 99% sure you CAN'T buy a leased or contract hire car at the end of the term as it's been hired & ownership of title at the end was a no no.

Will they not quote you now to extend it as i'm sure they must know how much?

TheHound

1,759 posts

121 months

Monday 16th March 2015
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W8PMC said:
I was 99% sure you CAN'T buy a leased or contract hire car at the end of the term as it's been hired & ownership of title at the end was a no no.
confused
Huh???

There is no automatic right for the lessee to purchase the car but the lessor can offer them the opportunity should they so wish.

The lease company owns the car, so they can do whatever they want at the end of the contract.

Jonny TVR

4,533 posts

280 months

Monday 16th March 2015
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Mine is due for renewal end of November. Its going to be a difficult one to know what to replace it with.. a new one in a different colour?!

Tonyc32

150 posts

126 months

Monday 16th March 2015
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I have the same issue - I did 24 months but want 36 months ideally.

They will not give you a quote until within 60 days of the contract ending (I tried last week).

kippaxking makes a good point, there are many deals out there and you do avoid the service that is needed (also no mention as to who pays the third year of road tax if you extend the contract?)

W8PMC

3,345 posts

237 months

Monday 16th March 2015
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TheHound said:
confused
Huh???

There is no automatic right for the lessee to purchase the car but the lessor can offer them the opportunity should they so wish.

The lease company owns the car, so they can do whatever they want at the end of the contract.
But isn't that only the case if it's a Lease Purchase? If a traditional Lease which is a hire agreement or Contract Hire which again is a hire, i'm sure an option for the lessee to purchase is under no circumstance available. Certainly was't with my Audi A8 & i was told the same as well as it being in the T&C's for my F10 M5.

Is possible i misunderstood or perhaps things have changed recently.

forest172

Original Poster:

687 posts

205 months

Monday 16th March 2015
quotequote all
Its contract hire. An option is in the letter for a friend or family member to purchase. Not me.

As of 31st august it will probably only be on 16k when I had it contracted for a total on 20k. If I can keep it for another year I'll only want a total of probably 4k more than the original 2 year contract.

If I get another m car, I'll have to stump up a deposit, when just rolling the contract on for another 12 months would be the best thing to do. But not knowing before the 60 days wont probably give me enough lead time to order another factory build



mondie

622 posts

141 months

Monday 16th March 2015
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This is a timely thread,we still have 9 mths left on ours but I am already starting to think about my options. The only thing that is appealing at the moment is an RS6 but I doubt I will get a competitive deal on one of those.

I could be tempted into a 3rd year if the deal was ok. I can understand why they wont quote until 60 days out, the resale values of the M5 seems poor and the lease deals ending is going to make these the bargain of the century come Q1 2016.

On return I need to find out what the status of servicing needs to be. Dealer told me as long as nothing shows on the iDrive as needing attention and the tyres have at least 1mm remaining you are fine. I need to find out if I can return the car with winter tyres as the summers will soon be dead but the winters have a lot of life remaining (and it will be Jan when she goes back)

Cheers

doc261

100 posts

121 months

Monday 16th March 2015
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I had a contract hire 640d and whilst my contract did not state that I could buy the car ( my contract as above said friends or family could) towards the end of the lease BMW as well as allowing the lease to be extended did also quote me a price to buy the car.

Bradders901

225 posts

130 months

Monday 16th March 2015
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I had a m3 on personal contract hire and BMW gave me the opportunity to buy it (I didnt). I have 6 months left on my c63 507 so MB are chasing me quit a bit to ask what my plans are (agility pcp). Quite tempted by a m3 but don't think there's are any really good deals like you guys had on m5s.

Bradders901

225 posts

130 months

Monday 16th March 2015
quotequote all
I had a m3 on personal contract hire and BMW gave me the opportunity to buy it (I didnt). I have 6 months left on my c63 507 so MB are chasing me quit a bit to ask what my plans are (agility pcp). Quite tempted by a m3 but don't think there's are any really good deals like you guys had on m5s.

W8PMC

3,345 posts

237 months

Tuesday 17th March 2015
quotequote all
forest172 said:
Its contract hire. An option is in the letter for a friend or family member to purchase. Not me.

As of 31st august it will probably only be on 16k when I had it contracted for a total on 20k. If I can keep it for another year I'll only want a total of probably 4k more than the original 2 year contract.

If I get another m car, I'll have to stump up a deposit, when just rolling the contract on for another 12 months would be the best thing to do. But not knowing before the 60 days wont probably give me enough lead time to order another factory build


Interesting as mine's also Contract Hire. Still confused by the above as it makes sense they offer it to your 'friends & family' as this also covers off the legal/HMRC aspects, but 2 people state they as the lessee were also offered the car as well as their 'friends & family'.

Hey ho as i'm only approaching my 1st anniversary in May so have another 2yrs to go before this appears on my radar.

ACE997

51 posts

160 months

Monday 23rd March 2015
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mondie said:
This is a timely thread,we still have 9 mths left on ours but I am already starting to think about my options. The only thing that is appealing at the moment is an RS6 but I doubt I will get a competitive deal on one of those.

I could be tempted into a 3rd year if the deal was ok. I can understand why they wont quote until 60 days out, the resale values of the M5 seems poor and the lease deals ending is going to make these the bargain of the century come Q1 2016.

On return I need to find out what the status of servicing needs to be. Dealer told me as long as nothing shows on the iDrive as needing attention and the tyres have at least 1mm remaining you are fine. I need to find out if I can return the car with winter tyres as the summers will soon be dead but the winters have a lot of life remaining (and it will be Jan when she goes back)

Cheers
My leased M5 is due to go back in Jan 2016 too. I would consider buying my M5 if the price was good, which it may be because of the number coming to market around that time. Otherwise I will probably choose between a new M3 or C63.

I would also like to know if I can return the car on winter tyres (Michelin Alpin) because the summers may be close to dead by then and I don't feel like buying BMW a new set of tyres.

Edit: WBAC already says my 1.25 year old M5 is sub £40k. I'd like to see the price in Jan 2016 and then see what BMWFS are asking.

Edited by ACE997 on Monday 23 March 21:17

mondie

622 posts

141 months

Thursday 26th March 2015
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I don't think BMW will accept the car back with winter tyres because I cannot see them selling the car with winters, but I need verification of this.

By the time our goes back it will be near due for its second service, summer tyres and rear brakes. BMW would have to be making a very good offer for us to keep it for a third year smile

Wills2

22,669 posts

174 months

Thursday 26th March 2015
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I doubt they would even notice, but the tyres will be road legal and suitable for the car so I can't see an issue really.


Hedgetrimmer

570 posts

256 months

Thursday 26th March 2015
quotequote all
ACE997 said:
My leased M5 is due to go back in Jan 2016 too. I would consider buying my M5 if the price was good, which it may be because of the number coming to market around that time. Otherwise I will probably choose between a new M3 or C63.

I would also like to know if I can return the car on winter tyres (Michelin Alpin) because the summers may be close to dead by then and I don't feel like buying BMW a new set of tyres.

Edit: WBAC already says my 1.25 year old M5 is sub £40k. I'd like to see the price in Jan 2016 and then see what BMWFS are asking.

Edited by ACE997 on Monday 23 March 21:17
The reason they are unable to sell the car to you directly under a contract hire agreement is driven by VAT legislation. If they did sell it direct then HMRC would question whether there was always an intention for BMW finance to sell the car to you. In this situation, they would need to pay over VAT on the full value of the car in Month 1, as per an outright purchase or PCP. Under PCP the monthly payment doesn't attract VAT as it is a finance rather than rental agreement.

Selling the car to a friend/member of family is a get around and sailing close to the wind.