Car Advice: BMW 335i

[JordanEG6]

Currently, I have a 335i that is on lease which is almost up. The lease was through a 3rd party leasing company called TLS Fleet Management. I have 2 options when the lease is up:

1. Buy it out - $26, XXX.XX
2. Return the vehicle

I'd like to just return the vehicle but there is a condition: It would be up for auction. If the car is auctioned off for more than the buy out, I get money back, and if it was auctioned off for less, I'd pay the difference.

My question is, should I just buy it out or return it? Would it be auctioned off fairly easy for a price of around $26, XXX.XX?

Here are some specs:

2008 BMW 335i Coupe
Sport Package
19" alloys
iPod integration
72, XXX KM

Good
- still has warranty
- maintained as per scheduled maintenance
- no major visible door dings or dents
- nothing was changed and everything is functioning normally

Bad
- It has been in an accident, in which the repairs were done via insurance and at Bentley Autobody as per dealer standards.

[NoMoreG35]

I would return it. My buddy bought a 2008 335i coupe with 7xxxx km and an accident claim of over 10k for 28 grand at the auction not too long ago (maybe 2 weeks). Auction prices are really high right now it's almost like crazy.

[Xtrema]

CBB quoted the low price being $26250.

[JordanEG6]

Originally posted by Xtrema
CBB quoted the low price being $26250.

CBB?

[shakalaka]

I see 2008 335i's asking a lot more than $26k on kijiji. Perhaps just buy it out and sell it yourself. I reckon you'll prolly make some money on it.

[benyl]

Holy Chit.

My 2008 335 buyout was $43,000 from BMW Canada in December 2010 after 36 months.

Your payments must have been over $1K.

I know mine was worth about $35K at that time (5 months ago)

[JordanEG6]

Originally posted by shakalaka
I see 2008 335i's asking a lot more than $26k on kijiji. Perhaps just buy it out and sell it yourself. I reckon you'll prolly make some money on it.

My only concern is that it's been in an accident 2 years ago. It was over 10K in damage, mostly because of the deployed front airbag. That will probably hurt the price quite a bit.

[npham]

You could try to sell it before your lease is up, and if it doesn't sell for over $26,XXX, then just send to auction and see what happens. Selling privately is going to be your best bet.

[Weapon_R]

I've seen a bunch selling for less than that. Try selling it on your own first @ 26k before letting them auction it off. Since you're paying the difference, they won't care less how much they get at auction.

[ExtraSlow]

Is this kind of deal normal for leases? Since you are taking all the risk on the depreciation, how is that any better than just buying the car and making payments? :dunno:

[Redlyne_mr2]

Originally posted by ExtraSlow
Is this kind of deal normal for leases? Since you are taking all the risk on the depreciation, how is that any better than just buying the car and making payments? :dunno:
Fleet leasing, exotic car leasing is done like this and most 3rd party lease companies dont report to any bureaus so if you want to hide the fact that you have a lease from another credit company this is the best way. The buyouts are also generally quite high to it keeps the payments low. The problem is that youre delaying the inevitable.

There is a strong market for this car, especially coupes in your buyouts price range. Lots of wannabe who dont care about the condition of the car and just want a 335.

[ExtraSlow]

Interesting, I had no idea. I'm more a buy-your-car-for-cash kind fo guy.

[C4S]

Depends on how big is the accident, and overall condition.

$26-27K buy out isn't bad, but if it goes to auction, the leasing company doesn't care how much it will sell, as long as they can sell it, plus there are tons of 335i for sell in auction now, with much lower km.

With $10K plus accident, in general speaking, the car will still worth LESS, even it was fixed right.

You still have time, try to ask $30K, if you can get $28-29K, then it is safe to cover your butts.

:)

[Mitsu3000gt]

How bad was the accident?

On cars these days, especially a BMW, even an extremely minor accident can easily cost $10k.