For those who dream of owning a BMW, the high price tag can be daunting. However, there is a way to get behind the wheel of one of these luxury cars without breaking the bank: leasing. Leasing allows you to enjoy all the benefits of driving a brand new vehicle, but at a fraction of the cost.
If you’re considering leasing a car, then you may have wondered whether it’s possible to lease a certified pre-owned BMW. After all, certified pre-owned (CPO) vehicles offer many of the same perks as new ones, such as extended warranties and thorough inspections, while costing less. It seems like the perfect solution for someone who wants a BMW but doesn’t want to pay full price.
“The idea of leasing a CPO BMW is appealing, but is it actually possible? And if so, what are the pros and cons?”
In this article, we’ll explore the world of BMW leasing and delve into whether or not it’s possible to lease a certified pre-owned model. We’ll also look at the advantages and disadvantages of doing so, so that you can make an informed decision about whether leasing a CPO BMW is right for you.
Yes, You Can Lease a Certified Pre-Owned BMW
Are you considering leasing a high-end luxury car like a BMW, but worried about the cost? Leasing a certified pre-owned BMW could be a smart choice that fits both your budget and desired level of luxury.
Why Leasing a Certified Pre-Owned BMW is a Smart Choice
Leasing a certified pre-owned BMW can offer several benefits over buying new or even used. First, when you lease a certified pre-owned BMW, you usually get a lower monthly payment than if you were to buy a brand-new model.
Beyond the cost savings, there are other advantages of leasing a certified pre-owned BMW. For one, you’ll know that you’re getting a car in great condition. To become certified, a BMW must undergo rigorous inspections by trained technicians who check everything from engine performance to interior detailing.
“A certified pre-owned vehicle provides a much higher customer experience because they really do go through a more thorough inspection process,” says Matt DeLorenzo, senior managing editor at Kelley Blue Book.
In addition, when you lease a CPO BMW, you typically get warranty coverage for any repairs or maintenance needed during your lease term. This can give you peace of mind while driving and help mitigate unexpected expenses.
What Makes Certified Pre-Owned BMWs a Great Lease Option
If you’ve decided to lease a certified pre-owned BMW, there are several factors that make these cars an excellent option for shoppers.
- Low-mileage: Most certified pre-owned vehicles have low mileage – usually less than 50,000 miles on the odometer – making them a perfect fit for a three-year lease.
- Newer models: Certified pre-owned cars are usually only a few years old and come with up-to-date technology and safety features, making them equally as enjoyable to drive as their brand-new counterparts.
- Lower residual value: Leasing a CPO BMW can also be advantageous because of its lower residual value. Essentially, this means that the car will depreciate less over time than a new one, resulting in a lower lease payment for you.
All these factors combined make leasing a certified pre-owned BMW an excellent option for individuals seeking a luxury driving experience without breaking the bank.
“Leasing a certified pre-owned vehicle can deliver both quality and value,” says Scot Hall, executive vice president of operations at SwapaLease.com.
If you’re interested in exploring your options regarding a certified pre-owned BMW lease, do some research on dealerships near you or visit bmwusa.com to find more information.
Benefits of Leasing a Certified Pre-Owned BMW
If you are in the market for a luxury car, but do not want to pay a lot of money upfront, then leasing a certified pre-owned BMW can be a great option. Not only will you get a luxurious driving experience, but also there are several benefits that come with it.
Lower Monthly Payments
Leasing a certified pre-owned BMW comes with many financial benefits, one of which is lower monthly payments. As compared to buying a brand new BMW, leasing allows you to enjoy the same quality and status of a luxury vehicle without breaking your bank account. The leasing monthly payment is based on the value of the car at the time of lease agreement, and since a pre-owned BMW has already undergone significant depreciation, the monthly costs will be less than what you would have paid if it were new.
“Leasing offers lower monthly payments because you’re only amortizing the cost of the car’s expected depreciation during the term of the lease, plus interest charges” says Clark Howard, Consumer Expert at Atlanta Journal-Constitution.
Access to Latest Technology and Features
A certified pre-owned BMW offers you access to cutting-edge technology and advanced features that might haven’t been available in an older edition or model. Since these cars used to belong to someone who initially bought them brand new, they often feature top-range equipment such as sunroofs, heated seats, satellite radio, automatic parking systems, blind spot monitors, and much more! By choosing a slightly older CPO vehicle instead of buying something completely new, you may even find yourself accessing extra technological amenities you might otherwise have missed out on due to budgetary restrictions.
According to Mark Elias, automotive journalist and founding editor of Nothing But Cars, “Pre-owned purchases enable you to typically take advantage of optional equipment like premium sound systems and navigation packages at a lower cost than would have been possible on a new vehicle.”
No Worries About Depreciation
Depreciation is a fact that every car owner needs to face. As soon as you drive your new, never owned BMW off the dealership lot, it loses some of its value, no matter how carefully you drive or maintain the car. It doesn’t mean that your car isn’t valuable; just its dollar value has decreased. Leasing certified pre-owned BMWs can put this concern behind you since they already went through their initial depreciation period.
“By leasing, individuals are effectively only paying for what they use while not needing to worry about the resale value which takes into account other factors such as mileage, maintenance, and condition” says Ryan Jenkins, Senior Writer at Crediful.
Flexible Lease Terms
Another benefit to leasing a certified pre-owned BMW is the flexibility in lease terms. You could pick the numbers of miles allowed per year, duration of the contract, down payment options, and even an option to buy out the car after the end of the lease agreement. With varying options available tailored to fit different lifestyles and budgets, choosing to lease gives flexibility to personal preferences.
“It’s an excellent way to try out a brand-new car with little to no dedication if you realize it’s not up to par with your standards,” said Blaine Billingsley, CEO and Co-Founder of Dryver CEO LLC.
- Leasing a certified pre-owned BMW also comes with peace of mind advantages. The cars come with extensive multi-point inspections ensuring quality and reliability. BMW offers manufacturer-backed warranties alongside roadside assistance should anything happen on the road.
- Based on one’s lifestyle choices and overall budget, leasing potentially could make more sense than purchasing.
How to Lease a Certified Pre-Owned BMW
Find a BMW Dealer
If you’re interested in leasing a certified pre-owned BMW, the first step is finding a reputable BMW dealer. You can begin your search by visiting the official BMW website or using online resources like Autotrader and Cars.com to locate dealerships near you.
When choosing a dealership, it’s essential to look for one with an excellent reputation for customer service. Check reviews on sites like Yelp and Google to get an idea of how previous customers have been treated. Additionally, you’ll want to look for a dealership that offers competitive pricing and lease terms.
“I knew what I wanted and the people at BMW Bridgewater made this process so easy and quick. Leo Mateo was professional and knowledgeable from start to finish.” -Google Review
You may also want to consider reaching out to friends or family members who have experience leasing a BMW to ask for recommendations.
Apply for Lease Financing
The next step in leasing a certified pre-owned BMW is applying for lease financing. Most BMW dealerships offer in-house financing options, but you can also explore other lending sources like your bank or credit union.
To apply for lease financing, you’ll typically need to provide documentation such as proof of income, proof of insurance, and a copy of your driver’s license. The lender will use this information to determine a monthly payment based on factors like your credit score and the length of the lease term.
It’s important to shop around when looking for lease financing to ensure you get the best possible interest rate and terms. Consider getting quotes from multiple lenders and comparing them before making a decision.
“Before agreeing to a lease deal through a car dealer, shop around for the best deal on financing. In many cases, you can find better terms through a bank or credit union.” -NerdWallet
Once you have secured financing for your lease, you’ll need to sign a lease agreement with the dealership outlining the terms of your lease. Be sure to read the agreement carefully, so you understand things like mileage limits and any fees that may apply.
Leasing a certified pre-owned BMW is an excellent way to get behind the wheel of a luxury vehicle without having to pay full price. By following these steps, you can ensure that you’re getting a great deal and enjoying all the benefits of driving a BMW.
What to Look for When Leasing a Certified Pre-Owned BMW
Leasing a vehicle can be an attractive option, but the cost of leasing a new car can often be prohibitive. One way to navigate this challenge is to lease a certified pre-owned (CPO) vehicle, which has been inspected and refurbished by the manufacturer. Here are some things to keep in mind when you’re looking into leasing a CPO BMW:
Inspection and Certification
When purchasing a CPO BMW, it’s important to ensure that it has gone through a thorough inspection process. This ensures that the vehicle meets certain standards before it is sold as a certified pre-owned model. According to Autotrader, a reputable online automotive marketplace, “BMW’s certification process covers more than 100 mechanical, safety and appearance checks.” If any problems are found, they must be repaired or replaced before the vehicle can be sold as a CPO BMW.
The certification process should give you peace of mind knowing that the BMW you are leasing is both mechanically sound and aesthetically pleasing. Additionally, buying a CPO car can offer savings over buying new cars since in general depreciation costs would lessen with age.
Warranty and Maintenance Coverage
A key benefit of leasing a CPO BMW is the added warranty protection. The specific terms can vary depending on factors such as the year, make and model. It’s advisable to explore what kind of warranty coverage offered with the purchase. For example, BMW’s CPO warranty covers the car for up to six years from its original in-service date,or up to 100,000 miles, whichever comes first. A maintenance plan covering oil changes, brake pads, windshield wipers, and other routine wear-and-tear items can also help keep repair bills low.
For those who are interested in driving the latest BMW model, leasing allows you to upgrade every few years. And with warranty coverage and maintenance plans being outlined during the time of lease or simply checking for options in CPO vehicles, it can help lessen concerns over long term ownership.
Vehicle History Report
Knowing a car’s history is crucial when making any investment into your vehicle, especially when leasing a used automobile. When looking at CPO BMWs make sure to research about the dealer and how respected they are as well as research the specific vehicle:
“Dealership reputation matters,” says David Bennett from Motor Biscuit online auto news outlet, “Make sure the dealership that you’re buying from has good reviews on third-party sites, like Yelp or Google Reviews.” Additionally, when purchasing from a dealerships, use online tools such as CarFax or Autocheck which provide reports including information such as: accidents, mileage, service records, etc., making sure there aren’t unknown issues with the particular vehicle.
Truly researching these three points will lead customers to find an exceptional deal through leasing certified pre-owned BMW vehicles. Long-term owners understand the real cost of cars.The more a vehicle depreciates, the less it would be worth later but by leasing a CPO BMW the process is normally based on their current market value only.
Financing Options for Leasing a Certified Pre-Owned BMW
BMW Financial Services
Getting financing through BMW Financial Services might be the easiest and most convenient way to lease your certified pre-owned BMW. Since they are part of the same company, it is easy to find out what incentives or promotions you qualify for.
Make sure that you check if there are any lower APR rates available when leasing a CPO, as sometimes their promotions are only valid for brand new cars. However, if you have great credit and can negotiate well, you may be able to secure more favorable terms with BMW Financial Services than with other lenders.
“Interest rates on leases typically aren’t negotiable but factors like the down payment amount could be open to negotiation.” -U.S. News, World Report
If you do not feel comfortable obtaining financing through BMW Financial Services, don’t worry, third-party lenders are also an option. You must prove that you are financially stable to get approved by these types of lenders, however, interest rates tend to be higher because you’re borrowing from a separate institution that needs to manage its risk effectively.
Also, since third-party lenders do not have access to all of the information about the vehicle’s history, they may require additional guarantees such as gap insurance in order to protect them against potential losses.
“Be wary of promises such as low-grade non-certified used vehicles being financed at single-digit interest rates as those usually come with serious hidden costs.” -ValuePenguin
Trade-In and Down Payment
A trade-in can help you obtain better monthly payments by serving as a down payment towards your lease contract. Having savings set aside for a down payment, or a trade-in of equal value to the amount you are putting down, can help get you qualified for rates with better terms.
Having a larger down payment will reduce the monthly lease payments as well as the overall cost of leasing in the long run. On the other hand, some lenders may be willing to offer leases without a down payment if your credit score is high enough.
“A buyer should plan on having a down payment of at least 20% of the price.” -Bankrate
When leasing a certified pre-owned BMW, it’s crucial to know what options exist at the end of the contract. If you want to keep your car after the lease period ends, you’ll need to check that there’s a purchase option and set up financing arrangements accordingly. Alternatively, some lessors even permit an extension of the lease agreement, however this could come at a higher monthly rate than before.
If at the end of your lease term you decide not to buy or extend, then you typically have three options: return the vehicle; renew the lease; or lease another vehicle from the same dealer or company
“It’s important to read all the fine print and make sure you understand how much mileage you can accumulate and how much wear and tear you can put on the vehicle.” -Consumer ReportsIn conclusion, leasing a CPO BMW can be an affordable way to own a luxury car. Whether through BMW Financial Services, third-party lenders, a trade-in, or a down payment, each financing option differs slightly when considering the upfront costs, interest rates, and conditions of the contracts throughout the loan period, so carefully consider which one works best for your situation. Remember to review your lease-end options beforehand to stay informed throughout your journey.
FAQs About Leasing a Certified Pre-Owned BMW
What is a Certified Pre-Owned BMW?
A Certified Pre-Owned (CPO) BMW is a used car that has gone through an extensive inspection process to meet the manufacturer’s standards. To be considered as CPO, the car must pass a multi-point inspection and have less than 60,000 miles on its odometer. CPO vehicles also come with an extended warranty.
What are the Benefits of Leasing a Certified Pre-Owned BMW?
Leasing a CPO BMW combines the benefits of both leasing and buying. You can drive your dream car for a reasonable monthly payment while still having peace of mind knowing you’re getting a high-quality vehicle. Additionally, leasing allows you to keep up with the latest technological advancements without committing long-term. When the lease period ends, you can either return the vehicle or purchase it outright at its residual value.
What is the Difference Between Leasing and Buying a Certified Pre-Owned BMW?
The main difference between leasing and buying is ownership. When you lease a car, you do not own the vehicle; therefore, you don’t have to worry about resale value or depreciation. On the other hand, buying a CPO BMW means owning the car, and you’ll need to consider its residual value when selling it later. Another key difference is financial responsibility. When you lease, you’re responsible only for regular maintenance and repairs, whereas if you buy, you’ll have to handle all of those costs plus any future repair bills outside of the warranty period.
“Leasing a certified pre-owned BMW can be a smart move for those who want to experience premium driving without breaking the bank.” – U.S News & World Report
Leasing a CPO BMW can offer you quality, affordability, and flexibility. You can enjoy the latest features and technology while staying within your budget and not committing to long-term ownership obligations. However, before deciding whether leasing or buying is right for you, make sure to sit down and carefully consider your financial situation and driving goals.
Frequently Asked Questions
Can certified pre-owned BMWs be leased?
Yes, certified pre-owned BMWs can be leased. In fact, leasing a CPO BMW can be a smart move for those who want to enjoy the benefits of a luxury car without the high costs associated with buying a new one.
What are the benefits of leasing a certified pre-owned BMW?
Leasing a certified pre-owned BMW comes with several benefits, such as lower monthly payments, warranty coverage, and the option to upgrade to a newer model at the end of the lease term. Additionally, CPO BMWs undergo rigorous inspections, ensuring that they are in excellent condition.
What are the requirements for leasing a certified pre-owned BMW?
The requirements for leasing a certified pre-owned BMW are similar to those for leasing a new one. You will need to have good credit, provide proof of income, and have a down payment. Additionally, you may need to pass a credit check and meet certain age and residency requirements.
How do the leasing terms for a certified pre-owned BMW compare to a new BMW?
The leasing terms for a certified pre-owned BMW are often more favorable than those for a new BMW. CPO leases typically come with lower monthly payments, and you may be able to get a longer lease term or a lower down payment. However, the specific terms will depend on the dealership and your creditworthiness.
What factors should be considered before leasing a certified pre-owned BMW?
Before leasing a certified pre-owned BMW, consider your budget, driving habits, and lifestyle. Make sure you can afford the monthly payments and any additional fees, and consider whether a CPO BMW will meet your needs in terms of features, performance, and style. Additionally, compare the lease terms and pricing for CPO and new BMWs to determine which option is best for you.