Leasing with Valley BMW

Important information to know prior to your lease end.

Lease End

When your lease comes to an end you have two options; purchase your BMW or return it and replace it with another vehicle.

If you elect to purchase your BMW, there are several options your lease end advisor can review with you, including; extending your Ultimate Service Program, Certified Pre-Owned coverage and financing. Our goal is to make the end of your Valley BMW Lease as easy as when you took delivery of your vehicle. Please contact our Valley BMW Finance department to review your options.

Lessee’s Responsibilities

Prior to returning your car, keep in mind you agree to: Vehicle Maintenance, Service, Repairs, and Reconditioning, you agreed to maintain, service, repair, and recondition the Vehicle during the Lease Term with new and genuine manufacturer’s original equipment replacement parts as recommended in the Vehicle owner’s manual.

Vehicle Return

If you did not purchase the Vehicle, you agreed to return it to the place you specify with all parts and accessories and in good working order. Upon returning, you will complete and sign an odometer disclosure statement and a vehicle inspection report, which may be used in determining any excess wear and use/or excess mileage.

Excessive Wear and Use

Lessee agrees to pay the cost of all repairs to the Vehicle that are not the result of normal wear and use, whether or not we actually repair the Vehicle. Excessive wear and use includes, but is not limited to:

Inoperative electrical or mechanical parts; Dented, scratched, chipped, rusted, pitted, broken or mismatched body parts, paint, vehicle identification items, trim or grill work; Non-functioning, scratched, cracked, pitted or broken glass or lights; Missing equipment, parts, accessories or atonements; Torn, damaged, burned, or stained interior; Repair of any damage that makes the Vehicle unlawful or unsafe to drive; Damage due to installation or removal of non-manufacturer, aftermarket or replacement parts; Damage (including damage to the engine) due to failure to maintain the Vehicle in accordance with Section 22; or Tires with tread depth of less then 1/8 remaining at the shallowest point, and or tires that are not all of the same grade, quantity or quality as those delivered with your vehicle.

Turning in Your Vehicle

When you return the car to Valley BMW, we will have you sign an Odometer Statement, which is required by BMW Financial Services as well as the State of California. When you leased your BMW, you agreed to drive a certain number of miles. If you happen to drive the car more than expected, BMW Financial Services will charge you the amount you agreed to in the Lease. A final inspection will be performed. Please make certain you bring both remote keys with you. If you have any concerns or questions, please feel free to contact Valley BMW Financial Services.

LEASING VS BUYING

There are a number of factors in choosing whether Leasing or Buying a new vehicle is best for you. Leasing a BMW long-term or buying the vehicle through a loan come with different pros and cons. Below is a breakdown of each.

Ownership

Lease

When leasing a vehicle from Valley BMW, BMW will remain the owner of the vehicle. You will be permitted to use the vehicle for the length of the lease contract. At the end of the lease you will have the option to purchase the vehicle.

Buy

When you buy a new BMW from Valley BMW you will own the vehicle once financing is completed.

Initial Costs

Lease

When starting a lease, you may pay “cap cost” reduction (what would be called the ‘Financed Amount’ in a loan), government, or lessor charges. Other costs include insurance, security deposits, the first month’s payment and any prior lease or credit dues remaining.

Buy

When you buy your BMW, you could pay the full price and purchase the vehicle outright or you could make payments through a loan. Either way, you will be paying sales tax and other state, government or lender fees and taxes. Other costs include insurance, prior vehicle loan or credit balances, and, if financed by a loan, the first month’s payments and a security deposit.

Payments

Lease

Monthly payments for a leased, new BMW are generally lower as you only pay for the vehicle’s depreciation. Depreciation is measured by the vehicles market value over time and is not tied to the full purchase price of your new BMW vehicle. Rental charges, sales tax, use tax and other affiliated fees are also associated with leasing a new vehicle.

Buy

Monthly payments for financed purchase of your new BMW are often higher due to paying for the entire price of the BMW, including state taxes and fees. Though, you will own your BMW at the end of your loan’s term.

Restrictions

Lease

Some lease requirements restrict lessees from moving out-of-state with the vehicle. If you are considering a future move, you should check the terms of your lease closely and speak with your dealer regarding questions. Additionally, most leases restrict the maximum number of miles the lessee can drive the vehicle per year, with overage charges for additional miles driven.

Buy

Buying a vehicle, either outright or by financing, often do not restrict moving within a country, but may restrict moves outside the country. There are no mileage restrictions or penalties with your own vehicle. You are free to drive the vehicle as you like.

Insurance

Lease

You will be required to keep insurance on your leased vehicle meeting the requirements outlined in your contract.

Buy

You will be required to keep insurance on your purchased vehicle meeting the requirements outlined in your contract. If the car is purchased outright, you will need to meet the requirements of your state.

Wear and Tear

Lease

Lessees are required to maintain their vehicle, including paying for wear and tear. Leases will specify what charges there will be for wear and tear upon return of the vehicle.

Buy

Purchasers won’t pay for wear and tear up-front, but will have a decreased value, impacting trade-in or resale of the vehicle, if there is excessive wear and tear.

GAP Coverage

Lease

GAP insurance helps to cover the difference in the actual value of a vehicle and the balance remaining on financing in the event of a disaster, such as a total loss. GAP coverage is usually included in lease agreements. If it is not, you can usually purchase it.

Buy

GAP coverage is not required for financing a purchase it is still a good idea in case of a disaster, such as a total loss. Comprehensive and collision coverage may not cover the full value of the totaled car, but GAP insurance would. It is not usually included in loan agreements and must be purchased separately.

Vehicle Return

Lease

At the end of the lease term, there are several options. You could return your vehicle and get a new leased vehicle, you could walk away from leasing altogether, or, if you really enjoyed your vehicle, you could purchase your leased BMW at the end of your term.

Buy

When the last payment for your vehicle’s loan leaves your account and you receive your BMW title, you OWN your vehicle! It’s up to you to keep it, sell it or trade it.

Valley BMW is located at: 4725 McHenry Ave • Modesto, CA 95356
Valley BMW 37.70830697516538, -120.99561030222117.