Quote:
Originally Posted by neology
Dealerships view point:
Lease:
Amount in interest: $4500 + dealer profit (1000) = $5500
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The dealer makes no money off the interest of your loan - the finance company does (i.e. BMWFS, Wells Fargo, etc.). From a dealer's perspective, the car is effectively sold to the leasing company (BMWFS) or whomever you're financing thru if you're buying it. They make the same amount of money for a lease or a purchase transaction.
Quote:
Originally Posted by neology
CPOd vehicle:
Amount in profit= ~5000 (if you're smart you can get it down to ~4000)
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I'm not sure if the dealer that you turn a lease into has first crack at paying off the residual to the leasing company and is able to turn around and sell it. I could be totally wrong on this, but I coulda sworn it goes to wholesale auction first.