Lease Buy-Out

dac56 · 10-26-2010, 10:25 PM

Hello I tried to search around for this but didn't find what I was looking for:

I currently own a 08 335i coupe and my lease is coming to an end sometime in November. I have been making payments of 780 a month with 0 down. 15k miles. (I know, not such a good deal). The Residual Value is at $28,xxx. I was wondering what would be a good price for me to offer to the dealership? With or With-out CPO. I was thinking I would offer $25k without CPO. What do you guys think? If I calculate it I already paid around $28k in lease payments.

Your input will be much appreciated, have never dealt with a lease/buy-out so don't know where to start.

Thank YOUU

Ali.K_BMW · 10-27-2010, 08:27 AM

Hello. Welcome to Bimmerpost.

Your offer really does not play strongly in a lease buy out. BMWFS sets the terms and tells us (the dealer) what to buy your car for. In most cases, you are able to get you car certified etc and still pay under the residual value.

Since it is an 08' you will be re-financing and have the ability to take advantage of BMWFS CPO rates (only if you CPO it).

wakeboarder109 · 10-27-2010, 09:34 AM

Quote:

Originally Posted by trackfiend

Hello. Welcome to Bimmerpost.

Your offer really does not play strongly in a lease buy out. BMWFS sets the terms and tells us (the dealer) what to buy your car for. In most cases, you are able to get you car certified etc and still pay under the residual value.

Since it is an 08' you will be re-financing and have the ability to take advantage of BMWFS CPO rates (only if you CPO it).

If you don't want to get it CPO'd though, check out PenFed. They have great rates on used cars.

Jhalf · 10-27-2010, 10:22 AM

How do you own a lease?

Ali.K_BMW · 10-27-2010, 11:44 AM

Quote:

Originally Posted by Jhalf

How do you own a lease?

When you finance. you don't own it either. The bank still has your title until your paid in full. The lease is prolonging the buying decision whereas the finance is paying for 5 years then you "OWN" the car.

FLA 335 · 10-27-2010, 12:51 PM

i was just going to comment on how he "owns" a lease...

at any rate i agree with the second poster regarding the lease buy out terms...
best of luck.

cssnms · 10-28-2010, 10:26 AM

Legally you own nothing under a lease although from a practical stand point it's not all that different from financing with the exception that you are not building any equity in the car with each payment. Both titles have the financial institution as the lien holder.

With regard to residual value, the time to negotiate that would have been when you leased the car - yes it's negotiable. BMWFS determines the residual value and they are the lien holder, so they are who you need to speak with initially. The dealer has no responsibility for your car other than taking it in at the end of your lease. The dealer may or may not buy the car depending on their inventory situation, otherwise it will end up at auction.

With regard to the residual value on your car, how does that value compare with wholesale, trade-in or say retail? The answer to this question will be a barameter as to whether or not you will have any hope of renegotiating the buy-out. In other words, BMWFS is less likely going to sell you the car below wholesale or trade-in value. Hey, it never hurts to ask, the worst they could say is, no.

OnlyTruth · 10-28-2010, 02:19 PM

The funniest thing is, when you lease you pay interest on the whole price of the car you buy (lease) PLUS depreciation of the car. Just look up the formula.

So if you lease a car that is $40,000 and lease buy out is $25,000 over the course of the lease you pay interest on $55,000!

When you buy a car you pay interest on your loan which is the price of the car only (minus any money down of course in both cases)

Lease is a robbing blind deal, plus you pay bank fee of $800 which equals about 1% of interest on top.

10-26-2010, 10:25 PM	#1
dac56 Registered 0 Rep 1 Posts Drives: 335i coupe Join Date: Oct 2010 Location: Philadelphia iTrader: (0)	Lease Buy-Out Hello I tried to search around for this but didn't find what I was looking for: I currently own a 08 335i coupe and my lease is coming to an end sometime in November. I have been making payments of 780 a month with 0 down. 15k miles. (I know, not such a good deal). The Residual Value is at $28,xxx. I was wondering what would be a good price for me to offer to the dealership? With or With-out CPO. I was thinking I would offer $25k without CPO. What do you guys think? If I calculate it I already paid around $28k in lease payments. Your input will be much appreciated, have never dealt with a lease/buy-out so don't know where to start. Thank YOUU
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10-27-2010, 08:27 AM	#2
Ali.K_BMW Colonel 111 Rep 2,164 Posts Drives: 2020 BMW 330i xDrive Join Date: Aug 2008 Location: United States iTrader: (7) Garage List 2013 BMW 335i [0.00]	Hello. Welcome to Bimmerpost. Your offer really does not play strongly in a lease buy out. BMWFS sets the terms and tells us (the dealer) what to buy your car for. In most cases, you are able to get you car certified etc and still pay under the residual value. Since it is an 08' you will be re-financing and have the ability to take advantage of BMWFS CPO rates (only if you CPO it). __________________ Former BMW Client Advisor
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10-27-2010, 10:22 AM	#4
Jhalf Private 2 Rep 83 Posts Drives: 08 335i e92 Join Date: Oct 2010 Location: Fairfax iTrader: (0)	How do you own a lease?
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10-27-2010, 12:51 PM	#6
FLA 335 Captain 24 Rep 746 Posts Drives: 2009 335i (SOLD) !!!!! Join Date: Sep 2009 Location: Miami Fl iTrader: (7)	i was just going to comment on how he "owns" a lease... at any rate i agree with the second poster regarding the lease buy out terms... best of luck. __________________ 2009 BMW 335i Sedan / Auto / Paddles / Sport / BMW Assist / Heated seats / JB Matte Black Grill / Tischer First Aid Kit w\Triangle / Tischer Hood Pad / "Custom" rear fog switch <---- SOLD!!!!
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10-28-2010, 10:26 AM	#7
cssnms Brigadier General 208 Rep 3,175 Posts Drives: 2011 BMW 335d Join Date: Sep 2010 Location: Murland iTrader: (4)	Legally you own nothing under a lease although from a practical stand point it's not all that different from financing with the exception that you are not building any equity in the car with each payment. Both titles have the financial institution as the lien holder. With regard to residual value, the time to negotiate that would have been when you leased the car - yes it's negotiable. BMWFS determines the residual value and they are the lien holder, so they are who you need to speak with initially. The dealer has no responsibility for your car other than taking it in at the end of your lease. The dealer may or may not buy the car depending on their inventory situation, otherwise it will end up at auction. With regard to the residual value on your car, how does that value compare with wholesale, trade-in or say retail? The answer to this question will be a barameter as to whether or not you will have any hope of renegotiating the buy-out. In other words, BMWFS is less likely going to sell you the car below wholesale or trade-in value. Hey, it never hurts to ask, the worst they could say is, no.
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10-28-2010, 02:19 PM	#8
OnlyTruth Lieutenant 17 Rep 547 Posts Drives: 2011 535 iX Join Date: Oct 2007 Location: NY iTrader: (3)	The funniest thing is, when you lease you pay interest on the whole price of the car you buy (lease) PLUS depreciation of the car. Just look up the formula. So if you lease a car that is $40,000 and lease buy out is $25,000 over the course of the lease you pay interest on $55,000! When you buy a car you pay interest on your loan which is the price of the car only (minus any money down of course in both cases) Lease is a robbing blind deal, plus you pay bank fee of $800 which equals about 1% of interest on top. __________________ 2011 535 iX lemoned
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