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      11-11-2013, 06:47 AM   #1
liborio
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Need strategies for end of lease buyout

I have just under a year left on my e90 m-sport 335xi lease. I am pretty sure I want to buy it at the end. It is super clean and super low miles (12k in 2 years). I am a little interested in the 2 and 4 series, enough that I will test drive them and enough that if the dealer won't deal on my lease buyout I will just get a new car and I do have a few dealers close enough to walk out.

My question is what strategy to approach for the buy out. Would the dealer rather I buy out the lease or would they rather I get a new car? I have read few threads suggesting ability to get 3K off the residual. Does that hold true for a low mileage clean car? Would it be better to show interest in a new car with mine as the back up plan or interest in mine with a new car as a backup plan?
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      11-11-2013, 09:12 AM   #2
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The dealer would most likely prefer you to buy a new car because they probably make good money selling your lead car as a CPO car to someone else. Not sure if you will be able to negotiate they buy out price since that is negotiated when you first lease the car and how your monthly payments were determined.it's worth a shot though.
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      11-11-2013, 10:23 AM   #3
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The only deals to get from the dealer will be in finance- the rate, extended warranty, add ons, etc. The buy out price has already been established by the original negotiated price, and the residual.
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      11-11-2013, 10:49 AM   #4
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Some have said they were able to negotiate the residual amount, and get a lower buyout price. You can try that. But otherwise, shop around other banks for the best financing terms (unless you have cash), and just pay BMWFS directly. you don't need to mess around with a dealership.
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      11-11-2013, 11:00 AM   #5
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Quote:
Originally Posted by mike-y View Post
just pay BMWFS directly. you don't need to mess around with a dealership.
If BMWFS allows this, then this is definitely the easiest approach.
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      11-11-2013, 11:12 AM   #6
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I just refinanced my lease into a purchase.

The residual is set by the bank at the beginning of your lease. You will still need to talk to your dealer though. Things like extending your maintenance (which will be over at the end of the lease), extending the warranty (you have plenty of mileage left, but you'll hit the end of the time/term before you hit the end of the mileage), and you might want to CPO it (which would get you 0.9% financing, but of course there is a cost to this as well).

Anyways, my residual on my 335i was well below market value for what current 3 year old cars with similar mileage are going for. I chose to CPO, get an extended warranty (platinum wrap) as well. I'm very happy with my decision.

Good luck!
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      11-11-2013, 06:08 PM   #7
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Thanks for the quick replies. I also thought the residual was fixed at the beginning but a bunch of posts from 2011 talk about negotiating the residual, thus my question. I thought about doing the CPO thing but I saw somewhere it was about $3K. I guess that is worth it if anything major goes and I would be keeping the car for a while. I also want to do some mods (suspension, intake, exhaust) and worry about it voiding the CPO warranty. Thoughts? How much did you guys pay for the CPO/extended warranty?
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      11-11-2013, 07:10 PM   #8
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Unless you have a very low mileage lease, your residual should already be favorable since you haven't used up your lease miles, and the car is worth more than the projected residual.

CPO will cost ~$2K. If you continue to use the car as little as you have, you won't get your value out of the cost of the CPO. Better to bank that $$ for any possible repairs. The turbos and the HPFP already have their own extended warranties, so you're covered there. The dealers never lose on these deals; the less you give them, the better.
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      11-11-2013, 11:19 PM   #9
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I have friends that have gone to Carmax with their low miles lease vehicles, they get Carmax to give them a purchase quote. If the Carmax buy offer is higher than the buyout price from BMW Financial Services, you can walk away with a few grand in your pocket.

Carmax will pay BMWFS the full buyout cost, and the left over money is given to you. Of course, this works well only at the end of lease period, with a low miles vehicle.

This is one way of cashing out on the high equity of your lease.
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      11-12-2013, 04:18 AM   #10
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The above is only if you want to walk away from your car though right... Not if you want to actually keep it?
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      11-12-2013, 08:16 AM   #11
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here's your answer.

Forgetting about this forum, as it is a 3 Series forum, what kind of friends do you have, btw?

http://www.suzeorman.com/resource-ce...-or-buy-a-car/
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      11-12-2013, 11:50 AM   #12
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^^^ Words to live by. She makes a lot of sense.
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      11-12-2013, 12:09 PM   #13
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Quote:
Originally Posted by John 070 View Post
That girl is kinda cute...

I think Clark Howard made the same video.
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      11-12-2013, 01:41 PM   #14
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Thanks for the link. I have watched her show before and I think she is master of the obvious and also unrealistic. I chose a lease because it gave me an easy out and that was worth the few grand lost. Plus I didn't want to fork out 20k down when the F30 was coming and I wasn't sure which I would prefer.

I am more interested in knowing what the dealer is going to be thinking when I go in at the end of my lease.

Anyone think they would sweeten the lease buyout with things like performance parts?
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      11-12-2013, 03:07 PM   #15
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^^^ Words to live by. She makes a lot of sense.
Hard to argue.
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      11-12-2013, 03:16 PM   #16
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Originally Posted by Mardio View Post
Hard to argue.
She's pretty tough, but say you do 65% of what she says, you'll be in better shape.

Some things are hard--saving $700-$1200/mo. from when a baby is born, for college? Very difficult.

Doing $17,500 to a 401k, then an additional $5k per spouse, if under the phase-outs? NO BRAINER.

Having saved $1 mil. in the 401k by age 50? That is difficult, but necessary.

Again, if you can't do the above, it doesn't mean you should throw in the towel....
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      11-12-2013, 03:36 PM   #17
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Quote:
Originally Posted by liborio View Post
Thanks for the link. I have watched her show before and I think she is master of the obvious and also unrealistic. I chose a lease because it gave me an easy out and that was worth the few grand lost. Plus I didn't want to fork out 20k down when the F30 was coming and I wasn't sure which I would prefer.

I am more interested in knowing what the dealer is going to be thinking when I go in at the end of my lease.

Anyone think they would sweeten the lease buyout with things like performance parts?
I got a BMW PE at my lease buyout, but don't expect them to just throw it in. You might be able to get preferred pricing on it though, as I did. Just make sure the price beats all the internet retailers as well.
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