[dbtheo]

Here is how it works, within 90 days of lease maturity, you can have a buy out qouted based on where you are currently with your miles. If you call bmwfs, you will only be quoted residual. If you contact your dealer, you may possibly get a lower price. How? The dealer will pull a payoff quote from BMWfs which will have a price that FS determines is fair market value. It could $3-4k less, it could be the same as residual, it could be more. Somewhere between the quote from bmw & residual is what the dealer can sell the car for before cpo or any other upgrades. The basic selling price may not be more than residual, even if your car is worth more.

Example 1: Residual = $32k
Payoff quote from FS= $28,260

The dealer will not/ can not sell the car for less than the above, but instead will be somewhere between those numbers. From this aspect, the dealer has relative limited control over the sales price.

Example 2: $32k residual
actual value of car according to FS & auction values $32,700

your sale price will be $32k plus fees