Lease buyout

drwtsn32 · 08-06-2010, 11:16 PM

My dealer told me something today that really surprised me. He said even if I buy out a lease vehicle they check it over and will charge for worn tires, etc. This makes NO sense to me at all.

What do you think?

If it makes a difference, they offered to sell at a lower price than the residual amount.

drwtsn32 · 08-06-2010, 11:18 PM

Also, I do NOT plan to CPO the car.

sneaks · 08-06-2010, 11:28 PM

Why should it matter if you are buying it out? If they charge you for worn tires, are they gonna replace them for you? Of course tires wear. I think the dealer is confused.

chromisdesigns · 08-07-2010, 12:09 AM

read your lease paperwork, that specifies what they can and can't do. That said, no, I have never heard of any inspection if you decide to buy-out the lease. If you wanted to CPO it, that's a different matter, as all CPO cars have to have, among other things, OEM tires with legal tread depth.

Ditto for overage -- if you buy the car, why would they care how many miles it has? Except maybe to negotiate the price lower?

dmz · 08-07-2010, 12:37 AM

It's time to try another dealership.

roundle · 08-07-2010, 12:41 AM

Buy-out figure (residual value) should be listed in your contract.

If you buy-out, you will not owe anything re wear, excess miles, etc.

You do not need to go through a specific dealer to process the buy-out.

drwtsn32 · 08-07-2010, 08:54 AM

Yeah that's what I thought. Definite confusion on the dealer's part. The CA I have dealt with in the past is no longer there and this is some new guy. I'll see if I can talk some sense into him and if not I will end up going elsewhere.

Blk07335i · 08-07-2010, 11:04 AM

You can deal directly with BMWFS (assuming that's who leased with). I never stepped foot in a dealership when I bought mine off lease. Of course you may be able to get a better deal through the dealership.

faz · 08-07-2010, 11:20 AM

See my post under the pricing section about buying out my 07 328i.

That is total B.S. that your dealer is giving you.

They should not care whatsoever if you are buying out at the buyback price in your contract. You will deal directly with BMWFS.

If your dealer agrees to sell you back the car at lower price (i.e. you terminate your lease, they do their computer work and buy the car from BMWFS at a lower price, then sell it back to you at slight profit), then they should not again care what condition the car is (as long as it passes safety, etc.) If you have worn out tires, the safety process on their side may need you to buy new tires. If the bumper is off the car, their safety process may require you to fix the bumper. But if you have dings on the car, dirty interior, etc., they should not care. If they say they care, go to another dealer and never deal with them again.

drwtsn32 · 08-08-2010, 07:02 PM

So if the dealer is going to sell me the car at a lower price, I technically do turn in the lease and they just turn around and resell? So it may actually be the case that I am charged for worn tires, mile overages, etc?

jopa489 · 08-08-2010, 07:12 PM

If you're not CPO'ing it, I can't see why it would matter. Are you sure they're clear you don't want CPO?

drwtsn32 · 08-08-2010, 07:22 PM

Yeah, I made that clear. I will talk with the dealer tomorrow about this and how it doesn't seem right at all. I am also going to check w/ another dealer to see what they can do for me just in case.

faz · 08-09-2010, 09:17 AM

ok, the resale value that the dealer is getting from BMW and is adding profit to it and selling it back to you at, depends on the mileage as well. In my case, I was/am under my allowed 36k miles for the 3 years, so the resale value of the car that I was offered and agreed upon was higher than if I had used all 36k miles, and definitely a lot higher than say if I had 55k miles on it.

I can see how that plays a role in the offer you are getting. Kind of like you can't have your cake and eat it too. If you are getting a low price for a car that has many extra miles on it, someone has to pay for those extra miles.

Unless your dealer is willing to write down the miles as 36k or whatever it is that you are allowed, and calculate the buyback price they are offering based on that (which will probably be higher than the one you are being offered now.) But I doubt a reputable dealer would want to do any misreporting of odometer readings.

reprod · 08-09-2010, 09:54 AM

If you are buying out your car and are NOT going to CPO then do not even talk to your dealer. Call BMW Financial Services and talk to them about the non-negotiable residual value of your car. If you go through the dealer then you are essentially using them as a middle man...

CPO... go to dealer
Simple buy out... work with BMW Financial Services

David1 · 08-09-2010, 11:39 AM

Quote:

Originally Posted by drwtsn32

So if the dealer is going to sell me the car at a lower price, I technically do turn in the lease and they just turn around and resell? So it may actually be the case that I am charged for worn tires, mile overages, etc?

Correct, and they still have to send in the the lease turn in paperwork to BMWFS.

sneaks · 08-09-2010, 11:56 AM

It kinda sounds like the dealer is trying to strongarm you into a roundabout way of buying out your lease so they get a resale, upsell you their overpriced tires, maybe get a CPO profit. I don't buy the notion that they are "mistaken" or uninformed. It is their job, they do this every day. They KNOW the rules.
This happened to me when I bought out my Honda lease. The dealer in Guelph Ontario said it couldn't be done, because of some random reason about how the ownership is transferred. Of course they were ready to take my car and sell me a new car and a fresh lease. I ended up driving 1.5 hours to the dealership i purchased from to basically give them a cheque. I found out i was had and felt stupid and frustrated because Guelph Honda didn't want to do a little paperwork without profit.
It sucks that dealerships are so many worlds apart when it comes to treating the customer as a valued individual that they would like to see return one day.

anerbe · 08-09-2010, 12:16 PM

Quote:

Originally Posted by reprod

If you are buying out your car and are NOT going to CPO then do not even talk to your dealer. Call BMW Financial Services and talk to them about the non-negotiable residual value of your car. If you go through the dealer then you are essentially using them as a middle man...

CPO... go to dealer
Simple buy out... work with BMW Financial Services

+1

To my understanding, any type of buyout, whether lease or finance, can be done directly from BMWFS. When I bought out my X5, I just send BMWFS a notice that I want to payoff my loan, they send me a file stating the buyout amount, and I sent them a check for the amount within the given period they specified. No discussion with the dealer, etc....

Considering you can turn in a lease at any dealership, a particular dealership has no authority over a lease. Don't even get them involved.

I would only do this if you were returning the car to get another one at the dealership.

David1 · 08-09-2010, 02:01 PM

Quote:

Originally Posted by anerbe

+1

To my understanding, any type of buyout, whether lease or finance, can be done directly from BMWFS. When I bought out my X5, I just send BMWFS a notice that I want to payoff my loan, they send me a file stating the buyout amount, and I sent them a check for the amount within the given period they specified. No discussion with the dealer, etc....

Considering you can turn in a lease at any dealership, a particular dealership has no authority over a lease. Don't even get them involved.

I would only do this if you were returning the car to get another one at the dealership.

If you want a discount off of the residual, you have to use a dealer. A lease is different than a conventional finance payoff.

saeyedoc · 08-09-2010, 02:09 PM

Quote:

Originally Posted by David1

If you want a discount off of the residual, you have to use a dealer. A lease is different than a conventional finance payoff.

Not always. I was able to negotiate a discount with Audi Financial Services a few years ago. They wouldn't change the residual, but offered me a $3000 Visa card.

HPIA4v2 · 08-09-2010, 02:12 PM

Logically, if you buy your car at full residual (no discount or getting any loyalty rebate), I don't see why you need to put new tires on it.

I have a feeling this is similar to over-mileage case last time, buyer was surprise BMWFS was going to charge the over-mileage; forget what exactly happened at the end.

Tag · 08-09-2010, 02:23 PM

Quote:

Originally Posted by saeyedoc

Not always. I was able to negotiate a discount with Audi Financial Services a few years ago. They wouldn't change the residual, but offered me a $3000 Visa card.

I don't see anything where you can negotiate the buyout price on BMWFS. I think the only way to negotiate is through a dealer.

saeyedoc · 08-09-2010, 02:41 PM

Quote:

Originally Posted by tag824

I don't see anything where you can negotiate the buyout price on BMWFS. I think the only way to negotiate is through a dealer.

Never hurts to ask. I basically whined and told them I liked the car (was a '98 A8), but that my wife thought the price was too high. They put me on hold and came back and offered me $2k + last payment. I called back a week later, whined some more and they upped the ante.
Of course there's nothing in writing about negotiating buyout price, but if they don't want the car back, you never know what they might do. Your local dealer isn't going to get stuck with the lease return, BMWNA will. The dealer is only going to negotiate if they can make money on it.

08-06-2010, 11:16 PM	#1
drwtsn32 Lieutenant 7 Rep 499 Posts Drives: 2014 BMW 435xi, 2016 MB GLA250 Join Date: Sep 2006 Location: Tri-Cities, WA iTrader: (0)	Lease buyout - still charge for overage? worn tires? My dealer told me something today that really surprised me. He said even if I buy out a lease vehicle they check it over and will charge for worn tires, etc. This makes NO sense to me at all. What do you think? If it makes a difference, they offered to sell at a lower price than the residual amount.
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08-06-2010, 11:18 PM	#2
drwtsn32 Lieutenant 7 Rep 499 Posts Drives: 2014 BMW 435xi, 2016 MB GLA250 Join Date: Sep 2006 Location: Tri-Cities, WA iTrader: (0)	Also, I do NOT plan to CPO the car.
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08-06-2010, 11:28 PM	#3
sneaks Lieutenant 17 Rep 431 Posts Drives: '08 335xi Join Date: Apr 2008 Location: 24 Sussex iTrader: (1) Garage List 2008 335xi [0.00]	Why should it matter if you are buying it out? If they charge you for worn tires, are they gonna replace them for you? Of course tires wear. I think the dealer is confused.
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08-07-2010, 12:09 AM	#4
chromisdesigns Lieutenant Colonel 45 Rep 1,754 Posts Drives: 2008 BMW 335i sedan Join Date: Jan 2010 Location: San Francisco iTrader: (0)	read your lease paperwork, that specifies what they can and can't do. That said, no, I have never heard of any inspection if you decide to buy-out the lease. If you wanted to CPO it, that's a different matter, as all CPO cars have to have, among other things, OEM tires with legal tread depth. Ditto for overage -- if you buy the car, why would they care how many miles it has? Except maybe to negotiate the price lower?
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08-07-2010, 12:37 AM	#5
dmz Captain 37 Rep 645 Posts Drives: me nuts Join Date: Jan 2007 Location: CA iTrader: (2)	It's time to try another dealership.
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08-07-2010, 12:41 AM	#6
roundle EXPAT 65 Rep 889 Posts Drives: 18 VW GTI;18 CX9;11 E91 N52 Join Date: Apr 2010 Location: USA iTrader: (0)	Buy-out figure (residual value) should be listed in your contract. If you buy-out, you will not owe anything re wear, excess miles, etc. You do not need to go through a specific dealer to process the buy-out.
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08-07-2010, 08:54 AM	#7
drwtsn32 Lieutenant 7 Rep 499 Posts Drives: 2014 BMW 435xi, 2016 MB GLA250 Join Date: Sep 2006 Location: Tri-Cities, WA iTrader: (0)	Yeah that's what I thought. Definite confusion on the dealer's part. The CA I have dealt with in the past is no longer there and this is some new guy. I'll see if I can talk some sense into him and if not I will end up going elsewhere.
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08-07-2010, 11:04 AM	#8
Blk07335i Captain 61 Rep 938 Posts Drives: 2024 G87 M2 Join Date: Mar 2007 Location: Boston area iTrader: (4)	You can deal directly with BMWFS (assuming that's who leased with). I never stepped foot in a dealership when I bought mine off lease. Of course you may be able to get a better deal through the dealership.
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08-07-2010, 11:20 AM	#9
faz Second Lieutenant 21 Rep 287 Posts Drives: 2023 X5 x40i, 2018 330i F30 Join Date: Sep 2007 Location: Bay area, CA iTrader: (0)	See my post under the pricing section about buying out my 07 328i. That is total B.S. that your dealer is giving you. They should not care whatsoever if you are buying out at the buyback price in your contract. You will deal directly with BMWFS. If your dealer agrees to sell you back the car at lower price (i.e. you terminate your lease, they do their computer work and buy the car from BMWFS at a lower price, then sell it back to you at slight profit), then they should not again care what condition the car is (as long as it passes safety, etc.) If you have worn out tires, the safety process on their side may need you to buy new tires. If the bumper is off the car, their safety process may require you to fix the bumper. But if you have dings on the car, dirty interior, etc., they should not care. If they say they care, go to another dealer and never deal with them again.
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08-08-2010, 07:02 PM	#10
drwtsn32 Lieutenant 7 Rep 499 Posts Drives: 2014 BMW 435xi, 2016 MB GLA250 Join Date: Sep 2006 Location: Tri-Cities, WA iTrader: (0)	So if the dealer is going to sell me the car at a lower price, I technically do turn in the lease and they just turn around and resell? So it may actually be the case that I am charged for worn tires, mile overages, etc?
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08-08-2010, 07:12 PM	#11
jopa489 Major General 122 Rep 6,594 Posts Drives: Anything with Wheels Join Date: Mar 2009 Location: USA iTrader: (9)	If you're not CPO'ing it, I can't see why it would matter. Are you sure they're clear you don't want CPO? __________________ X7 LCI // Incoming C7 ZR1 ZTK // Sebring + TRX // Hydro + Raptor Gen1 Roush // Tuxedo
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08-08-2010, 07:22 PM	#12
drwtsn32 Lieutenant 7 Rep 499 Posts Drives: 2014 BMW 435xi, 2016 MB GLA250 Join Date: Sep 2006 Location: Tri-Cities, WA iTrader: (0)	Yeah, I made that clear. I will talk with the dealer tomorrow about this and how it doesn't seem right at all. I am also going to check w/ another dealer to see what they can do for me just in case.
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08-09-2010, 09:17 AM	#13
faz Second Lieutenant 21 Rep 287 Posts Drives: 2023 X5 x40i, 2018 330i F30 Join Date: Sep 2007 Location: Bay area, CA iTrader: (0)	ok, the resale value that the dealer is getting from BMW and is adding profit to it and selling it back to you at, depends on the mileage as well. In my case, I was/am under my allowed 36k miles for the 3 years, so the resale value of the car that I was offered and agreed upon was higher than if I had used all 36k miles, and definitely a lot higher than say if I had 55k miles on it. I can see how that plays a role in the offer you are getting. Kind of like you can't have your cake and eat it too. If you are getting a low price for a car that has many extra miles on it, someone has to pay for those extra miles. Unless your dealer is willing to write down the miles as 36k or whatever it is that you are allowed, and calculate the buyback price they are offering based on that (which will probably be higher than the one you are being offered now.) But I doubt a reputable dealer would want to do any misreporting of odometer readings.
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08-09-2010, 09:54 AM	#14
reprod Lieutenant Colonel 148 Rep 1,728 Posts Drives: '16 M3 ZCP Join Date: Apr 2008 Location: Bay Area, CA iTrader: (6)	If you are buying out your car and are NOT going to CPO then do not even talk to your dealer. Call BMW Financial Services and talk to them about the non-negotiable residual value of your car. If you go through the dealer then you are essentially using them as a middle man... CPO... go to dealer Simple buy out... work with BMW Financial Services __________________ '11 Space Grey E92 335xi M-Sport (KWv1 Coils \| Saddle Brown \| Bamboo) (Returned) '14 Mineral Grey F32 335i M-Sport (Dinan DHP \| LED Lights \| Coral Red \| Hexagonal Aluminum) (Returned) '16 Mineral Grey F80 M3 ZCP
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08-09-2010, 11:56 AM	#16
sneaks Lieutenant 17 Rep 431 Posts Drives: '08 335xi Join Date: Apr 2008 Location: 24 Sussex iTrader: (1) Garage List 2008 335xi [0.00]	It kinda sounds like the dealer is trying to strongarm you into a roundabout way of buying out your lease so they get a resale, upsell you their overpriced tires, maybe get a CPO profit. I don't buy the notion that they are "mistaken" or uninformed. It is their job, they do this every day. They KNOW the rules. This happened to me when I bought out my Honda lease. The dealer in Guelph Ontario said it couldn't be done, because of some random reason about how the ownership is transferred. Of course they were ready to take my car and sell me a new car and a fresh lease. I ended up driving 1.5 hours to the dealership i purchased from to basically give them a cheque. I found out i was had and felt stupid and frustrated because Guelph Honda didn't want to do a little paperwork without profit. It sucks that dealerships are so many worlds apart when it comes to treating the customer as a valued individual that they would like to see return one day.
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08-09-2010, 02:12 PM	#20
HPIA4v2 Major 254 Rep 1,391 Posts Drives: F80, F86 Join Date: May 2007 Location: Washington iTrader: (3)	Logically, if you buy your car at full residual (no discount or getting any loyalty rebate), I don't see why you need to put new tires on it. I have a feeling this is similar to over-mileage case last time, buyer was surprise BMWFS was going to charge the over-mileage; forget what exactly happened at the end.
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