[Raz335]

My lease is up this May and I'm seriously thinking of keeping the car. Has anyone had any experience with BMWFS being negotiable with the lease end buyout price? I know Mercedes offered a lease end buy out for my mother's S-Class for $10K less than the contracted price. They offered this without us doing or saying anything. I guess it makes sense for the customer to keep the car rather than them having to resell the car in the open market. Granted the $10K price reduction was due to crap MB depreciation, but I'm wondering if BMW would do the same?

[VMRWheels]

At lease start, banks are placing their bet based on what the resale value is at lease end, and many are losing big money due to inflated residuals. When lease cars are returned to the leasing company (BMWNA, Chase, Citi, etc) the cars get pooled together and sold at no reserve dealer auction.

There is a market price for cars on the resale market, and if say the residual was $40,000 and they could only get $30,000 at auction, it would definitely serve them better to negotiate and offer you something between $30-40k. However, due to bureaucracy issues, some might not even have the luxury to renegotiate, its like trying to stop a speeding freight train from going over the cliff.

Because the blue book price of cars have dropped so much lately, those who leased within the last 2-3 years have made a better bet than those who purchased. If the car's resale is less than residual, then you can return the car without any penalty.

Best bet is to call. If they don't offer you a better deal, return the car and get another one exact same spec (unless you are sentimentally attached to it). There are plenty of brokers who would be happy to snag up cars at auction for you.

[Sal@AUTOcouture]

BMW adjusts residual once theres 3 payments or less left on the lease. I've seen some 07 335s drop around 8-10k already

[Raz335]

Thanks for the info. The 8-10K drop in value is exactly my concern. The market value of my car is below my residual, so it wouldn't make sense to buy it at the contracted buyout price. The choices are to give the car back, or buyout at a negotiated lower price. Buying out at the lease stipulated price is a non option. The problem with getting a new same spec car is the extra paid for bank fees, disposition fee for my existing car, higher MSRP for the new car and worse lease rates than what I have now. It doesn't make financial sense.

[Sal@AUTOcouture]

Originally Posted by Raz335

Thanks for the info. The 8-10K drop in value is exactly my concern. The market value of my car is below my residual, so it wouldn't make sense to buy it at the contracted buyout price. The choices are to give the car back, or buyout at a negotiated lower price. Buying out at the lease stipulated price is a non option. The problem with getting a new same spec car is the extra paid for bank fees, disposition fee for my existing car, higher MSRP for the new car and worse lease rates than what I have now. It doesn't make financial sense.

you are able to buy it at the new residual

[Raikkonen]

raz,
In a direct answer to your question, yes, BMWFS will negotiate your residual at your lease end. I was in the same situation as you at the end of mine, and even though my residual was higher than market value, I wanted MY car. I knew the history, I knew how it had been treated/driven/maintained etc.

My salesman negotiated the deal for BMWFS, and knocked $3k off of the residual. It's like any other car buying experience. BMWFS likes the transition because they sell a car that they would otherwise roll the dice on at a future auction, and possibly not see the money they were hoping to get. Good luck.

[RedBirdRuss]

I just purchased my 2006 330xi from BMWFS and was able to negotiate $6700 off the residual. I used a stall tactic and talked with several different reps at BMW.
The first rep offered me $2500 off of residual. You can also get a discount on the extended protection program.
Best of luck!

[vbb]

Bumping this back up to the top. I am in the same boat. My lease turn in isn't for a few months yet, but I've already decided that I want to keep the car. Seeing as how similarly optioned used 335s are going for less than my residual, I figured BMWFS would be willing to deal since I'll be a guaranteed customer. But I'll just turn my car in rather than pay $4K-$5K more than the market says it's worth if it comes to it.

Would it be better to contact my local SA, or to try and contact BMWFS directly?

[chicagolab]

Originally Posted by vbb

Bumping this back up to the top. I am in the same boat. My lease turn in isn't for a few months yet, but I've already decided that I want to keep the car. Seeing as how similarly optioned used 335s are going for less than my residual, I figured BMWFS would be willing to deal since I'll be a guaranteed customer. But I'll just turn my car in rather than pay $4K-$5K more than the market says it's worth if it comes to it.

Would it be better to contact my local SA, or to try and contact BMWFS directly?

I recently bought out at the end of the lease and also got the car CPO and extended maintenance. All well below the residual buyout.

Here is a previous thread on the subject.
http://www.e90post.com/forums/showthread.php?t=247169

[vbb]

Originally Posted by chicagolab

I recently bought out at the end of the lease and also got the car CPO and extended maintenance. All well below the residual buyout.

Here is a previous thread on the subject.
http://www.e90post.com/forums/showthread.php?t=247169

Thanks for the reply. So while you didn't get the price you were originally shooting for, it looks like you did get a discount.

How much did CPO-ing add to the total negotiated price? When it comes time to turn my car in, I'll still have 1.5yrs left on the 4yr/50K mile warranty, so I was just thinking about buying the extended warranty since I want to keep the car... but getting the car CPO'd might be the better option if the price is right.

[positiveions]

yes. Residual value are negotiable. try 3k off. I got 2k off; only because my car was super super clean when i returned it,and the dealer won't budge. At least I got brand new free floor mats

[mbs]

I have a 2007 328i with 50k miles on a 36k mile lease ending Sept 2010. When negotiating a buyout will they make me pay for the miles overage?
I saw an ad for my same car for $19k

[inthemiddle]

Originally Posted by mbs

I have a 2007 328i with 50k miles on a 36k mile lease ending Sept 2010. When negotiating a buyout will they make me pay for the miles overage?
I saw an ad for my same car for $19k

i have the same question.... will they charge for mileage overage if trying to negotiate a buyout ??

ALSO... do they need to see the car... if i don't care about CPO.. and the car is say... 'stored out of town' (or has lots of mods)... .. .. sounds like don't need to see it to negotiate if people are doing some of this over the phone or through email..etc....

[attheend]

Originally Posted by mbs

I have a 2007 328i with 50k miles on a 36k mile lease ending Sept 2010. When negotiating a buyout will they make me pay for the miles overage?
I saw an ad for my same car for $19k

I am new to this post. My lease ends in Feb 2011. I have a little over 50K miles. What was your experience at end of lease?

[geneatals]

Originally Posted by attheend

I am new to this post. My lease ends in Feb 2011. I have a little over 50K miles. What was your experience at end of lease?

bmwfs no longer negotiates the buyout price at end of lease, they refer you back to your dealer to negotiate your buy-out price now..

[aequitas330]

Originally Posted by geneatals

bmwfs no longer negotiates the buyout price at end of lease, they refer you back to your dealer to negotiate your buy-out price now..

Bump since I'm now in a similar situation. Any strategies for negotiating the best prices on 2010 E90 lease buyouts?

[jopa489]

Originally Posted by aequitas330

Bump since I'm now in a similar situation. Any strategies for negotiating the best prices on 2010 E90 lease buyouts?

Negotiate it like anything else. It completely depends on your situation, condition, mileage, repeat customer, and how much the dealer wants the car. If you're not satisfied, try a different dealer. I assume you're on a 24/27/30 month lease with a 2010?

[aequitas330]

Originally Posted by jopa489

Negotiate it like anything else. It completely depends on your situation, condition, mileage, repeat customer, and how much the dealer wants the car. If you're not satisfied, try a different dealer. I assume you're on a 24/27/30 month lease with a 2010?

Correct, 24 month 12000 mile lease. ~19,200 miles currently on it with the lease ending today. This is my 2nd lease with this dealer.

[jopa489]

Originally Posted by aequitas330

Correct, 24 month 12000 mile lease. ~19,200 miles currently on it with the lease ending today. This is my 2nd lease with this dealer.

You can always extend the lease a month or so while you work out the negotiations. That's a car the dealer is going to want back providing it's in good condition. What's the current buy out on the lease approximately? You should also decide whether or not you want the CPO warranty added when you buy it (price of that is also negotiable).

[khaye1]

Originally Posted by aequitas330

Correct, 24 month 12000 mile lease. ~19,200 miles currently on it with the lease ending today. This is my 2nd lease with this dealer.

So, what was the outcome? Mine is comin up due in a few months

[Murph335]

Updating this thread since it was helpful.

I found an 11 X5 xdrive35d, L7, CA, navi, luxury seating, oyster int., sport 32k miles on autotrader new sticker was $65k. Owner was listing for his lease buyout to avoid fees (smart) priced at his residual + tax through bmwfs $41,500. Residual was $38,9xx.
Read this thread and started calling dealers vs just sending a check into bmwfs.

After negotiations one dealer said bmwfs is selling them the car for $70 less and they have to do a safety inspection, shop fee = $1000 + doc fee so add $1500.

BMW North Scottsdale asked for $500+$595 doc fee for the sales guy, and waived the shop fee did the inspection. $43,0xx out the door including $400 for plates (AZ stickers use Depreciated MSRP). The extras only applied because changing ownership. Original owner buyout wouldnt have to do inspections, doc fees etc. BMWFS actually sold this car to them for $500 lower than customer residual = $38,3xx.

They explained that the 35D's are hot right now and at auction would go for 38-40k, +$2k inspection + CPO they would retail this car at $50k and it would be gone within 14 days bc of options etc. Did say that 328i base or minimal options are everywhere so bmwfs will give incentives on certain models but no longer negotiates. BMWFS uses auction values then adds an algorithm (say 1-2k) to come up with the dealer buyout cost now. Now system is fully automated since the economy took a dump in 09.

So in the end I could have saved a little $ by mailing a check to BMWFS, then waiting for title to come to orig owner, owner then basically sells it to me, signs title over. In addition i wouldnt have the keys while all this processes. Meanwhile we found out that bill of sale wouldnt have been valid bc BMWFS owned the car so it wasnt the owners car to sell yet. Orig owner made last payment already lease end 8/9/13.

Ideal situation is to have the orig owner buyout the lease with their funds(still pays sales tax), then you do transaction when they have the title free and clear like any other PP sale (no tax in AZ on Priv Party sales).

[Roopdillard7]

I'm in a similar with my '11 328xdrive. Lease is up in about 2 months and my residual value is $29,800 which I think is high (only options are sport package, leather seats, sunroof-that's it). Approaching 30k (so I'll be at least 3k over mileage allowance). Car is in great shape.

Here are a few questions:
1. Do you think this is a fair price of the market (I tried NADA and KBB but it's kind of confusing).
2. How negotiable is the residual/buyout at this point?
3. If I buy it, does the dealer have to slap the CPO on it and if so what is the true cost for that and is it negotiable?


Thanks for your thoughts.

SG