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BMW End of Lease Buyout
Hi, We have a 06-330 coming to it's lease end and was thinking of buying it out right. Has anyone had any success in negotiating the price. Talking with BMW Financial, They will not negotiate but said try our or other dealers to get a better price. Our buyout is 25,800 CPO with Edmonds trade in @ 17k , Private sale 21K and dealer 23K. What would be a good buyout price. Any help would be appreciated. Thanks Mitch
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If I want to extend my lease for 1 year the monthly payments are $1149/month. If I want to buy the car my monthly payments for 60 months are $609/mo at 6.4% financing.
Has anyone else experienced this from BMW?
It is not exactly a "customer retention" program.
I like the X3 and would like something similar around the same monthly lease payment.
Does anyone have any suggestions?
My first assumption is that you like the vehicle. This is very important, because if you do NOT like it, you're probably not going to be happy keeping it regardless of the financial details. I'm going forward assuming you do.
I'm also going to assume that you were allowed 36,000 miles on your lease, and that you're over by about 8K now. If that's true, I'll calculate an average of $0.15/mile overage fee, and say you'll owe $1200 for the excess mileage. Let's assume another $1,000 for the dings and other fees.
Your purchase price looks to be right between private party & dealer retail, so that's reasonable. If you have the $2,000 for the fees you'd pay to turn it in, why not use that as a downpayment on the balance, then finance the remaining $18,500? This would cut your monthly payment by a LOT, or alternatively, reduce the loan period by a lot.
The only way I see it making good sense to turn in is if you're looking to lease another BMW, and for whatever reason, you can get them to waive fees. But still, if you're happy with the vehicle, you can reduce payment amount or interest you're paying if you keep it. Just my thoughts.... don't take my opinion as gospel.
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As information, I am significantly under lease mileage, about 10K miles less than the contract. And the 3 months lease payment waiver is reflected in my pay off quote, so I think the dealer is not offering anything extra.
My 328i is nearing end of lease and I've been offered a residual value of 21,000. Is that reasonable ? I'm hoping to knock off 2K from the residual but that seems to be difficult.
The car is well within the mileage limit and in good condition.
Also do I HAVE to go to the same dealer from whom I originally leased the car ?
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Then when the cars go to the auction, they end up losing thousands of dollars on them. Some car manufactures seemed to have learned and others not.
Cars with high depreciation rate such as BMW are generally not good cars to lease because of low residuals.
Then some people want to negioate. the residual at lease end when they KNEW what it was when they leased the car in the first place.
If the car companies allowed this to happen, it would create a can of worms and it would undermine everything they put in writing!
Turning this around, if BMW made a mistake and set the residuals too low, they wouldn't be able to tell a customer..." Well, we know the residual is 20,000 but the car is actually worth 23,000 so if you want to buy it, it'll be 3000.00 more than we told you when you leased it"
Setting residuals is a tricky thing and it's hard to predict the future market.
Set the residuals too low and the payments won't be attractive.
Set them too high and they will lose money at auction time and they will have customers asking to pay less.
Honda did the same thing to themselves a couple of times but not like BMW has. They don't seem to learn.
I found out the hard way that if they can take your money they will. I felt like they robbed me when I first leased 335I. Next month 03/2013 will be the end of that lease and I came back to the same dealer and I think they're trying to rob me again. I'm now looking @ 335Is which came to 66,845 MSRP.
First I asked them the buyout price. It's stated in my contract that it's $37,000. But when they calculated the buyout price it's actually $38K because they're adding $750 charge for the car run through their shop. That's total BS. It's my car and I want to buy it. I don't want to pay $750 for extra checkup...
Then I asked about the new lease for 335Is with 66,845 MSRP. I also owe them $2400 worth in miles overage and no run flat tire. They told me to leave my current car there go rent a car for a month while they order this new car. Put $5k down. Then pay them $862/month for 36 months.
I assume since I'm leaving the car with them I don't have to pay last month lease.
Is this a good deal? On their website the lease offer is only $529/month for 36 months for msrp of 63K car excluding tax, tags, title.
How much can the tax be? Do they tax on the entire MSRP or just the least amount? I feel like they're trying to rob me. Any pointers are greatly appreciated.
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BMW pays the remaining payments on my current lease (2011 328i).
2013 328i
Premium Pkg
Alpine White Exterior
Beige Interior
MSRP $41,345
36 month lease
10K miles per year
$1750 rebate
$500 bonus cash
0.0017 money factor
63% residual
$470/month
$250 due at signing
Is this a good deal? I've looked at Edmunds.com and it lists invoice at $38,070. Any help would be greatly appreciated. Thanks
And yes, you can negotiate the selling price as well. I suppose you could say that the 3 months they're paying on the lease + the rebate could be taken off the asking price, presuming there is no equity in the car.
Are you comfortable with a 10,000/yr limitation on miles?
They also offered the same car with navigation (MSRP $43,495) for $480/month & $348 due at signing, but I do not want or need navigation. I do not understand why they would give me $800 above invoice on a more expensive car, but not the less expensive.
I wouldn't mind a newer car, but I don't want to give my money away.
The tax rate here in GA is 6.5% of the valuation that DMV suggests (which happens to be 50 bucks below the residual so no harm done). I got 2 days left to decide so any info is much appreciated. Thanks!
The only reason i'm thinking of this even is because the car seems to have held its value and i cant find a similar spec'd car for 37k right now on ebay or cars.com
Or.. go lease a new one for $650/mo., with full maintenance plan and full warranty?
I'd go with the lease.. but, I understand if you'd rather not lease, any longer.
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The other reason was that I like my car better than the new 3 series with the heavier steering. So if i went with a lease I'd be stuck with a car that I dont like 100% for 3 years. Everything said and done, i think i made the right choice. Thanks for the comments.
I prefer the drive of the E90 version, myself, though I like the look of the new one...
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I'd drive it for one more year, before I made the decision, even if it ultimately cost me $1000. You've already paid for the usage. In a years time, you might change your mind. (plus, if you buy it out, you'll start paying interest immediately, so it's not really a $1000 cost).
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PS Do you have a point of view on extended warranties?
No point in getting the extended warranty from BMW, unless you get the extended maintenance plan, along with it. But, together, that might be $4000+, which is a serious chunk of change.
Also, the only way to make that pay off, is to drive around 15K/yr or more. Otherwise, you leave a lot on the table. You'll have an extra year, after your lease is up, anyway, right? Four year warranty/maintenance?
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