Quote:
Originally Posted by ///M Ryder
M3's are bringing better than residual right now so it will be very hard to convince the dealer to lower your buyout. Hell, they're hoping you turn it in so they can flip it.......Phil
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You would think that, but it's not always the case. BMW NA ultimately wants to sell as many new cars as possible. They make lease incentives with a high residual which in turn lowers the lease payment. At the end of the lease, many of their vehicle have negative equity because of this. The dealership who handled the lease return will have the first right of refusal to buy out the lease for their used car inventory. On a twice monthly basis i see Manheim Auctions locally in Hawaii flooded with BMW lease returns. If its so lucrative to flip the lease returns, i wouldn't be seeing nearly as much BMW lease returns at Manheim.
I've read several times about how a BMW dealership has the option to buyout a lease within the last 3 months for "auction value". I'm still trying to figure out which auction value they are looking at but i'm guessing it's KBB hard book auction values. Hard book being the actual small blue book that dealers carry. Once again this is just a guess.