Lease is due in 6 months and I want to buy my car from BMW.

[Harry Da Hamster]

Originally Posted by aus

Are you within the last 3 months of your lease?
I'm hoping things haven't changes since I have 5 months on my lease and was planning on buying it from him. If you have more than 3 mo on your lease, he can't get you a deal because BMWFS will not let the car go for Auction price. The auction price is an estimate of what the dealer gets the car for at those dealer only auctions. They make a killing on used cars.

Most people know what the invoice price is for a NEW car and want to pay maybe $1,000-2,000 over invoice depending on the car. But on a used car, the dealer can get the car for many thousand below the residual. My wife's 335 had a residual of $28,500 and Will was able to get the car for around $23,500 and sold it to me for $1,300 over the auction price ($300) was for an "inspection" by the service department that took many hours or sitting around a waiting; that was the only part of the transaction I was not happy with and will make sure I'm not sitting around that long next time.

Again, it has to happen within the last 3 months of the lease.

.

Wow. I've been in the industry for quite a while now, though never with BMW, and this concept is so crazy i don't understand why BMW Financial Services would do this. But good to know for future reference.

Do you know if Will Shaw of Shelly BMW in LA is the only guy who would do this, or are there others who have done this also?

[aus]

Originally Posted by coloradoe92m3

Seems weird. Why would bmw do this as it kills profit if they can get owner to pay residual

My take is, if you return the car, BMW sends it to auction. It probably saves a little money if the dealer buys the car from them.

Originally Posted by FNG

Wow. I've been in the industry for quite a while now, though never with BMW, and this concept is so crazy i don't understand why BMW Financial Services would do this. But good to know for future reference.

Do you know if Will Shaw of Shelly BMW in LA is the only guy who would do this, or are there others who have done this also?

I'm sure others will do the same deal since it's a sure sale and a quick sale, but it all depends on how greedy they are. They'll make more money if they buy the car, and sell it for market value. Will has always been cool about selling cars at a fair price with me and many others.

.

[dagolfpro]

Originally Posted by jphughan

OP, you have no chance of getting a CPO on your car. If you read the CPO checklist, a car under consideration for CPO is automatically failed if there are any non-BMW performance modifications or non-OEM safety-related components -- unless of course the dealer wants to replace all of those with OEM parts in order to CPO the car. The KW V3, BBK (and its non-OEM pads), camber plates, harnesses, Lux, and painted reflectors all qualify under one or both of those general guidelines, and in fact the checklist specifically calls out all of those items individually except the painted reflectors.

As for buying out the lease, my understanding had been that you just pay BMW FS the buyout amount, in which case you never need to get it inspected or anything. You're buying the car for the agreed-upon price, so they don't care what condition it's in. But according to others in this thread, there are ways to get better pricing working with some dealers (and possibly dealing with some inspections), so I defer to them on that topic.

I'm not sure what Excess Wear and Tear Protection is, but it sounds like something to limit fees associated with returning a leased car that has high mileage, dings, etc. If you're buying the car out, I don't see the point in having that, and if it's designed only to limit your liability on returning a lease (which it sounds like it is), I doubt they'd let you use it for general repairs without turning the car in. In fact even if you WERE turning it in, it probably only acts as a fee waiver, not a means for you to get the car fixed yourself. Given that you've already bought the coverage, I also doubt there's a way to get a refund on it now. You don't get road hazard payments or insurance premiums back if you don't use those, after all.

As for extended warranty alternatives to CPO, there are already tons of threads on that subject you can call up together by Googling "extended warranty site:m3post.com". Good luck!

Thanks for the CPO checklist file. That's what I was afraid of, my mods would make a CPO impossible. I've been following all the extended warranty threads. Just need to decide on if it's something worth the money. Knock on wood, no issues with the car so far. Plus, a friend of friend is a sr tech at bmw, so, that might help with any future issues/costs.

The Excess Wear and Tear Protection I was duped into buying it. I even emailed the F&I manager who sold me the policy last month and this is what she said. "At the end of the lease if there is damage to the car, the credit can
be used just as if you were giving the car back. In essence, you are
giving the car back and then rebuying a new purchase. I recommend that
your dealer contact their BMW Rep if they have any questions about that." But I've checked with other bmw dealerships and they all said, if I purchase the car, it voids the EWTP. So, she essentially sold me something knowing that I would never use it as I told her that I'm 100% sure that I will buy the car back at the end of the lease. I only leased it as my CPA said I would reap tax benefits vs. buying and depreciating it.

Originally Posted by nmehta211

This is very interesting, thanks.

It sounds like one could even buy the car at $1000 over auction price, and potentially flip it for profit.

I have heard guys doing this when they leased cars during 08-10. Back then, dealerships were practically giving away cars as they sat on their lots for so long and no one was buying high end cars. But now, I don't think that's the case. I think the savings would not be enough and not worth the added headache that comes along with selling cars privately.

[dagolfpro]

Originally Posted by nmehta211

This is very interesting, thanks.

It sounds like one could even buy the car at $1000 over auction price, and potentially flip it for profit.

Oops, I also forgot about sales tax... Here in CA, tax is almost 10%. So, if residual is $40k, $4k in sales tax will wipe out any potential to sell for a profit.

[M3_Socal]

Originally Posted by aus

Are you within the last 3 months of your lease?
I'm hoping things haven't changes since I have 5 months on my lease and was planning on buying it from him. If you have more than 3 mo on your lease, he can't get you a deal because BMWFS will not let the car go for Auction price. The auction price is an estimate of what the dealer gets the car for at those dealer only auctions. They make a killing on used cars.

Most people know what the invoice price is for a NEW car and want to pay maybe $1,000-2,000 over invoice depending on the car. But on a used car, the dealer can get the car for many thousand below the residual. My wife's 335 had a residual of $28,500 and Will was able to get the car for around $23,500 and sold it to me for $1,300 over the auction price ($300) was for an "inspection" by the service department that took many hours or sitting around a waiting; that was the only part of the transaction I was not happy with and will make sure I'm not sitting around that long next time.

Again, it has to happen within the last 3 months of the lease.

.

Aus, I have a couple payments left and am within the last 3 months. You might have a better relationship with Will. Because he did not give me a "decent" deal at all on the buyback. I know that it'll all depend on the residual value versus dynamic pricing (Manheim MMR). My residual is at 44K which is average. Contacted several dealers and they all want to make a profit (residual plus dealer fee). I am better off dealing with BMWFS directly.

[aus]

Originally Posted by dagolfpro

Oops, I also forgot about sales tax... Here in CA, tax is almost 10%. So, if residual is $40k, $4k in sales tax will wipe out any potential to sell for a profit.

In Cali, you have something like 10 days to sign the Title to someone else and you don't have to pay the sales tax. I've sold many cars myself after buying it out after a lease before I knew about this auction price thing.

Originally Posted by M3_Socal

Aus, I have a couple payments left and am within the last 3 months. You might have a better relationship with Will. Because he did not give me a "decent" deal at all on the buyback. I know that it'll all depend on the residual value versus dynamic pricing (Manheim MMR). My residual is at 44K which is average. Contacted several dealers and they all want to make a profit (residual plus dealer fee). I am better off dealing with BMWFS directly.

That sucks. I'll be contacting him near the end of my lease and I'm hoping the E9x value takes a dump at that time because it's about when the F8x should be arriving on dealer lots. Sorry to hear it didn't work.

.

[M3_Socal]

Originally Posted by aus

In Cali, you have something like 10 days to sign the Title to someone else and you don't have to pay the sales tax. I've sold many cars myself after buying it out after a lease before I knew about this auction price thing.



That sucks. I'll be contacting him near the end of my lease and I'm hoping the E9x value takes a dump at that time because it's about when the F8x should be arriving on dealer lots. Sorry to hear it didn't work.

.

The deal that I got from Will was to pay the last two payments plus residual and add doc fee and dealer profit. Other dealers will try to add "California inspection fee" which does not exist. Check with Carmax if you want to sell your car. They want to make at least 5k when they resell it on their lot. It will be close to residual.There was only one CA who was honest (not greedy) and asked me to wait until my last payment is made to assess the buyback price at lease end. Good luck

[dagolfpro]

Originally Posted by M3_Socal

The deal that I got from Will was to pay the last two payments plus residual and add doc fee and dealer profit. Other dealers will try to add "California inspection fee" which does not exist. Check with Carmax if you want to sell your car. They want to make at least 5k when they resell it on their lot. It will be close to residual.There was only one CA who was honest (not greedy) and asked me to wait until my last payment is made to assess the buyback price at lease end. Good luck

I know you said that your residual is the lowest price available and you kept the car. I went to my local BMW Dealer and they said the same thing. Another dealer asked me to come back after my last payment is made and will deal but I think he's just saying that to get me to come in.

Anyone else have different experiences?

[aus]

I have NO LUCK this time when buying my car in getting a discount.
SUCKS!!

[M3_Socal]

Originally Posted by aus

I have NO LUCK this time when buying my car in getting a discount.
SUCKS!!

Yes that sucks. Contact BMWFS direct if you wanna purchase the car. Skip the dealer and all those fees.

[modkrazy]

Originally Posted by aus

I have NO LUCK this time when buying my car in getting a discount.
SUCKS!!

I just paid the residual and considered it money well-spent. They don't make cars like this anymore.

[Flying Ace]

didn't even know you can negotiate a lower price than the residual.

[dagolfpro]

Originally Posted by Flying Ace

didn't even know you can negotiate a lower price than the residual.

Normally you can at the dealership level. Not with Bmwfs. But it looks like 2011 M3's are selling for higher than residual so dealers are less likey to provide discount.