Lease end buyout - should I? Advice please!

[alipali]

Have been doing some research on negotiating the residual for lease buyout. BMW Financial are a dead end, so just wondering if any of you had any luck with negotiating with dealerships.

Mine gave me a flat no. But I'm going to try again, maybe ask higher up the food chain.

My residual is $39.5 k for 2011 M3 Coupe w/ 37k miles.

Lease end costs: $1600 for new hood (Thanks Deer), + $800 for miles overage.

Good deal to keep it?

Can you buy through a new dealer (not he one you leased it from)?

Thanks!
Al

[carchrism5]

And the $350 disposition fee. If its a well optioned car it sounds like a great deal.

[euro*]

how many miles are you over?

[geneatals]

man, second time this month I've heard bmwfs and dealerships not budging on the buyout price at lease end on an e9x m3. My other friend ending up cpo'ing it which helped a little. I've been told our cars resale value has been very good, especially overseas so I would assume BMW would rather get the car back and resell at a higher price and hopefully get us to lease another car. I'll be in the same boat soon as Novemeber will be 90 days out from my lease end...I'm hoping to buy out my car as well, but we shall see how the numbers workout....

[gatorfast]

$39.5k is definitely well below market value for a 2011 with low mileage. Why would BMW negotiate when they know if you turn the car in the can re-sell it for probably well into the 40's or beyond?

[alipali]

I'm over by about 8k miles - so that's in the $1200 range.

I'm getting quoted 4.14% / 60 months to buy the car uncertified, 1.9% or 0.9% certified for 60 and 48 months respectively.

That 4.14 % seems high and I'd be quick to refinance and save a point. Again, anyone have experience with finance rates, are they BMWF fixed or is there play at different dealerships?

[Craigy]

Originally Posted by gatorfast

$39.5k is definitely well below market value for a 2011 with low mileage. Why would BMW negotiate when they know if you turn the car in the can re-sell it for probably well into the 40's or beyond?

Yeah you could buy the car yourself today and flip it for more tomorrow on a optioned 2011 with those miles. It would be a little hassle, and sales tax might add some cost, but you're below market.

[Craigy]

Originally Posted by alipali

I'm over by about 8k miles - so that's in the $1200 range.

I'm getting quoted 4.14% / 60 months to buy the car uncertified, 1.9% or 0.9% certified for 60 and 48 months respectively.

That 4.14 % seems high and I'd be quick to refinance and save a point. Again, anyone have experience with finance rates, are they BMWF fixed or is there play at different dealerships?

4% is high. Depending on your credit, you may have better luck finding your own financing. I've been looking and by best 60mo quote was 2.49% if you had to do 60 months.

[alipali]

Hey Craigy, where did you get the quote?

[alipali]

For the record, BMWF rates range from 5% to 15% - they said they want to push the business to the dealerships and don't compete. So don't bother with them.

Going from dealer to dealer I've been able to shave some fractions off the interest.

There's no budging on the residual as the car is under market value and, as I was told, in high demand.

[Craigy]

Originally Posted by alipali

Hey Craigy, where did you get the quote?

USAA and also a local credit union.

If you aren't eligible for USAA check with your local credit unions and see what they're offering.

[MWM3]

do it brah

[alipali]

But "it" could also mean this!

[alipali]

Or this:

[alipali]

Equally, driving one of these after an M3 may sink me into depression.

One just never knows.

[Craigy]

Haha yeah it's all about what you want in a vehicle.

After getting rear ended twice in about a year, I swore I was going to buy an SUV... but that wore off.

[mosx]

Buy it and finance through dcu.org - 1.99% for 60 months. Gotta be a member but its free to become one. They'll finance cars up to 10 years old at that rate.

[Dave07997S]

Originally Posted by geneatals

man, second time this month I've heard bmwfs and dealerships not budging on the buyout price at lease end on an e9x m3. My other friend ending up cpo'ing it which helped a little. I've been told our cars resale value has been very good, especially overseas so I would assume BMW would rather get the car back and resell at a higher price and hopefully get us to lease another car. I'll be in the same boat soon as Novemeber will be 90 days out from my lease end...I'm hoping to buy out my car as well, but we shall see how the numbers workout....

Thats because the residual is low vs. what the car can sell for. My residual was $38K and the dealer offered me $44K on trade, they want you to walk away.

Dave

[M3LISSA]

I had the same problem, they will NOT negotiate the price. The bottom line is you signed the papers in the beginning of the lease knowing what the buyout would be at lease end. I did end up CPO'ing mine with them as well, it saved me a tiny amount of money, as compared to buying a warranty separate. I financed through BMW at 0.4%. It worked out for me, a little bit of a headache being that I had some mods on the car, so it interfered with the CPO process, but its done, signed and the car is mine. If you love it.. then buy it... It is a good price, and my guy said I will get more money if I ever decide to sell it privately anyway. Im happy....

[Ghetto2315]

Residual Buyout at lease end is NOT negotiable. End of story

[ijnoj09]

Originally Posted by M3L

I had the same problem, they will NOT negotiate the price. The bottom line is you signed the papers in the beginning of the lease knowing what the buyout would be at lease end. I did end up CPO'ing mine with them as well, it saved me a tiny amount of money, as compared to buying a warranty separate. I financed through BMW at 0.4%. It worked out for me, a little bit of a headache being that I had some mods on the car, so it interfered with the CPO process, but its done, signed and the car is mine. If you love it.. then buy it... It is a good price, and my guy said I will get more money if I ever decide to sell it privately anyway. Im happy....

when you CPO'd the car... what trouble did you have to go through with the mods? did you have to return the car back to stock when they inspected it? just wondering as I'm gonna be in the same situation and looking at my options.

[positiveions]

Is that residual set by the original contract? Did you communicate with BMW financial or the dealer?