Can you negotiate the residual value when lease ends?

[bmw-nj]

Can you negotiate the residual value after the lease ends?

I have a z4 and the lease is ending. It was a 78% 24 month residual and the car is worth a lot less than the residual value. Can I make an offer to buy the car at the end of the lease? Has anyone negotiated on the price after the lease ended?

[amanda hor$t]

i've only leased a car once, and decided to return it because the residual was way above real market value. when i returned it i asked the guy what they're gonna do with the car and he said that lease returns usually go to auction. i paid a penalty for driving too many miles, but it was still worth it compared to buying the car.

so i'm guessing you can. if not, just buy another one

i'm reminded of something a former smoking buddy used to say... "there will always be 21 yr olds"

[BMWrules7]

Originally Posted by bmw-nj

Can you negotiate the residual value after the lease ends?

I have a z4 and the lease is ending. It was a 78% 24 month residual and the car is worth a lot less than the residual value. Can I make an offer to buy the car at the end of the lease? Has anyone negotiated on the price after the lease ended?

No way, no how. (Although I have learned that saying something so polarising on Internet forums usually gets you proved wrong might quick.)

Sometimes, the lease company will insure the residual value---so, if the fleet loses value, they can file a claim. It's business and these kinds of insurance are just big gambles.

But, residuals are tied directly to the balance sheet of the leasing company. So, tweaking the residuals would be a definite no no.

[KingOfJericho]

Yes, you certainly can.

Originally Posted by BeamerandBimmer

BMW gives the dealer the option to buy the car for an average of the last three months of auction price. Generally if the person leasing the car buys it then BMW requires the dealer to charge them X amount over that price. So it depends on the dealer as to what they will sell it to you for. My most recent experience with this was when I turned in my 2010 M5. I had written the lease for 3y/30k miles. It had 60k miles when I turned it in. Three months before the end of the lease I paid $4800 for the excess miles. At the end of the lease the dealer gave me the option to buy it for $41k. The residual in the contract was $56k. Subtract the excess milage charge and I should have paid BMW $51200. I declined to buy the M5 as I didn't want to deal with a SMG failure out of warranty. The dealer sent the car to auction as they didn't think they wanted to sell it. The car was actually purchased by one of the regional "High End" used car chains. Eight months later and now with 65k miles on it they're still trying to sell it for $39k.

[Maestro]

^ well there is your answer. That is probably the best example since the person followed the car after the end of the lease and you have all the numbers. if the new owner is still trying to sell at $39k you know they paid less than that at auction. If most leases go this route you have to believe the dealers and car companies are still making money. As we know this may not work with all car since some hold their value better than other and Higher end BMW generally are not holding their value all that well.

[bmw-nj]

Thanks for the help guys. I am going to see if they will work with me on a fair deal. It's a 2011 BMW Z4 35i fully equipped msrp 62k and residual of 51k after 2 years and 6 months now with 25k miles allowed on the lease even though I have less than that on it. I know it's not worth close to 51k. I'm thinking 40k.

[upstatedoc]

So you leased the vehicle to save on payments now you want to buy it for less than it's worth? Clark Howard is laughing his ass off at you.

[bmw-nj]

I want to buy it for what it's worth and not overpay by 10 grand.