Lease Payout ??? (page 1)| Forums BMWauto.net

Lease Payout ???

I am a new poster so hopefully this is not a stupid question???

I am nearing the end of my lease on my 2003 Z4. I only have 18k miles well below the 35k or so I am allowed.
I really love the vehicle and am thinking about buying for cash at the end.
The residual at this point seems pretty good even though I still have a few months left.

I guess the question here is that my dealer called to let me know I could buy the car through them ( I assume that is at same residual value???) and i could get it certified with extended warranty to 100k? I assume they will charge me higher than residual to do this? Anyone with experience with this? The leasing thing is new to me with regards to payoffs at the end.

I don't want to ask too many questions to BMW or the dealer so I don't undermine any negotiating leverage I may have if any???

Thoughs? advice??

Thanks so much!!!

Reply » Lease Payout ???

if you turn the car in, the dealer buys it at wholesale - way below the residual. cut a deal w your dealer, have them buy the car from bmw na at wholesale and sell it back to you. easy $ for them, and you get to buy the car for $1-2k below the residual .

Reply » Lease Payout ???

CPO costs the dealer about 800-1500 bucks so I hear..... + anything the car needs to get to the CPO level. Try to pay less than yoru buyout and have the the dealer throw in the CPO + a small profit.

Reply » Lease Payout ???

bmwfs will not negotiate the residual, it is what it is. Now if you are well below the mileage your car might be worht more than the residual which would make it a good idea for you to buy it outright at the end.

The deal that was suggested about having the dealer buy the car at wholesale and selling it back to you is something that is very rare! I have only heard of one person who has actually done that. But you might get lucky!

If you return the car at lease end the dealer gets nothing. they give the car back to BMWFS (who actually owns the car). From what I understand after the car is turned in at lease end it is sent out to auction where your dealer can purchase it for the wholesale price, and then sell it back to you for less than the residual... But you will be out of a car for a while while this is all processed, I think.

Reply » Lease Payout ???

Quote:

bmwfs will not negotiate the residual, it is what it is. Now

Everything in this world is negotiable. BMWFS has access to Manhiem reports and knows what the car will fetch. They have no reason not to sell it to the current owner at a higher price but lower than the residual.

Also the dealer can chose to keep the off-lease car and buy it from BMWFS at a fixed price which is based on the auction reports. He/She gets the first shot at it. If they do not want to keep it then it is BMWFS' responsibility.

In most cases the residual and the current auction values are not that far apart to make the negotiations worth it for any party. The Z4 may be an exception since the resale values have tanked due to the incentives. I have heard of a person getting a 13 month Z4 3.0 loaded (MSRP $46K) at $32K from a dealer. So it is very likely that the residuals on the Z4 will be significantly higher than the auction value.

Reply » Lease Payout ???

The residual price in your lease contract is not negotiable. BMWFS will not change what is in your contract, if your Res. is 25K it is 25K! Now if the dealer chooses to buy the car from BMWFS and then resell it to you, that is a different story. If they buy it for 20K they can sell it to you for 22K and make 2K for doing just about nothing.

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