Hello everyone, I am new to the forum and am getting ready to buy a new (well to me) BMW. I am curious as to what the buyout price is on your lease of 2000-2003 3 series, 5 series, and Z3s. I know it varies with how much you put down, monthly payments, etc. I just need a ballpark figure. The reason I am asking is because a relative works for a BMW dealership and I can go through the lease return lot and pick my new car  . I am just trying to get an idea of what the average price i am looking at (I really want a 530i, but it may be out of my price range). Awesome forum!! thanks for the help. Paul |
| Reply » Cost to buyout your lease |
The residual ("buyout") is about 60% of original MSRP. The residual varies with the mileage chosen by the customer for their individual lease, by about 1-3%, as well as by BMWFS' offers in place at the time of the original lease. It does not vary with monthly payments, initial cash payment, etc.
Why do you ask? Are they offering to sell you the car at the residual value? If your main interest is getting a 530 and you don't care about options, then you will find the best price by finding the least-optioned one on the lot. Figure the gap in MSRP between that and the most-optioned is about $8000, and you're looking at a 60% of 8000 ($4800) lower price.
Will they CPO the car for you? Sometimes these "friends and family" deals aren't all that great -- be sure you do all the regular research first before jumping at something that looks good. Just because they're promising you price X doesn't mean you can't buy it for less elsewhere.
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| Reply » Cost to buyout your lease |
Thanks for the reply LA X3. They will CPO it for me (well for my uncle).
I will be able to purchase the car for the residual and also get the $1200 allowance to fix any issues with the car (or just take it off the price of the car). I just did not want to walk into the lot and have no idea of the price ranges and was hoping it may be low enough for me to swing a 530i ( the cheapest that I have seen is $20000 with 80K miles on it). I used to run the wholesale/lease return lot for a group of 7 dealerships and if you were not careful it was very easy to get taken. Thanks again for heads up
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| Reply » Cost to buyout your lease |
Quote: | I used to run the wholesale/lease return lot for a group of 7 dealerships and if you were not careful it was very easy to get taken. Thanks again for heads up | If you have a close relative in the business, they should have already told you that the dealer does not always pay the residual value when they buy out a lease at the end. If the market value of the car is less than the residual, they can pay a lower price.
Generally speking, from what I've seen a dealer usually pays the residual value when they buy a 3-series (which have tremendous resale value), a few thousand less than the residual on cars like 5-series and X5s, and many thousands below the residual for 7-series.
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| Reply » Cost to buyout your lease |
Quote: If you have a close relative in the business, they should have already told you that the dealer does not always pay the residual value when they buy out a lease at the end. If the market value of the car is less than the residual, they can pay a lower price.
Generally speking, from what I've seen a dealer usually pays the residual value when they buy a 3-series (which have tremendous resale value), a few thousand less than the residual on cars like 5-series and X5s, and many thousands below the residual for 7-series. | They can pay less than residual? Really? (Yes, Really!). I've only done one lease and bought it out myself, but always thought that the floor was the residual. I'm assuming this is part of the agreement that I didn't read all that well??
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| Reply » Cost to buyout your lease |
Quote: | They can pay less than residual? Really? (Yes, Really!). I've only done one lease and bought it out myself, but always thought that the floor was the residual. I'm assuming this is part of the agreement that I didn't read all that well?? | You can't pay below the residual, but the dealer can.
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Cost to buyout your lease