Quote:
Originally Posted by cardsdoc
This wasn't really credit and I don't think BMW typically does this but from from what I understand it's not uncommon with less exepnsive cars. Here's what happened. My lease was up Nov 15th. I had my lease end inspection with only $100 in excessive wear and tear and was about 7k miles under. The lease end buy out was substantially less than multiple estimates of trade in value and obviously even more privately selling. I presented this to the dealer and said it was worth it to me to buy out the car and sell it unless they wanted to simply buy out my lease and give me the difference between the buyout and their estimated trade in value. They felt BMWFS had "underpriced" the car and therefore they were willing to do it rather than not have the car at all to sell as CPO. So they will be applying ~ $2500 plus my prior deposit of $700 (which isn't required for my new lease for some reason) to the new car.
We are looking for a new car to replace my wife's Outback (also leased with low mileage) and both hyundai and subaru said they do this sort of thing all the time and apparently our Subaru has ~1400 of equity in it. It seemed to be uncommon for BMW as I'm guessing the buy out is usually fairly close to or higher than trade in. So if you have a low milage leased car in good shape it seems it's worthwhile to always investigate. If you don't ask, the dealer is sure to just buy the car from the leasng company and keep all the profit from selling for themselves, rightfully so.
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Ah I see, thanks for the explanation.
I guess you can run into this scenario if the residual value of your car was low at the time when you signed your contract. You get not so great lease deal but have an opportunity to get some money back at the end of your lease.