[reddemon73]

Hello all,

Here is my story and hopefully this will help some of you out there that is considering keep your car after the lease.

Background: I was leasing my 2014 BMW 435i M Sport coupe. Pay about $578 per month. Lease due to expired on 4/22/17. The residual on this lease is at $36,450.

I went to a local dealership to negotiate. End up paying $36,000 for my car. This included $1,500 to certified my car and two brand new tires. I will get two years extended on my warranty, don't have to pay for last two months of lease payments (saved $1,156), and 2.9% financing. I called BMWFS later and found out the dealership was able to buy the car back at $31,500. They made about $3,000 on the deal.

Moral of the story, I was able to keep my car and paid less for it and dealership made easy bucks.

If you want to keep your car, I encourage you to go to your local dealership to lower your residual amount.

[kern417]

can you explain a little more what was done and how you got the deal? was it mostly due to mileage or some other aspect?

[reddemon73]

I just brought my car to two different dealerships. Tell them I want to keep my car and ask if there anything they can do to help me purchase the car from BMWFS for cheaper than residual. One of the dealership was able to help me. Pretty simple.

[Busa1]

Originally Posted by reddemon73

I just brought my car to two different dealerships. Tell them I want to keep my car and ask if there anything they can do to help me purchase the car from BMWFS for cheaper than residual. One of the dealership was able to help me. Pretty simple.

Who did you speak with? The Used car guy, finance guy?

[kern417]

so i'm assuming that all dealers buy the car for less than the residual but the main challenge is finding one who is willing to split the difference with you?

[Buzzo]

Originally Posted by kern417

can you explain a little more what was done and how you got the deal? was it mostly due to mileage or some other aspect?

The residual BMW sets in leases only has a very weak correlation with what the market value will be at lease end. Sounds like the dealership got the best deal here, not to say a dream scenario.
BMW sets an inflated residual, collects interest and fees for years, resells the same car again at a profit with zero risk or cost with years more of interest to be collected.
So if you want this deal as well, any dealership will gladly take your business. In OP's case I'd call it a win-win.

[reddemon73]

Originally Posted by kern417

so i'm assuming that all dealers buy the car for less than the residual but the main challenge is finding one who is willing to split the difference with you?

I called BMWFS to see and was told the dealership purchased my car for $31,500. They made close to $3,000 for just doing some paperworks. I end up saving about $2,000 on the car. Better than nothing right?

[kern417]

yeah i agree. i'm considering leasing but if i don't like the next 4 series then that would be a great way to lock in a good deal and purchase.

[reddemon73]

Originally Posted by Busa1

Who did you speak with? The Used car guy, finance guy?

I just talked to a SA (new car sales).

[reddemon73]

I just found out today I got $300 credit from BMWFS since my leased car was under miles (only has 26k miles). I also go 6 months of Sirius again. It is like buying another car from BMW.

[MattTheCarNut]

Secret: A BMW dealership can buy your leased car for BMW FS's wholesale price 120 days out from lease expiration.

This is good to know for:

1. Buying your leased car

2. Trading-in your leased car for a new one (instead of lease return) to realize tax savings, save on over-mileage fees, minor damage, tires, etc. Only works if wholesale is close to trade-in value.

[Busa1]

Originally Posted by reddemon73

I just found out today I got $300 credit from BMWFS since my leased car was under miles (only has 26k miles). I also go 6 months of Sirius again. It is like buying another car from BMW.

Even though you bought the car after lease, you still got a $300 credit? Thats great, how did you receive it? Was it credited when you purchased the car or did they send you a check?

[reddemon73]

Originally Posted by Busa1

Even though you bought the car after lease, you still got a $300 credit? Thats great, how did you receive it? Was it credited when you purchased the car or did they send you a check?

I just saw a credit on my BMWFS account online. This is on my new loan.