[bri1042]

My recently turned-in 328xi had a residual of $25148.75 and the dealership has it listed for $31k (certified, pretty low miles and in good shape). I wonder what they'll actually sell her for?

I hope she goes to good home. :-)

[lemonchicken]

what's the trivia?

[bri1042]

Bad choice of words and phrasing. Monday morning is terrible time to post. The nearly 6k increase from residual to asking price was just surprising.

[cardsdoc]

Originally Posted by bri1042

Bad choice of words and phrasing. Monday morning is terrible time to post. The nearly 6k increase from residual to asking price was just surprising.

If you have a low mileage excellent condition turn in it's always worth seeing if there is any equity in the car. Compare lease buy out to expected selling price. If so dealers will often give you back some cash rather than doing the buy out and selling yourself which would be a pain. This can work even if it's a different company. I'v gotten several thousand back for 2 Subaru outbacks and one BMW 3 series turn ins and applied it to the next lease to lower monthly payments.

[the_phew]

The dealer also didn't have to pay the residual to get the car; they pay wholesale, which is probably a couple grand lower (BMW's typically depreciate much more in the wholesale market than their lease residuals imply). Then they get bonuses/etc from BMW for selling CPO cars.

The next buyer will probably still negotiate several grand off the price, but BMW and the dealer will still make plenty of money. And it's not a bad deal for the CPO buyer, because they get a like-new car with a great warranty. Win-win-win.

[lemonchicken]

I believe the dealer would expect to make a profit from taking a lease return in, spending the money to inspect it, refurbish it, certify it and then selling it. Also from what I can tell about used BMW shopping, seems like dealers get the bumpers touched up or everyone that returns BMW leases never get rock chips or bumper dings.

[bri1042]

Yeah, I was expecting to see it for 28 or 29 after the CPO and clean-up. Whoever buys it probably will end up paying about that, probably. I had looked at some other cars and did have a few places tell me what they'd give me for it, and it was below the residual at every place but it varied. She was a mechanically solid car and will do well for her next owner.

[tturedraider]

Originally Posted by bri1042

My recently turned-in 328xi had a residual of $25148.75 and the dealership has it listed for $31k (certified, pretty low miles and in good shape). I wonder what they'll actually sell her for?

I hope she goes to good home. :-)

More than likely they have it priced $3,000 - $4,000 higher than what they'll be willing to sell if for.

You can be assured they got it from BMWFS for $1,000 - $3,000 less than your contracted residual. Then they have to recondition it and perform maintenance necessary to bring it up to CPO standards. Finally they have to pay BMWNA the CPO enrollment fee. My rough guess is they probably have $23k - $25k in it.

[bri1042]

Thus we have a well-stated example from __ that indicates how car dealerships actually stay in business. :-)

[X2 Monstah]

I just turned in my 2014 328i in pristine condition and less than 23,000 miles. I leased another 328i, this time an M Sport with better options. Not sure what their motive was, but the dealer told me the 2104 that I was turning in was worth only $20k. The inspector that did the lease end inspection was amazed at how nice the car was and even said he wished more people who leased took such great care of their vehicles. It didn't even need tires. I do daily searches of the VIN to see how much the dealer (or whoever) is going to sell the car for. The residual was $30k.

[DDD31]

Turned in my 2013 335i back in February with 13,500 miles, residual was ~$36,000. Checked on dealer's website a few days later and they had it listed for $42,000. They must have sold it right away since it was only on their website for 3 days. I'm sure they made money on my car since it was in pristine condition with very low miles.

[Kabrich]

2013. $40.5k Residual. $34.5k Dealer Buyout. $27k Carmax offer. BMW Sales Manager does not want it for $34.5. Says BMW will send to auction. Suspects it will go for around Carmax offer of $27k but only because of very low mileage (less than 10k).

He showed me Mannheim Auction Report of Nationwide Auction Results for similar and they were going for $25k down to $20k for the last one in Atlanta.

I have usually found Carmax offers close to wholesale and they usually try to jack up the "no hassle price" up to 50%, which would come in close to my Residual.

[bri1042]

Wow.