[chenry]

FYI...

While I have shared this information already in response to a couple posts figured I'd start a new thread in case anyone missed it and can benefit.

Here's the deal (for me) - perhaps it pertains to you as well:

• My 36 month 340i lease is up on June 11th 2020
• I have already made my last payment (this probably doesn't matter to what I am sharing here)
• My original/contractual residual and/or lease end purchase price was $34k +/- a couple $
• Without asking BMWFS has offered a $6k discount to the purchase price meaning I can now purchase my car for $28k +/- a couple $
• I did not ask for this discount
• I simply had called in regarding lease end turn in
• BMWFS immediately offered it to me - told them I was not interested
• My BMWFS account has now been updated with the new (lower) lease end purchase option
• Offer was good until 1st or 2nd week in May (don't know what happens after that) I'll report back in mid-May for anyone that is interested

Notes:

• I don't know what the basis is for the $6k meaning...
• Maybe other models have different discounts??
• Maybe different lease termination dates have different discounts??

Just passing along what my experience was - hope this helps - maybe share what you have found out if you are in a like situation

[Gen13 F36]

Originally Posted by Poochie

That's hot, I'm assuming such offers are only applicable for lease residual buyouts.

I owe like $5,000 left on a 5 year loan from BMW FS, I'm still now going to give them a call and see if I could negotiate it down to a flat, buyout amount..

Your is a loan.... they don't have to do anything but it doesn't hurt to call and try

GL 1000x

[Poochie]

Originally Posted by Gen13 F36

Your is a loan.... they don't have to do anything but it doesn't hurt to call and try

GL 1000x

After this virus subsides and the world reboots, used automobile values are going to drop like bird shit, that's a given.

That's why they're hedging their bets and offering him such a sweet deal, on his lease buyout.

I was given a $0 residual discount, when I inquired about my lease return, many years ago.

However, my current situation with a loan, I guess I'm locked in for whatever I still owe but I'm going to work on my sales pitch and give it a shot..

[eugene89us]

@Poochie, let me know if you earn a discount. I have 0% financing, so before COVID I asked for a discount to pay off completely. Have not reached midpoint yet, thought they would bite given they don't make money off 0% financing and money today is worth more than in 3 years. They did not budge, so I am paying my normal monthly and will stretch till the end, instead investing my money in the market. If you get discount offer, I will likely try to pay mine off too with a discount. Market is still a bit shaky at the moment.

[chenry]

A couple members have hit me up for info (happy to help) here are screen shots....

Note: All this is still available as of today via my (meaning my personal) BMWFS portal - I can easily access before and after.

ps- while I was told the offer was good until early/mid May it looks like my account now reflects a June 8th date (3 days before my lease maturity). Also in case anyone is wondering - no - I did not make any additional payments etc...just made my scheduled 36 lease payments as agreed. Car has not been pre-inspected and mileage has not been shared :-)

[ronanz]

Originally Posted by chenry

FYI...

While I have shared this information already in response to a couple posts figured I'd start a new thread in case anyone missed it and can benefit.

Here's the deal (for me) - perhaps it pertains to you as well:

• My 36 month 340i lease is up on June 11th 2020
• I have already made my last payment (this probably doesn't matter to what I am sharing here)
• My original/contractual residual and/or lease end purchase price was $34k +/- a couple $
• Without asking BMWFS has offered a $6k discount to the purchase price meaning I can now purchase my car for $28k +/- a couple $
• I did not ask for this discount
• I simply had called in regarding lease end turn in
• BMWFS immediately offered it to me - told them I was not interested
• My BMWFS account has now been updated with the new (lower) lease end purchase option
• Offer was good until 1st or 2nd week in May (don't know what happens after that) I'll report back in mid-May for anyone that is interested

Notes:

• I don't know what the basis is for the $6k meaning...
• Maybe other models have different discounts??
• Maybe different lease termination dates have different discounts??

Just passing along what my experience was - hope this helps - maybe share what you have found out if you are in a like situation

Much cheaper to have you purchase off lease rather than sending to Auction as ALL used vehicle values are plummeting. North American Auctions are closed, unable to move vehicles along while they pile up....$6k discount may not be enough.

.

[ronanz]

Originally Posted by eugene89us

@Poochie, let me know if you earn a discount. I have 0% financing, so before COVID I asked for a discount to pay off completely. Have not reached midpoint yet, thought they would bite given they don't make money off 0% financing and money today is worth more than in 3 years. They did not budge, so I am paying my normal monthly and will stretch till the end, instead investing my money in the market. If you get discount offer, I will likely try to pay mine off too with a discount. Market is still a bit shaky at the moment.

Huh? There's no benefit to anyone...including yourself. Anytime you can get free money, take it.

There's NO benefit to the lender by lowering your principle balance. The value of your vehicle is your problem...the lender makes theirs on simple interest...which in your case is 0%

.

[chenry]

Originally Posted by ronanz

$6k discount may not be enough.

+1 - it's not enough for me

[Poochie]

Originally Posted by ronanz

Huh? There's no benefit to anyone...including yourself. Anytime you can get free money, take it.

There's NO benefit to the lender by lowering your principle balance. The value of your vehicle is your problem...the lender makes theirs on simple interest...which in your case is 0%

.

I guess I was thinking it but didn't convey it, to my post; of course the bank has no incentive to reduce your principal balance, on a auto loan but if they assume the credit market will crash and consumers will begin defaulting, they might be more inclined to cut their loses and close out the loan, at a lower set amount.

The only way that plan would work is if I start paying late and they assume I might default on the loan, in which my credit history would then take a hit.

So, it would not work unless you burn yourself, one way or the other.

It's not worthwhile play, at least in my personal situation.

[ronanz]

Originally Posted by Poochie

I guess I was thinking it but didn't convey to my post; of course the bank has no reason to reduce your principal balance, on a auto loan but if they assume the credit market will crash and consumers will begin defaulting, they might be more inclined to cut their loses and close out the loan, at a lower set amount.

The only way that plan would work is if I start paying late and they assume I might default on the loan, in which my credit history would then take a hit.

So, it would not work unless you burn yourself, one way or the other.

In which case, once you default....the bank would be hopeful you've had your loan long enough; in worst case, breaking even at the Auction

.

[Blubaron79]

Originally Posted by Poochie

After this virus subsides and the world reboots, used automobile values are going to drop like bird shit, that's a given.

That's why they're hedging their bets and offering him such a sweet deal, on his lease buyout.

I was given a $0 residual discount, when I inquired about my lease return, many years ago.

However, my current situation with a loan, I guess I'm locked in for whatever I still owe but I'm going to work on my sales pitch and give it a shot..

Actually quite the opposite. It will be like after the Great Recession when used car values spiked because no one bought new cars for an extended period, and it killed the supply of used cars.

Supply and Demand holds true.

[ronanz]

Originally Posted by Blubaron79

Actually quite the opposite. It will be like after the Great Recession when used car values spiked because no one bought new cars for an extended period, and it killed the supply of used cars.

Supply and Demand holds true.

True...but, Auctions were still open

.

[Poochie]

Originally Posted by Blubaron79

Actually quite the opposite. It will be like after the Great Recession when used car values spiked because no one bought new cars for an extended period, and it killed the supply of used cars.

Supply and Demand holds true.

After the housing market crash of 2008, even used exotic cars were being given away, for dirt cheap.

This current situation is predicted to be even more grim, as evident by the OP's claim.

Edit: You said Great "Recession" not "Depression" .. My bad..

https://www.businessinsider.com/used...pmorgan-2020-4

[Blubaron79]

Originally Posted by Poochie

The Great Depression was like a 100 years ago, it's a way different time now, automobiles are more abundant and common, then they where then.

After the housing market crash of 2008, even exotic cars were being given for dirt cheap, this situation is predicted to be even more grim, as evident by the OP's claim.

We'll see. The financial situation is much different now than it was then by many factors.

I hope it's not as grim, and we all pull through this; And I also get a discount when my lease is up in a year. ;-)

[Elvisfan]

Originally Posted by ronanz

In which case, once you default....the bank would be hopeful you've had your loan long enough; in worst case, breaking even at the Auction

.

Whatever the auction gets,you’re still responsible for the rest of the loan. You loan people are dreaming.

[IK6SPEED]

Originally Posted by Elvisfan

Whatever the auction gets,you’re still responsible for the rest of the loan. You loan people are dreaming.

Would also point out that people that did short sales for their houses in last decade had to pay taxes on the loan amount forgiven - plus took the credit rating hit.

[ronanz]

Originally Posted by Elvisfan

Whatever the auction gets,you’re still responsible for the rest of the loan. You loan people are dreaming.

Of course....providing negative equity exists. Lot of factors, i.e: LTV at start, how long/how much you've actually paid against principle...

.

[CoopersF15]

Yeah $6k here on an F31

Did OP decide not to take the deal as you believe the car isn't worth ~$28k to you (or others, if you were to sell), or because you don't want to buy right now given the market and don't want to own any car, or just want a new lease?

My situation is that we need 2 cars, 1 went back to BMW about a month ago. I'm not sure I want to commit to another lease contract, I know and enjoy my low mileage F31, and can't think of another car I'd buy at $28k so I'm seriously contemplating the buy out.

I wonder - Does this wholesale discount mean the new market price for F30/31/32 etc is now $6k less than it was previously, or is it a temporary fire sale blip, but the inherent depreciated value of the vehicle be the same post Covid as it should have been pre Covid??

[chenry]

Originally Posted by CoopersF15

Did OP decide not to take the deal as you believe the car isn't worth ~$28k to you (or others, if you were to sell), or because you don't want to buy right now given the market and don't want to own any car, or just want a new lease?

Thanks for sharing! I certainly believe the car is worth $28k +/- a bit, but after looking nationwide at 2017 340's with under 36k miles I think that's about all it's worth - and I think the value is just going to go down (just my opinion). So I don't think there is enough meat on the bone for a flip.

That aside I have another (lesser) car to drive while the dust settles and I figure when it does it will be more clear what the right decision is (for me). Either move forward with my plans for an M340, buy a used M3 (that's a new option that I'm kicking around - but probably won't go through with) or grab another low mileage 340i like mine that I figure will likely be less than $28k (but probably look for an xdrive or track pack etc...more of a unicorn car).

I think options are only going to increase as time goes by and I don't want to limit myself right now if I have the option to walk away and watch from the sidelines.

The only reason this works for me is that I have another car to drive...not one I want to drive mind you - but that's okay :-)

[CoopersF15]

Originally Posted by chenry

or grab another low mileage 340i like mine that I figure will likely be less than $28k (but probably look for an xdrive or track pack etc...more of a unicorn car).

I think options are only going to increase as time goes by and I don't want to limit myself right now if I have the option to walk away and watch from the sidelines.

The only reason this works for me is that I have another car to drive...not one I want to drive mind you - but that's okay :-)

My research for my car indicated a $35k low side dealer price with more miles and similar spec as the average. Even higher mile models were more expensive.

Your dilemma on what to get is exactly where I am at - I'd like my car but higher optioned vehicle, perhaps individual paint and the track pack at a nice price, (I.e a unicorn) but there aren't many around right now...and I need at least one vehicle on the drive so I'm stuck.

I've got a 30 day extension for now so I'm keeping my eye on the market.

[chiefneil]

Looks like BMW is starting to get its act together. I read an article a couple weeks ago that dealers (including BMW) were refusing to take valid end-of-term lease returns. Basically claiming their sales depts were closed or some such thing.

Calls to the manufacturer were/are being met with, “You need to work with your dealer”. Leaving people to continue paying insurance and registration on cars they wanted to return.

Found the article: https://www.usatoday.com/story/money...os/5120328002/

[CoopersF15]

Originally Posted by chiefneil

Looks like BMW is starting to get its act together. I read an article a couple weeks ago that dealers (including BMW) were refusing to take valid end-of-term lease returns. Basically claiming their sales depts were closed or some such thing.

Calls to the manufacturer were/are being met with, "You need to work with your dealer". Leaving people to continue paying insurance and registration on cars they wanted to return.

Found the article: https://www.usatoday.com/story/money...os/5120328002/

I'll wait to see what BMWs plan is...to be honest I'm not hopeful they will have their sh!t together.

This article essentially summarized everything I went through to get rid of our other car - line for line. Total headache and unnecessarily difficult. Got it handed back in the end and got our MSDs back (intact) but it left a really sour aftertaste.

The biggest car manufacturers in the world can't figure out the logistics of lease returns and still can't 6 weeks into this (for Western world)?! I call total BS.

We know full well they got everyone in a room, weighed up and monetized this whole situation, with options and risk analysis, and marketing working on the "message" to shame the customer Into dealing with it, and just said "f*€|< it, let them pay us to mitigate our downsides as much as possible for as long as possible, farm this playbook out to your dealers and CS reps" the patted themselves on the back.