02-15-2014, 10:43 AM | #1 |
Colonel
235
Rep 2,377
Posts
Drives: Perfomance Model 3
Join Date: Jan 2007
Location: Denver, CO
|
is the lease end residual value negotiable?
do i have any leverage to negotiate my residual value when i am 10,000 miles over my lease contract at the end of my lease? is it better to negotiate with BMWNA on the phone, or should i go into my dealership to strike a deal on buying my car at lease end?
__________________
'18 Tesla Perfomance Model 3 White on White Performance Upgrade Pkg & EAP
*RETIRED* 2015 435xi GC [f36] | 2012 335i [f30] | 2009 z4 35i [e89] | 2007 335i coupe [e92] | 2001 325Ci [e46] *RETIRED* |
02-15-2014, 06:08 PM | #3 |
Colonel
235
Rep 2,377
Posts
Drives: Perfomance Model 3
Join Date: Jan 2007
Location: Denver, CO
|
well thats not very nice of BMW. i have heard of other car dealerships willing to negotiate as they don't want the car back and would happily sell at a slight discount if over miles.
__________________
'18 Tesla Perfomance Model 3 White on White Performance Upgrade Pkg & EAP
*RETIRED* 2015 435xi GC [f36] | 2012 335i [f30] | 2009 z4 35i [e89] | 2007 335i coupe [e92] | 2001 325Ci [e46] *RETIRED* |
Appreciate
0
|
02-15-2014, 07:14 PM | #5 |
Colonel
235
Rep 2,377
Posts
Drives: Perfomance Model 3
Join Date: Jan 2007
Location: Denver, CO
|
|
Appreciate
0
|
02-25-2014, 02:03 PM | #6 |
Private First Class
25
Rep 179
Posts |
|
Appreciate
0
|
02-25-2014, 03:49 PM | #7 | |
Brigadier General
3279
Rep 3,256
Posts |
Quote:
Unless you do this you could either pay the penalty per mile, or simply purchase the car based on residual value that was setup by BMW. |
|
Appreciate
0
|
02-26-2014, 04:17 PM | #8 | |
Lieutenant
61
Rep 557
Posts |
Quote:
__________________
'06 325Xi - Jet Black - SOLD, '08 328Xi - Jet Black, Coral, 6spd - SOLD, '07 328Xi - Jet Black, SOLD, '11 328Xi, Deep Sea Blue, Oyster/Black - SOLD
'14 428XI, Alpine White, Coral, MSport, Auto, Premium, Tech, Heated Seats/Steering, Drivers Ass, Drivers+ - On Order for ED |
|
Appreciate
0
|
02-26-2014, 08:48 PM | #9 |
Private First Class
25
Rep 179
Posts |
Not limited by that as you can turn in your car at any dealer. But if you have a relationship already established at a d'ship that can be a good place t o start
|
Appreciate
0
|
02-27-2014, 12:06 PM | #10 |
Private
37
Rep 56
Posts
Drives: 2018 M5
Join Date: Feb 2014
Location: Orange County, CA
|
Back in 2009 I was able to negotiate approx $9k off my residual for a 2006 X5 that was at the end of the lease. I did the transaction through the dealer that I leased the car from. Also, I did it approx 1 month before the end of my lease. Only catch was that I had to pay to have the car certified (CPO), extended maintenance and for new tires. At the end of it all when all the math was done it was practically a break even cost-wise but at least I had warranty, service and new tires on my old ride
|
Appreciate
0
|
02-27-2014, 12:29 PM | #11 |
Second Lieutenant
172
Rep 231
Posts |
Here is the real answer: it depends.
In some cases a dealer can buy the car from BMW FS for less than residual. Then it is up to the dealer to decide whether they are willing to sell it to you at a discount, and what the discount might be. Getting the car CPO will help, because this will help the dealer to get closer to their CPO goals, and they might be willing to dip deeper into the profit. At the end of the day - there has to be something for the dealer to go through the process, so don't expect them to give up everything and sell you the car at cost. This is not a new car, so they have to show profit on every used car transaction. |
Appreciate
0
|
02-28-2014, 01:11 AM | #12 | |
Colonel
235
Rep 2,377
Posts
Drives: Perfomance Model 3
Join Date: Jan 2007
Location: Denver, CO
|
Quote:
__________________
'18 Tesla Perfomance Model 3 White on White Performance Upgrade Pkg & EAP
*RETIRED* 2015 435xi GC [f36] | 2012 335i [f30] | 2009 z4 35i [e89] | 2007 335i coupe [e92] | 2001 325Ci [e46] *RETIRED* |
|
Appreciate
0
|
03-04-2014, 06:37 AM | #13 | |
Private First Class
25
Rep 179
Posts |
Quote:
|
|
Appreciate
0
|
03-04-2014, 10:32 AM | #14 | ||
Private
37
Rep 56
Posts
Drives: 2018 M5
Join Date: Feb 2014
Location: Orange County, CA
|
Quote:
|
||
Appreciate
0
|
03-04-2014, 10:37 AM | #15 |
Major
483
Rep 1,267
Posts |
It would be worth going through the CPO process and cost because you'd get an extended warranty out of it instead of buying a BMW that was a year away from being out of warranty. I really like my car so I may go this route in terms of looking into buying it at lease end. Thats a long ways off though so you never know.
Not sure where you got this from but I know people who have leased BMW's and then bought them for below residual at lease end. There are countless articles online about this re: lease end options as well and you are rarely stuck with paying residual. It's still an easier transaction for them to sell the car to you , if they have a buyer lined up, you, who most likely also has financing in place, etc.
__________________
2016 Black Sapphire 328i | M Sport Pkg. | JB+ | Premium Pkg. | Heated Seats | Driver Assist Pkg. | Navigation | Misc. Coding | 35% Ceramic Tint
Past: 2014 Black 320i | Sport Pkg | BMS Stage 1 |
Appreciate
0
|
03-04-2014, 12:38 PM | #16 | |
Second Lieutenant
172
Rep 231
Posts |
Quote:
On top of that - there is the cost of required repairs. Most will be covered by warranty, but body work, broken pieces and tires will cost more. |
|
Appreciate
0
|
03-06-2014, 10:35 PM | #17 | |
Major
483
Rep 1,267
Posts |
Quote:
Compare this to leasing another car. I'd have the $500 loyalty money to put toward drive offs, so my drive offs on say, a lightly optioned 328i would be almost a thousand bucks less than what sales tax would be just to buy my car. My payment would be a little over 400 a month, for a new car, which would be an upgrade from my current car, slightly, and I'd be back in the free maintenance again. So it's hard to see the incentive to buy it at lease end really. I'd be interested to hear opposing view points on this.
__________________
2016 Black Sapphire 328i | M Sport Pkg. | JB+ | Premium Pkg. | Heated Seats | Driver Assist Pkg. | Navigation | Misc. Coding | 35% Ceramic Tint
Past: 2014 Black 320i | Sport Pkg | BMS Stage 1 |
|
Appreciate
0
|
03-07-2014, 06:23 AM | #18 | |
Private First Class
25
Rep 179
Posts |
Quote:
|
|
Appreciate
0
|
03-07-2014, 06:26 AM | #19 | |
Private First Class
25
Rep 179
Posts |
Quote:
|
|
Appreciate
0
|
03-07-2014, 11:37 AM | #21 | |
First Lieutenant
12
Rep 343
Posts |
Quote:
Now I've heard that sometimes things can go in your favor from older people that have leased a lot over the years such as: 1. Near lease end actual value is significantly higher than residual. Sell and keep the extra. 2. At lease end the actual value is significantly lower than residual (maybe a new body style has now come out and your car is no longer as desirable) so they cut you a good deal. Has anyone here actually experienced either one of these scenarios?
__________________
2014 335i M-Sport Mineral Grey / Sport Auto / Black Dakota / Aluminum Hex / Prem,Tech,DA packages / DHP / M-Sport Brakes / MPPK / MPE / Black Kidney Grilles, SS Pedals, M-Performance CF spoiler / Cameras, heated seats, etc etc
2013 X3 35i...wife's car |
|
Appreciate
0
|
03-07-2014, 12:04 PM | #22 |
Private First Class
25
Rep 179
Posts |
Right thats what I thought. Comparing orig residual post tax vs the negotiated one, you do end up getting a decent deal as you are paying less on top of getting the car CPO'd.
|
Appreciate
0
|
Post Reply |
Bookmarks |
|
|