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      10-04-2018, 08:38 PM   #1
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New Info for People Who Want to Buy their Cars at Lease End

A lease end rep from Crevier reached out to me a few days back inquiring about what my plans were, even though I have a year left on my lease. I have been putting a lot more miles on the car recently and at this rate, will be way over my miles on the lease. I also have some dings, scratches and curb rash and I generally love the car, so rather than deal with lease-end BS, I would prefer to buy the car. I don't really care about the G20 per se and instead of buying miles and fixing small damages in the end, I would prefer to keep it. I mentioned my interest in buying it at lease end and here is what I was told:

BMWFS and dealers did away with 'dynamic pricing' and the old way where you could have the dealer buy the car from BMWFS and then sell it back to you at a negotiated price, somewhere lower than your residual but higher than they paid for the car. That no longer exists, I am told. BUT, the caveat is this:

She explained that all the lease returns coming in right now are 2015 models and BMWFS is offering across the board a $4000 discount off residual value for those models, should you want to buy the car. No haggling, no bs. So whether or not that ends up being a lot more or less than the car is worth, thats what it is. She told me when I'm 120 days out from my lease end next July that they will be able to apply whatever program that is running to my 2016 model and then its up to me. They don't inspect the car, you aren't required to certify it, doesn't matter if its damaged or over miles or whatever it is, you can buy the car for X amount off the residual. They are only offering $800 off RV on 2016 models right now because most people are still have a year left on their 2016 cars.

If they were running something similar next year for 2016 models, that would make my price $28000. Residual is $32k. $28k will likely be about $2000 more than a comparable car would be, like mine, but I would probably buy it anyway since its 'my car', all my miles and I wouldn't have to deal with any lease end damage charges or mileage bullshit or anything. Even if they knocked that much off the residual and I was buying the car for more than it was likely worth, its still a good deal on the car in the long run since I paid peanuts on the front end for the 1st 3 years ($367 a month, nothing down). It would roughly work out to my original selling price on the car which was $42k. My other option would be to lease something new, and I'm kind of over leasing, or buy something used so I would prob try and buy another CPO 2016 model for like, low $20k range and drive that. I just don't really care anymore but I would prefer to keep driving a 3 series so there it is

So that is whats going on with that for anyone who is looking at this option.
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      10-05-2018, 09:52 AM   #2
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The flip side of this is, the dealer still gets a "special" price on the car from BMW that is close to market price, they just cant sell it to YOU as the person leasing it for that.

So, if you turn the car in, you could definitely see the car listed on the lot for a price YOU cant buy it for, even if you turned it in, and the dealer kept it, and then put it on the lot.

Sounds weird but because of a back end "dealer chargeback to the dealer" that would happen if you (or anyone in your household) bought your car, YOU would be the only one who could not benefit from whatever the lower price BMW offers the dealer on your car is.

They basically stopped the double dipping many were doing on getting a great deal on their car, then negotiating again on lease turn in to lower the price again.

I made a post over at Bimmerfest on this with some specifics a few months ago, when I found this out (both my BMW leases expire jan 2019 so was trying to make the same decision you are). I was sent a concrete example by a friendly BMW sales manager I know. One with real numbers for on a customers car, with the customers name blacked out of course.

I will copy my post here below, and if you want to read the discussion on that thread, its in the ask a dealer section over there (I know you have accounts at both places). Just figured you might be interested.
=======================================

Copy paste of a previous post I made on another board, in july

=======================================
Consider this an "INFORM" to anyone that is (like me) contemplating buying out their existing lease in the upcoming months.

The pricing for lease buyouts has changed, pretty drastically. In the past, we advised a savvy customer to approach their lease buyout with several dealers. We all knew that dealers get a special "market based" rate, and we could negotiate to buy the car for a markup from that rate, instead of the Residual. There was a "loyalty adder" that was added to the market price when selling back to the same person, that was added to the market price.

This ment that sometimes a person could save a lot of money off their RV price by negotiating the price of their car with a friendly dealer.

As of July program changes, this process will change for someone wanting to buy their OWN car off lease.

The basic change is, instead of a person being able to work with a dealer to buy the car for "an amount" over the dealers market price, now a customer only gets a few hundred dollars off the RV of the car.

Additionally, at least from how it was explained to me, if a center is found to have sold a car to the person leasing it, or the same household, etc, for less than the "RV minus the XXX discount given to someone buying their own car", the center would be charged back the difference between the "dynamic price" (market price) and the RV + 500.

In effect, this means that a center can not currently negotiate on a lease buyout, as there is nothing there for them to negotiate, when selling back to the same person. Its the "RV minus a couple hundred to a couple thousand depending on the vehicle".

Let me give you an example I was shown.

A BMW with a RV of 28,XXX has a discount of 8XX if sold to the original person who leased it. The BMW centers "market rate" on this car was 18,XXX. What does this actually mean?

This means that, for example, if the center decided to put this car on their used car lot for 25,XXX they would make a decent profit on it... as long as they did not sell it to the person who leased it. If the person who leased it bought it, the center would be charged "the difference between the market price and the RV +500".

These numbers were given to me as an example (its not my vehicle) but its not hard to imagine a situation where a person sees their own car advertised at a price THEY can not buy it at.


One other thing. I received this information from two different sources, and I trust both completely. I was looking into buying my own upcoming lease return, and received information on these changes from people I trust completely.

Figured I would share.
===============================================

Another post I made with the specific discounts on specific models, again information direct from a BMW sales manager. Info was accurate in august, have not checked since then if there is any change but sounds like no from Kafka's post.
===============================================
In the interest of more information sharing, here is some additional (very reliable ) information I just got on this. The amount of discount that is offered from the RV differs depending on model year of car, and model of car. The note also says that the information is "reviewed updated and published periodically", and calls these "CPO Promotional discounts"

It appears that right now, MY 2015s have additional discounts on them compared to 2014 / 2016 / 2017 (please remember that this is all in relationship to LEASE BUY OUT, not any other discounts or situation).

2015 328i = 4000
2015 335i = 4000
2015 5 series (excluding M) = 5000
2015 6 Series (excluding M) = 6000
2015 7 Series = 7000

For all others (2014,2016,2017) the CPO promotional discount (discount from RV as I understand it, referencing the information from my first post):

All 1 Series (including M) = 500
All 2 Series (including M) = 700
All 3 series (including M) = 800
All 4 series (including M) = 1000
All 5 series (including M) = 1000
All 6 Series (including M) = 1200
All 7 Series = 2000
All i3 = 6000
All i8 = 2000
All X1 = 1000
All X3 = 900
All X4 = 500
All X5 = 1200
All X6 = 1200
All Z3/Z4 = 300
=

============
Snipped from actual document attached showing verbiage of BMW center chargeback if car is sold to the original leasee for pricing different from the above discounts attached as an attachment

============
Document Text1 (2).pdf

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      10-06-2018, 01:59 PM   #3
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The last part reflects what I was told as well, that they are doing $4000 discounts off of 2015 3 series. If I could get $4k off my residual I would probably just buy the car. We'll see. Thanks for the post. Bummer they changed it up like this though.
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      10-09-2018, 04:12 PM   #4
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Quote:
Originally Posted by Kafkaesque328 View Post
The last part reflects what I was told as well, that they are doing $4000 discounts off of 2015 3 series. If I could get $4k off my residual I would probably just buy the car. We'll see. Thanks for the post. Bummer they changed it up like this though.
Does this mean I can just call BMWFS and get the amount off and buy the car?
Or do I need to go they dealer a few months from lease end.
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      10-17-2018, 10:18 AM   #5
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How would this affect someone who is interested in getting rid of their car early, not buy it out.

I currently have a 2016 340i lease ending in May of next year, if I took my car to a dealer, would they still be offered by BMWFS this low price and allow me to walk away from the car?

Also does it have to be a BMW dealer or is any dealer up for this low price? Like is carmax or a small used car dealer up for this?
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      10-17-2018, 11:45 AM   #6
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Quote:
Originally Posted by XRAVE View Post
How would this affect someone who is interested in getting rid of their car early, not buy it out.

I currently have a 2016 340i lease ending in May of next year, if I took my car to a dealer, would they still be offered by BMWFS this low price and allow me to walk away from the car?


Also does it have to be a BMW dealer or is any dealer up for this low price? Like is carmax or a small used car dealer up for this?
No. This price is only available 90 days out from lease termination. If you want out now, you will be trading the car in on another car, or they will buy it from you for whatever they determine is "fair market value" which will be a loss to you of a few thousand to several thousand dollars.

(for the average lease of a 3/4 series, you would likely be 4-5k under water right now, and there is no official BMW pull ahead).

It will likely be cheaper for you to take the lease to term (until may of next year) than it would be to sell it / trade it in, even counting whatever your monthly payments are between now and then.

Said another way, the sum of your remaining monthly payments is likely less than the amount of money you will nose trying to to trade it in now, and nothing about this program is applicable to you.
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      11-02-2018, 08:47 PM   #7
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Thanks for posting. My 16' M235i lease is up in 132 days. I confirmed the above with my SA. I was planning on buying my lease out this week because my local credit union has some pretty low rates. My SA told me to wait a couple of weeks because I'll be within 120 days. I owe 32k right now and the car has 35k miles.

I would be fine paying 32k because the car is mint and it's been maintained religiously (O/C every 5k, new tires, brakes). My residual is 29.8k so if I could potentially get the car for 29k just for waiting a couple of weeks I'll be stoked.
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      11-02-2018, 10:40 PM   #8
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Quote:
Originally Posted by xantdieselx View Post
Thanks for posting. My 16' M235i lease is up in 132 days. I confirmed the above with my SA. I was planning on buying my lease out this week because my local credit union has some pretty low rates. My SA told me to wait a couple of weeks because I'll be within 120 days. I owe 32k right now and the car has 35k miles.

I would be fine paying 32k because the car is mint and it's been maintained religiously (O/C every 5k, new tires, brakes). My residual is 29.8k so if I could potentially get the car for 29k just for waiting a couple of weeks I'll be stoked.
It isnt going to work like that, unfortunately. The difference in your buy out price now, and the residual is most likely the sum of your remaining payments.

From everything I have been told from BMW insiders, its 90 days out that BMW FS will make the offer to you, and it will still include you paying any remaining payments.

Since there no official pull aheads, there is no get out of jail free card for those last payments. One can always look into buying a new car if they were going to do that, and see if a dealer can "absorb" them, but thats on the dealer, and not applicable to lease buyout anymore because of the change in policy.

Im a bit confused as to why your dealer told you to wait until you are 120 days out... maybe its because you will have made a payment and there will be 3 payments left?

In any case, considering the discount (currently 700 on a 2016 2 series), from residual you would still have to account for any remaining payments in the buyout price. If you get told something different when you go to check when you are 120 days out, let us know.
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      11-28-2018, 07:30 PM   #9
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my wifes car is due on 12/31, we haven't been contacted by anyone, but i just read this thread, told her to call and ask what her options are.
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      12-02-2018, 09:01 PM   #10
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Quote:
Originally Posted by jjrandorin View Post
Quote:
Originally Posted by xantdieselx View Post
Thanks for posting. My 16' M235i lease is up in 132 days. I confirmed the above with my SA. I was planning on buying my lease out this week because my local credit union has some pretty low rates. My SA told me to wait a couple of weeks because I'll be within 120 days. I owe 32k right now and the car has 35k miles.

I would be fine paying 32k because the car is mint and it's been maintained religiously (O/C every 5k, new tires, brakes). My residual is 29.8k so if I could potentially get the car for 29k just for waiting a couple of weeks I'll be stoked.
It isnt going to work like that, unfortunately. The difference in your buy out price now, and the residual is most likely the sum of your remaining payments.

From everything I have been told from BMW insiders, its 90 days out that BMW FS will make the offer to you, and it will still include you paying any remaining payments.

Since there no official pull aheads, there is no get out of jail free card for those last payments. One can always look into buying a new car if they were going to do that, and see if a dealer can "absorb" them, but thats on the dealer, and not applicable to lease buyout anymore because of the change in policy.

Im a bit confused as to why your dealer told you to wait until you are 120 days out... maybe its because you will have made a payment and there will be 3 payments left?

In any case, considering the discount (currently 700 on a 2016 2 series), from residual you would still have to account for any remaining payments in the buyout price. If you get told something different when you go to check when you are 120 days out, let us know.
You are correct I initially misunderstood my SA. No pull ahead so need to make my last 3 payments (including this month). I'm 106 days out so will have to wait a couple of weeks to get the customer buyout (90 days).

I got a quote of $3779 for 5/75k and $4859 for 7/100k extended platinum warranty through BMW. I think I'm going to pass on both just doesn't seem worth it.

Even if the buyout is my full residual I'll be happy with it. The car has been super reliable, oil changes every 5k and I keep it immaculate.
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      12-05-2018, 07:00 PM   #11
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I can add that they were going to take $4000 off the residual, for her 2015 328i. It wasn't a very good deal to buy at all. Came out to 19,xxx. After the $4000 applied.
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      12-06-2018, 02:23 AM   #12
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Quote:
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I got a quote of $3779 for 5/75k and $4859 for 7/100k extended platinum warranty through BMW. I think I'm going to pass on both just doesn't seem worth it.
The BMW Dealer might have given you those quotes and will sell you that EW, but it is NOT an EW through BMW.

It is from another party with different terms and conditions through your BMW Dealer.
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      12-06-2018, 08:47 PM   #13
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Quote:
Originally Posted by xantdieselx View Post
I got a quote of $3779 for 5/75k and $4859 for 7/100k extended platinum warranty through BMW. I think I'm going to pass on both just doesn't seem worth it.
The BMW Dealer might have given you those quotes and will sell you that EW, but it is NOT an EW through BMW.

It is from another party with different terms and conditions through your BMW Dealer.
It absolutely is a BMW Warranty. Not 3rd party if that's what you're alluding to. You can purchase an extended warranty from BMW as long as you existing factory warranty has not expired.
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      12-06-2018, 09:09 PM   #14
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Quote:
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Quote:
Originally Posted by IK6SPEED View Post
Quote:
Originally Posted by xantdieselx View Post
I got a quote of $3779 for 5/75k and $4859 for 7/100k extended platinum warranty through BMW. I think I'm going to pass on both just doesn't seem worth it.
The BMW Dealer might have given you those quotes and will sell you that EW, but it is NOT an EW through BMW.

It is from another party with different terms and conditions through your BMW Dealer.
It absolutely is a BMW Warranty. Not 3rd party if that's what you're alluding to. You can purchase an extended warranty from BMW as long as you existing factory warranty has not expired.
Looks like they changed it again when they changed the CPO coverage.

October 2016 an additional 24 months was all that BMW would write an agreement for a total of 6 years max. Appears they changed that from 2 to 3 years for a total of 7 year max now when combined with the original 4 year /50,000 mike warranty.
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      12-07-2018, 12:17 PM   #15
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Quote:
Originally Posted by IK6SPEED View Post
Quote:
Originally Posted by xantdieselx View Post
Quote:
Originally Posted by IK6SPEED View Post
Quote:
Originally Posted by xantdieselx View Post
I got a quote of $3779 for 5/75k and $4859 for 7/100k extended platinum warranty through BMW. I think I'm going to pass on both just doesn't seem worth it.
The BMW Dealer might have given you those quotes and will sell you that EW, but it is NOT an EW through BMW.

It is from another party with different terms and conditions through your BMW Dealer.
It absolutely is a BMW Warranty. Not 3rd party if that's what you're alluding to. You can purchase an extended warranty from BMW as long as you existing factory warranty has not expired.
Looks like they changed it again when they changed the CPO coverage.

October 2016 an additional 24 months was all that BMW would write an agreement for a total of 6 years max. Appears they changed that from 2 to 3 years for a total of 7 year max now when combined with the original 4 year /50,000 mike warranty.
Yeah it's kind of a moot point because I just decided to order a 19' M240i instead of buying my car out. I absolutely love the car but financially just doesn't make sense given the buyout and potential for repairs without a warranty.
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