[Elvisfan]

Originally Posted by CoopersF15

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.

This is unprecedented. Manufacturers are in the business to make money. Not only can’t they make cars, they can’t sell the ones they have already built. On top of that they are legally obligated to take in leases that they know they are going to lose money on. I feel bad for most corporations right now. There is almost no one patting themselves on the back these days.

[IK6SPEED]

Originally Posted by Elvisfan

This is unprecedented. Manufacturers are in the business to make money. Not only can’t they make cars, they can’t sell the ones they have already built. On top of that they are legally obligated to take in leases that they know they are going to lose money on. I feel bad for most corporations right now. There is almost no one patting themselves on the back these days.

Exactly. BMWFS has always used the Dealer Network for lease returns. If the Dealerships are closed or do not have the personnel, the whole system falls apart.

Add to that the leasing Dealership has to buy most every lease returns they originated, BMWFS does not want the cars being returned elsewhere.

[capt_slow]

Back in January, the lease buyout promotion was $4500. Wish I could have taken advantage of OP's $6K offer!

[IK6SPEED]

Demand for cars and trucks in the U.S. is expected to drop 27% to 12.5 million vehicles this year, IHS Markit estimates, which would be the fewest for the industry since 2010.

Used-car prices are expected to plunge somewhere in the range of 8% to 16% through June, according to J.D. Power, then stabilize by year-end as the country reopens and demand picks back up.

Those sour predictions match up with what the Hueneme Port expects: at least a 25% drop in auto shipments in the coming year.


https://f30.bimmerpost.com/forums/sh...0#post26119790

[Billfitz]

Originally Posted by CoopersF15

I wonder - Does this wholesale discount mean the new market price for F30/31/32 etc is now $6k less than it was previously

It means used cars aren't selling, new either, due to C-19. BMW doesn't want to take back leased cars to have them sit on the lot, they'd rather give major incentives to entice people into keeping them. It's a gift horse, don't look it in the mouth.

[Randy Johnson]

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. Why? Please tell me how you came to this conclusion?

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..

Explanation needed.

[IK6SPEED]

Originally Posted by Randy Johnson

Explanation needed.

It's already happening. Not when world reboots.

Demand for cars and trucks in the U.S. is expected to drop 27% to 12.5 million vehicles this year, IHS Markit estimates, which would be the fewest for the industry since 2010.

Used-car prices are expected to plunge somewhere in the range of 8% to 16% through June, according to J.D. Power, then stabilize by year-end as the country reopens and demand picks back up. That doesn't mean prices will rise then, fwiw.

And that's the most optimistic outlook.

[keylime503]

Originally Posted by capt_slow

Back in January, the lease buyout promotion was $4500. Wish I could have taken advantage of OP's $6K offer!

Is there a set monthly buyout promotion offered by BMWFS to the dealerships? I thought there was a set price for each individual car between a dealership and BMWFS.

[Poochie]

Originally Posted by Randy Johnson

Explanation needed.

I'm not sure what you need me to clarify, it's pretty self-explanatory; I and others already linked articles indicating that it is predicted that the used car market will severely be impacted, due to the CV-19 lockdown.


https://jalopnik.com/these-used-cars...e-t-1843156735


https://www.dealerrefresh.com/how-is...ed-car-market/

[IK6SPEED]

Used car prices were coming down due to oversupply even BEFORE Covid19 as USA began seeing same max auto ownership / sales drop as EU has been seeing for last year +.

Covid 19 accelerated decline in prices. So anyone saying decline in prices would "drop like bird shit post reboot" is 100% incorrect. It's why the lease above ending in January was offered $4500 off where last year BMWFS would offer $0 off and Dealer could not sell to leasee for a discount greater than $1000. It had already begun.

It's also why BMW (and ALL brands) stated growth would have to come from China.

[capt_slow]

Originally Posted by keylime503

Is there a set monthly buyout promotion offered by BMWFS to the dealerships? I thought there was a set price for each individual car between a dealership and BMWFS.

Technically, BMWFS offers it directly to the lessee. In my case, the buyout promotion was just line item on my payoff quote. The price the dealer gives you must match the payoff quote otherwise they risk getting penalized by BMWNA.

The OP said you need to call in to get the $6k entered into the system, but I wonder what happens when you just go online and generate a payoff letter. I'm asking because that's what happened to me with my $4500 discount.

[themush1326]

Originally Posted by capt_slow

Technically, BMWFS offers it directly to the lessee. In my case, the buyout promotion was just line item on my payoff quote. The price the dealer gives you must match the payoff quote otherwise they risk getting penalized by BMWNA.

The OP said you need to call in to get the $6k entered into the system, but I wonder what happens when you just go online and generate a payoff letter. I'm asking because that's what happened to me with my $4500 discount.

Deals are getting better I only got 4K off at two months ago, it was all automatic when I generated the payoff letter

[chenry]

Originally Posted by capt_slow

The OP said you need to call in to get the $6k entered into the system, but I wonder what happens when you just go online and generate a payoff letter. I'm asking because that's what happened to me with my $4500 discount.

Hi Capt_Slow
For clarity's sake (maybe I could have done a better job with my original post) - I simply called in to get lease turn-in instruction/information and the rep on the phone offered it to me without asking. And I told them I had no interest in purchasing.

I then checked my online account and the purchase price had been discounted.

I'm not sure if the discount is automatic - but in my case I didn't ask for it :-)

[Billfitz]

You didn't have to ask for it, they're no doubt told to do whatever they can to keep more used cars from coming on to the lot, where they'll just sit and depreciate. By the time the dust settles with C-19 there's going to be a huge used car buyer's market.

[capt_slow]

The interest rates and incentives on CPO's are getting better too. I'm seeing 0.9% for up to 60 months, so you can probably go lower on a 48 month term. By comparison, it was 1.99% for 60 months and 0.99% for 48.

Definitely check if the added cost to CPO the car is less than the higher interest rate offered by your bank. In my case, CPO came out slightly ahead.

[keylime503]

Originally Posted by themush1326

Deals are getting better I only got 4K off at two months ago, it was all automatic when I generated the payoff letter

Yep, when I generate the payoff documents I do see "Customer Purchase Promotion $2,500.00". Nothing close to what you've gotten by calling in though.

[BdoUK]

Thanks for posting this information. I also have a 340i (2018) and am leaning toward a lease buyout next year. Given BMW's past stance to not offering any type of incentive I was waffling on that idea but if this continues I would definitely be in the "buy-out" camp.

[Blubaron79]

Originally Posted by BdoUK

Thanks for posting this information. I also have a 340i (2018) and am leaning toward a lease buyout next year. Given BMW's past stance to not offering any type of incentive I was waffling on that idea but if this continues I would definitely be in the "buy-out" camp.

Same. I've driven the new 330, and was not impressed. Need to test drive an M340 before I make my decision.

[zinner]

It will be interested to see what happens if new cars start having shortages cause manufacturing has been down down for two months.

[IK6SPEED]

Originally Posted by zinner

It will be interested to see what happens if new cars start having shortages cause manufacturing has been down down for two months.

And new cars have not been selling as well.

Light Trucks outsold cars for the first time ever in USA in April.

New Car Sales were so low in UK for April the Tesla Model 3 was the #1 selling model and it wasn't even in Top 10 previously. Not to mention everyone knows how few are being produced.

And with 20% of USA workers out of work, people will think long and hard about buying an auto now, new or used.

[PHEVLady]

This is my first post on this forum ...

The lease on my 2017 BMW 330e ends June 23. I called BMWFS this morning, and they offered the $6000 discount on the residual. I may take it. I have less than 13K miles on the car and no dings/dents.

I'm deciding whether to take the lease-buyout, replace with Mini PHEV or Volvo SC60 PHEV, or extend the lease for up to six months with a pre-order of the 2021 BMW 330e. Any thoughts?

I have read on this forum that deliveries of the 2021 BMW 330e model is delayed and may not be available until at least December.

I have not yet taken a test drive of the Mini or Volvo.

[DWCWagon]

Same situation for me. Lease on my 2017 F31 ends in 4 weeks. BMW lowered the residual by $6000. My buy out is $30,000 with 26000 miles. It was a zero down lease.
Im taking it as I special ordered the car with the Sport package, track package etc... Dark gray with red interior. Alcantara trim with carbon fiber.

P.S. I joined a while back but forgot all info and my email no longer works to update... had to re-register with new name.