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  #1  
Old 06-29-2020, 08:55 PM
VeniceEight VeniceEight is offline
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Lease to CPO - over mileage question

So, I'm considering buying BMW CPO when my lease is up.

Here's my question, I know folks have luck getting over mileage charges waived for a new lease - is the same true for a CPO purchase at another BMW dealer (so purchasing from a different dealership than the original lease)?

Does that question make sense?

Any tips or tricks to this process?

Thanks in advance.
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  #2  
Old 06-29-2020, 10:22 PM
ard ard is offline
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What do you mean by a "CPO purchase"?

You want your leased car, but instead of buying it from BMWFS for the agreed prices you want a dealer (and dealer) to buy it from BMWFS, then they CPO it and sell it to you?

Short answer is that BMW has been tightening pricing and controls around this. Some dealers can play games but most cannot/will not. Using one dealer versus another, no point- everyone has computers these days. BMW will know if a dealer sells it too the lease, and can get penalized, FWIW

Plus, back in the day a CPO was a 6 year 100k warranty. No more.

IMO buy a bmw extended warranty and skip paying for the CPO, if indeed it is the warranty you want.
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  #3  
Old 06-29-2020, 10:24 PM
VeniceEight VeniceEight is offline
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Sorry, wasn't clear.

Car A leased - end of lease.

Car B CPO.

Both BMW's

Want to return Car A and buy Car B - what's the likelihood that the dealer who sells me car B will waive mileage on car A?
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Old 06-29-2020, 11:47 PM
jjrandorin jjrandorin is offline
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Quote:
Originally Posted by VeniceEight View Post
Sorry, wasn't clear.

Car A leased - end of lease.

Car B CPO.

Both BMW's

Want to return Car A and buy Car B - what's the likelihood that the dealer who sells me car B will waive mileage on car A?
Im editing this because I read what you wrote again....

If you are buying a car from dealer B and turning your lease into said dealer, the only way they will "waive over mileage charges" would be if they have enough profit in the CPO car you are buying to pay for them for you. They dont get "waived", but if a dealer chooses to pay it for you, they can.

So, while my original post in this thread said "Zero", given the situation you describe, the only way its getting paid for is if you left enough money in the CPO deal for the dealer to afford to pay for it. Meaning, you are paying for it either way, either directly, or indirectly (in a higher price on the car you are buying), even if the dealer says "we will take care of it for you". If they DO say that, consider it you getting that "we will take care of it for you " amount as an additional discount on the new car.
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Last edited by jjrandorin; 06-29-2020 at 11:51 PM.
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  #5  
Old 06-30-2020, 04:46 AM
rounderman rounderman is offline
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Buy the excess miles before you turn it in. It is usually cheaper than paying the overage. Check your paperwork or go to the BMW owners website. they will have the deals out there for buying excess miles.
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Old 06-30-2020, 09:56 AM
ard ard is offline
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lol. I should just erase it...

If dealer is returning lease to BMW, someone is paying the mile change. However I think if a dealer is taking in the lease return and they will be retailing that car, they can truly 'waive' it. Although dealers usually want to retail only the best, lowest mile cherry returns- and stick BMWFS with the over-mileage cars that need tires, detailing, brakes, etc. (You can return you lease w 4mm of tread. They cannot CPO it unless it has ~6mm+. Same w brakes, you can return as long as there is no dash warning, but CPO requires 50%$.)

Just saying.

Id buy the miles before turn in. And not have to 'ask' dealer B for any favors, have it all in the sales price.
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Alignment here: The Definitive Alignment Thread

OE is Original Equipment aka 'BMW Original Parts' aka 'What you buy at the BMW dealer with a BMW label'

OEM is Original Equipment Manufacturer... EITHER the company that made the OE part or.... A part this is identical to the OE part, but is sold by the OEM under their own label


OEM is not what BMW sells


http://www.bimmerzone.com/category/T...ricks_OEM.html

https://www.turnermotorsport.com/t-OEvsOEM
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  #7  
Old 06-30-2020, 10:43 AM
bzcat bzcat is offline
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Someone has to pay for the extra miles on the lease. A dealer cannot waive a BMWFS mileage charge anymore than they can waive a regular lease payment. If BMWFS won't waive them, the dealer has to buy the car from BMWFS and pay the mileage penalty, which eat into his profit margin on the next car (whether or not it is a CPO doesn't matter) to make it "disappear". So you end up paying for it anyway. The only way you can remotely came out even is to buy extra miles from BMWFS before lease expires so it is not an extra charge after lease turn in.
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  #8  
Old 06-30-2020, 11:14 AM
VeniceEight VeniceEight is offline
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Thanks for all the info.

And is that the same if I lease a new one? Or in that case is the dealer likely to eat the cost?

And am I correct that there is no way to pre-purchase miles on an i3?
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Old 06-30-2020, 12:13 PM
ard ard is offline
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Quote:
Originally Posted by VeniceEight View Post

And am I correct that there is no way to pre-purchase miles on an i3?
where did you get that?
__________________
Alignment here: The Definitive Alignment Thread

OE is Original Equipment aka 'BMW Original Parts' aka 'What you buy at the BMW dealer with a BMW label'

OEM is Original Equipment Manufacturer... EITHER the company that made the OE part or.... A part this is identical to the OE part, but is sold by the OEM under their own label


OEM is not what BMW sells


http://www.bimmerzone.com/category/T...ricks_OEM.html

https://www.turnermotorsport.com/t-OEvsOEM
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  #10  
Old 06-30-2020, 12:14 PM
VeniceEight VeniceEight is offline
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Not sure, that's why I'm asking. I thought I read it in a post.
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  #11  
Old 06-30-2020, 01:05 PM
VeniceEight VeniceEight is offline
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Ah, it wasn't that you couldn't buy the it was the discount had gone away. Only couple of cent difference between pre-purchase and lease end.
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Old 06-30-2020, 01:17 PM
jjrandorin jjrandorin is offline
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Quote:
Originally Posted by VeniceEight View Post
Ah, it wasn't that you couldn't buy the it was the discount had gone away. Only couple of cent difference between pre-purchase and lease end.
Its a few cents difference I think. If you are 3k miles over (as an example), and the difference is 25 cents on turn in, vs 22 cents pre turn in, thats a difference in $750 vs $660, so even though "its a few cents" its worth it.

And "cpo vs new" doesnt matter. Its all math, and the only way the dealer is going to "pay for those miles" is if they can absorb the cost of them into your new car deal.

Said another way, if you negotiated your new car deal (whatever it is) appropriately, there is no way a dealer will do this, because they wont be able to afford to.

Just pre buy the miles (which you can do via phone up to the day before turn in, DONT do it in your online account as that can take up to 60 days or more to show, from what BMW FS told me when I last did this in Jan of 2019... so may have changed.

You can definitely call them (like real phone call, talk to a human call) and they can process it on the phone for you right then. You could even call from the parking lot of the dealer prior to turn in and buy exactly what you need, from what I remember. you just dont get any discount if you let the dealer process it for you on turn in, because its then retail miles at whatever the contracted rate is. On an i3 it should be 25 cents (most M cars I think are 30 cents).
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  #13  
Old 06-30-2020, 04:10 PM
VeniceEight VeniceEight is offline
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Thanks.

Here's the piece I don't get. I get that extra mileage brings down the resale of the car, etc., etc.

I get the mileage pricing structure inside of the lease.

But it strikes me that "someones got to eat it" seems to be mixing retail and wholesale cost (speaking broadly). .23/mile is the retail cost.

I'm not saying that there is no cost to the dealer - but it seems like it should be much lower than that.

Say this same car had a 15k/yr lease, the cost per mile would be closer to .13/mile and that's still retail.

So seems to me the dealer needs to recoup much less on a wholesale basis than retail.

But then again, I'm the idiot with too many miles and they own the dealership not me - so what do I know?!?
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Old 06-30-2020, 04:51 PM
1968BMW2800 1968BMW2800 is offline
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Quote:
Originally Posted by VeniceEight View Post
Thanks.

Here's the piece I don't get. I get that extra mileage brings down the resale of the car, etc., etc.

I get the mileage pricing structure inside of the lease.

But it strikes me that "someones got to eat it" seems to be mixing retail and wholesale cost (speaking broadly). .23/mile is the retail cost.

I'm not saying that there is no cost to the dealer - but it seems like it should be much lower than that.

Say this same car had a 15k/yr lease, the cost per mile would be closer to .13/mile and that's still retail.

So seems to me the dealer needs to recoup much less on a wholesale basis than retail.

But then again, I'm the idiot with too many miles and they own the dealership not me - so what do I know?!?
You're not an idiot for enjoying all of those extra miles. You just have to pay for them as part of the contract you signed when you leased the car. And you can save a few bucks if you buy the extra miles prior to lease return. That's the best you can do.

If you can make an aggressive deal on your next car, all the better. But the system is set up to encourage you to move on to the next deal, not to try to claw back value that isn't there in your current lease arrangement.

Now, it's good to remember the reason leases are at all attractive is that, at the onset, the residual baked into the contract is inflated, meaning rarely, if ever, will the car be "worth" the residual amount. The market determines what the car is worth and, with so many lease returns flowing into a glutted market, there is usually intense downward pressure on pricing.

Right now manufacturers and auction houses are doing everything they can think of to avoid a collapse in wholesale used car prices, especially for lease returns.

Finally, the way manufacturers with in-house, or captive lease finance operations, make money has more to do with bookkeeping. They make their money, even when the cars wholesale out for less than residual.

As a retail customer, it is important to remember that the function of a lease is to get more car for lower monthly cost as compared to buying a new car every 3 years. It has been discussed in many threads and is generally agreed that buying a lightly/gently used, low mileage BMW that is a few years old, and keeping it for several years, even if some dollars are spent on repairs during the journey, usually pencils out as the most cost-effective approach.

But that's not what it's all about for many of us. We like driving cars in warranty. We like getting the latest and greatest every few years. We crave the New Car Smell. And we pay for the privilege. Hopefully, we grind out aggressive enough deals so the cost remains palatable, but the BMW game isn't really about the money. The world is filled with Kias and Toyotas and VWs that deliver dollar value. But they're not BMWs.

Pay up and move on.
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