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Discussion Starter #1
My 2008 550i Lease will be over in less than 60 days, and I called BMWFS to determine what purchase options might be available on the car. Based on advice from others on this board, I asked BMWFS if they would consider lowering my payoff. The first Rep I spoke with said that BMWFS does not negotiate residuals, and referred me to a BMW dealership.

I then asked to speak with a "Team Leader" and was then asked a series of questions regarding my car (mileage etc.) The Team Leader said that unfortunately there are no incentives, or ability to reduce my payoff but that my dealer might be willing to offer me something more appealing.

My question is: why is BMWFS willing to work with some leasees but not others? I have owned and/or leased 6 BMW's in the past 6 years- and I guess I was at least expecting them to work with me on the purchase of this car.

Thanks in advance for your insight.
 

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The reason is because the dealer has a profit opporitunity that BMWFS does not want to step on unless the car is coming back because the dealer is not following up. I started a thread about this a couple of days ago. Threads about this agree that if you talk to a dealer about your options BMWFS will not offer you a penny off the residual. The approach that might work is to tell BMWFS you are not interested in discussing this with a dealer and you are turning the car in at the end of the lease unless the buyout is less period. This presumes you haven't already talked to a dealer about your options.
 

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Discussion Starter #3
The reason is because the dealer has a profit opporitunity that BMWFS does not want to step on unless the car is coming back because the dealer is not following up. I started a thread about this a couple of days ago. Threads about this agree that if you talk to a dealer about your options BMWFS will not offer you a penny off the residual. The approach that might work is to tell BMWFS you are not interested in discussing this with a dealer and you are turning the car in at the end of the lease unless the buyout is less period. This presumes you haven't already talked to a dealer about your options.
Thank you. I did make mention to BMWFS that I was only willing to work with them on the buyout and not the dealer, but there was nothing they could do in the way of reducing the residual.

Based on my search and discusson with others on this board, there have been a few cases where BMWFS offered much lower residuals (ie. $8k below on a 2007 550i, and 2.9 financing for 60 months) Perhaps they've put a stop this this practice as of late?
 

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It's a knotty problem for BMWFS. For a long time I couldn't understand why they would offer deals at all since people who are not knowledgeable about the carnage in the used car market might go to a dealer and pay the residual with a CPO and new tires for example. In that case the dealer makes a killing. However it was explained to me that many dealers don't follow up with previous customers and BMWFS does not want the cars back because they're getting killed at auction and the more that go to auction the more prices drop.
 

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...and BMWFS does not want the cars back because they're getting killed at auction and the more that go to auction the more prices drop.
If that is the circumstance, why won't BMWFS 'cut-a-deal'? In the present posture, they are daring the customer to drop the car off at the dealer.

I think the OP may have made a mistake in how they approached BMWFS. If they had approached BMWFS from the perspective of I will be dropping the car at the dealer at the end of the lease and then sat tight for BMWFS to come back with an 'offer', the outcome might have been different.

At this point, it is apparently water under the bridge....
 

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Discussion Starter #6
If that is the circumstance, why won't BMWFS 'cut-a-deal'? In the present posture, they are daring the customer to drop the car off at the dealer.

I think the OP may have made a mistake in how they approached BMWFS. If they had approached BMWFS from the perspective of I will be dropping the car at the dealer at the end of the lease and then sat tight for BMWFS to come back with an 'offer', the outcome might have been different.

At this point, it is apparently water under the bridge....
Given the fact that BMWFS is not proactive in offering incentives nor really reaching out to discuss lease end options, it was my duty to approach them with interest to purchase the vehicle.

As others on this board have stated, you have to be clear in wanting to work with BMWFS directly. Unfortunately however, I believe they're avoiding cutting deals at all costs and instead directing people to dealerships. Given the economic climate however, and a long past of inflated residuals, you would think that they might be inclined to work with people on their lease buyouts. Why would I as a consumer be interested in purchasing a car for $50k when it's only valued at $38-40k?
 

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If that is the circumstance, why won't BMWFS 'cut-a-deal'? In the present posture, they are daring the customer to drop the car off at the dealer.

I think the OP may have made a mistake in how they approached BMWFS. If they had approached BMWFS from the perspective of I will be dropping the car at the dealer at the end of the lease and then sat tight for BMWFS to come back with an 'offer', the outcome might have been different.

At this point, it is apparently water under the bridge....
+1
BMWFS offered me 7K off residual to buy out my e90 330i. I called them asking about the lease return process and said I had no intention of purchasing at lease end. Then they started dropping the price, first by 5K and then by 7K.

I think it also depends how re-sellable your car is. Mine was a 6MT stripper (no options) probably hard for them to get rid of.
 

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I have noticed that in all of the threads where a deal was cut directly with BMWFS it was on a 3 year lease, not on 2 year lease. That may be your problem, I had the same issue when I asked about a lower purchase price. My residual in set at about 63k, and my car's auction value is about 36k.
 

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I have noticed that in all of the threads where a deal was cut directly with BMWFS it was on a 3 year lease, not on 2 year lease. That may be your problem, I had the same issue when I asked about a lower purchase price. My residual in set at about 63k, and my car's auction value is about 36k.
At the end of the day, if a dealer doesn't pick up the car, it goes off to Manheim. I honestly can't see a dealer picking up a car that is $27K upside down. Unless there is something that makes the car super easy to sell at the $63K number....
 

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Push harder. Tell them "you don't want to work with your Center and prefer to work with BMWFS instead." If they refuse, remind them that your Center will only resell the car as a CPO and you're not interested in the CPO process (which you will forgo with BMWFS anyway).

My 2008 550i Lease will be over in less than 60 days, and I called BMWFS to determine what purchase options might be available on the car. Based on advice from others on this board, I asked BMWFS if they would consider lowering my payoff. The first Rep I spoke with said that BMWFS does not negotiate residuals, and referred me to a BMW dealership.

I then asked to speak with a "Team Leader" and was then asked a series of questions regarding my car (mileage etc.) The Team Leader said that unfortunately there are no incentives, or ability to reduce my payoff but that my dealer might be willing to offer me something more appealing.

My question is: why is BMWFS willing to work with some leasees but not others? I have owned and/or leased 6 BMW's in the past 6 years- and I guess I was at least expecting them to work with me on the purchase of this car.

Thanks in advance for your insight.
 

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At the end of the day, if a dealer doesn't pick up the car, it goes off to Manheim. I honestly can't see a dealer picking up a car that is $27K upside down. Unless there is something that makes the car super easy to sell at the $63K number....
The dealer doesn't have to pay the residual.... He gets it at the prevailing auction price (assuming he wants it).

BMWFS has an incentive to cut a deal... but, it doesn't have any incentive to sell it to the customer for wholesale... They can get that price from their dealer or from the auction..
 

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Push harder. Tell them "you don't want to work with your Center and prefer to work with BMWFS instead." If they refuse, remind them that your Center will only resell the car as a CPO and you're not interested in the CPO process (which you will forgo with BMWFS anyway).
Not true. The BMW center doesn't have to CPO this car.

I won't get into the dynamics of the how or why of BMW FS negotiating residuals, but if BMW FS won't or can't engage in a negotiation, your only resort is to work with a BMW center and work it out with them.
 

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The dealer doesn't have to pay the residual.... He gets it at the prevailing auction price (assuming he wants it).
I never said the dealer has to pay the residual. There is a lower price that BMWFS sets for dealers that is some level above the auction price. If no dealer takes the car at the 'dealer' price, then the car goes off to Manheim.
 

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I won't get into the dynamics of the how or why of BMW FS negotiating residuals, but if BMW FS won't or can't engage in a negotiation, your only resort is to work with a BMW center and work it out with them.
And I would imagine that the OP is not obligated to work with the local dealer community.... So, if I am correct in my understanding, the OP might want to consider contacting Adrian (or PhilippeK, who is local to the OP) and see what can be worked out....
 

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And I would imagine that the OP is not obligated to work with the local dealer community.... So, if I am correct in my understanding, the OP might want to consider contacting Adrian (or PhilippeK, who is local to the OP) and see what can be worked out....
Um, technically, yes.
 

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OP, got the hint?
 

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True, but a lot of them will do it anyway, or at least charge for a safety inspection. One of my RFTs has a nail in the sidewall. It's been there for 9 months and I didn't want to incur the cost of replacing it, since, when the tires wear out, I'll purchase something different. At the dealer, they would have required an immediate replacement.

Not true. The BMW center doesn't have to CPO this car.

I won't get into the dynamics of the how or why of BMW FS negotiating residuals, but if BMW FS won't or can't engage in a negotiation, your only resort is to work with a BMW center and work it out with them.
 

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BMWFS told me the same thing re: my 335i coming off lease. At first I was disappointed but in the end I was able to work out a deal to my satisfaction through a local dealer. The dealer even sent me a $50 gift card after all was said and done. Don't sweat it. You should be able to get a smokin' deal on that 550i.
 

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Discussion Starter #20
BMWFS told me the same thing re: my 335i coming off lease. At first I was disappointed but in the end I was able to work out a deal to my satisfaction through a local dealer. The dealer even sent me a $50 gift card after all was said and done. Don't sweat it. You should be able to get a smokin' deal on that 550i.
Half of the problem is financing; BMWFS is offering 6.9% on 08's, nothing better. Even if the dealer discounts the car by 5k, the deal still doesn't make much sense unfortunately.
 
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