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Discussion Starter #1
Hi everyone,

I have a lease coming up that is due, and I am thinking about buying the car...is there any way to negotiate the residual value with the BMW financial for final sale????? I appreciate your feed back
 

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You used to be able to negotiate with BMWFS - but they killed that. I am not even sure if you can do this anymore, but I think people have done it this way:

Tell your dealer that you would like to buy it but not at the residual. Dealer will buy the car from BMWFS at their price, they will then mark it up and/or add CPO to it. And then sell it to you at a profit. The price may or may not be lower than the residual.
I think I read somewhere that basically BMW had made it so it was not beneficial to do this anymore, back in the day it was a great strategy to keep your car.
 

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another option is to lease the car again, when I bought my 2013 in April, BMW was offering some great deals on leasing used cars coming off lease to move the vehicles off the lot. It certainly can't hurt to explore, unless you were going to buy the car for all cash, a payment is a payment.
good luck
 

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another option is to lease the car again, when I bought my 2013 in April, BMW was offering some great deals on leasing used cars coming off lease to move the vehicles off the lot. It certainly can't hurt to explore, unless you were going to buy the car for all cash, a payment is a payment.
good luck
Sorry but I'll have to disagree. It is unlikely that a re-lease is financially the best decision. A payment is not a payment, some payments have a lot of interest in them.

There is another thread discussing this leasing on used cars, it is not to the benefit of the buyer.
 

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Hi everyone,

I have a lease coming up that is due, and I am thinking about buying the car...is there any way to negotiate the residual value with the BMW financial for final sale????? I appreciate your feed back
BMWFS will offer the car to the dealer for quite a bit less than the contracted residual. So, you should be able to work a deal with your dealer to buy the car from them for less than the residual.
 

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Sorry but I'll have to disagree. It is unlikely that a re-lease is financially the best decision. A payment is not a payment, some payments have a lot of interest in them.

There is another thread discussing this leasing on used cars, it is not to the benefit of the buyer.
I see your point but since all loans (a lease is just a 2 part loan, interest only on the residual and standard loan on the rest) have interest and we don't know the financial postilion of the OP I would refrain from making a blanket statement. Typically the shorter the loan the lower the interest amount is a good rule of thumb.
 

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I wasn't able to negotiate mine one bit. Dealer charged me around $1k for CPO on top of residual I believe. I was under in my mileage by a large amount as well.

If you look at it as you are buying a CPO car that you know. I was beating comparable CPO cars by several thousand at the time. So it was a win for me. I ended up keeping the car 2 more years.
 

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I see your point but since all loans (a lease is just a 2 part loan, interest only on the residual and standard loan on the rest) have interest and we don't know the financial postilion of the OP I would refrain from making a blanket statement. Typically the shorter the loan the lower the interest amount is a good rule of thumb.
My comment was made mostly on the value of the collateral (the car). For these leases to work they crush you on the residual value and the MF - effectively making it a rather poor deal. Maybe the payment is "low" but the deal still stinks.
 

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Discussion Starter #9
You used to be able to negotiate with BMWFS - but they killed that. I am not even sure if you can do this anymore, but I think people have done it this way:

Tell your dealer that you would like to buy it but not at the residual. Dealer will buy the car from BMWFS at their price, they will then mark it up and/or add CPO to it. And then sell it to you at a profit. The price may or may not be lower than the residual.
I think I read somewhere that basically BMW had made it so it was not beneficial to do this anymore, back in the day it was a great strategy to keep your car.
Thank you, is there a set % the dealer gets these leases from the BMW financial before they put them in Auction???
 

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BMWFS will offer the car to the dealer for quite a bit less than the contracted residual. So, you should be able to work a deal with your dealer to buy the car from them for less than the residual.
do you know usually how much less like a % ??? thank you
 

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Sorry but I'll have to disagree. It is unlikely that a re-lease is financially the best decision. A payment is not a payment, some payments have a lot of interest in them.

There is another thread discussing this leasing on used cars, it is not to the benefit of the buyer.
Agree completely. If the OP is planning on leasing, find what you love and get a new car.
 

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You used to be able to negotiate with BMWFS - but they killed that. I am not even sure if you can do this anymore, but I think people have done it this way:

Tell your dealer that you would like to buy it but not at the residual. Dealer will buy the car from BMWFS at their price, they will then mark it up and/or add CPO to it. And then sell it to you at a profit. The price may or may not be lower than the residual.
I think I read somewhere that basically BMW had made it so it was not beneficial to do this anymore, back in the day it was a great strategy to keep your car.
how do you get the dealer to agree to such as well as what is CPO???? thank you
 

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do you know usually how much less like a % ??? thank you
There is no way to assess a %. It depends on the current market conditions for the model car you have, and what the residual % was set at when you contracted, and what BMW will sell it to the dealership for.

I can't get into the specifics, lest I get ratted out by a mole. Suffice it to say that it can be a win-win and it can be a lose-lose. Not a lot in between.

Here's what I recommend: Look up what your car is currently selling and trading in for using 2 or 3 sources (KBB, NADAGuides, and Edmunds). Go to your dealer. Ask to speak with a lease end manager, portfolio manager, or a senior advisor. Someone who has done this before. They will check your car's condition, look up the carfax, and see what they can do. If they tell you no before you do any of these steps, move on to another dealer.

If they make an offer lower than the residual,lower than average retail and closer to a trade in value, you win.

They can always choose to do it or not.

MJB
 

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I spoke to BMWFS today on this topic. They referred me to the dealer to negotiate the price. My situation is extreme because I am far over mileage on my lease due to a job change. My residual will be about $6500.00 more than the KBB private sale price. But I will owe BMW a lot at lease end which is something I'd like to avoid. If the dealer's purchase price at lease end is based on auction value, they should be willing to move. It will be an interesting conversation.
 

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I spoke to BMWFS today on this topic. They referred me to the dealer to negotiate the price. My situation is extreme because I am far over mileage on my lease due to a job change. My residual will be about $6500.00 more than the KBB private sale price. But I will owe BMW a lot at lease end which is something I'd like to avoid. If the dealer's purchase price at lease end is based on auction value, they should be willing to move. It will be an interesting conversation.
How many miles are over the lease allowance?

BMWFS does recoup some of subsidized RV from the $0.20/mile(?) payment, so the possible discounts if any will not be the full delta between RV and auction price.
 

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I spoke to BMWFS today on this topic. They referred me to the dealer to negotiate the price. My situation is extreme because I am far over mileage on my lease due to a job change. My residual will be about $6500.00 more than the KBB private sale price. But I will owe BMW a lot at lease end which is something I'd like to avoid. If the dealer's purchase price at lease end is based on auction value, they should be willing to move. It will be an interesting conversation.
As far as I know, BMW FS does not negotiate on these at all (themselves). They will always refer you to a dealer. The dealer can, or can not depending on what they are offered from FS. I remember Ninong saying that if you dont get an answer you like at one dealer, try another. The price they are selling at is not set in stone, even if the offer from BMW FS to the dealer is.

There is a thread in the ask a dealer section you might want to read that has another person who will be in a similar situation at lease end (although that person is complaining that they can not just buy the car at auction price from the dealer).

There might be some information in there that can help you (or not, but wanted to make sure you had the info since you are in the same situation).

http://www.bimmerfest.com/forums/showthread.php?t=927378
 

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How many miles are over the lease allowance?

BMWFS does recoup some of subsidized RV from the $0.20/mile(?) payment, so the possible discounts if any will not be the full delta between RV and auction price.
About 29,000 over the lease allowance. If I buy the car at residual plus tax it's more than the KBB private sale price plus the penalty (at 18 cents/mile bought before lease end). They do not charge you the penalty if you buy the car at lease end.
 

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About 29,000 over the lease allowance. If I buy the car at residual plus tax it's more than the KBB private sale price plus the penalty (at 18 cents/mile bought before lease end). They do not charge you the penalty if you buy the car at lease end.
Tax will be due either for RV or KBB price. The $6500 difference of RV vs. KBB is offset by thte $5220 of 29k extra miles, for a net $1280 difference(plus the tax of that). So if the dealer can give a discount of $1500 and up it may work out. Dealers usually use auction prices + fees(6-8%?), and those can come close to KBB private prices.

BTW NADA prices(which seem to be close to auction prices) of F30 usually show $1k drop per 10k additional miles(or 10 cents/mile), so a buyout(with sufficient discount) can be good to avoid 18 cents/mile.
 

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I turned in my F10 last Thursday. Out of curiosity, I've been checking the dealer's website to see what they want for it when it comes up. It doesn't show up yet after a week. But if/when it does I will post the info on residual versus asking price as a reference here.
 
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