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Discussion Starter #1
I know this has been discussed here before, and I'm seeking any new information as the BMWFS policies have changed over the past year regarding lease buyouts. My 2008 528i lease is up in March. I am undecided about whether to buy the car at the end of lease or buy a new car at that time. The residual for the car is about $40K, which I think based on Edmunds.com is well above the current retail value. I know that about a year ago BMWFS was offering attractive buyout offers, but then that stopped. What are the current options regarding buyout? I know that I can simply pay the residual and keep the car, but that does not make good financial sense given the higher than market value residual. I recall reading on this forum that dealers are not supposed to negotiate a lower buyout price for the original lessee. Is that still the case?

If I buy a new car, I'm thinking of a 335d to take advantage of the eco-credit. I would be interested in the new F10, but it looks like it will not be available in time for the lease expiration and its not clear at this point when it will be available.

So, any comments welcome on all the facts I should consider as far as buy out of the current car when the lease expires.

John
 

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I think that 40k is way too high for that car, but you already knew that. The only way to know whether BMW will negotiate the buyout is to wait and see, the rest is speculation.
Most times buying out a lease is not advantageous. Do the math over the years you are paying on it and you will likely be shocked at the total amount.
Most people will have to finance the residual buyout for an additional 3-5 years, therefore making the total payments stretch to 6-7 years.
You leased to start with so you could have a lower payment (or enjoy a higher caliber car for the money), have a car under warranty and disregard any depreciation. Don't make the depreciation your problem.
My advice is to lease something new. You are going to make a car payment for the next 3 years (approx?) anyway.....
 

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No.

BMW FS will give the dealer a price for you to buy the car which is based on current market data. The BMW FS price for you to buy the car is NOT tied to the lease residual value.

BMW FS will give the dealer two prices -- one for them to buy the car to put it up for sale to a third party, and one for them to buy the car to sell to you. The second number will be higher than the first. If the dealer is to sell YOU the car, they MUST buy it for the higher number per BMW FS rules.

So once the dealer has bought the car from BMW FS, then then will sell it to you, +/- CPO status, at whatever price you negotiate. When I discussed this with my dealer, they took a totally transparent approach: here is what we pay BMW FS for the car, here is what we pay them for the CPO warranty, here is a 'shop charge' for the CPO inspection, and here is dealer profit.
 

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... I would be interested in the new F10, but it looks like it will not be available in time for the lease expiration and its not clear at this point when it will be available.

...
If you seriously want to go that route, you have another option: extend the lease for 6 months.
 

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Discussion Starter #5
If you seriously want to go that route, you have another option: extend the lease for 6 months.
I am aware that you can extend a BMWFS lease for up to 6 months, but I thought you had to have a new BMW on order to qualify. Is that not the case? Its not even clear at this point that the F10 will be available for order my March when my current lease expires.
 

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I am aware that you can extend a BMWFS lease for up to 6 months, but I thought you had to have a new BMW on order to qualify. Is that not the case? Its not even clear at this point that the F10 will be available for order my March when my current lease expires.
I know for a fact that if that rule exists it has been waived upon request in at least one case by the dealer talking to BMWFS. Possibily it is a California thing as here you are not legally committed to the order until you take delivery. :dunno: Our family motto is "it never hurts to ask", and with us it was easy as the dealer knew us, knew we wanted to do an ED six months down the road, and was willing to make the calls.
 

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I am aware that you can extend a BMWFS lease for up to 6 months, but I thought you had to have a new BMW on order to qualify. Is that not the case? Its not even clear at this point that the F10 will be available for order my March when my current lease expires.
Are you going to accept paying high lease rates? I would be betting that within the first year, lease rates are going to be relatively high compared to later years. So even if BMW extends your lease by 6 months, I would plan on paying a lot more in relative terms. Unless you placed an order and cancelled later in the year, having extended your current lease...

Personally, my 535i lease ends in April, and I'm looking beyond the F10 at other BMW models, and will move back into the F10 in 2-3 years time.

Any other ideas?
 

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BMW FS will give the dealer two prices -- one for them to buy the car to put it up for sale to a third party, and one for them to buy the car to sell to you. The second number will be higher than the first. If the dealer is to sell YOU the car, they MUST buy it for the higher number per BMW FS rules.
Bart:
The price BMWFS gives the dealer to sell to someone else, does it have a profit margin built in? or do they have to make money on it based on the price they sell for (ie x > BMWFS sell price to dealer)

The spread between the dealer to someone else vs dealer to you is? any approx is appreciated.

Chris:
Our problem will be nonavailability of an F10 wagon when our current lease is up. I have not heard of a time frame on when it will be around
or for that matter when the X drive GT will be here.
Appears to be atleast 6 months from March when our lease is up
 
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