Lease end strategy for buying out car

[MFNATIK]

Hey fellas,

Just looking for some pointers as my 3 year lease is ending this September. Can't believe its been 3 years!

I want to keep it as its my favorite color and there are no issues with the car. I was hoping to negotiate a lower buyout than what is currently on the lease. My CA has offered in the past to buy the car back from BMW and resell to me with a small markup (he says he can get 5-6% below the lease buy out price). I'm guessing he will split the difference here with me and sell back at a 2-3% markup.

Any thoughts or things I need to be aware of? This is the first time I'm actually considering buying it after the lease end to keep (I'm under my miles by almost 50%). I also have my MSDs which I expect they will return to me or I can use as payment towards buying it out.

TIA!

[AIRHEIR]

Don't split the diff...offer the dealer a fixed # or tell them you can go somewhere else. You have no obligation to return or negotiate with just that one dealer.

[dongerkim]

I am glad to hear you’ve decided to keep the car! This is your 2nd F80 right?

[AWE46M3]

you should drive the car as much as possible. the price BMW sells to the dealer is based on the mileage your car currently has. some dealers are able to do it for a flat fee. I tried doing this on my M5 but realized the price they are asking is still more than market value, so be aware of that.

[MFNATIK]

Originally Posted by AIRHEIR

Don't split the diff...offer the dealer a fixed # or tell them you can go somewhere else. You have no obligation to return or negotiate with just that one dealer.

Thanks, this is good info!

Originally Posted by dongerkim

I am glad to hear you’ve decided to keep the car! This is your 2nd F80 right?

yup, I like it too much and they did give me a 2017 in lieu of my 2016 at no additional charge

Originally Posted by AWE46M3

you should drive the car as much as possible. the price BMW sells to the dealer is based on the mileage your car currently has. some dealers are able to do it for a flat fee. I tried doing this on my M5 but realized the price they are asking is still more than market value, so be aware of that.

Yeah, you're right about this. I will need to put some more miles on it to drive the value down. I have used only 17k of my 30k b/c they replaced the car a year into the lease due to paint issues. I'm guessing I can get it up to 25k by September if I start driving it everywhere haha.

[MFNATIK]

Originally Posted by AWE46M3

you should drive the car as much as possible. the price BMW sells to the dealer is based on the mileage your car currently has. some dealers are able to do it for a flat fee. I tried doing this on my M5 but realized the price they are asking is still more than market value, so be aware of that.

BTW, what's a fair number for the flat fee? $500-1k? When I negotiated the deal, I paid $1500 over invoice at the time when allocations were super hard to get.

[AIRHEIR]

Originally Posted by MFNATIK

BTW, what's a fair number for the flat fee? $500-1k? When I negotiated the deal, I paid $1500 over invoice at the time when allocations were super hard to get.

I would offer $500. Is free $$ for them.

[AWE46M3]

Originally Posted by MFNATIK

BTW, what's a fair number for the flat fee? $500-1k? When I negotiated the deal, I paid $1500 over invoice at the time when allocations were super hard to get.

when i was shopping around with the M5, I think my best offer was 1000, but keep in mind thats still a good 6k under my residual, but still above market value. I think it really depends how you look at it. At the end BMW still wins because its more than wholesale. just my two cents.

[MFNATIK]

Originally Posted by AWE46M3

when i was shopping around with the M5, I think my best offer was 1000, but keep in mind thats still a good 6k under my residual, but still above market value. I think it really depends how you look at it. At the end BMW still wins because its more than wholesale. just my two cents.

It will be interesting on what numbers I get offered since the lease is based on a 2016 non-comp pack car and the actual car I have is a 2017 ZCP. If they buy it back based on the 2016 residual and discount it further then I'm golden but if they go with the actual true market value of the 2017 ZCP, buying at the residual price may be the way to go. I'm thinking they are not stupid and will go with the later.

[dongerkim]

What happened to your paint on your 2016? Was it an individual paint as well?

[AWE46M3]

Originally Posted by MFNATIK

It will be interesting on what numbers I get offered since the lease is based on a 2016 non-comp pack car and the actual car I have is a 2017 ZCP. If they buy it back based on the 2016 residual and discount it further then I'm golden but if they go with the actual true market value of the 2017 ZCP, buying at the residual price may be the way to go. I'm thinking they are not stupid and will go with the later.

I think BMW base the number on your actual car without looking at your current residual numbers. This includes your year, model, options, etc. Different cars have different scenarios. It could even possibly be more than your current residual. just something to think about and only time will tell. my only suggestion is to just drive it as much as your allowed. gluck!

[MFNATIK]

Originally Posted by dongerkim

What happened to your paint on your 2016? Was it an individual paint as well?

they sprayed the LSB too thin so they had to build me another car

[MFNATIK]

Originally Posted by AWE46M3

I think BMW base the number on your actual car without looking at your current residual numbers. This includes your year, model, options, etc. Different cars have different scenarios. It could even possibly be more than your current residual. just something to think about and only time will tell. my only suggestion is to just drive it as much as your allowed. gluck!

Well dang, I better put on some more miles then

[DDR MFS]

Originally Posted by MFNATIK

Well dang, I better put on some more miles then

Thanks for starting this thread. Good stuff to know. There is a strong possibility I keep this pending the G80. Fell in love with the car at M School in SC, and have little desire to see it off down the road.

[MFNATIK]

Originally Posted by AWE46M3

I think BMW base the number on your actual car without looking at your current residual numbers. This includes your year, model, options, etc. Different cars have different scenarios. It could even possibly be more than your current residual. just something to think about and only time will tell. my only suggestion is to just drive it as much as your allowed. gluck!

One thing I didn't really consider is I could sell or trade this car into Carmax and come out ahead since technically my contract is tied to the 2016 non-ZCP car so this one is technically worth more than the buyout of the lease. Sucks that I love this car too much hahaha

[Bch53211]

How about this? Go to a dealership and don’t disclose you are leasing car and ask them what they’d give you in trade. They will probably be able to figure out you are leasing with vin but tell them you have the ability to buy car outright and trade it in. They will low ball you with a ridiculous wholesale price , then use that as the price you start with. I was trying to trade mine in a few months ago when buyout was around 49k - I was getting trade in offers around 41k. If they are not willing to let you buy car at or near wholesale I’d recommend leasing a new one.

[AtlantisF80]

Now that's an interesting idea

[blschaefer1]

If you are negotiating this through the dealer, have them include the CPO warranty as part of the deal. You will likely need to pay a couple thousand for it, but well worth it in the long run.

[Bch53211]

Originally Posted by blschaefer1

If you are negotiating this through the dealer, have them include the CPO warranty as part of the deal. You will likely need to pay a couple thousand for it, but well worth it in the long run.

Agree with this 100%

[MFNATIK]

Originally Posted by Bch53211

How about this? Go to a dealership and don’t disclose you are leasing car and ask them what they’d give you in trade. They will probably be able to figure out you are leasing with vin but tell them you have the ability to buy car outright and trade it in. They will low ball you with a ridiculous wholesale price , then use that as the price you start with. I was trying to trade mine in a few months ago when buyout was around 49k - I was getting trade in offers around 41k. If they are not willing to let you buy car at or near wholesale I’d recommend leasing a new one.

Great idea. I will do this! Any dealership or should it be a BMW one?

[AIRHEIR]

Originally Posted by MFNATIK

One thing I didn't really consider is I could sell or trade this car into Carmax and come out ahead since technically my contract is tied to the 2016 non-ZCP car so this one is technically worth more than the buyout of the lease. Sucks that I love this car too much hahaha

This might be ur best bet...especially if your residual and contract are tied a 2016 car.

Also if the residual is tied to the 2016 #....don't get dealer involved at all. Just buy out the 2017 based on the residual #s of 2016. Think you will come out ahead.

[MFNATIK]

Originally Posted by AIRHEIR

This might be ur best bet...especially if your residual and contract are tied a 2016 car.

Also if the residual is tied to the 2016 #....don't get dealer involved at all. Just buy out the 2017 based on the residual #s of 2016. Think you will come out ahead.

This is why I love this section of the forum. At least we are all having an intelligent conversation and I hope this helps out others who may or will be in the same boat.