buy out after lease question....

flush01 · 02-06-2007, 02:46 PM

when you lease they give you buyout price once your lease is up... my question is can you negociate that price at the end, like drop few g's ? or not ?

Bimmerista · 02-06-2007, 02:51 PM

Yes, you can negociate in the same manner as you would if you saw the car on the dealer's lot - but there is less room to maneuvre since the dealer didn't mark it up yet.

flush01 · 02-06-2007, 02:58 PM

Quote:

Originally Posted by Bimmerista

Yes, you can negociate in the same manner as you would if you saw the car on the dealer's lot - but there is less room to maneuvre since the dealer didn't mark it up yet.

so basically if the retail price of that car after 3 years is lower then the buyback, I have room to negociate.... but if the retail price is higher then buyback even by few g's it will be impossible to negociate right ?

because my sales guy toled me, I can NOT negociate nometter what.... but i know they will say anything even if its not right

darkcloud · 02-06-2007, 03:40 PM

My SA told me that I am free to negotiate after my lease for a buyout price. The dealer will take the car and do the normal check-ups and warranty info as if the car were going to be resold on their lot.

For example, your retail price negotiated at the beginning of the lease was 21,500 at turn in. The dealer will then call BMWNA for the buyout amount they will be offered, if you were to call BMWNA your buyout will be considerably higher. BMWNA can offer them whatever so say the dealer can buy it for 16,500. The dealer then comes back and offers you the extra warranty package and a price of 18,500. This is where your negotiations begin. You either get a price you like and walk away with that car or begin new with something new.

Keep in mind the KBB value. You may be paying 18,500 for something that can be higher or lower than the KBB value. Being a BMW it will hopefully be higher. I'm hoping this scenario plays out for me. I will buy the car then try to privately sell it for the KBB value making some cash back for the car to put towards a new one. While at the dealer look for used cars of your model year, similar options and close in mileage. This was you know what the dealer will try to sell at. When it comes to listing the car you can cut in a couple hundred below the dealer. Anyone that's a used car bargin shopper will notice your price compared to the dealers price. You will also be offering the extended 100k mile warranty because you renewed it with the dealer.

Worst case scenario. You buy the car cuz you got a great price but can't sell it. But look on the bright side, in a year you can buy a new 2nd car and have a sweet beater if you even want to call it that haha.

Evan@Creative · 02-06-2007, 06:56 PM

Quote:

Originally Posted by darkcloud

My SA told me that I am free to negotiate after my lease for a buyout price. The dealer will take the car and do the normal check-ups and warranty info as if the car were going to be resold on their lot.

For example, your retail price negotiated at the beginning of the lease was 21,500 at turn in. The dealer will then call BMWNA for the buyout amount they will be offered, if you were to call BMWNA your buyout will be considerably higher. BMWNA can offer them whatever so say the dealer can buy it for 16,500. The dealer then comes back and offers you the extra warranty package and a price of 18,500. This is where your negotiations begin. You either get a price you like and walk away with that car or begin new with something new.

Keep in mind the KBB value. You may be paying 18,500 for something that can be higher or lower than the KBB value. Being a BMW it will hopefully be higher. I'm hoping this scenario plays out for me. I will buy the car then try to privately sell it for the KBB value making some cash back for the car to put towards a new one. While at the dealer look for used cars of your model year, similar options and close in mileage. This was you know what the dealer will try to sell at. When it comes to listing the car you can cut in a couple hundred below the dealer. Anyone that's a used car bargin shopper will notice your price compared to the dealers price. You will also be offering the extended 100k mile warranty because you renewed it with the dealer.

Worst case scenario. You buy the car cuz you got a great price but can't sell it. But look on the bright side, in a year you can buy a new 2nd car and have a sweet beater if you even want to call it that haha.

I'll have to keep this in mind when it starts getting close to Jan 2008. What's your advise about being say, 25k over your lease?

EHDEN · 02-06-2007, 07:38 PM

just return the car...and get a new one! hoping that you changed the oil every 5K miles and didnt wait til the ridiculous 10-15k miles until service from your dealer. if you did keep the car that long withough giving it an oil change...don't even consider keeping that car. Engine aint the way you want it to be...

flush01 · 02-06-2007, 07:40 PM

Quote:

Originally Posted by darkcloud

My SA told me that I am free to negotiate after my lease for a buyout price. The dealer will take the car and do the normal check-ups and warranty info as if the car were going to be resold on their lot.

For example, your retail price negotiated at the beginning of the lease was 21,500 at turn in. The dealer will then call BMWNA for the buyout amount they will be offered, if you were to call BMWNA your buyout will be considerably higher. BMWNA can offer them whatever so say the dealer can buy it for 16,500. The dealer then comes back and offers you the extra warranty package and a price of 18,500. This is where your negotiations begin. You either get a price you like and walk away with that car or begin new with something new.

Keep in mind the KBB value. You may be paying 18,500 for something that can be higher or lower than the KBB value. Being a BMW it will hopefully be higher. I'm hoping this scenario plays out for me. I will buy the car then try to privately sell it for the KBB value making some cash back for the car to put towards a new one. While at the dealer look for used cars of your model year, similar options and close in mileage. This was you know what the dealer will try to sell at. When it comes to listing the car you can cut in a couple hundred below the dealer. Anyone that's a used car bargin shopper will notice your price compared to the dealers price. You will also be offering the extended 100k mile warranty because you renewed it with the dealer.

Worst case scenario. You buy the car cuz you got a great price but can't sell it. But look on the bright side, in a year you can buy a new 2nd car and have a sweet beater if you even want to call it that haha.

ya my buyout is about 32k after 3 years, but im sure it'll be more retail... so im thinking to buy it out and sell it for profit

SteveMD · 02-06-2007, 08:24 PM

Not sure about sales tax up north there but here in the US, if you buy the car after your lease, you will pay tax on it. This may impact your ability to resell it for a profit

darkcloud · 02-06-2007, 08:24 PM

Quote:

Originally Posted by Evan@Creative

I'll have to keep this in mind when it starts getting close to Jan 2008. What's your advise about being say, 25k over your lease?

I'm no expert but you'll have to work the numbers. Have a "line" that you wont pay above and see what your offered. Again keep the KBB value in mind. If you're only under by a little bit and are thinking of a primary resale for profit then would it be worth your troubles?

alex911s · 02-06-2007, 08:55 PM

just get another car, not worth it..but then I'm a caraholic, so i dont count..LOL

m635csi · 02-07-2007, 11:36 AM

I tried once before to re-negotiate, and BMWNA told me that they would not.

ALPINE6SPD · 02-07-2007, 01:12 PM

Quote:

Originally Posted by SteveMD

Not sure about sales tax up north there but here in the US, if you buy the car after your lease, you will pay tax on it. This may impact your ability to resell it for a profit

Yes you pay tax because you have only paid tax on the potion of the car between the buying price and residual at the endof the lease.

Move.Over · 02-07-2007, 03:24 PM

Quote:

Originally Posted by ALPINE6SPD

Yes you pay tax because you have only paid tax on the potion of the car between the buying price and residual at the endof the lease.

Not true in MD, you pay the full amount of tax at lease time and again at lease buy out.

BIGWILL · 02-07-2007, 04:08 PM

To All,
This is some good info, as my lease is up in 2008 and I'm torn between the following vehicles,

2008 Z4 Coupe
2008 Cayman
2008 335i Coupe or Convt
2003 CPO Porsche 996

ALPINE6SPD · 02-07-2007, 05:32 PM

Quote:

Originally Posted by Move.Over

Not true in MD, you pay the full amount of tax at lease time and again at lease buy out.

yes I should have said it was state dependant.

Dollar Bill · 02-07-2007, 06:51 PM

The dealer can always offer the car for less at the end of lease. I've done this in the past. Like someone mentioned earlier you can get them to add in the 100K certification and they actually had to give me new tires before selling it back to me. And yes you must pay the taxes on the entire purchase price, not to mention in CT reg cost. Think about it, our reg is for 2 years so at the end of a 3 yr lease there's 1 year left and you get nothing and you must pay for the reg at the time of purchase!
IMO this is the way to go if your going to be over the mileage. Never pay for your mileage!

dme330i · 02-07-2007, 06:59 PM

Quote:

Originally Posted by Move.Over

Not true in MD, you pay the full amount of tax at lease time and again at lease buy out.

It must suck to live in a blue state.

dme330i · 02-07-2007, 07:03 PM

Agree that there's the potential to buy out and resell. It it worth the hassle? Will the market allow decent markup?

My last 330cic (silver one) residual was $26.5. I knew that I could sell it for more, so I bought it out. I paid 6% sales tax, then sold the car for $32.9 for a decent markup.

02-06-2007, 02:46 PM	#1
flush01 Major 46 Rep 1,419 Posts Drives: 33m@%#ing5 Join Date: Feb 2006 Location: toronto iTrader: (0)	buy out after lease question.... when you lease they give you buyout price once your lease is up... my question is can you negociate that price at the end, like drop few g's ? or not ?
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02-06-2007, 02:51 PM	#2
Bimmerista Major General 82 Rep 5,732 Posts Drives: superstock Join Date: Aug 2005 Location: Montreal, Quebec, Canada iTrader: (0)	Yes, you can negociate in the same manner as you would if you saw the car on the dealer's lot - but there is less room to maneuvre since the dealer didn't mark it up yet. __________________ __________________________ 2016 435 xdrive GC white on black leather interior, Msport1, Msport2, premium package 2015 Lincoln MKX, silver on brown leather, premium package - that's right! Techno-Groovy baby
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02-06-2007, 03:40 PM	#4
darkcloud Colonel 335 Rep 2,385 Posts Drives: 09 VW JSW Join Date: Aug 2006 Location: cleveland, oh iTrader: (2) Garage List 2006 325i [0.00]	My SA told me that I am free to negotiate after my lease for a buyout price. The dealer will take the car and do the normal check-ups and warranty info as if the car were going to be resold on their lot. For example, your retail price negotiated at the beginning of the lease was 21,500 at turn in. The dealer will then call BMWNA for the buyout amount they will be offered, if you were to call BMWNA your buyout will be considerably higher. BMWNA can offer them whatever so say the dealer can buy it for 16,500. The dealer then comes back and offers you the extra warranty package and a price of 18,500. This is where your negotiations begin. You either get a price you like and walk away with that car or begin new with something new. Keep in mind the KBB value. You may be paying 18,500 for something that can be higher or lower than the KBB value. Being a BMW it will hopefully be higher. I'm hoping this scenario plays out for me. I will buy the car then try to privately sell it for the KBB value making some cash back for the car to put towards a new one. While at the dealer look for used cars of your model year, similar options and close in mileage. This was you know what the dealer will try to sell at. When it comes to listing the car you can cut in a couple hundred below the dealer. Anyone that's a used car bargin shopper will notice your price compared to the dealers price. You will also be offering the extended 100k mile warranty because you renewed it with the dealer. Worst case scenario. You buy the car cuz you got a great price but can't sell it. But look on the bright side, in a year you can buy a new 2nd car and have a sweet beater if you even want to call it that haha. __________________ retired 06 E90 325i New: 09 VW Platinum Grey Jetta Sportwagen 2.0T SEL w/DSG, panoramic sunroof and Ipod adapter
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02-06-2007, 07:38 PM	#6
EHDEN Brigadier General 394 Rep 3,893 Posts Drives: 435i Join Date: Oct 2006 Location: Miami, FL iTrader: (0) Garage List 2014 BMW 435i [7.00]	just return the car...and get a new one! hoping that you changed the oil every 5K miles and didnt wait til the ridiculous 10-15k miles until service from your dealer. if you did keep the car that long withough giving it an oil change...don't even consider keeping that car. Engine aint the way you want it to be... __________________
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02-06-2007, 08:24 PM	#8
SteveMD Colonel 196 Rep 2,485 Posts Drives: 2016 F10 535i MSport Join Date: Dec 2005 Location: Raventown! iTrader: (3)	Not sure about sales tax up north there but here in the US, if you buy the car after your lease, you will pay tax on it. This may impact your ability to resell it for a profit __________________ 2006 E90 330i (retired) 2009 E90 335i (retired) 2012 E70 X5 50i M Sport (retired) 2016 F10 535i M Sport
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02-06-2007, 08:55 PM	#10
alex911s Official Caraholic 5 Rep 53 Posts Drives: 2012 X5 50i Join Date: Feb 2007 Location: San Ramon, CA iTrader: (0)	just get another car, not worth it..but then I'm a caraholic, so i dont count..LOL __________________ 2012 BMW X5 50i 2009 Porsche Cayman 2001 911 Turbo 2006 BMW M5- sold 2006 Cayenne Turbo S - sold
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02-07-2007, 11:36 AM	#11
m635csi Enlisted Member 1 Rep 40 Posts Drives: 2006 330i Join Date: Sep 2006 Location: Cal. iTrader: (0)	I tried once before to re-negotiate, and BMWNA told me that they would not.
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02-07-2007, 04:08 PM	#14
BIGWILL I heard your eyeballs move Pvt!!!!!!!!!!!!!!!!! 14 Rep 398 Posts Drives: 2011 E Class 4Matic Sport Merc Join Date: Feb 2006 Location: Woodbridge,VA iTrader: (0) Garage List 2006 330i [0.00]	To All, This is some good info, as my lease is up in 2008 and I'm torn between the following vehicles, 2008 Z4 Coupe 2008 Cayman 2008 335i Coupe or Convt 2003 CPO Porsche 996 __________________
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02-07-2007, 06:51 PM	#16
Dollar Bill Private First Class 5 Rep 157 Posts Drives: 335 coupe Join Date: Jan 2007 Location: Connecticut iTrader: (1)	The dealer can always offer the car for less at the end of lease. I've done this in the past. Like someone mentioned earlier you can get them to add in the 100K certification and they actually had to give me new tires before selling it back to me. And yes you must pay the taxes on the entire purchase price, not to mention in CT reg cost. Think about it, our reg is for 2 years so at the end of a 3 yr lease there's 1 year left and you get nothing and you must pay for the reg at the time of purchase! IMO this is the way to go if your going to be over the mileage. Never pay for your mileage! __________________ 2011 / 335is Coupe (M Package) / AW / Blk Dakota Leather / Conv., Cold Weather & Premium Packages / 6-speed MT/ I Drive Retired 07-335, 04-325, 98-323ci, 80-320i, 79-635CSI
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02-07-2007, 07:03 PM	#18
dme330i Captain 117 Rep 643 Posts Drives: Huracan, GT3, 66 GTO Join Date: Jun 2005 Location: Charlotte Area iTrader: (1)	Agree that there's the potential to buy out and resell. It it worth the hassle? Will the market allow decent markup? My last 330cic (silver one) residual was $26.5. I knew that I could sell it for more, so I bought it out. I paid 6% sales tax, then sold the car for $32.9 for a decent markup.
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