Lease return question

larryv · 01-14-2020, 09:57 PM

My lease is up at the end of March 2020 and the 2017 M3 Comp pkg with MPE is going back to the dealer. Residual is 57k and wondering what they do with lease returns and about how much will this car go for on their lot or will it be auctioned off. The M3 has 5700 miles on it and has never been abused and always been in the garage. All service work has been done at the dealer and is going in for a brake fluid flush next wednesday. Reason why i am posting this is if anyone is looking for a like new M3 it will be going back to Bob Smith BMW in Calabasas Ca. I love the car, just wish i had enjoyed it more. Here are a few pictures. Swift springs, Macht Schnell wheel spacers, RW carbon rear diffuser will be taken off before the car goes back. Car has full front Xpel paint protection. 91k MSRP. Thanks

Andrae26 · 01-14-2020, 10:46 PM

Any more pics of the diffuser?

Laostuh · 01-14-2020, 11:53 PM

Would you part with the diffuser? I work not too far from you in Glendale.

I work for a dealership in sales. Car looks clean enough to retail. My guess is the dealer would buy it out from BMWFS and retail it for around $60k + because of low miles.

evoix · 01-15-2020, 07:45 AM

Would you sell the exhaust separately???

Nice garage btw. lol

DFW_M · 01-15-2020, 09:54 AM

Why did you lease the car for 3 years to have it sit in the garage all that time??
5700 miles for a 30k miles lease is a waste IMO.
Beautiful car and BMW will love you for that.

G35POPPEDMYCHERRY · 01-15-2020, 10:05 AM

Quote:

Originally Posted by drF80

Why did you lease the car for 3 years to have it sit in the garage all that time??
5700 miles for a 30k miles lease is a waste IMO.
Beautiful car and BMW will love you for that.

yeah I didn't want to rub into OP but you are so upside down in what you paid vs what you used. i would almost be so outlandish to say buy it and out run up the miles you paid for.

TR930 · 01-15-2020, 11:59 AM

Buy it at residual, sell it privately.

G35POPPEDMYCHERRY · 01-15-2020, 12:01 PM

Quote:

Originally Posted by TR930

Buy it at residual, sell it privately.

he will lose money. he is super upside down. the only way to make it "worth it" is if he enjoys it himself

larryv · 01-15-2020, 12:19 PM

The exhaust was an option on the car. The spacers, Swift springs and diffuser will be sold in late March. When i leased it my intentions were to drive it to work from time to time but with my work schedule it was hard. Up side down... Yep! This is why i posted so someone looking for a clean low mile M car could jump on it.

ntg44 · 01-15-2020, 12:25 PM

Wow, and I thought my 2017 stripper with 9k miles was a garage queen. Just curious, why didn't you drive the car more? Almost a shame it's just sitting there.

TR930 · 01-15-2020, 12:39 PM

Quote:

Originally Posted by larryv

The exhaust was an option on the car. The spacers, Swift springs and diffuser will be sold in late March. When i leased it my intentions were to drive it to work from time to time but with my work schedule it was hard. Up side down... Yep! This is why i posted so someone looking for a clean low mile M car could jump on it.

Someone will jump on it, but you are just handing the dealer a gift. You can contractually buy it at below market and sell it for a " profit" at market. Why wouldn't you do that to recover your costs?

Alpine300zhp · 01-15-2020, 12:55 PM

Quote:

Originally Posted by TR930

Someone will jump on it, but you are just handing the dealer a gift. You can contractually buy it at below market and sell it for a " profit" at market. Why wouldn't you do that to recover your costs?

Honestly, I do not think he could do this. If he purchased it at residual, he will lose money trying to sell it as the MMR is probably, at best, 50-52k. Remember, the G80 is right around the corner. Will likely be unveiled later this year and available for sale late 2020 as a 2021 model.

c4ss · 01-15-2020, 12:57 PM

This makes me sad. These cars are meant to be driven.

Alpine300zhp · 01-15-2020, 01:01 PM

Quote:

Originally Posted by c4ss

This makes me sad. These cars are meant to be driven.

No worries. The second owner is going to drive it. A lot....

Flacht3 · 01-15-2020, 01:03 PM

Quote:

Originally Posted by TR930

Someone will jump on it, but you are just handing the dealer a gift. You can contractually buy it at below market and sell it for a " profit" at market. Why wouldn't you do that to recover your costs?

His residual is $57k.

How will he buy it at $57k and sell for profit?

As nice as this example is, these cars aren't going for $57k+.

G35POPPEDMYCHERRY · 01-15-2020, 01:14 PM

NADA Retail is 57k

sjuhawks19 · 01-15-2020, 01:45 PM

If the value of the car is more than $57k, buy it. Then sell it privately. I've sold mine before to a Car Max and they handled all of the paperwork. With miles that low, you should be able to get more than $57k. I just turned in my 2017 non-comp with 24,500 miles on it (excellent condition) with a $48k residual. They are asking $57k for it, and that's in PA where M3s don't exactly fly off the lot given the RWD. Do your homework before you turn it in, you will most likely have some equity.

d1stance · 01-15-2020, 02:29 PM

The issue though is that the residual is much higher than market. I'd say for a '17 ZCP with those miles, the actual retail value will be closer to $52-54k (as one member pointed out MMR is right around $51k). For reference, just this month, I had a PP purchase for a mint '18 ZCP in Silverstone with ~7k miles negotiated down to $56k. Seller's highest dealer offer was $55k. Ultimately bought a '18 ZCP in Sakhir Orange with 19k miles from a dealer for $54k because my financing was much better on a dealer purchase, there were a few extras thrown in, and I liked the color a bit more.

Just cause a dealer wants to ask for $57k for a '17 without ZCP and 24k miles, doesn't mean they'll sell it for that. Take a look at Cars.com or CarGurus - '17s in the higher 50's, especially without ZCP, sit... while those in high 40's/low 50's actually do sell.

Same with the forum here. Lots of people trying to sell their cars for far much more than they are worth. '18 ZCP's priced in the 60's? Get real. And it shows - those listings sit for months.

So, back to OP. The dealer will probably not "buy it". They could buy it at residual from BMW, but given the upside down nature of the deal, they'll probably just accept it and turn it over to BMW. BMW will then eat the loss and offer it at wholesale to to their overall dealer network or at Manheim/Adesa. If I were you, I would NOT consider buying out the residual.

TR930 · 01-15-2020, 04:07 PM

Quote:

Originally Posted by Flacht3

His residual is $57k.

How will he buy it at $57k and sell for profit?

As nice as this example is, these cars aren't going for $57k+.

you are right, I missed that he said his residual was 57k. Mine was like 45k so I ended up buying it.

TR930 · 01-15-2020, 04:10 PM

What color is your car?

White340 · 01-15-2020, 04:36 PM

Maybe every mile on this car was at the track!! Jk OP...

NSX2M4 · 01-15-2020, 05:13 PM

You leased it, barely drove it, wrapped it in expensive PPF, and modded it? OUCH.
Why take a bath if the water isn't warm. Where is the common sense here.SMH.
I'm sure there was reasons for it, but damn. You threw your money away....

01-14-2020, 09:57 PM	#1
larryv First Lieutenant 64 Rep 399 Posts Drives: 17 M3 ZCP 11X5 M Sport 20 I3 Join Date: Dec 2007 Location: Central Valley iTrader: (5)	Lease return question My lease is up at the end of March 2020 and the 2017 M3 Comp pkg with MPE is going back to the dealer. Residual is 57k and wondering what they do with lease returns and about how much will this car go for on their lot or will it be auctioned off. The M3 has 5700 miles on it and has never been abused and always been in the garage. All service work has been done at the dealer and is going in for a brake fluid flush next wednesday. Reason why i am posting this is if anyone is looking for a like new M3 it will be going back to Bob Smith BMW in Calabasas Ca. I love the car, just wish i had enjoyed it more. Here are a few pictures. Swift springs, Macht Schnell wheel spacers, RW carbon rear diffuser will be taken off before the car goes back. Car has full front Xpel paint protection. 91k MSRP. Thanks Attached Images
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01-14-2020, 10:46 PM	#2
Andrae26 Major 852 Rep 1,215 Posts Drives: Sakhir M4 Join Date: May 2018 Location: San Diego iTrader: (1)	Any more pics of the diffuser?
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01-14-2020, 11:53 PM	#3
Laostuh Private First Class 51 Rep 173 Posts Drives: 2018 BMW M3 ZCP Azurite Black Join Date: Mar 2019 Location: Los Angeles iTrader: (0)	Would you part with the diffuser? I work not too far from you in Glendale. I work for a dealership in sales. Car looks clean enough to retail. My guess is the dealer would buy it out from BMWFS and retail it for around $60k + because of low miles.
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01-15-2020, 07:45 AM	#4
evoix Major 439 Rep 1,341 Posts Drives: X3m Evo IX Evo X Join Date: Jan 2014 Location: NY iTrader: (0)	Would you sell the exhaust separately??? Nice garage btw. lol
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01-15-2020, 09:54 AM	#5
DFW_M Major General 1670 Rep 6,586 Posts Drives: Macan GTS Join Date: Jul 2006 Location: Dallas, TX iTrader: (4)	Why did you lease the car for 3 years to have it sit in the garage all that time?? 5700 miles for a 30k miles lease is a waste IMO. Beautiful car and BMW will love you for that.
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01-15-2020, 11:59 AM	#7
TR930 Car Enthusiast 479 Rep 1,130 Posts Drives: 2016 F80 M3 TB/AB Join Date: May 2015 Location: Denver Area iTrader: (4)	Buy it at residual, sell it privately.
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01-15-2020, 12:19 PM	#9
larryv First Lieutenant 64 Rep 399 Posts Drives: 17 M3 ZCP 11X5 M Sport 20 I3 Join Date: Dec 2007 Location: Central Valley iTrader: (5)	The exhaust was an option on the car. The spacers, Swift springs and diffuser will be sold in late March. When i leased it my intentions were to drive it to work from time to time but with my work schedule it was hard. Up side down... Yep! This is why i posted so someone looking for a clean low mile M car could jump on it.
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01-15-2020, 12:25 PM	#10
ntg44 Colonel 2889 Rep 2,147 Posts Drives: R8 4.2 Spyder Join Date: Aug 2018 Location: Chicago iTrader: (3)	Wow, and I thought my 2017 stripper with 9k miles was a garage queen. Just curious, why didn't you drive the car more? Almost a shame it's just sitting there.
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01-15-2020, 12:57 PM	#13
c4ss Private First Class 103 Rep 169 Posts Drives: F80 BMW M3 ZCP 6MT Join Date: Sep 2017 Location: Philly iTrader: (0)	This makes me sad. These cars are meant to be driven.
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01-15-2020, 01:14 PM	#16
G35POPPEDMYCHERRY Banned 4995 Rep 4,139 Posts Drives: F80 Join Date: Dec 2015 Location: Philadelphia iTrader: (1)	NADA Retail is 57k
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01-15-2020, 01:45 PM	#17
sjuhawks19 Private First Class 155 Rep 117 Posts Drives: 2017 BMW M3 Join Date: Aug 2016 Location: North Wales, PA iTrader: (0)	If the value of the car is more than $57k, buy it. Then sell it privately. I've sold mine before to a Car Max and they handled all of the paperwork. With miles that low, you should be able to get more than $57k. I just turned in my 2017 non-comp with 24,500 miles on it (excellent condition) with a $48k residual. They are asking $57k for it, and that's in PA where M3s don't exactly fly off the lot given the RWD. Do your homework before you turn it in, you will most likely have some equity. __________________ 2017 BMW M3 Black Sapphire Metallic / Golden Brown DCT, Full Leather, 19" black wheels, Executive package, Lighting package
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01-15-2020, 02:29 PM	#18
d1stance New Member 11 Rep 9 Posts Drives: F80 M3 Join Date: Jan 2020 Location: Los Angeles iTrader: (0)	The issue though is that the residual is much higher than market. I'd say for a '17 ZCP with those miles, the actual retail value will be closer to $52-54k (as one member pointed out MMR is right around $51k). For reference, just this month, I had a PP purchase for a mint '18 ZCP in Silverstone with ~7k miles negotiated down to $56k. Seller's highest dealer offer was $55k. Ultimately bought a '18 ZCP in Sakhir Orange with 19k miles from a dealer for $54k because my financing was much better on a dealer purchase, there were a few extras thrown in, and I liked the color a bit more. Just cause a dealer wants to ask for $57k for a '17 without ZCP and 24k miles, doesn't mean they'll sell it for that. Take a look at Cars.com or CarGurus - '17s in the higher 50's, especially without ZCP, sit... while those in high 40's/low 50's actually do sell. Same with the forum here. Lots of people trying to sell their cars for far much more than they are worth. '18 ZCP's priced in the 60's? Get real. And it shows - those listings sit for months. So, back to OP. The dealer will probably not "buy it". They could buy it at residual from BMW, but given the upside down nature of the deal, they'll probably just accept it and turn it over to BMW. BMW will then eat the loss and offer it at wholesale to to their overall dealer network or at Manheim/Adesa. If I were you, I would NOT consider buying out the residual. Last edited by d1stance; 01-15-2020 at 02:38 PM..
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01-15-2020, 04:10 PM	#20
TR930 Car Enthusiast 479 Rep 1,130 Posts Drives: 2016 F80 M3 TB/AB Join Date: May 2015 Location: Denver Area iTrader: (4)	What color is your car?
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01-15-2020, 04:36 PM	#21
White340 Lieutenant Colonel 1392 Rep 1,985 Posts Drives: 2018 M3 Comp / 2022 X5 45e Join Date: Dec 2015 Location: NYC iTrader: (3)	Maybe every mile on this car was at the track!! Jk OP... __________________ 2022 X5 45e : AW/Tartufo 2018 M3 Competition : AW/SO 2016 340i xDrive : AW/CR (sold)
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01-15-2020, 05:13 PM	#22
NSX2M4 Major 1357 Rep 1,319 Posts Drives: 2019 M4 ZCP- RIVIAN R1S QUAD Join Date: Jun 2019 Location: FTL, FL iTrader: (1)	You leased it, barely drove it, wrapped it in expensive PPF, and modded it? OUCH. Why take a bath if the water isn't warm. Where is the common sense here.SMH. I'm sure there was reasons for it, but damn. You threw your money away....
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