Lease End Question

[KANdaddy]

Not sure if this is the right place so admins please move if needed.

My CS is coming up for lease. Currently the residual is about $10K less than what a similar car is going for used. My dealer will not add any equity for me to roll into a new lease because they say they won't be able to sell a CS and make the money back. So I am wondering - 1. Can I shop around a better trade with another dealer? or 2. is the residual negotiable if I want to keep the car? Best case, I'd like to keep the car but I'm not liking the payments based on the residual and I don't want to throw anymore cash at the car to get them lower.

Any helpful suggestions out there?

Thank you!

[bigj505]

I'm not the most well versed lease person but I do know that you can shop your trade to other dealers.

My wife has leased like 5 cars and has traded them all in early since the dealers were willing to pay her car off and she'd have no negative equity.

My thought is that you can do the same and see what these other place will give you and compare since you'd do better trading it towards a new car vs returning it then having to buy a new car and pay the extra tax if applicable.

[KANdaddy]

Originally Posted by bigj505

I'm not the most well versed lease person but I do know that you can shop your trade to other dealers.

My wife has leased like 5 cars and has traded them all in early since the dealers were willing to pay her car off and she'd have no negative equity.

My thought is that you can do the same and see what these other place will give you and compare since you'd do better trading it towards a new car vs returning it then having to buy a new car and pay the extra tax if applicable.

Thanks! Was hoping to keep but I will def shop it around.

[bigj505]

Originally Posted by KANdaddy

Thanks! Was hoping to keep but I will def shop it around.

Good luck and hopefully someone is more insightful than I am. Fingers crossed that you figure out how to keep it for what you want.

I feel like the dealer is trying to deter you and won't be helpful because he knows he can sell it for more if you return it.

[kwatkins12]

I would double check if other dealers are allowed to pay off the car before you start looking for trade-in offers. I believe BMW stopped allowing this a few months ago. It's been common with a few manufacturers because of the lack of car inventory.

If you can not trade it in your other option would be to buy the car out and then sell it. Think I saw a thread on here discussing that.

[Jason60051]

I would shop around before the end of the lease if you don't want to keep the car. The residual is not negotiable.

[RickFLM4]

Yes, you can take it to CarMax or shop around for a trade-in. No, they won't negotiate the residual especially if market value exceeds the residual by $10K.

[alex2364]

I don't understand what the issue is. You said you have $10k in equity if you buy out the lease. You have a number of options:

1. Buy out the car and sell it to the highest offer.
2. Buy out the car and keep it if you want like it.
3. Return the lease and throw $10k away.

[bigj505]

Originally Posted by alex2364

I don't understand what the issue is. You said you have $10k in equity if you buy out the lease. You have a number of options:

1. Buy out the car and sell it to the highest offer.
2. Buy out the car and keep it if you want like it.
3. Return the lease and throw $10k away.

He wants a lower payment that's all.

[Ropes]

So go with option 1 and get a car with a lower payment

[SMGCFP]

Payment = Math. You have the opportunity to buy a BMW for 10k less than it's theoretically worth. This doesn't happen much with BMW leases are their leases are historically higher than average residual values as BMWUSA subsidizes their leases somewhat.

BMWFS isn't going to give you a better price on the buyout for obvious reasons. If you want to buy the car from BMWFS, and are seeking a lower payment, there are only a few options:

1) Put some cash down
2) Get a lower interest rate
3) Increase the term of the loan

The dealer has virtually no role in either of these.

As far as buying it out and reselling it, if you live in a sales tax state, that's a consideration as you are not a dealer.

Good luck.

[icegrill]

Originally Posted by SMGCFP

Payment = Math. You have the opportunity to buy a BMW for 10k less than it's theoretically worth. This doesn't happen much with BMW leases are their leases are historically higher than average residual values as BMWUSA subsidizes their leases somewhat.

BMWFS isn't going to give you a better price on the buyout for obvious reasons. If you want to buy the car from BMWFS, and are seeking a lower payment, there are only a few options:

1) Put some cash down
2) Get a lower interest rate
3) Increase the term of the loan

The dealer has virtually no role in either of these.

As far as buying it out and reselling it, if you live in a sales tax state, that's a consideration as you are not a dealer.

Good luck.

Yes. Finance through a credit union for 60 months, payment should be similar or lower than your lease. Add money to the payment as you are able or sell down the road and keep the appreciation.

[N1rve]

Originally Posted by KANdaddy

Not sure if this is the right place so admins please move if needed.

My CS is coming up for lease. Currently the residual is about $10K less than what a similar car is going for used. My dealer will not add any equity for me to roll into a new lease because they say they won't be able to sell a CS and make the money back. So I am wondering - 1. Can I shop around a better trade with another dealer? or 2. is the residual negotiable if I want to keep the car? Best case, I'd like to keep the car but I'm not liking the payments based on the residual and I don't want to throw anymore cash at the car to get them lower.

Any helpful suggestions out there?

Thank you!

Residual value is not negotiable unfortunately. If you want to keep the car, you're gonna have to buy it out from BMW FS.

In the past, you would be able to make money by trading it in to like Carmax or whatever but since you want to keep the car, this isn't an option for you.

[khoa@x-ph.com]

Originally Posted by KANdaddy

My dealer will not add any equity for me to roll into a new lease because they say they won't be able to sell a CS and make the money back

Maybe sell your car to Carmax or somewhere else to pocket 10k and put that as a down payment for a new BMW lease? That if new lease payment will be lower than financing your old CS?

Or like others said, go to your local CU and work out a deal for the longest term possible to keep the payment low.

[KANdaddy]

Thanks to all the folks here that had positive advice. I did find a rate with my credit union that may allow me to get the payment where I want. I am going to also get a buy out quote from Carmax just out of curiosity. I had begun to look at a g80 and am really on the fence if I'd be happy giving up the CS for a g80 comp. But that would be a whole other conversation I do love my CS though....sigh.

[IB M]

In for CS pics

[mdrobc13]

Originally Posted by icegrill

Yes. Finance through a credit union for 60 months, payment should be similar or lower than your lease. Add money to the payment as you are able or sell down the road and keep the appreciation.

That is probably the best option...whether you keep or sell it you sound like you have $10k equity in the car given the residual from BMW. Don't let it go to waste which it will if you just turn it in.

Originally Posted by N1rve

Residual value is not negotiable unfortunately. If you want to keep the car, you're gonna have to buy it out from BMW FS.

In the past, you would be able to make money by trading it in to like Carmax or whatever but since you want to keep the car, this isn't an option for you.

Residual is mostly fixed especially if its $10k less than market. Great for you to get the car under-market but not for the dealer who can't then in turn flip the car for what they paid for it plus profit. Remember the dealer doesn't own the car; BMFS does and so the dealer has to pay BMWFS for the car and then anything needed to sell it next. So yeah buy it out and/or find someone to take it in trade (same as a buyout) is probably best option.

Originally Posted by khoa@x-ph.com

Maybe sell your car to Carmax or somewhere else to pocket 10k and put that as a down payment for a new BMW lease? That if new lease payment will be lower than financing your old CS?

Or like others said, go to your local CU and work out a deal for the longest term possible to keep the payment low.

What this poster said! Yes probably best option given current used car market. Likely can sell it easy and have some $$ for the next vehicle or otherwise. Your choice.

[KANdaddy]

Originally Posted by IB M

In for CS pics

Sadly, this is all I have. Not as into photographing my cars as I used to be

[mdrobc13]

Originally Posted by KANdaddy

Sadly, this is all I have. Not as into photographing my cars as I used to be

Nice. Love the color and details. She's a keeper. Keep it and enjoy it. Don't sell it. G80s are nice but not the same I hear. .

[DML]

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