Do I buy my 2016 or lease a new 2019

[SMGCFP]

I have a 2016 San Marino (IND) F82 with 25k miles, it's DCT, ZCP, and the car's MSRP was like 89k. The residual is around 56k. I have a 36k mile lease and it's up on 5/15.

I'm inclined to buy it as I love the color and the 2019 is the same car. Also, interest rates are higher, so money factors are higher. I've also heard residuals are not great either. I think 56k is too much to pay for the car, but I'm unsure if I know all my options.

Is there a way to buy the car from BMWFS for less than the residual? I figure I'll drive it for maximum another 2k miles in the next 90 days. So I'm giving them about $1800 worth of miles if I turn it in. Is the 56k price more than $1800 above market? I think it is.

What should I do?

[Wah]

They only way to get a better buy out price is to find a dealership that will take your car as a lease return and sell it back to you at a pre-negotiated price. It will all depend on the price they can acquire the car for from bmwfs (and their profit from doing this), and how willing they are to do you a favor.

[JTM09]

There is far less wiggle room in lease end buyouts. Policy changed last year. Maybe some can post the link ...

[M3PGH]

Dump it and get a ZCP 19. Car isn't worth 56k

[Wmf80]

I’d get a new M.. Look into a CS

[Tonyfsu21]

Originally Posted by SMGCFP

I have a 2016 San Marino (IND) F82 with 25k miles, it's DCT, ZCP, and the car's MSRP was like 89k. The residual is around 56k. I have a 36k mile lease and it's up on 5/15.

I'm inclined to buy it as I love the color and the 2019 is the same car. Also, interest rates are higher, so money factors are higher. I've also heard residuals are not great either. I think 56k is too much to pay for the car, but I'm unsure if I know all my options.

Is there a way to buy the car from BMWFS for less than the residual? I figure I'll drive it for maximum another 2k miles in the next 90 days. So I'm giving them about $1800 worth of miles if I turn it in. Is the 56k price more than $1800 above market? I think it is.

What should I do?

I've got a similar issue except I have only 10k miles on the odo! I'm going to try and sell the car to car max.

[visi107]

Originally Posted by Wah

They only way to get a better buy out price is to find a dealership that will take your car as a lease return and sell it back to you at a pre-negotiated price. It will all depend on the price they can acquire the car for from bmwfs (and their profit from doing this), and how willing they are to do you a favor.

This is not possible anymore. BMW changed the lease buy out now so if a dealer happens to buy your car then they are not allowed to see it back to the original person that owned that lease.

BMWFS though might give the person who holds the lease directly a discount towards the residual if you want to buy it. The discount depends on the type of car and year. I would recommend to call BMWFS and see what the discount would be for your car.

[aliiin]

I'm on the same boat. I took over someone's lease for 6 months and my lease maturity is in June. I wanted to try out the car for a short period and see how I liked it. I thought I would have wiggle room to negotiate with BMW FS, but it appears that they changed their policy and the residual is the residual and they won't negotiate. My MSRP was ~90k and residual is ~56k as well. I have 15k miles and drive a lot, I'll probably have 23k at lease end out of a 30k mile lease. But after a quick search I think I can buy a similar car for a lot less than the residual BMW FS has set.

Let me know what you end up doing!

[SMGCFP]

Was wondering if trying to extend lease out 6 months just to buy some more time? Someone suggested the CS. I don't want a racecar. I don't do mods. The car stock from the factory is more than I need. I like that you can track the car stock, but still drive it everyday (that the temp is over 40 degrees).

I'm going to call BMWFS and see what all of my options are. Maybe they will discount it if I want to buy it. I'm not hopeful as I'm certain the bank won't negotiate, but I'll ask. As I've stated, my preference is to keep the car, but won't pay 56k.

I could pull a Ferris Bueller and jack it up and let the wheels spin for 9000 miles....

[SMGCFP]

I called BMWFS. Here's what I found out. I can extend the lease for 2 months at the same terms. If I have a contract or order on a new BMW, they will allow me to keep those terms for another 4 months or delivery.

I also found out if I want to buy it, they will discount from the residual $1000.00. The rep told me that discount changes month to month. I will call them back in late March to see what's what. In the meantime, I have to decide if I want to go without an M car for a while, get an M5 (I think it's too big), leave the brand and get an Audi, or MB. I really don't want to lease a 2019 M4 as the car is now 4 or 5 years old.

[LVI]

IMO, and granted this is all speculation, given the desirable color, when you turn the car in, the dealer will try to buy it from BMW and BMW will wholesale it to them for a lot less than $56K. That spec car would probably only bring $45k-$47K or so wholesale TODAY. If it was for sale today, they would likely list it somewhere in the low to mid $50s. Now, it may sit at that price, or it may sell the same day for asking price you never know and obviously it's a gamble. Come May, these numbers should be even lower, which would work in your favor. That said, there are no guarantees going this route - the car may end up going to the auction, the dealer may overpay, or they may sell it before it hits the lot, or a variety of other scenarios may happen, meaning only you can decide whether it makes sense to take the risk of losing the car.

Bottom line is that BMW will be underwater on a lot of these 2016 and 2017 cars as they overshot the residuals when they were sold/leased new. They may or may not be motivated to cut you a deal on a buyout depending on what the market looks like as we enter the spring season. I would hold off on contacting them until early May and decide then. I would roll the dice personally, as i think you could stand to save close to $5k on the deal.

[SMGCFP]

Originally Posted by lawrence1

IMO, and granted this is all speculation, given the desirable color, when you turn the car in, the dealer will try to buy it from BMW and BMW will wholesale it to them for a lot less than $56K. That spec car would probably only bring $45k-$47K or so wholesale TODAY. If it was for sale today, they would likely list it somewhere in the low to mid $50s. Now, it may sit at that price, or it may sell the same day for asking price you never know and obviously it's a gamble. Come May, these numbers should be even lower, which would work in your favor. That said, there are no guarantees going this route - the car may end up going to the auction, the dealer may overpay, or they may sell it before it hits the lot, or a variety of other scenarios may happen, meaning only you can decide whether it makes sense to take the risk of losing the car.

Bottom line is that BMW will be underwater on a lot of these 2016 and 2017 cars as they overshot the residuals when they were sold/leased new. They may or may not be motivated to cut you a deal on a buyout depending on what the market looks like as we enter the spring season. I would hold off on contacting them until early May and decide then. I would roll the dice personally, as i think you could stand to save close to $5k on the deal.

Thanks. I'm going to do just that. I talked to my SA and he told me that BMWFS will "drop their drawers" to get you to buy it, but like you said, not until May.

[visi107]

To clarify my above statement . . . the person who holds the current lease may not buy the car from a dealership at a price lower than the residual (or whatever BMWFS gives you) or anyone living in the same household but lets say you have a girlfriend/boyfriend who does't live with you then they could do that for you.

IT does become a little complicated then as the car would be registered in the other person.

[aliiin]

Originally Posted by visi107

To clarify my above statement . . . the person who holds the current lease may not buy the car from a dealership at a price lower than the residual (or whatever BMWFS gives you) or anyone living in the same household but lets say you have a girlfriend/boyfriend who does't live with you then they could do that for you.

IT does become a little complicated then as the car would be registered in the other person.

So I can't turn my car in at lease maturity and then buy it back from the dealership I turned it into (in hopes I will be the first person to negotiate a price better than the residual?) That kind of sucks. I was hoping that was an option to potentially get a lower price than the residual.

[Wah]

Originally Posted by visi107

To clarify my above statement . . . the person who holds the current lease may not buy the car from a dealership at a price lower than the residual (or whatever BMWFS gives you) or anyone living in the same household but lets say you have a girlfriend/boyfriend who does't live with you then they could do that for you.

IT does become a little complicated then as the car would be registered in the other person.

I could understand BMWFS blocking you from financing if you were trying to buy back your own car from the dealership, but how would they know if someone were to bring their own financing or pay cash for the car?

[LVI]

Originally Posted by Wah

I could understand BMWFS blocking you from financing if you were trying to buy back your own car from the dealership, but how would they know if someone were to bring their own financing or pay cash for the car?

they wouldn't. that's a BS, unenforceable clause. Once the dealer buys the car from BMW, they own it and can sell it to whomever they want. If they sell it to someone that doesn't finance through BMW FS, it's even more of a non-issue.

[SMGCFP]

So, I called BMWFS today and was offered 1000 off residual value on buy out. I extended the lease 2 months to July 15, and will now look to lease a 2020 M4. Guess we'll see what happens next. In the vs thread I mentioned that I drove an RS5 coupe. I liked it more than I thought I would but don't like it enough to switch.

[avd3k]

Originally Posted by lawrence1

they wouldn't. that's a BS, unenforceable clause. Once the dealer buys the car from BMW, they own it and can sell it to whomever they want. If they sell it to someone that doesn't finance through BMW FS, it's even more of a non-issue.

After that change in buyout policies, the dealer now gets hit with internal penalty charge from BMW so it's hard to find willing dealer to do that.

[SMGCFP]

Originally Posted by M3PGH

Dump it and get a ZCP 19. Car isn't worth 56k

Decided to get a 2020. Same car, same color.

[PhatLyfe]

I would have waited for eth lease to end and get new 2021 @ switch over..

[SMGCFP]

Originally Posted by PhatLyfe

I would have waited for eth lease to end and get new 2021 @ switch over..

My lease ended 5/15/19. I extended it. BMWFS only lets you extend 6 mos if getting new BMW. 2021 is 2 years away. I'll get the new model in 2023. It'll be a couple years in at that point which is my preference anyway.

[///M4ster Yoda]

I'm in the same boat as you. My 2016 M4 lease is ending this July. After much deliberation about what to do (buy a CS, Euro Delivery etc etc...) I decided to order a 2020 M4 to my exact spec for PCD. I figured we won't see the next Gen M4 for a few years and the timing will be perfect to jump into the next Gen If it doesn't suck (become an Audi with AWD).