Buying out my lease - how much?

[jmg]

Originally Posted by pheerIx

They refused the car. They said no one is buying used F8X cause they don't like the engine sound. They'll pay over market for N55 M2s though.

Ouch. That stings a little.

[swagon]

Originally Posted by pheerIx

They refused the car. They said no one is buying used F8X cause they don't like the engine sound. They'll pay over market for N55 M2s though.

[Solarium]

My residual is 43k for a 2016 M4, I'll have around 30k miles at turn in. Any haggle room?

I'm interested in getting an extended warranty for 2 more years, after the current warranty runs out in 1 year. Should I go for CPO or a 3rd party via BMW service department? How much would I be expected to pay?

Also, I paid for the car registration in Nevada last week. So now the car is registered until 8/2019. It was around $1.1k. Will I have to pay again once I buy the car?

Thanks all!

[Robotechnology]

Originally Posted by Solarium

My residual is 43k for a 2016 M4, I'll have around 30k miles at turn in. Any haggle room?

I'm interested in getting an extended warranty for 2 more years, after the current warranty runs out in 1 year. Should I go for CPO or a 3rd party via BMW service department? How much would I be expected to pay?

Also, I paid for the car registration in Nevada last week. So now the car is registered until 8/2019. It was around $1.1k. Will I have to pay again once I buy the car?

Thanks all!

The registration question is easier. If in Nevada the vehicle is registered to you personally then, you will only need a title only transaction. If registered to the leasing company then, you will need to reregister.

IMO, if you are planning on keeping the vehicle a long time... look into the dealership's long term 3rd party options. That's what I did personally with my Z4MC. Bought a 6 year which was double BMW's longest.

Regarding your buyout, BMW FS' changed their policy and there is trivial room if any, from your residual now. Who knows about the future but, BMW was pretty spot on with their residuals on F8x's. Probably the only time in recent history where they're not losing thousands on each vehicle returned. They're pretty much spot on with MMR in a lot of cases.

[Solarium]

Just an update, ended up purchasing the car with the residual amount ~$43.6k. Turns out I don't have to register again, since the car is registered under my name instead of BMW financial (it was the title that's changed).

I ended up buying an extended warranty via the dealership called EasyCare for ~$6800 for 3 extra years of maintenance and mechanical parts. Are they any good? The service guys recommended them so I figured I use them. The service is done via BMW dealership service department still. It was either that or going with CPO which is about $3500 for 1 extra year.

I'm also planning to at least put in a ECU upgrade. I heard the BootMod3 is good, better than the JB4. Is the service department usually pretty relaxed as far as ECU mods go?

[Bluesummer]

Originally Posted by Solarium

Just an update, ended up purchasing the car with the residual amount ~$43.6k. Turns out I don't have to register again, since the car is registered under my name instead of BMW financial (it was the title that's changed).

I ended up buying an extended warranty via the dealership called EasyCare for ~$6800 for 3 extra years of maintenance and mechanical parts. Are they any good? The service guys recommended them so I figured I use them. The service is done via BMW dealership service department still. It was either that or going with CPO which is about $3500 for 1 extra year.

I'm also planning to at least put in a ECU upgrade. I heard the BootMod3 is good, better than the JB4. Is the service department usually pretty relaxed as far as ECU mods go?

If you didn't mod the car during your lease, why mod it after you bought it out. It doesn't sound like something one should do.

[seis-speed]

I called my dealer to buy out my lease. They could not give me a discount like they used to. Only on an extended warranty they lowered $500.

Called BMW. You can not negotiate. The payoff is the payoff it was less than my residual and went down from previous month for market correction more than what my payment was. I also got a promotional $800 credit.

Previously, I could negotiate at lease end with various dealers. Seems BMWFS is now not allowing that in my region. They did say it was subject to change.....

I am still buying my car for much less than the residual, but it takes away the end of month negotiating with a dealer where they would get real aggressive to make a sale. Seems, they (the dealer) are doing it more as a favor to me for being a good customer.

FYI

[KevinM]

Originally Posted by seis-speed

I called my dealer to buy out my lease. They could not give me a discount like they used to. Only on an extended warranty they lowered $500.

Called BMW. You can not negotiate. The payoff is the payoff it was less than my residual and went down from previous month for market correction more than what my payment was. I also got a promotional $800 credit.

Previously, I could negotiate at lease end with various dealers. Seems BMWFS is now not allowing that in my region. They did say it was subject to change.....

I am still buying my car for much less than the residual, but it takes away the end of month negotiating with a dealer where they would get real aggressive to make a sale. Seems, they (the dealer) are doing it more as a favor to me for being a good customer.

FYI

So the "official" payout is not the residual value on the contract? How were you informed of the payout amount?

[seis-speed]

Originally Posted by KevinM

So the "official" payout is not the residual value on the contract? How were you informed of the payout amount?

Logging on to my account on BMW.com, I requested the payoff documents and it had the amount on page 2. It was less than my residual. I made a payment this month and got the payoff again, it was even less (even with payment factored in). I might wait until October and see if it lowers again?

[KevinM]

Originally Posted by seis-speed

Logging on to my account on BMW.com, I requested the payoff documents and it had the amount on page 2. It was less than my residual. I made a payment this month and got the payoff again, it was even less (even with payment factored in). I might wait until October and see if it lowers again?

Thanks. When is your lease due? The payout amount takes into account finishing out the lease, correct?

[jjrandorin]

Originally Posted by KevinM

So the "official" payout is not the residual value on the contract? How were you informed of the payout amount?

I had a discount chart that was sent to me, that I reposted on bimmerfest. I will find it and copy here...It was relevant when It was sent to me, but may have changed in the past month or so.

EDIT:

This discount chart was current when it was given to me in july. I am not sure if the same discounts apply. Please keep in mind that these are for lease end discounts, not negotiated with dealers anymore but set amounts. The following is a copy / paste of a post I made on the 'fest on july 21:
================================================== =======

In the interest of more information sharing, here is some additional (very reliable ) information I just got on this. The amount of discount that is offered from the RV differs depending on model year of car, and model of car. The note also says that the information is "reviewed updated and published periodically", and calls these "CPO Promotional discounts"

It appears that right now, MY 2015s have additional discounts on them compared to 2014 / 2016 / 2017 (please remember that this is all in relationship to LEASE BUY OUT, not any other discounts or situation).

2015 328i = 4000
2015 335i = 4000
2015 5 series (excluding M) = 5000
2015 6 Series (excluding M) = 6000
2015 7 Series = 7000

For all others (2014,2016,2017) the CPO promotional discount (discount from RV as I understand it, referencing the information from my first post):

All 1 Series (including M) = 500
All 2 Series (including M) = 700
All 3 series (including M) = 800
All 4 series (including M) = 1000
All 5 series (including M) = 1000
All 6 Series (including M) = 1200
All 7 Series = 2000
All i3 = 6000
All i8 = 2000
All X1 = 1000
All X3 = 900
All X4 = 500
All X5 = 1200
All X6 = 1200
All Z3/Z4 = 300

[seis-speed]

Originally Posted by KevinM

Thanks. When is your lease due? The payout amount takes into account finishing out the lease, correct?

You can get a payoff at anytime and payoff the car. I have paid off leases early. They overnight the title for $15. The payoff changes every month reflecting payments.

My lease is up mid-October.

It was extended and will be a 42 month lease. It is a 2015 car so maybe my discount is higher?

I also had the old 7% European Delivery discount. My Cost was less than 60k.

[jjrandorin]

Originally Posted by seis-speed

You can get a payoff at anytime and payoff the car. I have paid off leases early. They overnight the title for $15. The payoff changes every month reflecting payments.

My lease is up mid-October.

It was extended and will be a 42 month lease. It is a 2015 car so maybe my discount is higher?

I also had the old 7% European Delivery discount. My Cost was less than 60k.

Did you buy out the lease and get a 42 month loan, or did you extend your lease and re lease the car for an additional 3 years 6 months (42 month lease on a used car)?

[JHY310]

Interesting information. I have 4 payments left on my lease and the payoff is $300 within the residual value. At lease end, does the payoff somehow converge back to the residual value, or, does the payoff continue to be adjusted downward for payments / any incentives offered?

Do we know what fees are included in payoff? E.g. taxes, lease disposition, etc?

[jjrandorin]

Originally Posted by JHY310

Interesting information. I have 4 payments left on my lease and the payoff is $300 within the residual value. At lease end, does the payoff somehow converge back to the residual value, or, does the payoff continue to be adjusted downward for payments / any incentives offered?

Do we know what fees are included in payoff? E.g. taxes, lease disposition, etc?

Dealers dont see what they will pay for your car until you are within 3 months of your lease end. Before that time, its just the regular payoff calculated by BMW FS.

Wait a month and ask your local dealer. As for taxes, I am no expert on that, but in general taxes have to be paid. In CA we pay taxes as we go, so you would be paying taxes on the part of the car you are buying (the Residual).

I dont know if you have to pay the lease disposition fee, as have not got that far myself (4 months out myself as well).

[seis-speed]

Originally Posted by jjrandorin

Did you buy out the lease and get a 42 month loan, or did you extend your lease and re lease the car for an additional 3 years 6 months (42 month lease on a used car)?

I was an early adopter of the F80 and in 2014 the leases were longer and cheaper. (I bought it new with European delivery).

Then, I had a contract with my dealer to buy an M2C, I called BMW and they allowed me to extend my lease until October (because that was expected delivery on West Coast). I ended up passing on the M2C in the end, but my lease was adjusted in May, more miles, residual changed, terms changed, it was easy.

I got a good rep, and I have a good history with BMWFS. Ended up being a 45 month lease.

[LOW4LYF]

Originally Posted by Alvinized52

Isnt the value based on mileage? What if the car only has 13k miles in 3yrs? Im in this same boat....but with super low mileage. My logic says that works against me. My residual is 48k. 49k buyout now.

I have 12 Month left and just 3500miles on the car

No idea what to do on by end of the lease....

[KevinM]

Originally Posted by LOW4LYF

I have 12 Month left and just 3500miles on the car

No idea what to do on by end of the lease....

Road Trip!!!!

Seriously though, consider buying it out given the car will have < 5000K miles on it at lease-end.

[Alvinized52]

Originally Posted by LOW4LYF

I have 12 Month left and just 3500miles on the car

No idea what to do on by end of the lease....

Well... i ended up buying mine.

[LAKERS333]

So this week I went to dealership to buy out my car for prior to lease end and was told that as of 2 months ago BMW will no longer give dealerships reduced buyouts. Not sure if this will change in the future but seems like rates are going up, buyouts are not reduced anymore, money factors are getting worse by the month and interest rates are up as well. So everything that used to be great about BMW leases are now gone.

[Solarium]

Originally Posted by LAKERS333

So this week I went to dealership to buy out my car for prior to lease end and was told that as of 2 months ago BMW will no longer give dealerships reduced buyouts. Not sure if this will change in the future but seems like rates are going up, buyouts are not reduced anymore, money factors are getting worse by the month and interest rates are up as well. So everything that used to be great about BMW leases are now gone.

Sucks if that's true. After my current M4, my next one will be either buying the new 2021 M4 or a 911 GTS so I don't have to deal with leases anymore. What was your residual for your M4? Mine's $43k for 2016 that I bought out 2 weeks ago. Ended up getting a 3 year extended warranty for $7.3k from Easy Care, which goes through the BMW dealership for repairs.

[LAKERS333]

Originally Posted by Solarium

Sucks if that's true. After my current M4, my next one will be either buying the new 2021 M4 or a 911 GTS so I don't have to deal with leases anymore. What was your residual for your M4? Mine's $43k for 2016 that I bought out 2 weeks ago. Ended up getting a 3 year extended warranty for $7.3k from Easy Care, which goes through the BMW dealership for repairs.

Its an M3 with residual at 45k. Going to buy it out today most likely as getting a new one most MSRP's are about 81k with the "right" spec (competition, executive..etc.) leases are over 1k with their crappy money factors. Im sure you can get it under 1k but nothing close to what I was paying at $800.