06-18-2018, 12:06 PM | #1 |
Private First Class
95
Rep 158
Posts |
Buying out my lease - how much?
My lease is about to end on my M4 in September (from a 36/10 lease), I'm considering buying it out at the end. What is the expected pricing on this?
|
06-18-2018, 12:31 PM | #2 | |
Second Lieutenant
81
Rep 283
Posts |
Quote:
If you have a good money factor rate currently you can also extend the lease out 2 months by calling BMW financial. They will automatically do this for all leases. As far as buy out you can negotiate with any dealer, I was quoted roughly $2700 off my residual and then took this to other dealers and was given the same deal but with a better interest rate somewhere else. It takes some work/time upfront but you can save a few thousand $$$. Good luck.. |
|
Appreciate
0
|
06-18-2018, 01:05 PM | #3 |
Colonel
1968
Rep 2,711
Posts |
Look up the residual value in your lease contract. If your MY16 M4 is worth more than BMW's projected residual value, then there is no option to negotiate. It would be the opposite if your M4's value at lease end is much lower than the residual value. In that case, it would be wise to turn the car in at lease end, so you can walk away from a rapidly depreciating asset.
|
Appreciate
0
|
06-18-2018, 03:05 PM | #4 | ||
Private First Class
95
Rep 158
Posts |
Quote:
Quote:
|
||
Appreciate
0
|
06-18-2018, 03:37 PM | #5 | |
Colonel
1968
Rep 2,711
Posts |
Quote:
I doubt BMWFS will entertain any low ball offer when one of their dealers can easily get $50k for a 2016 M4 with 30k or so miles. You'd be better off selling the car to Carmax to recoup a thousand or two... |
|
Appreciate
0
|
06-18-2018, 07:39 PM | #6 |
Brigadier General
10885
Rep 4,816
Posts |
Buy out amounts during the lease term are available on the My BMW site. I believe they include sales tax in those figures, whereas in the lease contract I think the residual is before sales tax. You can also approximate it by creating an amortization table in Excel.
Hard to predict what you will be able to negotiate through a dealer.
__________________
Current: 2018 SO/SS F83 ZCP
Gone: 2015 SO/SO F82 |
Appreciate
0
|
06-18-2018, 11:05 PM | #7 | |
Banned
4482
Rep 10,473
Posts |
Quote:
Period. Furthermore, BMWFS will only sell car to you (or BMW Dealer afaik) and you would be responsible for tax before selling to Carmax, thus eating up more than you will profit. |
|
Appreciate
0
|
06-19-2018, 12:55 PM | #8 | ||
Private First Class
95
Rep 158
Posts |
Quote:
Quote:
|
||
Appreciate
0
|
06-19-2018, 02:52 PM | #9 | |
Brigadier General
10885
Rep 4,816
Posts |
Quote:
__________________
Current: 2018 SO/SS F83 ZCP
Gone: 2015 SO/SO F82 |
|
Appreciate
1
IK6SPEED4481.50 |
06-19-2018, 03:05 PM | #10 | |
Colonel
1968
Rep 2,711
Posts |
Quote:
BMWFS will not deal with a 3rd party like Carmax, but again, taking a loss is all dependent on the residual value and/or actual loan payoff amount. Here's a basic example: Residual value: $41,000 Sales tax at 9.25%: $3,792 Total: $44,792 Offer from Carmax: $46,000 Net: $1,208 |
|
Appreciate
0
|
06-19-2018, 03:10 PM | #11 | ||
Banned
4482
Rep 10,473
Posts |
Quote:
And that price from Carmax is pretty unrealistic. |
||
Appreciate
0
|
06-19-2018, 05:30 PM | #12 |
Lieutenant
316
Rep 553
Posts |
Lets say your residual is 43k. Dealer will get you car from BMW at wholesale price around 34-35K, then they will recondition the car and probably CPO the car. Ask the dealer if he wants so split price between wholesale and residual and go for it. So if you can get your car for lets say 38k I would go for it. I've done this before and it works because dealer get some profits and the car doesn't sit on the lot. JMO
|
Appreciate
2
seis-speed2426.00 Aaaaaaaaa7559.00 |
06-20-2018, 11:41 AM | #14 | |
Private First Class
95
Rep 158
Posts |
Quote:
|
|
Appreciate
0
|
06-20-2018, 02:31 PM | #15 |
Lieutenant
316
Rep 553
Posts |
In order to sell you a car they need to buy it first from BMWFS. Even if you just return the lease to them they still will buy the car from BMWFS and put it on the lot. I hope this helps
|
Appreciate
1
seis-speed2426.00 |
06-20-2018, 11:33 PM | #16 | |
Banned
4482
Rep 10,473
Posts |
Quote:
The average profit a Dealership makes on a BMW CPO is usually around $2800, depending on the Dealership. |
|
Appreciate
0
|
06-20-2018, 11:38 PM | #17 | |
@ste4lthedF82
881
Rep 1,498
Posts
Drives: 2016 M4 SSII
Join Date: Sep 2015
Location: Los Angeles
|
Quote:
__________________
2016 Satin SSII M4 (Instagram: @Ste4lthedF82)
see my featured mods below... http://f80.bimmerpost.com/forums/sho....php?t=1197842 |
|
Appreciate
0
|
06-20-2018, 11:40 PM | #18 |
@ste4lthedF82
881
Rep 1,498
Posts
Drives: 2016 M4 SSII
Join Date: Sep 2015
Location: Los Angeles
|
Im in the same boat. What is your residual? Mine is at 48k.... and i only have 13k mi.
__________________
2016 Satin SSII M4 (Instagram: @Ste4lthedF82)
see my featured mods below... http://f80.bimmerpost.com/forums/sho....php?t=1197842 |
Appreciate
0
|
06-21-2018, 12:19 AM | #19 | ||
Captain
421
Rep 965
Posts |
Quote:
You only pay tax if you are selling to a private party, so even getting a little more for the car selling it privately could actually be less beneficial.... |
||
Appreciate
0
|
06-21-2018, 12:42 AM | #20 | |||
Banned
4482
Rep 10,473
Posts |
Quote:
You need to pay the sales tax to BMWFS if you buy the car prior to selling to Carmax. The title must be in your name prior to Carmax buying it. Now if you purchased it through BMWFS and they are a lien holder only on the title, totally different. But that is a different subject. BMWFS will not sell a car to Carmax. Only to the lease holder or a BMW Dealer (unless through an auction). |
|||
Appreciate
0
|
06-21-2018, 11:41 AM | #21 | |
Lieutenant
316
Rep 553
Posts |
Quote:
|
|
Appreciate
0
|
06-21-2018, 11:43 AM | #22 |
Lieutenant
316
Rep 553
Posts |
|
Appreciate
0
|
Post Reply |
Bookmarks |
Thread Tools | Search this Thread |
|
|