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      06-18-2018, 12:06 PM   #1
Solarium
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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?
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      06-18-2018, 12:31 PM   #2
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Quote:
Originally Posted by Solarium View Post
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?

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..
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      06-18-2018, 01:05 PM   #3
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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.
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      06-18-2018, 03:05 PM   #4
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Quote:
Originally Posted by LAKERS333 View Post
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..
Quote:
Originally Posted by nars3000 View Post
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.
Good info. Under the account summary of my car it says the residual value is $43k, the payoff quote is $50k until 7/25 though. How do I look up the MY16 M4? I def want to negotiate down to around $40k, will that be likely?
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      06-18-2018, 03:37 PM   #5
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Quote:
Originally Posted by Solarium View Post
Good info. Under the account summary of my car it says the residual value is $43k, the payoff quote is $50k until 7/25 though. How do I look up the MY16 M4? I def want to negotiate down to around $40k, will that be likely?
Do some research on KBB, Edmunds and Autotrader.

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...
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      06-18-2018, 07:39 PM   #6
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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.
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      06-18-2018, 11:05 PM   #7
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Quote:
Originally Posted by nars3000 View Post
Do some research on KBB, Edmunds and Autotrader.

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...
BMWFS will not negotiate price with a customer.

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.
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      06-19-2018, 12:55 PM   #8
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Quote:
Originally Posted by nars3000 View Post
Do some research on KBB, Edmunds and Autotrader.

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...
Quote:
Originally Posted by RickFLM4 View Post
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.
Quote:
Originally Posted by IK6SPEED View Post
BMWFS will not negotiate price with a customer.

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.
Going rate for the 2016 M4 currently on carguru.com is around $45-55k with around the same mileage. I remember with my previous 335i when I turned it in they said they took off a few thousand bucks, but I'm not sure if whether they were just saying whatever to sell it or whether it's changed now with the M4. Am I buying it through the dealership, or via BMWFS? If it's from BMWFS it's probably a non-haggle deal. I kept the car in tip top shape, so $43k might be a good deal for me. Extended warranty is through the dealership though right?
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      06-19-2018, 02:52 PM   #9
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Quote:
Originally Posted by Solarium View Post
Going rate for the 2016 M4 currently on carguru.com is around $45-55k with around the same mileage. I remember with my previous 335i when I turned it in they said they took off a few thousand bucks, but I'm not sure if whether they were just saying whatever to sell it or whether it's changed now with the M4. Am I buying it through the dealership, or via BMWFS? If it's from BMWFS it's probably a non-haggle deal. I kept the car in tip top shape, so $43k might be a good deal for me. Extended warranty is through the dealership though right?
As noted above by IK6SPEED, I also understand that BMWFS will not negotiate buyout price but there is a buyout amount they provide at any time. You just can’t haggle with them over it. A dealer can buy it out for less than you can and you may be able to negotiate with a dealer to pay something in between what they pay to buy it and what you would have to pay BMWFS without the dealer.
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      06-19-2018, 03:05 PM   #10
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Quote:
Originally Posted by IK6SPEED View Post
BMWFS will not negotiate price with a customer.

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.
There's maybe a less than 1% success rate, but it all depends on supply and demand, as well as, current market condition. Some people have had better luck finding a dealer that's willing to sell the car for close to residual value, but with the addition of CPO coverage.

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
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      06-19-2018, 03:10 PM   #11
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Quote:
Originally Posted by nars3000 View Post
Quote:
Originally Posted by IK6SPEED View Post
BMWFS will not negotiate price with a customer.

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.
There's maybe a less than 1% success rate, but it all depends on supply and demand, as well as, current market condition. Some people have had better luck finding a dealer that's willing to sell the car for close to residual value, but with the addition of CPO coverage.

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
There are also other fees that must be paid to eat into your $1,208 net.

And that price from Carmax is pretty unrealistic.
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      06-19-2018, 05:30 PM   #12
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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
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      06-19-2018, 05:34 PM   #13
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BTW CarMax is BS IMO. Went there few times and got low balled. Also their cars re the most expensive on the market and no discounts.
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      06-20-2018, 11:41 AM   #14
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Quote:
Originally Posted by M4 GTS View Post
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
That's a great idea! So they can't buy the car unless I don't want it from BMWFS right?
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      06-20-2018, 02:31 PM   #15
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Quote:
Originally Posted by Solarium View Post
That's a great idea! So they can't buy the car unless I don't want it from BMWFS right?
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
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      06-20-2018, 11:33 PM   #16
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Quote:
Originally Posted by M4 GTS View Post
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
A $9k difference doesn’t exist. The selling BMW Dealer has to take virtually every car they leased via BMWFS at whatever the current price BMWFS sets. They are given a very limited amount of “mulligans” that BMWFS then typically offers to other Dealers and if no takers, sends to auction.

The average profit a Dealership makes on a BMW CPO is usually around $2800, depending on the Dealership.
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      06-20-2018, 11:38 PM   #17
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Quote:
Originally Posted by M4 GTS View Post
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
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.
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      06-20-2018, 11:40 PM   #18
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Quote:
Originally Posted by Solarium View Post
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?
Im in the same boat. What is your residual? Mine is at 48k.... and i only have 13k mi.
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      06-21-2018, 12:19 AM   #19
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Quote:
Originally Posted by IK6SPEED View Post
Quote:
Originally Posted by nars3000 View Post
Do some research on KBB, Edmunds and Autotrader.

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...
BMWFS will not negotiate price with a customer.

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.
That's a negative ghost rider on having to pay tax if you sell to Carmax. If you sell the car to any authorized car dealer, you do not pay the tax, so in effect the buyout is before tax. I know this from first hand experience as I've sold a leased car to Carmax in the past.

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....
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      06-21-2018, 12:42 AM   #20
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Quote:
Originally Posted by trendy26 View Post
Quote:
Originally Posted by IK6SPEED View Post
Quote:
Originally Posted by nars3000 View Post
Do some research on KBB, Edmunds and Autotrader.

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...
BMWFS will not negotiate price with a customer.

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.
That's a negative ghost rider on having to pay tax if you sell to Carmax. If you sell the car to any authorized car dealer, you do not pay the tax, so in effect the buyout is before tax. I know this from first hand experience as I've sold a leased car to Carmax in the past.

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....
You missed the point.

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).
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      06-21-2018, 11:41 AM   #21
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Quote:
Originally Posted by IK6SPEED View Post
A $9k difference doesn’t exist. The selling BMW Dealer has to take virtually every car they leased via BMWFS at whatever the current price BMWFS sets. They are given a very limited amount of “mulligans” that BMWFS then typically offers to other Dealers and if no takers, sends to auction.

The average profit a Dealership makes on a BMW CPO is usually around $2800, depending on the Dealership.
You have no idea my friend. I've done this before.
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      06-21-2018, 11:43 AM   #22
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Quote:
Originally Posted by Alvinized52 View Post
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.
Yes super low mileage will effect the price for sure.
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