[Panzer1]

Originally Posted by BEM-S4

BMW will not negotiate with you at all period full stop. Your dealer can buy the car from them at a discount and may or may not be able to resell to you, depends on the dealer as it's a little bit of a shady grey area as far as BMW is concerned. It's pretty uncommon but does happen ocassionally.

Here is my recent experience, for what it's worth. My 2014 535i xDrive is coming to end of term February, 2017. I stopped into my dealer this past December to meet with their lease specialist to discuss end of term issues. Without my soliciting an offer, they offered me the following. Waive the last three lease payments and lower the buyout by $2,088. They stressed the offer was good for 10 days. I could take it, or wait and come back sometime before end of term and ask for an updated offer. It might or might not be better, could be worse, or maybe no offer at all. They also said if I waited until end of the term, the buyout would be as stated in the contract, NO negotiating with BMWFS. The offer was hand written on a piece of notebook paper, no official BMWFS paperwork, so my assumption was that it was coming from the dealer, not BMW.

[BEM-S4]

Originally Posted by Panzer1

Here is my recent experience, for what it's worth. My 2014 535i xDrive is coming to end of term February, 2017. I stopped into my dealer this past December to meet with their lease specialist to discuss end of term issues. Without my soliciting an offer, they offered me the following. Waive the last three lease payments and lower the buyout by $2,088. They stressed the offer was good for 10 days. I could take it, or wait and come back sometime before end of term and ask for an updated offer. It might or might not be better, could be worse, or maybe no offer at all. They also said if I waited until end of the term, the buyout would be as stated in the contract, NO negotiating with BMWFS. The offer was hand written on a piece of notebook paper, no official BMWFS paperwork, so my assumption was that it was coming from the dealer, not BMW.

Right, because you are within 120 days the dealer can buy it from BMW and sell it to you and turn a small profit. Also get credit for a sale in January.

[hhuffman]

Originally Posted by Panzer1

Here is my recent experience, for what it's worth. Waive the last three lease payments and lower the buyout by $2,088.

That sounds like a good deal. My lease is $600/ month, so with $1,800 remaining in my pocket it's essentially $4,000 off of my $26,000 buyout, which is a no brainer for me assuming I can keep the car in good shape.

Please keep us posted if the offer gets and better or worse.

[Lucky13]

I'm in the same situation regarding buying my 2014 M235 with a residual of $30,400 on a $48,500 list. Lease runs out early May and KBB and other sources says current retail is $32-33K (I only have 9,400 miles). The way I look at it is I already took the big depreciation hit and it starts dropping a lot less the next few years. I'm in a unique situation with such low miles it kind of crazy not to buy it. One thing you might do with the dealer is see if they will buy it from BMW and certify it for 6 years/100k and sell it back to you for the residual price. My dealer years ago said they would do it for $1,000 but I didn't negotiate it so if they can buy it for a couple less and immediately turn off it around for a sale its worth a try. Its not like BMW had a good year ( sales were down 9.5%) so maybe it would work.

[BEM-S4]

Originally Posted by Lucky13

I'm in the same situation regarding buying my 2014 M235 with a residual of $30,400 on a $48,500 list. Lease runs out early May and KBB and other sources says current retail is $32-33K (I only have 9,400 miles). The way I look at it is I already took the big depreciation hit and it starts dropping a lot less the next few years. I'm in a unique situation with such low miles it kind of crazy not to buy it. One thing you might do with the dealer is see if they will buy it from BMW and certify it for 6 years/100k and sell it back to you for the residual price. My dealer years ago said they would do it for $1,000 but I didn't negotiate it so if they can buy it for a couple less and immediately turn off it around for a sale its worth a try. Its not like BMW had a good year ( sales were down 9.5%) so maybe it would work.

They don't need to buy and resell to certify. You just need to pay them to do it. Fee depends on if you want 75 vs 100 miles, maint included or not, etc.

[Lucky13]

Originally Posted by BEM-S4

They don't need to buy and resell to certify. You just need to pay them to do it. Fee depends on if you want 75 vs 100 miles, maint included or not, etc.

Yes, my point was to get them to certify it for "free" by having them buy the car at wholesale from BMW and turning it around and selling it back to you. You get it for the same residual with with 6/100 warranty and the dealer gets in on the deal and makes the difference between wholesale or BMW financial cost to dealer and the residual. If you just buy the car the dealer gets nothing so this way its a win, win. I don't need the 6/100 but someone who puts on normal miles its a nice deal. Like I said, my dealer already offered to certify it for $1,000 when I bought it but I didn't care then and wasn't sure I wanted to even buy the car. The dealer isn't going to just certify it for free now with nothing in it for them and I don't need the extra warranty but the OP might and others might.

[BEM-S4]

Originally Posted by Lucky13

Yes, my point was to get them to certify it for "free" by having them buy the car at wholesale from BMW and turning it around and selling it back to you. You get it for the same residual with with 6/100 warranty and the dealer gets in on the deal and makes the difference between wholesale or BMW financial cost to dealer and the residual. If you just buy the car the dealer gets nothing so this way its a win, win. I don't need the 6/100 but someone who puts on normal miles its a nice deal. Like I said, my dealer already offered to certify it for $1,000 when I bought it but I didn't care then and wasn't sure I wanted to even buy the car. The dealer isn't going to just certify it for free now with nothing in it for them and I don't need the extra warranty but the OP might and others might.

Yep all that is true. Sometimes certain dealers are a little weird about the buying and selling right back to you it's a bit of a grey area since you're basically arbitraging BMW out of $. Not in your case probably w the low miles but for most folks. In your case you've technically paid for depreciation you didn't use, ignoring for a moment that BMW leases are typically subsidized. Conversely if you go way over your miles there has to be a penalty on the back end since you use more of the car value than originally planned.

[Pparana]

It's not a grey area, cars are worth what there worth. They may feel special to us but these are just commodities, and as such price fluxate. I will lease or buy depening on residuals and money factor. Why eat the deprecation/tax if you don't have too. If you do not buy the car they have to resell anyway and that will be at market price regards of buyout.

[BEM-S4]

Originally Posted by Pparana

It's not a grey area, cars are worth what there worth. They may feel special to us but these are just commodities, and as such price fluxate. I will lease or buy depening on residuals and money factor. Why eat the deprecation/tax if you don't have too. If you do not buy the car they have to resell anyway and that will be at market price regards of buyout.

The "grey area" I referred to is dealer buying at wholesale then selling it back to you, basically giving BMW a big FU in the process. The car is worth what it's worth. The practice I described is ok with some dealers, not with others, which is why it's a "grey area."

[Pparana]

Originally Posted by BEM-S4

The "grey area" I referred to is dealer buying at wholesale then selling it back to you, basically giving BMW a big FU in the process. The car is worth what it's worth. The practice I described is ok with some dealers, not with others, which is why it's a "grey area."

Dealers participate in a volutary program called the "Full Circle Purchase Program". Under that program, the dealer can pick what level it wants to be at. BMW gives a certain number of exempt cars based on a percentage of projected lease returns for that year, these can be used to return cars they otherwise have to buy.

In terms of "obligatory" and "nonobligatory" purchases, a few rules apply:
1. You do not have to buy cars that originated at another dealership
2. You do have to buy a car that originated at your dealership or a satellite location of your dealer, unless:
a) the client has previously committed to refinance with BMWFS
b) there is an insufficient Manheim Market Report sample for that given model

If the dealer passes on a car and decides not to buy it, it gets picked up by BMWFS and sent to one of the auctions that they work with. In the northeast, cars are all transported to Adesa.

The cars are sold in special BMWFS sales at the auction where BMW dealers and other dealers go to buy cars. Usually the cars at these sales are not the best cars, though, since the dealers usually hold on to the good ones and send the bad ones back.

So either way it's not really a grey area, they have to buy it back anyway, more or less.

[BEM-S4]

Originally Posted by Pparana

Dealers participate in a volutary program called the "Full Circle Purchase Program". Under that program, the dealer can pick what level it wants to be at. BMW gives a certain number of exempt cars based on a percentage of projected lease returns for that year, these can be used to return cars they otherwise have to buy.

In terms of "obligatory" and "nonobligatory" purchases, a few rules apply:
1. You do not have to buy cars that originated at another dealership
2. You do have to buy a car that originated at your dealership or a satellite location of your dealer, unless:
a) the client has previously committed to refinance with BMWFS
b) there is an insufficient Manheim Market Report sample for that given model

If the dealer passes on a car and decides not to buy it, it gets picked up by BMWFS and sent to one of the auctions that they work with. In the northeast, cars are all transported to Adesa.

The cars are sold in special BMWFS sales at the auction where BMW dealers and other dealers go to buy cars. Usually the cars at these sales are not the best cars, though, since the dealers usually hold on to the good ones and send the bad ones back.

So either way it's not really a grey area, they have to buy it back anyway, more or less.

You're missing my point entirely but it doesn't matter I'm not going to argue with you. Doesn't make a bit of difference to me.

[Pparana]

Originally Posted by BEM-S4

You're missing my point entirely but it doesn't matter I'm not going to argue with you. Doesn't make a bit of difference to me.

No I'm just saying if he returns the car to the dealer he leased from chances are they will buy it wholesale anyway. If residual is x dollars and it's worth less, you can simply tell the dealer I would buy it at y price.

Since the dealer is obligated to buy the car back in most circumstances, and has a customer who wants the car then they may sell it to you if they wish. They may also tell you no, and feel hey can get more for it in the lot, ext.

This only applys to the dealer he bought the car from, otherwise the dealer will just turn the car in bmwfs for disposition since they are under no obligation to purchase.

[rich8566]

Originally Posted by rich8566

So your buyout is 57.7% of MSRP based on the numbers you provided. The buyout on my '14 235i is 60% which is $30,840 with an MSRP of $51,400. The buyout on my wife's '14 Ford Escape Titanium is 57%.

On a related note, we bought out my wife's loaded 2015 Escape. We were about 10,000 low on the contract mileage, plus resale activity indicates that the market sales price for a comparable vehicle is several thousand dollars higher than the buyout price at lease end.

[rich8566]

Originally Posted by msej449

Is there an offer on the table for ordering a new replacement?

About 6 months before my BMW Finance end my local dealer approached me with an offer to 'buy out' the remaining three months if I ordered new. I also got a good deal on the new order (my current M235i Convertible). My guess was that with the advent of the M240i, dealers were on an incentive to sell the remaining M235i builds, plus I may have been lucky in terms of the dealer being under target etc. I've no idea how they handled the BMW finance settlement internally, but it looked like they could juggle the numbers.

Realistically, they may have been on a zero-sum game of reducing the new car discount and positing it as a financing buy-back, but it didn't look like this. I suppose from their point of view, if they could sell my 330d Touring Drive quickly then the new owner could take the hit, they would get whatever the M235i incentive was, hit their numbers, and everyone is happy.

The worst case for BMW is that you hand the car back; it sits on the forecourt indefinitely; and you go to another brand. Dealers always want to retain customers - I suspect one of the sales metrics on which they're reviewed is how many customers they 'lose'. So there should be something on the table from them to encourage you to buy a new replacement.

So worth seeing what they can do for you on a new M240i ..... If your local dealer isn't interested, ask around a few others.

Your deal may have been part of BMW's "pull ahead" program. I got his offer a couple of months ago. They offered to get me out of my lease several months early if I got a new BMW. I did not take the bait.

[rich8566]

Originally Posted by Panzer1

Here is my recent experience, for what it's worth. My 2014 535i xDrive is coming to end of term February, 2017. I stopped into my dealer this past December to meet with their lease specialist to discuss end of term issues. Without my soliciting an offer, they offered me the following. Waive the last three lease payments and lower the buyout by $2,088. They stressed the offer was good for 10 days. I could take it, or wait and come back sometime before end of term and ask for an updated offer. It might or might not be better, could be worse, or maybe no offer at all. They also said if I waited until end of the term, the buyout would be as stated in the contract, NO negotiating with BMWFS. The offer was hand written on a piece of notebook paper, no official BMWFS paperwork, so my assumption was that it was coming from the dealer, not BMW.

This was undoubtedly part of BMW's "pull ahead" program. It also seems like they combined it with their own internal shenanigans in terms of the buyout price that is lower than the amount stated in the lease agreement.

[rich8566]

Originally Posted by Lucky13

I'm in the same situation regarding buying my 2014 M235 with a residual of $30,400 on a $48,500 list. Lease runs out early May and KBB and other sources says current retail is $32-33K (I only have 9,400 miles). The way I look at it is I already took the big depreciation hit and it starts dropping a lot less the next few years. I'm in a unique situation with such low miles it kind of crazy not to buy it. One thing you might do with the dealer is see if they will buy it from BMW and certify it for 6 years/100k and sell it back to you for the residual price. My dealer years ago said they would do it for $1,000 but I didn't negotiate it so if they can buy it for a couple less and immediately turn off it around for a sale its worth a try. Its not like BMW had a good year ( sales were down 9.5%) so maybe it would work.

Seems like a no brainer to do the buyout.

[rich8566]

Originally Posted by rich8566

I'm close to lease end. I'm thinking of buying out my '14 M235i. I'll be close to the mileage limit under my lease agreement. I live in NY.

What tips, tricks and advice can you share which will enable me to get the best deal in terms of the buyout price?

Update - albeit a bit late - I did NOT buyout my 235i. Instead I ordered a '17 M2 and I took delivery on April 8. I've already put nearly 5,000 miles on the M2.

[snaketh]

Originally Posted by rich8566

Update - albeit a bit late - I did NOT buyout my 235i. Instead I ordered a '17 M2 and I took delivery on April 8. I've already put nearly 5,000 miles on the M2.

Nice, same color? Please could you explain why you didn't buyout? Was it not financially viable?

[rich8566]

Originally Posted by snaketh

Nice, same color? Please could you explain why you didn't buyout? Was it not financially viable?

I was set to do the buyout. I love the 235i. While the buyout was a tad over market price, I was still ok with it. But then, and I know this will sound stupid, one day my son said Dad, why don't you just buy the M2? So I did.

[morphomeman]

Would you please have your son call my son.

[Kayevman]

Originally Posted by rich8566

I'm close to lease end. I'm thinking of buying out my '14 M235i. I'll be close to the mileage limit under my lease agreement. I live in NY.

What tips, tricks and advice can you share which will enable me to get the best deal in terms of the buyout price?

I live in Texas where we pay tax on the full purchase price for a lease. If the dealer buys the car at lease end, and you then lease a new BMW, I think you get a credit for that portion (the buy back price) of the taxes that were paid. Is that right?