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2Addicts | BMW 2-Series forum BMW 2 Series (F22) Forum 2 Series Pricing, Ordering, European Delivery Who here bought out their Lease?

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      03-08-2018, 11:51 AM   #23
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Quote:
Originally Posted by rjroch View Post
For a 3 year, roughly 50%. They're lower because a few years ago this was a brand new car, and BMW didn't know what it would be worth in the used market. Residuals were in the low 60s at that time. To say they were optimistic would be putting it mildly.
You're being either a little naive or a little generous towards BMW - they knew damn well a 228 was not going to be worth 60% of its value in 3 years. It's a long complicated dynamic to explain fully, but sometimes it makes sense to stuff the channel, hit your numbers today and worry about tomorrow tomorrow, etc.

Imagine having a gun to your head with your annual bonus based on a sales target, you (or anyone in sales) has a tremendous incentive to do things that aren't necessarily in the best interest of shareholders but are in the best interest of your annual bonus.
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      03-08-2018, 05:15 PM   #24
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I ended up buying out my lease, residual was around 31k and change. This was a year ago, long story short, it was more or less in the ballpark of what other cars were going for (CPO cars were in the 35k range when I was looking). I figured I have had it for 3 years, and I know how ive been driving etc. Even if it is a bit of a loss, the fact that ive had the car its whole life was an extra peace of mind.

I would have just traded it in for another lease, but the residuals and overall deals last april were not so great, so this seemed like the best option in a pinch.
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      03-08-2018, 06:09 PM   #25
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Quote:
Originally Posted by BEM-S4 View Post
Quote:
Originally Posted by rjroch View Post
For a 3 year, roughly 50%. They're lower because a few years ago this was a brand new car, and BMW didn't know what it would be worth in the used market. Residuals were in the low 60s at that time. To say they were optimistic would be putting it mildly.
You're being either a little naive or a little generous towards BMW - they knew damn well a 228 was not going to be worth 60% of its value in 3 years. It's a long complicated dynamic to explain fully, but sometimes it makes sense to stuff the channel, hit your numbers today and worry about tomorrow tomorrow, etc.

Imagine having a gun to your head with your annual bonus based on a sales target, you (or anyone in sales) has a tremendous incentive to do things that aren't necessarily in the best interest of shareholders but are in the best interest of your annual bonus.
Yeah that makes sense. the residual on my 2015 m235i was 61% when I bought it 3 years ago. I just talked to my sales guy today and it's 53% on a 2018 m240. the difference in monthly payment will be like $250. dont know how I can justify paying that much more for a car that's basically the same as what I currently have. bmw may lose a lot of repeat customers like me due to this huge change in residuals.
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      03-26-2018, 09:44 AM   #26
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I'm getting offers for around 2k off of the residual. Is that about average? Any thoughts? Auction values seem to be around 25-26k.
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      03-26-2018, 07:31 PM   #27
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Quote:
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Originally Posted by BEM-S4 View Post
Quote:
Originally Posted by rjroch View Post
For a 3 year, roughly 50%. They're lower because a few years ago this was a brand new car, and BMW didn't know what it would be worth in the used market. Residuals were in the low 60s at that time. To say they were optimistic would be putting it mildly.
You're being either a little naive or a little generous towards BMW - they knew damn well a 228 was not going to be worth 60% of its value in 3 years. It's a long complicated dynamic to explain fully, but sometimes it makes sense to stuff the channel, hit your numbers today and worry about tomorrow tomorrow, etc.

Imagine having a gun to your head with your annual bonus based on a sales target, you (or anyone in sales) has a tremendous incentive to do things that aren't necessarily in the best interest of shareholders but are in the best interest of your annual bonus.
Yeah that makes sense. the residual on my 2015 m235i was 61% when I bought it 3 years ago. I just talked to my sales guy today and it's 53% on a 2018 m240. the difference in monthly payment will be like $250. dont know how I can justify paying that much more for a car that's basically the same as what I currently have. bmw may lose a lot of repeat customers like me due to this huge change in residuals.
I gotta think they have to offset the residuals with incentives. If not I'll be keeping my M235i. The buyout is only 29k and as you mentioned I can't see paying $200+ a month for basically the same car.
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      03-26-2018, 08:36 PM   #28
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The lease on my 2015 M235i Convertible ends in September and I was thinking of purchasing it as the Mrs. loves it and to replace it with a new one is going to result in a much higher payment.
I will reach out to my local dealers about 1-2 months before lease maturity to see what they can offer. Residual is a tad over $35k but current mileage is only 6500. It will be interesting to see what numbers I'm offered, but I won't hold my breath for much of a discount off the residual.
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      03-27-2018, 08:27 AM   #29
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Quote:
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Originally Posted by mblaucoupe135 View Post
Quote:
Originally Posted by BEM-S4 View Post
Quote:
Originally Posted by rjroch View Post
For a 3 year, roughly 50%. They're lower because a few years ago this was a brand new car, and BMW didn't know what it would be worth in the used market. Residuals were in the low 60s at that time. To say they were optimistic would be putting it mildly.
You're being either a little naive or a little generous towards BMW - they knew damn well a 228 was not going to be worth 60% of its value in 3 years. It's a long complicated dynamic to explain fully, but sometimes it makes sense to stuff the channel, hit your numbers today and worry about tomorrow tomorrow, etc.

Imagine having a gun to your head with your annual bonus based on a sales target, you (or anyone in sales) has a tremendous incentive to do things that aren't necessarily in the best interest of shareholders but are in the best interest of your annual bonus.
Yeah that makes sense. the residual on my 2015 m235i was 61% when I bought it 3 years ago. I just talked to my sales guy today and it's 53% on a 2018 m240. the difference in monthly payment will be like $250. dont know how I can justify paying that much more for a car that's basically the same as what I currently have. bmw may lose a lot of repeat customers like me due to this huge change in residuals.
I gotta think they have to offset the residuals with incentives. If not I'll be keeping my M235i. The buyout is only 29k and as you mentioned I can't see paying $200+ a month for basically the same car.
I hope you are right that bmw will try to offset the low residuals with a lot of incentives, especially as we get closer to the end of the model year.
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      05-20-2018, 09:47 PM   #30
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Quote:
Originally Posted by EEBreh View Post
I'm getting offers for around 2k off of the residual. Is that about average? Any thoughts? Auction values seem to be around 25-26k.
How did you go about getting those offers? Did you walk in to the dealership or just send email to the internet sales address?

My lease is up next month and I'm thinking about buying it out. Residual is 31k with have 33,000 miles on it.
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      09-10-2019, 12:30 PM   #31
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Originally Posted by rjroch View Post
This sounds familiar. Mine is a nearly fully loaded M235xi, auto, only option it's missing is Driver Assistance Plus. Lease is up in April, and CarMax offered 26k two weeks ago. My residual is $32,768.

I called a couple of BMW dealers, one basically said the residual is the price. The other one said they could sell it to me for $1,000 under residual, and I could skip my last two payments.

Neither of those options are appealing... emi calculator gst login ifsc code as I look at other cars, the 235 has the best mix of everything I want.
My lease is up in June. I know its really early but I deicded to see what CarMax would offer me...

Last edited by MAILIYAT; 09-11-2019 at 12:16 PM..
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      09-12-2019, 08:01 PM   #32
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BTW, for those of you posting now, the negotiation on lease buyout with BMW no longer applies. 120 days before lease end, a new item called the "Customer Purchase Promotion" will appear on your Payoff dcument. Currently, this incentive appears to be $500, but it can change.

Supposedly, they have ways to prevent buyout negotiation/resale via dealer, although I can see loopholes.

I recently bought out my lease and the deal was decent (with 52%ish residual), but I mainly liked the car and wanted the simplicity of continuity. However, they managed to ship the title to the wrong address /facepalm

Last edited by EstorilM240; 09-12-2019 at 10:35 PM..
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      09-16-2019, 08:15 PM   #33
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The residual on my 2016 340i is 68% But those leases deals are long gone. No way in hell am I buying it out when I return it at the end of this month!
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      09-20-2019, 01:57 PM   #34
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Originally Posted by Maynard View Post
Has anybody tried hardballing audacity temp mail origin the dealer with these real world numbers - If the car is only going to lose them money, surely they would rather put together a quick paperwork sale than take the hit on time and floor space? Or is this one of those budget shuffles, where BMWUSA is the one taking the hit on depreciation?
My lease is up in June. I know its really early but I deicded to see what CarMax would offer me...

Last edited by MAILIYAT; 09-21-2019 at 05:24 PM..
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      11-08-2019, 11:51 PM   #35
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I feel like BMW probably has some sort of insurance to cover the losses they incur with the high residual leases. Higher residual means the car leases better since monthly payments will be lower, but they know in 3 years upon lease return these cars won't hold that residual value (unless ofcourse the car comes back with extremely low mileage)..

There has to be something going on to protect them against the losses on these cars coming back, and I feel like it must be some sort of insurance.
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