02-21-2018, 07:12 PM | #2 |
Second Lieutenant
39
Rep 281
Posts |
My lease is up in June. I know its really early but I deicded to see what CarMax would offer me...
25k. For a 2015 M235 Auto, Premium, Cold weather, Mineral white, 26.5k miles. Current payoff is north of 30, residual is just above 29k. |
Appreciate
0
|
02-22-2018, 01:02 PM | #3 | |
Private First Class
21
Rep 134
Posts |
Quote:
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...but as I look at other cars, the 235 has the best mix of everything I want. |
|
Appreciate
1
HeyMac0826.00 |
02-22-2018, 01:22 PM | #4 | |
Second Lieutenant
39
Rep 281
Posts |
Quote:
Also gives everyone a data point as to why the residuals on new ones are so much worse then 3 years ago. BMWFS doesnt want to lose 5grand at lease turn in time. |
|
Appreciate
0
|
02-22-2018, 01:54 PM | #5 | |
Private First Class
21
Rep 134
Posts |
Quote:
Also, while I really do love the car, it did have a weird electrical issue last year. Some voltage regulating component in the charging system malfunctioned and several systems were getting 18+ volt spikes and going into protective shutdown. They had to replace several things in order to ultimately fix that. Nothing's happened since, but it is one more thing giving me pause. No matter what happens I am quite glad I leased, that much is certain. |
|
Appreciate
0
|
02-22-2018, 03:17 PM | #6 | |
Second Lieutenant
39
Rep 281
Posts |
Quote:
Its not an SUV, and has 2 doors. Thats pretty much a killer right now. |
|
Appreciate
0
|
02-23-2018, 07:16 AM | #7 |
Colonel
3848
Rep 2,873
Posts |
Has anybody tried hardballing 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?
|
Appreciate
0
|
02-23-2018, 08:15 AM | #8 | |
Major General
4516
Rep 8,942
Posts |
Quote:
They only get involved bc within 120 days they can buy the car from BMW for a negotiated price if they thing they can move it - not the pre determined residual. They can then sell to original lease holder or put on lot as either used or CPO. Entirely at their discretion. You turn your car in and no one buys it - BMW eats whatever the difference is between residual and what they get at auction.
__________________
2022 Macan S
2016 F31 328i xDrive Sport Wagon 2006 E46 330ci ZHP Convertible |
|
03-06-2018, 06:19 AM | #9 | |
Private
33
Rep 59
Posts |
Quote:
|
|
Appreciate
0
|
03-06-2018, 06:25 AM | #10 |
Private
33
Rep 59
Posts |
Kind of an off topic question but did the numbers actually work better with the lease? How much did you actually pay to drive your car for those 3 years? Could I assume something like $22k? Is that actually better than if you would have paid cash and just sold it to Carmax 3 years later?
|
Appreciate
0
|
03-06-2018, 08:14 AM | #11 | |
Major General
4516
Rep 8,942
Posts |
Quote:
__________________
2022 Macan S
2016 F31 328i xDrive Sport Wagon 2006 E46 330ci ZHP Convertible |
|
Appreciate
0
|
03-06-2018, 08:50 AM | #12 | |
Private First Class
21
Rep 134
Posts |
Quote:
Also, while the car has been mostly reliable I did have some weird electrical problems. The charging system developed an issue last year where it was spiking to ~18.5V, causing several systems to go into protective shutdown (airbags, ABS, power steering). Some part of the audio system was replaced as a side effect of this issue. After the alternator and some kind of battery cable were replaced it was fine for a while. It had the same issue again a couple of months later, at which time BMW replaced the battery. It hasn't happened again in around 6 months, but it certainly doesn't give me confidence regarding keeping the car. So I will certainly not keep the car without any kind of extended warranty. At this point I would not consider any price above $30k, and would only consider $30k if it included a warranty that covers all electrical systems including iDrive. As far as I know CPO doesn't do that, you can only get that level of coverage from the Platinum extended warranty. |
|
Appreciate
0
|
03-06-2018, 09:00 AM | #13 | |
Private
33
Rep 59
Posts |
Quote:
Lets say you would have bought the car for $48k and after 3 years Carmax would have paid you $26k for it. So over 3 years it would have cost you $22k right? These are just rough numbers since I have no clue what you could have bought the car for outright and I have no clue what the total cost of your lease was but I'm not getting how the lease is such a good deal even with the lousy resale value. |
|
Appreciate
0
|
03-06-2018, 09:02 AM | #14 |
Private
33
Rep 59
Posts |
Is it really that straightforward? For me, it's what costs me less over a time frame.
|
Appreciate
0
|
03-06-2018, 09:32 AM | #15 | |
Private First Class
21
Rep 134
Posts |
Quote:
When I bought the car, the M235xi was still very new and $48k would have been an out of this world good price. I negotiated the price from $53.5k down to $50k. The residual at the time was 61%, which now turns out to have been the height of fantasy. With BMW lease start/end fees factored in, my lease will have cost me roughly $22.5k. The only numbers I'm excluding from that total are dealer doc fees and yearly registration fees because they would be the same regardless of purchase/lease/finance choice. That $22.5k includes roughly $1,100 in sales tax. In your world of an up front cash purchase, I would have paid sales tax on the full price of the car, which would have been $3,250. Yes, when I trade it in I would not pay tax on the first $26k of the replacement car, but that only saves me $1,690. So had I bought the car outright, I would have paid $50,000+$3,250-$26,000-$1,690=$25,560 to drive the car for 3 years. I also could've (but shouldn't have) done a single pay lease, which would have also saved me the interest on the financed $17.2k depreciation amount, another roughly $800. Because I leased, and because I live in a state that only taxes the depreciated amount of a lease, I saved over $3,000. I can also walk away from this weird electrical issue. If something else even worse had happened I'd be all the more grateful not to be stuck with the car. |
|
Appreciate
0
|
03-06-2018, 09:36 AM | #16 | |
Private
33
Rep 59
Posts |
Quote:
|
|
Appreciate
0
|
03-06-2018, 10:02 AM | #17 | |
Major General
4516
Rep 8,942
Posts |
Quote:
Say your residual is way under market value, so you overpaid for your lease. If you buy the car cheaply now and keep it, you come out ok. However if you got 10% off from dealer and your residual is 50%, you really only got 5% off from dealer. The way to "win" is get a cheap lease with high residual, get dealer to play ball and buy out below residual and sell back to you.
__________________
2022 Macan S
2016 F31 328i xDrive Sport Wagon 2006 E46 330ci ZHP Convertible |
|
Appreciate
0
|
03-06-2018, 12:11 PM | #18 |
Private First Class
21
Rep 134
Posts |
|
Appreciate
0
|
03-06-2018, 12:17 PM | #19 | |
Major General
4516
Rep 8,942
Posts |
Quote:
Unfortunately it's all work for the dealer without a huge amount of $ involved, so a lot of it comes down to a simple how much they like you / want to help you out. And not unlike women, some things are OK or not depending on what time of month it is.
__________________
2022 Macan S
2016 F31 328i xDrive Sport Wagon 2006 E46 330ci ZHP Convertible |
|
Appreciate
0
|
03-08-2018, 09:50 AM | #21 |
Second Lieutenant
123
Rep 241
Posts |
Based on what I have read on other BMW forums, BMW usually sells it back to the dealer for a little bit more than the auction value - at least that is the case with the 3/4 series cars. Does anyone here have auction access and can pull up recent auctions of the F22 cars? Thanks
|
Appreciate
0
|
03-08-2018, 11:06 AM | #22 |
Private First Class
21
Rep 134
Posts |
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.
|
Appreciate
0
|
Post Reply |
Bookmarks |
|
|