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BMW 5-Series (G30) Forum 2017+ BMW 5 Series (G30) General Discussions Buying out a lease

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      03-02-2020, 07:12 PM   #1
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Buying out a lease

Anyone ever done it ? Wife’s car is a 2017 530ix luxline loaded.

How negotiable are they on the buy out of these leased vehicles ?

She loves it and the mileage is insanely low.
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      03-02-2020, 09:27 PM   #2
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I strongly suggest a search of the two G30 forums - there are several recent discussions. You'll be surprised how much of a discount you may get off the buyout price....
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      03-03-2020, 05:13 AM   #3
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Quote:
Originally Posted by Pierre Louis View Post
I strongly suggest a search of the two G30 forums - there are several recent discussions. You'll be surprised how much of a discount you may get off the buyout price....
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Originally Posted by Pierre Louis View Post
I strongly suggest a search of the two G30 forums - there are several recent discussions. You'll be surprised how much of a discount you may get off the buyout price....
From my experience, they don't discount. If you add up your lease payments plus buyout, your probably 7 to 10 thousand over your negotiated price.

Better off ordering a new bmw and buying from start.
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      03-03-2020, 06:02 AM   #4
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Quote:
Originally Posted by steve090619 View Post
From my experience, they don't discount. If you add up your lease payments plus buyout, your probably 7 to 10 thousand over your negotiated price.

Better off ordering a new bmw and buying from start.
My recent experience is much different. I ended up paying 3-series money for my brand new 5-er with the initial discount, 4% APR equivalent lease rate, and huge discount of the buy-back price. I would rather have bought it outright but didn't have the cash flow. With inflation and savings off of diesel instead of premium, like a bandit. Very satisfied.
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      03-04-2020, 07:33 AM   #5
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Quote:
Originally Posted by jsf721 View Post
Anyone ever done it ? Wife’s car is a 2017 530ix luxline loaded.

How negotiable are they on the buy out of these leased vehicles ?

She loves it and the mileage is insanely low.
BMWFS lease buyout is typically the residual value plus any monthly payments left.
The real world value of a leased BMW at the end of lease is always much lower than the residual.

I returned my 2016 535 xDrive last month and currently it is on sale as CPO for $29K. The residual was $36.6, if I am not mistaken.
It used to be possible to work with a BMW dealer to have them buy your lease return out from BMWFS, certify it and sell it back to you for less than the residual amount but currently BMWFS does not allow such schema.
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      03-07-2020, 02:46 PM   #6
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Not going to get into a buy vs. lease debate but if you like your car and have no problems with it, buy it out - don't think about the interest you paid vs. buying it out from the start.
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      03-07-2020, 03:12 PM   #7
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There's a flat discount BMW will offer you.

It's the same at every dealership, non-negotiable.

They can't sell it for above or below that number.
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      03-07-2020, 04:01 PM   #8
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Originally Posted by TheBingoBalls View Post
Not going to get into a buy vs. lease debate but if you like your car and have no problems with it, buy it out - don't think about the interest you paid vs. buying it out from the start.
I don't agree. If the buyout is well above street value, and there are CPOs available with the same or similar packages, why pay the inflated price when you can get someone else's nice car.
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      03-07-2020, 04:17 PM   #9
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Quote:
Originally Posted by SteveinArizona View Post
I don't agree. If the buyout is well above street value, and there are CPOs available with the same or similar packages, why pay the inflated price when you can get someone else's nice car.
I agree with you, but I understand for some they value “knowing the treatment and etc history” of the car.
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      03-07-2020, 05:27 PM   #10
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Originally Posted by LogicalApex View Post
I agree with you, but I understand for some they value “knowing the treatment and etc history” of the car.
True. That is why I said CPO. But there is always the issue of knowing how you took care of the car and how you drove it vs. a random stranger even if BMW is CPOing the car.

If the differential is small, go for what you know; if it is large, I would go for a CPO. But keep in mind that I have ordered and bought a new car; so what do I know about buying used?
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      03-07-2020, 10:43 PM   #11
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Quote:
Originally Posted by SteveinArizona View Post
Quote:
Originally Posted by TheBingoBalls View Post
Not going to get into a buy vs. lease debate but if you like your car and have no problems with it, buy it out - don't think about the interest you paid vs. buying it out from the start.
I don't agree. If the buyout is well above street value, and there are CPOs available with the same or similar packages, why pay the inflated price when you can get someone else's nice car.
Because you don't know the history of that used car - any additional money that you spent during the lease is the price you pay for "testing" out the car. Personally, if I'm leasing and I'm looking to buy out the car, I'm going to buy out the car I drove and know the history of. Again, most of the discussion regarding buying on this forum always comes down to price - find the car that's the cheapest which is fine but if that's the case, never buy new.

Your thought is logical but in this situation, the fact that OP leased the vehicle that they want to buyout has some value.
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      03-07-2020, 11:48 PM   #12
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No negotiation on residual. Find out what your pay off is and see if that's how much the car is going in the used market. You might also be able to see if the dealer will buy it from the bank and resell it to you.
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      03-09-2020, 06:02 AM   #13
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Quote:
Originally Posted by SBM1206 View Post
BMWFS lease buyout is typically the residual value plus any monthly payments left.
The real world value of a leased BMW at the end of lease is always much lower than the residual.

I returned my 2016 535 xDrive last month and currently it is on sale as CPO for $29K. The residual was $36.6, if I am not mistaken.
It used to be possible to work with a BMW dealer to have them buy your lease return out from BMWFS, certify it and sell it back to you for less than the residual amount but currently BMWFS does not allow such schema.
I have the same scenario. My buyout amount is around R650k next year Aug, but according to BMW, the retail value by then will be just below R500k.

I have also entertained the thought of buying my car when the lease end, but will definitely not pay over trade in value. If they can't offer it to me at that price, I will wait when it is on the floor and then see what it is going for.
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      03-09-2020, 07:09 AM   #14
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Quote:
Originally Posted by SteveinArizona View Post
Quote:
Originally Posted by LogicalApex View Post
I agree with you, but I understand for some they value “knowing the treatment and etc history” of the car.
True. That is why I said CPO. But there is always the issue of knowing how you took care of the car and how you drove it vs. a random stranger even if BMW is CPOing the car.

If the differential is small, go for what you know; if it is large, I would go for a CPO. But keep in mind that I have ordered and bought a new car; so what do I know about buying used?
CPO doesn't guarantee better treatment or maintenance. Still an used car where the burden of due diligence is on the buyer.
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      03-09-2020, 07:10 AM   #15
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Quote:
Originally Posted by TheBingoBalls View Post
Quote:
Originally Posted by SteveinArizona View Post
Quote:
Originally Posted by TheBingoBalls View Post
Not going to get into a buy vs. lease debate but if you like your car and have no problems with it, buy it out - don't think about the interest you paid vs. buying it out from the start.
I don't agree. If the buyout is well above street value, and there are CPOs available with the same or similar packages, why pay the inflated price when you can get someone else's nice car.
Because you don't know the history of that used car - any additional money that you spent during the lease is the price you pay for "testing" out the car. Personally, if I'm leasing and I'm looking to buy out the car, I'm going to buy out the car I drove and know the history of. Again, most of the discussion regarding buying on this forum always comes down to price - find the car that's the cheapest which is fine but if that's the case, never buy new.

Your thought is logical but in this situation, the fact that OP leased the vehicle that they want to buyout has some value.
Exactly OP owns the car from new and therefore is a known commodity. Can't put a price on that.
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      03-10-2020, 07:27 AM   #16
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Originally Posted by ZulaM5 View Post
There's a flat discount BMW will offer you.

It's the same at every dealership, non-negotiable.

They can't sell it for above or below that number.
Can you explain this? My understanding is that there is no discount when buying out your lease. It's residual, and that's it. It's from BMWFS, and the dealerships having nothing to do with it.

If I'm wrong, then I want to know what's right!
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      03-10-2020, 07:35 AM   #17
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Quote:
Originally Posted by LuvMyE92 View Post
Can you explain this? My understanding is that there is no discount when buying out your lease. It's residual, and that's it. It's from BMWFS, and the dealerships having nothing to do with it.

If I'm wrong, then I want to know what's right!
You’re right (but there is some slight wiggle room) and some of the sales associates in the past have remarked that the dealer is on the hook for the price difference between what they sold it for you and the price that bmwfs wants for it. There is a slight discount but there’s still a definite gulf between real market selling price vs what bmwfs wants for it. If you really want to keep your car (not sure why as G30 used values are HORRIBLE, THANKS SUVs!), call BMWFS directly and they can sometimes negotiate a small discount... your dealer has no say in this.

This is a recent change of about 2 years ago so some people aren’t aware of this.
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      03-10-2020, 07:03 PM   #18
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Quote:
Originally Posted by LuvMyE92 View Post
Can you explain this? My understanding is that there is no discount when buying out your lease. It's residual, and that's it. It's from BMWFS, and the dealerships having nothing to do with it.

If I'm wrong, then I want to know what's right!
The discount is different per model and provided by BMW FS when they pull your buyout/residual offer if you have 120 or less days remaining.

Quote:
Originally Posted by magbarn View Post
You’re right (but there is some slight wiggle room) and some of the sales associates in the past have remarked that the dealer is on the hook for the price difference between what they sold it for you and the price that bmwfs wants for it.
This is wrong. There isn't any 'wiggle room'. The process changed to what I noted above.
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      03-10-2020, 08:05 PM   #19
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I've read anywhere from $6700 to $9000 off the "residual" for buyout purposes, some where the dealer can offer even more perks than BMWFS. Perhaps year and model dependent, but hardly "wiggle room"
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      03-13-2020, 06:43 PM   #20
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When I called about buying out my lease that expires in June, I got offered about 8,000 off.
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      03-15-2020, 12:43 AM   #21
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I heard they changed this. Obviously most of the leases are worth much less than the residual amount at the end of the lease. I heard BMW used to negotiate based on the fair market value of the car regardless if the residual was higher.

I heard now they only negotiate off the residual even if the fair market value is much lower. In other words, in most cases it doesn't pay to buy the car out because you will be paying more than it's worth.
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      03-15-2020, 07:05 AM   #22
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Quote:
Originally Posted by mjr24 View Post
I heard they changed this. Obviously most of the leases are worth much less than the residual amount at the end of the lease. I heard BMW used to negotiate based on the fair market value of the car regardless if the residual was higher.

I heard now they only negotiate off the residual even if the fair market value is much lower. In other words, in most cases it doesn't pay to buy the car out because you will be paying more than it's worth.
From what I've experienced and recent posts, this appears to be definitely not true.

The choice is to buy for cash, take a loan out, or lease. If the actual interest built into the lease is the same as buying the car with a loan, there is little to lose leasing it since the residual as a calculation conforms to the initial price of the car. If the buyback at the end is lowered by BMWFS, then all the better.
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