12-06-2019, 12:53 AM | #1 |
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Lease buyout , ready to buy it questions
hi guys, i almost done with 3 year lease my 2018 BMW 540XI, now i got to learn that the bought out price would be the same as residual value which means i could not talk about price with dealer, right? how to get best offer, as i really like to buy it after i finished 3 years lease. i check number then i found the 36 month* month payment+ residual value > MSPR which means i get to pay more money. which looks like not very cool. that is why i got to know buy it from beginning or just lease it. any suggestions? thanks guys
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12-06-2019, 09:58 AM | #2 |
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I would get multiple appraisals on the car from carmax/vroom/carvana to see what your trade in would be like first. Based on that you can determine what the car is worth (add some market data etc.) and if your buyout is within couple thousand you should be good. There is no point of buying out a vehicle if the residual is 40k and you can barely get 35k for a trade in.
There are some 2019's out there where you can lease at great discounts and not worry about warranty/wear+tear expenses which will be coming up with your current car. Good luck! |
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12-06-2019, 11:14 AM | #3 |
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Looks like you're not in US. Call the finance company (typically BMWFS in US market) and get the current payoff and payoff at termination. Make sure the payoff includes any lease termination fees, if applicable.
It's not common that a finance company will negotiate the payoff or end of lease purchase price. You can try, but most will not play ball. The only factor I know of where you can possibly get a credit is if you're under miles. Separately, my recommendation to you is if you're considering a lease end purchase, seriously consider an extended warranty. Repair costs for modern cars is commonly painful to digest. Good luck.
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12-06-2019, 01:28 PM | #4 |
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How can you be done on a three year lease on a 2018? That's only 2 years old.
I read somewhere (probably this forum) that BMW FS (at least in the USA) will no longer negotiate the buyout. FTFY.
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12-06-2019, 02:44 PM | #5 | |
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12-09-2019, 12:35 PM | #6 |
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12-10-2019, 09:52 PM | #7 | |
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12-10-2019, 09:54 PM | #8 | |
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12-11-2019, 01:17 AM | #9 | |
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ANY Dealer will do nothing for you to reduce the price from RV on your lease contract. It used to happen in the old days until about 1-2 years ago. If you buy your car it will be at residual value. If Dealer sells you at a lower price they get fined. They can sell your car to some other buyer after CPO etc. for a much lower price than on your lease contract Residual Value (RV) number. It is stupid, but this is how it is. BMW is stopping people from buying their lease out, even people with same last name or same household may get into trouble unless there is sufficient proof of no relation to original owner of the car. Dealerships have become very careful as some of them got fined by BMWFS for breaking this rule. My advice: Either lease another 2019/2020 since incentives are good Search for a CPO and pay a decent (fair market) price for a car with some warranty on it. If you don't care so much about paying ~$10K more for your own car because of sentimental value, then your decision should be clear. When I do the math, it turns out buying my own lease would make my price even higher than MSRP I would have paid upfront for the new car, so financially it makes no sense. FINAL Advice: Call BMWFS, ask them if they can provide you without buyout price, it 'may' be lower, worth a shot! See similar post in 4 series forum where someone with low miles got quote of $4000 below the RV (granted this is outgoing old design 4 series)
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12-11-2019, 08:37 AM | #10 | ||||
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You never buy a leased vehicle. Add up your 3 years of lease payments plus buyout, your probably close to $2 to 3k over sticker cost. With all incentives, buy a new car this time. |
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12-17-2019, 08:57 AM | #11 | |
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On the other hand, no one buys a BMW and pays sticker. So I agree that leasing and then purchasing for the residual is not a sensible plan unless he was able to negotiate an excellent starting price on the lease deal. |
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12-17-2019, 01:35 PM | #12 |
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Many reasons exist for buying out a lease. Maybe the owner wasn't sure he/she would still like the car, when they first leased it. Some people like to have an option to simply return it at the end of the lease, if it doesn't live up to expectations for whatever reason, and the extra money spent vs buy is justifiable to them. Maybe the owner's priorities changed and they no longer can/want to lease/buy another car - they would rather buy out their lease and keep the car that served their needs perfectly for the foreseeable future. And then there is an emotional attachment.
I intend to buy out my Volvo after the lease is up at the end of 2020, because its the easiest way for me to provide my son with transportation in college. I don't want to spend more money than I have to on another vehicle. Plus I would rather him drive the car I know was treated well by the previous owner (me). Of course if I didn't get a nice lease with low monthly payment AND a pretty reasonable residual, it would not have made sense. Some incentivized leases are very close to a straight purchase in terms of total $$ outlay.
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12-18-2019, 02:20 PM | #13 |
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My father-in-law did. He is embarrassed to negotiate. He did not listen to me when I recommended my sales guy, got p.o.'d at the sales guy that he got, went to another store and bought it there, full price, plus all of the stupid add-ons. They took him to the cleaners and then some.
He knows he got screwed and taken advantage of, and therefore hated the car (it was his wife's car) which I found amusing because he drove it all the time. I insisted that he let me negotiate for him on his next car, which was a disaster because he's old, insane, and pissed-off at the world and didn't tell me what he wanted and is now mad at me. After we got him the new Cadillac (that replaced the old Cadillac that was totalled) he asks me "where's the 'e' button?" "The what?" "The 'e' button, on the console, it's not there on the new car." "Did you ever use it?" "No." "Then who cares?" "The old car had an 'e' button, this one doesn't. I got ripped off." Sorry.
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02-14-2020, 03:41 PM | #14 |
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Lease buyout at a negotiated price is very much a possibility. Actually did it 3 months ago on my Acura MDX and was able to save a couple thousand from the initial residual. Keep in mind every dealer and or bank is different. Some will and some won't. Make sure to have done your homework. Retail values, trade in values in your area, comps if you will.
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