# Negotiate lease buyout price before lease ends?



## jjrandorin (May 8, 2013)

Matthew424 said:


> Thanks, Greg. Can you confirm, are you (dealer) able to do a cross country lease buyout (even if CPO status is irrelevant), or do you need to physically see and inspect the car before paperwork can be completed?


Im not greg, or a dealer, but I remember reading here that they have to physically see the car in order to sell it to you, because they assume some liability as the selling dealer.

Maybe one of the CAs will confirm if thats correct.


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## MJBrown62 (Jun 15, 2016)

jjrandorin said:


> Im not greg, or a dealer, but I remember reading here that they have to physically see the car in order to sell it to you, because they assume some liability as the selling dealer.
> 
> Maybe one of the CAs will confirm if thats correct.


I can only speak for my store ...

Buying your own car off lease ("lease to retail") is essentially turning it in, and then buying it just liked it was on the Used/CPO lot.

So for us, we are required to conduct a safety inspection (Used) or a full CPO inspection. It requires the car to be here, of course.


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## Matthew424 (Aug 1, 2015)

MJBrown62 said:


> I can only speak for my store ...
> 
> Buying your own car off lease ("lease to retail") is essentially turning it in, and then buying it just liked it was on the Used/CPO lot.
> 
> So for us, we are required to conduct a safety inspection (Used) or a full CPO inspection. It requires the car to be here, of course.


got it, thanks for the clarification. there have been some previous threads where posters just boiled it down to a paperwork process, without requiring an inspection.

iit appears the only exception would be if you purchased the car directly from BMWFS??


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## jjrandorin (May 8, 2013)

Matthew424 said:


> got it, thanks for the clarification. there have been some previous threads where posters just boiled it down to a paperwork process, without requiring an inspection.
> 
> iit appears the only exception would be if you purchased the car directly from BMWFS??


I "think" if you buy from BMW FS (for the RV in your contract) it bypasses the dealer, so there shouldnt be an inspection needed in that case.


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## Matthew424 (Aug 1, 2015)

jjrandorin said:


> I "think" if you buy from BMW FS (for the RV in your contract) it bypasses the dealer, so there shouldnt be an inspection needed in that case.


Interesting. I'll be reaching out to a few dealers in a few months to hopefully buy my car at a discounted rv, so will keep everyone posted.... if no one budges, I'll just go through bmwfs.

Sent from my SM-G935P using Bimmerfest mobile app


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## Ibiza (Jun 15, 2007)

Matthew424 said:


> Interesting. I'll be reaching out to a few dealers in a few months to hopefully buy my car at a discounted rv, so will keep everyone posted.... if no one budges, I'll just go through bmwfs.
> 
> Sent from my SM-G935P using Bimmerfest mobile app


I don't see how a CA/ Center would give you a discount unless your offering something in return. This is worst financial senerio possible, leasing for 3 years then wanting to purchase the vehicle at lease end.


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## Matthew424 (Aug 1, 2015)

Ibiza said:


> I don't see how a CA/ Center would give you a discount unless your offering something in return. This is worst financial senerio possible, leasing for 3 years then wanting to purchase the vehicle at lease end.


If the dealer doesnt want to make a few $$ on the spread, then that's their choice. I'll go to bmwfs.

I know every mile on the car, have all the below dinan items installed, and am way below my mileage (30k v. 60k paid for).

I love driving the car everyday and every payment i make will gain a little more equity in the car.

Oh and btw...at what point is leasing/owning a BMW a great financial idea?? If you're so concerned with sound financial ideas get a Honda or Toyota.

Sent from my SM-G935P using Bimmerfest mobile app


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## woron (Dec 13, 2011)

Ibiza said:


> I don't see how a CA/ Center would give you a discount unless your offering something in return.


It was already established in this thread that CA getting some profit plus potential referrals. It is up to CA to decide if time spend doping paperwork and inspection(?) worth such profit. OTOH this CA will never see this client w/r to this car.


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## Ibiza (Jun 15, 2007)

Matthew424 said:


> If the dealer doesnt want to make a few $$ on the spread, then that's their choice. I'll go to bmwfs.
> 
> I know every mile on the car, have all the below dinan items installed, and am way below my mileage (30k v. 60k paid for).
> 
> ...


I'm using the mobile app, so I can't see all your Dinan mods, but that will void being CPO due to the engine piggy back tune. As @MJB mentioned above your vehicle requires an inspection and it will not pass due to the Dinan mods as the Center needs to certify as a CPO under BMW NA operating procedure. This is also stated in the BMW lease sections 18 & 19. So your only option will be paying the inflated BMWFS price which doesn't reflect market value, unless you remove the Dinan mods then re-install after CPO.

Personally, leasing 2 BMW's is a great financial decision for me as I'm a small business owner, as the X5M is my business vehicle and paid for by my company. I have a stage II flash tune/mods on my M4 vert, but I will just will re-install on the 2020 M4 lease (except transferring the ECU tune), mater of fact will bring the catless downpipes back to the tuner in Germany during ED.


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## MJBrown62 (Jun 15, 2016)

Matthew424 said:


> got it, thanks for the clarification. there have been some previous threads where posters just boiled it down to a paperwork process, without requiring an inspection.
> 
> iit appears the only exception would be if you purchased the car directly from BMWFS??


Again, at my store, it's required. It's the store's policy and or state requirements that drive it.

No inspection for purchase at RV from BMWFS. You pay RV, sales tax and usually some $15 or so processing fee.


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## Matthew424 (Aug 1, 2015)

MJBrown62 said:


> Again, at my store, it's required. It's the store's policy and or state requirements that drive it.
> 
> No inspection for purchase at RV from BMWFS. You pay RV, sales tax and usually some $15 or so processing fee.


Thank you.

Sent from my SM-G935P using Bimmerfest mobile app


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## Ibiza (Jun 15, 2007)

MJBrown62 said:


> Again, at my store, it's required. It's the store's policy and or state requirements that drive it.
> 
> No inspection for purchase at RV from BMWFS. You pay RV, sales tax and usually some $15 or so processing fee.


@MJB I assume that mods would have to be removed as per the BMWFS lease terms for the CPO inspection.


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## jjrandorin (May 8, 2013)

Ibiza said:


> @MJB I assume that mods would have to be removed as per the BMWFS lease terms for the CPO inspection.


That would be only if matthew wanted to CPO the car though, right? A buy off lease can be a CPO, or a "used car" and if its a "used car" the OP would not have to worry about the CPO status.

Could effect whether they could sell him an extended warranty (not sure on that just thinking out loud), but its not mandatory for the vehicle to be CPO if bought at the end of lease, instead of turned in.

It doesnt HAVE to be a horrible deal to buy the car instead of turning it in. That depends on the price negotiated to buy it. What IS normally not a good deal is buying it for the RV price on the contract. Buying it for less than that makes it a used car that one knows the miles on.

It will still likely cost more than a similar car bought off the lot used, but not as much as the RV on the car, so sort of win / win (or lose / lose, depending on how one looks at it).


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## Matthew424 (Aug 1, 2015)

jjrandorin said:


> That would be only if matthew wanted to CPO the car though, right? A buy off lease can be a CPO, or a "used car" and if its a "used car" the OP would not have to worry about the CPO status.
> 
> Could effect whether they could sell him an extended warranty (not sure on that just thinking out loud), but its not mandatory for the vehicle to be CPO if bought at the end of lease, instead of turned in.
> 
> ...


that's basically what i want to do. buy the car WITHOUT CPO status and i will pay repair bills out of pocket (or get 3rd party warranty). i leased the car with 60k miles (20k/yr) when i was driving 110miles/day for work. now i drive 18 miles/day and have a total of 30,500 miles. the residual is $23,895 (based on the 60k miles) so looks like a great deal if i can get it lower.


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## Ibiza (Jun 15, 2007)

Matthew424 said:


> that's basically what i want to do. buy the car WITHOUT CPO status and i will pay repair bills out of pocket (or get 3rd party warranty). i leased the car with 60k miles (20k/yr) when i was driving 110miles/day for work. now i drive 18 miles/day and have a total of 30,500 miles. the residual is $23,895 (based on the 60k miles) so looks like a great deal if i can get it lower.


I believe that the Center buyout will be much higher than $23,895 due to the lower mileage, as BMWFS would give you a small rebate check back for being way under mileage at lease turn in. Is the residual/buy out today $23,895 or when the lease is up?

Center buy out price has to be calculated on the current milleage, as if your over by 5,000 miles on a 36,000 mile lease BMWFS has to adjust down the center price to reflect the vehicle at 41,000 miles.

Your only option is to purchase the vehicle from BMWFS especially since you have pre-paid for a significant amount of excessive milleage. Unfortunately, it's not 1:1 lease end return from BMWFS for the pre-paid mileage. An inspection WILL be required to close out your BMWFS lease contract, unless you somehow get the Center to fraudulently enter a inspection without documenting the mods. You need to sign the federal odometer statement, which will notify BMWFS to adjust up the buy out price for the Center. Otherwise, BMWFS would lose money by mailing you a check for the unused mileage and selling vehicle to the dealer for the price based on 60,000 miles.


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## Matthew424 (Aug 1, 2015)

Ibiza said:


> I believe that the Center buyout will be much higher than $23,895 due to the lower mileage, as BMWFS would give you a small rebate check back for being way under mileage at lease turn in. Is the residual/buy out today $23,895 or when the lease is up?
> 
> Center buy out price has to be calculated on the current milleage, as if your over by 5,000 miles on a 36,000 mile lease BMWFS has to adjust down the center price to reflect the vehicle at 41,000 miles.
> 
> Your only option is to purchase the vehicle from BMWFS especially since you have pre-paid for a significant amount of excessive milleage. Unfortunately, it's not 1:1 lease end return from BMWFS for the pre-paid mileage. An inspection WILL be required to close out your BMWFS lease contract, unless you somehow get the Center to fraudulently enter a inspection without documenting the mods. You need to sign the federal odometer statement, which will notify BMWFS to adjust up the buy out price for the Center. Otherwise, BMWFS would lose money by mailing you a check for the unused mileage and selling vehicle to the dealer for the price based on 60,000 miles.


$23,895 is the agreed price at the end of the lease on the documentation.

So I get penalized for not using the miles that I contracted for, BUT if I purchase directly from BMWFS, then its the straight $23895???


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## Ibiza (Jun 15, 2007)

Matthew424 said:


> $23,895 is the agreed price at the end of the lease on the documentation.
> 
> So I get penalized for not using the miles that I contracted for, BUT if I purchase directly from BMWFS, then its the straight $23895???


Yes. That's why it's best to wait up until lease end to purchase extra miles.


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## Alpine300ZHP (Jan 31, 2007)

Matthew424 said:


> $23,895 is the agreed price at the end of the lease on the documentation.
> 
> So I get penalized for not using the miles that I contracted for, BUT if I purchase directly from BMWFS, then its the straight $23895???


Not exactly. How did you contract a 60k mile lease? I assume you did 45k and purchased the extra 15k at a discounted rate? If my assumption is correct, then you will be refunded the cost of the extra 15k miles that you purchased, but, as Ibiza mentioned, you are out of luck for paying for the 45k lease when you only needed 30k (BMW will give you a small credit for being under miles and I think it is something like $400.00). Also, if you end up buying the car directly from BMWFS for the stated residual, then you will likely not get the refund for the extra 15k miles. I am not sure how this part works because I never tried to buy my lease return.


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## Matthew424 (Aug 1, 2015)

Alpine300ZHP said:


> Not exactly. How did you contract a 60k mile lease? I assume you did 45k and purchased the extra 15k at a discounted rate? If my assumption is correct, then you will be refunded the cost of the extra 15k miles that you purchased, but, as Ibiza mentioned, you are out of luck for paying for the 45k lease when you only needed 30k (BMW will give you a small credit for being under miles and I think it is something like $400.00). Also, if you end up buying the car directly from BMWFS for the stated residual, then you will likely not get the refund for the extra 15k miles. I am not sure how this part works because I never tried to buy my lease return.


Nope...straight 60k mile lease. no separate purchase of miles. i'm not looking for a refund in miles, since the $23895 takes into consideration the car's value at 60k miles.


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## MJBrown62 (Jun 15, 2016)

Ibiza said:


> @MJB I assume that mods would have to be removed as per the BMWFS lease terms for the CPO inspection.


Not necessarily, as the lessee knows what they are buying. Same thing with body damage. You'd get charged on a turn in, and we'd have to fix it to CPO it, but if you are buying your own damage ....

And you can buy it as a Used Car to avoid any CPO requirements.

I think these are Dinan mods as well, based on previous posts, which doesn't affect BMW warranty.


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