# Lease Buyout w/ Extended Warranty Help



## OCBimmer949 (Jan 23, 2014)

Hello,

I own a 2014 BMW x3 xDrive 28i, pretty much fully loaded. My lease ends in January 2017, but I've put less than 12,000 miles on the car. The residual is $29,169 at the lease end.

I want to buy it out (I have financing arranged), but I want to know how I can go about getting a good deal on an extended warranty and, potentially, a maintenance package. Should I even be concerned with either given that the mileage is so low? Also, if my mileage is lower, could I qualify for a lower price on the extended warranty or maintenance package?

Also, if you think me buying out the vehicle is a dumb idea (or if there's a way to negotiate the price down) I'm all ears! This is my first lease-end!

Thanks!


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## ard (Jul 1, 2009)

1. This has been discussed. Extensively. Many many many times..... learn how to search and read- not becuase we are lazy, but because you will get FAR more information and context by reading 50-100 posts about this, than the 2,3,5 replies to your one message.


2,.BMWFS (the owner of the car) has agreed to sell it to you for $29k. If yoiu dont want it, they will sell it to your dealer (OR ANY BMW DEALER) for a price that they will privately negotiate with the dealer. Do note that if YOU will be the end buyer that negotiated price will be higher than if the dealer is buying for ultimate sale to joe public) What is thie price? How does it compare to the $29k? Tough to say, lots of posts on this- basically it will be close to wholesale value.

3. The dealer could add a warranty onto the car when they do this sale. Prices of warrantys and the sam that is a maintenance plan have been disccussed as well. If the dealer will not be competitive with these prices, decline it and add it from another dealer LATER, after you own the car. The question of 'should I buy a warranty?' and 'What about the maintennacne plan?' are the subject of another 4600 posts...each. 

4. Any dealer can do this 'deal'- you dont need to use "your" BMW dealer. Some dealers may chose a strategy of not giiving you a good deal on the lease end to FORCE you into a new lease- they get to double dip, they get a cherry lease turn in with only 12k miles AND get to lease/sell a new car...

This will take some work, but you should be able to do MUCH better than $29k

Good luck


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## mclaren (Jan 5, 2005)

You should take your X3 to Carmax and get a quote, that will tell you approximately how much your vehicle is worth wholesale. As for what ARD said, BMWFS doesn't negotiate a price with a dealer, BMWFS tells the dealer what he is going to pay. The dealer can pass on a few cars a year, the rest he is buying. I would never turn in a car with 12k miles but because of the low miles and popularity of the X3 it could be worth $29k, that's why Carmax is critical, to find out.


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## socal59 (Oct 24, 2004)

Wouldn't it matter if it's on the recall list for airbags? Meaning if so, he can't sell it to Carmax or buy it himself.


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## jjrandorin (May 8, 2013)

socal59 said:


> Wouldn't it matter if it's on the recall list for airbags? Meaning if so, he can't sell it to Carmax or buy it himself.


He can sell it to carmax. Carmax can also re sell it even if it has an airbag recall open on it. Ninong was very clear in telling us multiple times that carmax is considered a USED car dealer, and as a used car dealer they do not have to fix all recalls before they sell them.

They simply have to advise the customer to check for open recalls, and if they find any to take them to the manufacturer to get them fixed. The MFR ( in this case BMW but all car dealerships) will have to fix any open recalls, of course, but if there are no parts you may have to wait.

Carmax (and other used car dealers) do not have to disclose whether the car has an open recall on it, which is a pretty significant loophole because dealers that sell new cars do not have the same ability (they MUST disclose). I believe BMW took the MUST FIX to selling the cars (as I dont believe that was forced on them by the government) but if they had sold them with open recalls and something happend to someone that would have been a huge lawsuit, and or a huge PR nightmare.


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## OCBimmer949 (Jan 23, 2014)

mclaren said:


> You should take your X3 to Carmax and get a quote, that will tell you approximately how much your vehicle is worth wholesale. As for what ARD said, BMWFS doesn't negotiate a price with a dealer, BMWFS tells the dealer what he is going to pay. The dealer can pass on a few cars a year, the rest he is buying. I would never turn in a car with 12k miles but because of the low miles and popularity of the X3 it could be worth $29k, that's why Carmax is critical, to find out.


Thanks for this! Do you mean that you would always try to buy out at 12,000 miles? I've lined up the financing to buy this thing out and then try to sell it to capture some of the value in having so few miles.


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## ard (Jul 1, 2009)

OCBimmer949 said:


> Thanks for this! Do you mean that you would always try to buy out at 12,000 miles? I've lined up the financing to buy this thing out and then try to sell it to capture some of the value in having so few miles.


Read and understand booth of our posts.

There is no such thing as "always"...:angel:

Until you know that the car is WORTH you run the risk of screwing yourself.

Also, you need to research the tax liability if you buy the car and then flip it- will you pay sales (actually 'use') tax, even if you only hold it for a week? Some states exempt leasees from this (ie california)

You need to establish"
1. Carmax cash value
2. Rough market value (sale price) of a private party sale
3. What a dealer will charge you to buy it from BMWFS, add a CPO or warranty, and sell it back to you.
4. Sales/Use tax requirements

With those 4, you can make a decision.

Oh, do YOU want to keep it? or do you just want to try and get some value?


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## BimmerBahn (Nov 24, 2005)

OCBimmer949 said:


> Thanks for this! Do you mean that you would always try to buy out at 12,000 miles? I've lined up the financing to buy this thing out and then try to sell it to capture some of the value in having so few miles.


Wait, so you're wanting to buy out the lease to potentially flip it? BMW lease residuals are artificially inflated so it's definitely not in your best interest to buy it out at the pre-negotiated residual amount. If you want the car to drive, I'd talk to your local store to see if they'd sell you the car for approx what their cost is from BMWFS... as that's likely to be closer to market than what you'll be quoted through BMWFS. You could also ask them what it would cost to CPO the car, too. Extended maintenance is a waste of $$.

Cheers,


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