katheikia

My buy-out next year is $42,000.00. Does the dealer get the car for a few thousand less to compensate for the CPO? If so can this be negotiated?

robg

Everything is negotiable. The buyout is based on the estimated residual at the time the lease was executed. The actual value of the car now may be more or less. Whaterver the book value, like a new car, the price will be negotiable.

But as I understand it, the contract buyout would give you a non-CPO car. There is typically a $1000 - $1,500 up-charge to get the certification. Again, this will all be negotiable. I went through the process with one of my previous cars, though in the end I opted for a new instead of the buy out.

Heelsonwheels

Is your lease with BMW? if so you have a chance; if not don't count on it.....I tried to negotiate my M3 buyout(not with BMW) and they didn't want to hear anything.
Good luck.

w84me

Not sure if it is negotiable, but I'm pretty sure BMW will CPO it for you before you buy it. You will need proper tires on it, ensure it passes their inspection, and then pay them a fee for the entire thing. It amounts to around $1500-$1800 bucks if they don't have to fix anything. Hopefully anything they have to fix would be under warranty anyway. If it turns out the vehicle has too much many things that need repaired, you can walk away, and not do the CPO. Whether you would still have to purchase the vehicle, I don't know, it would be prudent to check on this scenario before going thru the whole process.

Once it obtains CPO status, you can then purchase the car from BMW. Do not purchase it from them until CPO status is acheived. They can not CPO status on a car off the street. If you call up your dealer, they can walk you thru the process, and will be happy to do so, because they will make some money.

GSXR_Drew

Odds are that you will not be able to negotiate. The dealer does not have to take the car back and put it on their lot if they dont want to, so if the buy out numbers dont make sense, they really dont care. I believe the residual value is insured by a third party insurance company to BMW Financial or the bank who did the lease, so you are still twice removed from the party who actually cares about the price.

SergeyM

A BMW dealer can buy an off-lease car directly from BMWFS for real (action) wholesale price. It is usually significantly less than the residual value. Then they can CPO it and sell it back to you. E.g. my 2002 540 had residual of $37K while the special price (forgot how they called it) was between $28 and 29K. In my case my dealer bought my car (to help me avoid over the mileage penalty) but I had no interest in buying it and it was sold to someone else. I do not think you can negotiate with BMWFS much. You need to work with your (or any other) BMW dealer.

katheikia

I have a pretty good relationship with my dealer (I have sent them over 15 buying customers in the past 1.5 years) so I will wait and see what the true value of the car will be and negotiate accordingly.

mikeg7

So you're saying don't buy out the car from BMWFS, but get your dealer to agree to buy it at their price from BMWFS when you turn it it, then sell it back to you an a price agreed upon in advance? That seems like a pretty good way around the "system". Your dealer makes a small profit for basically doing nothing, and you get the car at a price cheaper than the buyout.

SergeyM

There is no guarantee that they will limit themselves to a small profit. Sure you can get a better deal, since your are there and ready to buy but they still would want to make good money on the deal. We did not go into details but the sales guy mentioned low-mid thirties for the car with CPO. Still was much better than $37K buy-out for the non-CPO car.