Lease Expiration- buyout

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Nov 16, 2009 | 01:01 PM

#11

JeffNNJ

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Joined: Apr 2006

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From: Northern NJ, USA

My Ride: 2011 M3 Convertible, Alpine White/black, 6 speed 2011 535xi Tasmin Green, Venetian Beige

Quote:

Originally Posted by SergeyM' post='1056136' date='Nov 16 2009, 04:50 PM

BMWFS owns the car. They want to get rid of it. They let any BMW dealer buy the car for wholesale price which usually much, much lower than the residual value. They will sell you the car at residaul (exception apply).
Now the delaer buys the car from BMWFS, certifies it, adds reasonable or un-reasonable profit and sells it back to you. You need to ignore the residaul value and compare the price to the current market proce for similar cars. Additional benefit, you know your cars history.

I agree 100% with everything my old friend has stated except for the much, much lower then residual value claim. It's always lower but seldom much more then the original wholesale to retail mark up which, as we all should know, is 7%. It's really a shame that leasing pre-owned vehicles is no longer feasable. I leased both my 328i and M3 convertibles as CPOs and found them both to have been great cars and excellent values. FYI, by far, the most commonly purchased off lease vehicles as of late have been X3s. The new leasing program on them is pretty poor and a lot of people are opting to hold onto theirs.