Is there negotiation room for the residual price?
05-27-2008, 04:10 AM
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My lease ends in just over a year and I am already trying to figure out if I want to keep the car or turn it back in. The main reason is that I'll be over the mileage by at least 18k miles, and as I understand it, if I need to "buy"more miles, I can do so at a discounted rate until there are only 9 months left on the lease - so I want to make sure in advance that I know what I might do at the end - I dont want to buy more miles prior to the expiration of the lease at the discounted rate if I am going to keep the car.
Anyhow - a friend of mine mentioned that in his experience, the residual price shown on the lease is negotiable. I somehow doubt that to be true.
The residual on my '07 550i with sport, logic 7, cold weather is $39k. In looking at the going rates for 06 550 cars online, I think that in 14-15 months, that figure will be pretty far out of line.
Anyone with experience, knowledge or wisdom on the issue?
Anyhow - a friend of mine mentioned that in his experience, the residual price shown on the lease is negotiable. I somehow doubt that to be true.
The residual on my '07 550i with sport, logic 7, cold weather is $39k. In looking at the going rates for 06 550 cars online, I think that in 14-15 months, that figure will be pretty far out of line.
Anyone with experience, knowledge or wisdom on the issue?
05-27-2008, 05:23 AM
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$39k to buy your car in one year may not be a bad price ... except for your high mileage. Among the 108 2006 550i's shown for sale on cars.com, the average asking price is $42,000 for a car with about 29,000 miles. And not all of the listed cars are a Sport like yours.
But, come on, you know you will want the new 7-series next year, right?
But, come on, you know you will want the new 7-series next year, right?
05-27-2008, 05:24 AM
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I have had past experience (yeas ago) with other manufacturers in renegotiating the residuals downwards, but not with BMW.
Someone told me that the manufacturers now insure the residual values of their inventory, so when the wholesale the cars out and they receive less than what they booked it at, the insurance company makes up the difference and that is why they will not negotiate at lease end.
I would be interested in knowing if this is indeed a fact.
I just turned in my '04 545, it had a buy back of 36K and BMW were offering similar pre owned cars at 30k. the used car market here in Canada is going through very rough times owing to a strong Canadian dollar and as a result huge imports of used vehicles coming in from the USA.
I have read similar things about the US used market as a result of the mortgage fiasco.
Someone told me that the manufacturers now insure the residual values of their inventory, so when the wholesale the cars out and they receive less than what they booked it at, the insurance company makes up the difference and that is why they will not negotiate at lease end.
I would be interested in knowing if this is indeed a fact.
I just turned in my '04 545, it had a buy back of 36K and BMW were offering similar pre owned cars at 30k. the used car market here in Canada is going through very rough times owing to a strong Canadian dollar and as a result huge imports of used vehicles coming in from the USA.
I have read similar things about the US used market as a result of the mortgage fiasco.
05-27-2008, 06:05 AM
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Originally Posted by tachyon' post='589091' date='May 27 2008, 09:23 AM
$39k to buy your car in one year may not be a bad price ... except for your high mileage. Among the 108 2006 550i's shown for sale on cars.com, the average asking price is $42,000 for a car with about 29,000 miles. And not all of the listed cars are a Sport like yours.
But, come on, you know you will want the new 7-series next year, right?
But, come on, you know you will want the new 7-series next year, right?
You know me too well. I am very curious to see the new 7 series, but honestly, I wouldnt buy the car in year one of production. Now, as year two will just be coming out when the lease runs out, it might be very curious...
05-27-2008, 06:05 AM
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Originally Posted by gabman' post='589092' date='May 27 2008, 08:24 AM
Someone told me that the manufacturers now insure the residual values of their inventory, so when the wholesale the cars out and they receive less than what they booked it at, the insurance company makes up the difference and that is why they will not negotiate at lease end.
I would be interested in knowing if this is indeed a fact.
I would be interested in knowing if this is indeed a fact.
05-27-2008, 07:09 AM
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Originally Posted by lawguy' post='589058' date='May 27 2008, 08:10 AM
My lease ends in just over a year and I am already trying to figure out if I want to keep the car or turn it back in. The main reason is that I'll be over the mileage by at least 18k miles, and as I understand it, if I need to "buy"more miles, I can do so at a discounted rate until there are only 9 months left on the lease - so I want to make sure in advance that I know what I might do at the end - I dont want to buy more miles prior to the expiration of the lease at the discounted rate if I am going to keep the car.
Anyhow - a friend of mine mentioned that in his experience, the residual price shown on the lease is negotiable. I somehow doubt that to be true.
The residual on my '07 550i with sport, logic 7, cold weather is $39k. In looking at the going rates for 06 550 cars online, I think that in 14-15 months, that figure will be pretty far out of line.
Anyone with experience, knowledge or wisdom on the issue?
Anyhow - a friend of mine mentioned that in his experience, the residual price shown on the lease is negotiable. I somehow doubt that to be true.
The residual on my '07 550i with sport, logic 7, cold weather is $39k. In looking at the going rates for 06 550 cars online, I think that in 14-15 months, that figure will be pretty far out of line.
Anyone with experience, knowledge or wisdom on the issue?
05-27-2008, 07:37 AM
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Originally Posted by melimel' post='589139' date='May 27 2008, 11:09 AM
so let me talk in laments terms.. the residual is the same as the buy out on your lease when your done?? is this correct? my buyout is $47- does this mean it is negotiable? whew.. all that technical talk.. hate it!
LOL.....I thought I was using layman's terms.
Yeah, the residual is the same thing as the buyout at the end, to my knowledge.
05-27-2008, 07:38 AM
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My Ride: 2011, E90 M3 Sedan. Alpine White.Competition package, Keyhole cover, fender reflectors in Alpine white, RPI Exhaust, 19
Originally Posted by lawguy' post='589161' date='May 27 2008, 11:37 AM
LOL.....I thought I was using layman's terms.
Yeah, the residual is the same thing as the buyout at the end, to my knowledge.
Yeah, the residual is the same thing as the buyout at the end, to my knowledge.
k.. just checking.. thanks lawdude
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