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2010 2011 BMW 5 Series Forum F10 BMW 5-Series (F10) Forums General 5-Series Sedan and Wagon (F10 / F11) Forum Anyone Buy out their Lease?
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      10-14-2015, 04:18 PM   #1
beachBmmr
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Anyone Buy out their Lease?

Curious if anyone has gotten a lease buyout below the actual quoted number at termination, and if so, how.
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      10-19-2015, 11:16 AM   #2
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Absolutely.

Buying out a lease is the only reason I lease BMW's.

I typically buyout the lease after two years.

The last one I purchased, I offered $10k below buyout and we settled for $7,500 below buyout.

Work with your dealer's sales manager to make offers.
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      10-19-2015, 06:04 PM   #3
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Quote:
Originally Posted by AT LAW View Post
Absolutely.

Buying out a lease is the only reason I lease BMW's.

I typically buyout the lease after two years.

The last one I purchased, I offered $10k below buyout and we settled for $7,500 below buyout.

Work with your dealer's sales manager to make offers.
That's pretty genius.
As an example:
MSRP: $80,000
Discount: $8000

Your lease is based on a price of $72,000

they give you another $8,000 off the price

In the end, the car cost you $64,000????
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      10-19-2015, 07:15 PM   #4
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Quote:
Originally Posted by AT LAW View Post
Absolutely.

Buying out a lease is the only reason I lease BMW's.

I typically buyout the lease after two years.

The last one I purchased, I offered $10k below buyout and we settled for $7,500 below buyout.

Work with your dealer's sales manager to make offers.
I've never heard of this.
I know that at least in California you can NOT negotiate the buy out of the lease.

Been in the biz my whole life. 1st time I've ever heard of being able to negotiate a lease.

Also what does the dealer have anything to do with the lease after they sold the car? Car gets purchased from the dealer by the bank.

BMW or the bank that your lease is through is the one who would have to do the negotiating.
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      10-19-2015, 11:38 PM   #5
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In Canada, at the end of a lease the car goes to the dealer at its option to buy it at the buyout, if not it goes to the dealer auction where the highest bidder gets it. If you have access to those auctions, perhaps you could buy it for under the buyout amount.
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      10-20-2015, 12:18 PM   #6
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You have to be close to lease end for a BMW to be worth the buyout, and some never approach that point. BMW residuals are usually fairly high (thus good lease prices). It makes sense to me that BMWFS would negotiate if they know the car coming in isn't worth the buyout. Why wouldn't they want to unload it to the person already driving it rather than incur any additional expenses to take it in, inspect it, store it, transport it, etc… All comes down to your original deal and the resale market. I've never negotiated a buyout, I'm just saying it would make good business sense in such a case where the car simply is not worth the buyout price, and I have heard of others saying they have successfully negotiated.

On the flip side of that, we traded in an X3 about 8 months early when we got our X5. We got enough on a trade-in to pay off the buyout (bearing in mind the dealer doesn't pay tax on the buyout when taking it in trade, so it's lower than the buyout you're quoted from BMWFS by the sales tax amount). So, it stands to reason that car would have been worth the buyout, maybe more, had we held it for the remaining 8 months of the lease. In that situation, I don't expect BMWFS would negotiate much, if at all. The 335 I just sent back early using the pull ahead program when I got my 550 on the other hand, seemed like it would never be worth the buyout. 6 months early and it was worth a good 5k less than the buyout at that point in time (the adjusted buyout if I were to buy it out 6 months early, not the lease-end buyout..). 6 more months of paying down the principal might have gotten it there, but I don't think it would have bridged the gap entirely as it also continued to depreciate.
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      10-21-2015, 11:06 PM   #7
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This is actually interesting because I've been thinking about this myself.

Still got ~2 years left. Went from 61-62k down to 52k and residual value of 32k after 3 years. Can I knock that 32k lower?
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      10-22-2015, 11:28 AM   #8
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You absolutely can negotiate the buyout price and include CPO warranty if you want. BMW seems to have tightened up the process through as I think too many people were taking advantage of the opportunity to negotiate on the lease then negotiate on the buyout.

On my 550, the dealer still wants a few thousand more than the market value but this is roughly $5k below the lease buyout.
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      10-22-2015, 02:34 PM   #9
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Quote:
Originally Posted by ferrarif1 View Post
You absolutely can negotiate the buyout price and include CPO warranty if you want. BMW seems to have tightened up the process through as I think too many people were taking advantage of the opportunity to negotiate on the lease then negotiate on the buyout.

On my 550, the dealer still wants a few thousand more than the market value but this is roughly $5k below the lease buyout.
Amazing just how high the buyout can be compared to market value, isn't' it? But that's what leads to good lease prices, so I won't complain.
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      10-22-2015, 03:31 PM   #10
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Quote:
Originally Posted by chrisny View Post
Amazing just how high the buyout can be compared to market value, isn't' it? But that's what leads to good lease prices, so I won't complain.
I always thought BMW kept the buyouts unrealistically high to discourage customers from buying the cars. They want to get leased cars back into the CPO program to make a second round of profit on the transaction price, warranty, and financing.
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      10-22-2015, 08:40 PM   #11
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Quote:
Originally Posted by combatbmw View Post
I've never heard of this.
I know that at least in California you can NOT negotiate the buy out of the lease.

Been in the biz my whole life. 1st time I've ever heard of being able to negotiate a lease.

Also what does the dealer have anything to do with the lease after they sold the car? Car gets purchased from the dealer by the bank.

BMW or the bank that your lease is through is the one who would have to do the negotiating.
I have done it three times. Twice with my 5 Series leases and once for my sister's 335 lease that was close to coming due about two years ago.

Turns out, BMW has way too many 3, 5, and 7's coming back from lease on any given day.

Never be afraid to make an offer at any time during the course of a lease.

The worse they can say is, "no."
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      10-22-2015, 11:21 PM   #12
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Quote:
Originally Posted by JesseSRQ
Quote:
Originally Posted by chrisny View Post
Amazing just how high the buyout can be compared to market value, isn't' it? But that's what leads to good lease prices, so I won't complain.
I always thought BMW kept the buyouts unrealistically high to discourage customers from buying the cars. They want to get leased cars back into the CPO program to make a second round of profit on the transaction price, warranty, and financing.
A little bit of both maybe. They sell (lease) a hell of a lot more cars with the high residuals and resulting low lease prices. Wasn't always this way. I can remember when Audi had better sticker and lease prices on comparable cars. Now, seems they can't touch BMW lease prices, even when their sticker is lower..., nor can most of the other luxury brands. I think it's more about market share and pushing volume than it is about discouraging people from buying them out, though maybe that provides a secondary bonus too.
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      10-22-2015, 11:59 PM   #13
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I'm nervous that I may not like the G30 which is why I asked
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      10-23-2015, 09:31 AM   #14
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Quote:
Originally Posted by chrisny View Post
A little bit of both maybe. They sell (lease) a hell of a lot more cars with the high residuals and resulting low lease prices. Wasn't always this way. I can remember when Audi had better sticker and lease prices on comparable cars. Now, seems they can't touch BMW lease prices, even when their sticker is lower..., nor can most of the other luxury brands. I think it's more about market share and pushing volume than it is about discouraging people from buying them out, though maybe that provides a secondary bonus too.
Yes, market share is huge. The industry profit model centers on financing, used cars, service, and warranties. New car sales basically serve to drive those four profit centers. It is a tricky balancing act between front end profit, CPO inventory management, maintaining residual values, and of course offering a lasting product. BMW and Lexus excel at this. You can see it in their constant tinkering with lease rates and CPO incentives on the 3-series, as they steer customers into one or the other to maintain a balance. Audi suffers because people fear used VAG products. Cadillac tried the subsidized lease game, but got killed when their terrible residual values undermined their CPO ambitions. Infiniti is in the same boat as Cadillac, with leases so cheap (for second tier products) it makes zero sense to buy new or used.
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      10-23-2015, 08:51 PM   #15
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So does the negotiation is with BMWF or the dealer ? my lease is up in April 16 for $44K buyout.. damn if i can grab this car for 35K i will take it in a heartbeat.
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      10-24-2015, 09:33 AM   #16
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Same here my lease is up in June 2016 for $37K buyout.. if i can grab my car for 30-32K i will take it in a heartbeat. I spoke with the dealer and they told me about a early return program they may have if I want to lease another one starting in January 2016. Not sure which direction I will go yet. I have a 2013 535i. I figured they will be getting ready to clear the lot of the 2016's starting in January.
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      10-24-2015, 06:04 PM   #17
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Quote:
Originally Posted by hawkjr1
Same here my lease is up in June 2016 for $37K buyout.. if i can grab my car for 30-32K i will take it in a heartbeat. I spoke with the dealer and they told me about a early return program they may have if I want to lease another one starting in January 2016. Not sure which direction I will go yet. I have a 2013 535i. I figured they will be getting ready to clear the lot of the 2016's starting in January.
I don't think they'll be clearing out '16's for a while. I believe, per my CA, the 2016 production runs late, through October 2016 until the new model arrives sometime after that (December 2016/January 2017?). So you probably won't see those "clear the lot" type prices until November 2016 at the earliest, I suspect. It wouldn't normally be January of the model year anyway, usually more like late summer or into fall, depending on when they start the following model year.
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      10-26-2015, 02:31 PM   #18
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Quote:
Originally Posted by gtmassive75 View Post
So does the negotiation is with BMWF or the dealer ? my lease is up in April 16 for $44K buyout.. damn if i can grab this car for 35K i will take it in a heartbeat.
Bank.
They own the car, not the dealer.
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