Residual too high...will BMW?

the1andonly · 09-30-2013, 11:51 AM

Hey all,

Im a little over half way through my lease and my car has already pretty much hit the residual buyout at the end of the lease in terms of value. Now, Im not an expert math guru but add another 14+ months and 20,000 miles before lease end and my car value is going to be THOUSANDS below residual buyout, Im talking $5,000+ lower. I want to buy my car at lease end, because I know its history but Im not paying the residual which will be a complete ripoff in cost. Will BMW or dealer negotiate the residual set cost or is it pretty much set in stone? Thanks!

3002 tii · 09-30-2013, 12:31 PM

Yes they can negotiate, I did the same on my Z4. In fact I approached 3 different dealers and they all gave me their best / lowest price.

Mark16q · 09-30-2013, 12:49 PM

Unless they really want the car back, they'll negotiate. I've had success with this many times with different car companies. If your mileage is really low or the car otherwise better than usual, don't tell them. You don't have to have it inspected if you are buying it, but they will try to get that info from you.

Gray_Panther · 10-01-2013, 02:26 AM

Wow I thought residuals were set in stone. It gives me hope to negotiate then!

BeamerandBimmer · 10-01-2013, 05:46 AM

BMW gives the dealer the option to buy the car for an average of the last three months of auction price. Generally if the person leasing the car buys it then BMW requires the dealer to charge them X amount over that price. So it depends on the dealer as to what they will sell it to you for. My most recent experience with this was when I turned in my 2010 M5. I had written the lease for 3y/30k miles. It had 60k miles when I turned it in. Three months before the end of the lease I paid $4800 for the excess miles. At the end of the lease the dealer gave me the option to buy it for $41k. The residual in the contract was $56k. Subtract the excess milage charge and I should have paid BMW $51200. I declined to buy the M5 as I didn't want to deal with a SMG failure out of warranty. The dealer sent the car to auction as they didn't think they wanted to sell it. The car was actually purchased by one of the regional "High End" used car chains. Eight months later and now with 65k miles on it they're still trying to sell it for $39k.

rking117 · 10-01-2013, 11:38 AM

Quote:

Originally Posted by 3002 Tii

Yes they can negotiate, I did the same on my Z4. In fact I approached 3 different dealers and they all gave me their best / lowest price.

that is good to know, I wasnt aware of this and think I will file that away for future use.

alexmtl_135i · 10-01-2013, 12:19 PM

Wow I really didn't know you could negociate the residual value. That's very good to know.

IEDEI · 10-01-2013, 12:28 PM

Quote:

Originally Posted by alexmtl_135i

Wow I really didn't know you could negociate the residual value. That's very good to know.

it is VERY hard to negotiate a price. Sure it can be done if someone has the time and energy to try-----but not worth the effort most of they time. That being said....one has nothing to lose in trying!

3002 tii · 10-01-2013, 01:09 PM

Quote:

Originally Posted by alexmtl_135i

Wow I really didn't know you could negociate the residual value. That's very good to know.

You can't negotiate residual at the time of the sale (or initiation of the lease), but you can negotiate the buyout price at the end of the lease

KingOfJericho · 10-01-2013, 02:03 PM

The residual on my 2010 135i was $28k, MSRP was $46,600. I gave the car back and they put it on their site for $37,999. Not sure what they sold it for but I would guess something like $34k. I don't think they would have negotiated much with me...

rking117 · 10-01-2013, 03:55 PM

or you could turn it in and it sit on the lot for six months like mine and then they brought down the price enough to get it where i wanted it. of course that was when i bought a CPO car.

09-30-2013, 11:51 AM	#1
the1andonly Lieutenant 82 Rep 539 Posts Drives: black on black 128i manual Join Date: Jan 2012 Location: midwest iTrader: (0)	Residual too high...will BMW? Hey all, Im a little over half way through my lease and my car has already pretty much hit the residual buyout at the end of the lease in terms of value. Now, Im not an expert math guru but add another 14+ months and 20,000 miles before lease end and my car value is going to be THOUSANDS below residual buyout, Im talking $5,000+ lower. I want to buy my car at lease end, because I know its history but Im not paying the residual which will be a complete ripoff in cost. Will BMW or dealer negotiate the residual set cost or is it pretty much set in stone? Thanks!
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09-30-2013, 12:31 PM	#2
3002 tii Lieutenant General 2283 Rep 12,565 Posts Drives: Z4 M, X5, GX460 Join Date: Apr 2008 Location: CT iTrader: (99) Garage List F15 X5 xDrive35i [8.75] E86 Z4 M [10.00] F10 550i (Retired) [9.17] F25 X3 xDrive35i (R ... [9.43] E82 135is (Retired) [9.50] E85 Z4 M (Retired) [9.41] E90 328i xDrive (Re ... [9.25] E86 Z4 3.0si (Retired) [9.24]	Yes they can negotiate, I did the same on my Z4. In fact I approached 3 different dealers and they all gave me their best / lowest price. __________________ Follow for latest mods
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09-30-2013, 12:49 PM	#3
Mark16q Second Lieutenant 10 Rep 223 Posts Drives: 2010 135i convertible AW 6MT Join Date: Nov 2011 Location: Agoura Hills iTrader: (2)	Unless they really want the car back, they'll negotiate. I've had success with this many times with different car companies. If your mileage is really low or the car otherwise better than usual, don't tell them. You don't have to have it inspected if you are buying it, but they will try to get that info from you. __________________ '13 Miata Gt 6MT, '10 135i AW 'vert 6MT, PE and PPK1 sold. Sold '09 A4 Cabriolet, a couple of Miata's, 2005 Elise, 2004 S2000....
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10-01-2013, 02:26 AM	#4
Gray_Panther Brigadier General 1555 Rep 3,234 Posts Drives: 128i Join Date: Jun 2012 Location: Upstate NY iTrader: (0)	Wow I thought residuals were set in stone. It gives me hope to negotiate then! __________________ 2012 BMW 128i 6MT Deep Sea Blue Metallic
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10-01-2013, 05:46 AM	#5
BeamerandBimmer Lieutenant 118 Rep 449 Posts Drives: S63tu Join Date: Oct 2012 Location: So.Maryland iTrader: (6)	BMW gives the dealer the option to buy the car for an average of the last three months of auction price. Generally if the person leasing the car buys it then BMW requires the dealer to charge them X amount over that price. So it depends on the dealer as to what they will sell it to you for. My most recent experience with this was when I turned in my 2010 M5. I had written the lease for 3y/30k miles. It had 60k miles when I turned it in. Three months before the end of the lease I paid $4800 for the excess miles. At the end of the lease the dealer gave me the option to buy it for $41k. The residual in the contract was $56k. Subtract the excess milage charge and I should have paid BMW $51200. I declined to buy the M5 as I didn't want to deal with a SMG failure out of warranty. The dealer sent the car to auction as they didn't think they wanted to sell it. The car was actually purchased by one of the regional "High End" used car chains. Eight months later and now with 65k miles on it they're still trying to sell it for $39k. __________________ Current BMWs;'18 M2, '20 R1250GS Adventure Past BMWs;'22M850 Conv, '19 SG M5(ED 5/19),14 Ionic Silver i3, '16 S1000XR, '16 Azurite Black M5, '07 G650X-Challenge, '10 R1200GSA, '15 Mineral Gray M4, '14 S1000R,'10 Alpine White 135ia M-Sport, '13 Carbon Black X5 50i, '10 Carbon Black M5, '07 Graphite K1200GT, '08 335ia, '05 545i, '04 R1150R, '03.5 M3 Cabrio, '00 540ia, '97 M3 sedan, '97 540ia
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10-01-2013, 12:19 PM	#7
alexmtl_135i First Lieutenant 31 Rep 371 Posts Drives: 2013 C63 Coupe P31 Join Date: Oct 2011 Location: Montreal, Canada iTrader: (0)	Wow I really didn't know you could negociate the residual value. That's very good to know.
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10-01-2013, 02:03 PM	#10
KingOfJericho Major General 2452 Rep 7,341 Posts Drives: Yes Join Date: Aug 2007 Location: CT iTrader: (1) Garage List 2010 135i Coupe [5.26]	The residual on my 2010 135i was $28k, MSRP was $46,600. I gave the car back and they put it on their site for $37,999. Not sure what they sold it for but I would guess something like $34k. I don't think they would have negotiated much with me... __________________ The views and opinions expressed in this post are those of the author and do not necessarily reflect the official policy or position of Bimmerpost. 2018 Jeep Grand Cherokee High Altitude Hemi \| 2010 S4 Sold \| 2010 BMW 135i Retired \| 2006 Lotus Exige Sold
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10-01-2013, 03:55 PM	#11
rking117 Lieutenant Colonel 118 Rep 1,668 Posts Drives: Z4 3.0i & 320i Join Date: Aug 2012 Location: USA iTrader: (0)	or you could turn it in and it sit on the lot for six months like mine and then they brought down the price enough to get it where i wanted it. of course that was when i bought a CPO car. __________________ Enjoying an E89 Z4, F30 320i and Fiat Abarth // E85 Z4 (sold), E82 128i (sold), Fiat Pop 500 (sold)
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