Lease returns

[Daka]

Does anyone have a line on what a dealer pays to BMW for lease returns?
Is it less that the TRADE IN value?
From the figures they are telling me here in S FL, they pay much more than trade in...or are they lying....car salesmen lie...can't be !!

[ard]

Originally Posted by Daka

Does anyone have a line on what a dealer pays to BMW for lease returns?
Is it less that the TRADE IN value?
From the figures they are telling me here in S FL, they pay much more than trade in...or are they lying....car salesmen lie...can't be !!

South Florida Used car salesman LYING?!?!?!?

Shocker.

They pay under lease end residual. (What do you mean by "trade in"?? Like KBB or Edmunds 'trade in value'?)

Generally they usually pay UNDER 'trade in', but the numbers move around based on model/market/etc

If BMW charged them more than trade in value, then BMW would have large lots filled with X5s that they couldnt sell! IMO

[Daka]

So, you mean to tell me that the "salesman" treated me like a a moron, telling me that they couldn't sell me the 09 vehicle I wanted for less than the $35,995 they quoted? They'd be loosing money on it....
The trade in according to kbb. was $31 and change..figure they paid $28 + what they pay to BMW to CPO (if that is a truth) and say $1000 to do what is necessary to bring it up to snuff.
They probably make more than they do on a new car sale....
I think I'll start looking for a private owner sale and buy an aftermarket warranty...they are really pissing me off...

[BGM]

To give you an example on mine: I bought my '08 off of a 2 year lease with 15K miles on it in Oct '10 at Beverly Hills BMW for $48K. They showed me where they bought it back from BMWFS for $43K + part of the CPO process added 4 new Dunlop Sport Maxx 20" $2,200 + 4 new brakes and pads.

[ard]

Originally Posted by Daka

I think I'll start looking for a private owner sale and buy an aftermarket warranty...they are really pissing me off...

Or a "BMW Gold plan"...equivalent to a CPO warranty.

[blondboinsd]

Originally Posted by ard

South Florida Used car salesman LYING?!?!?!?

Shocker.

They pay under lease end residual. (What do you mean by "trade in"?? Like KBB or Edmunds 'trade in value'?)

Generally they usually pay UNDER 'trade in', but the numbers move around based on model/market/etc

If BMW charged them more than trade in value, then BMW would have large lots filled with X5s that they couldnt sell! IMO

On a side note VW seems to do something odd with their lease-end CPO process. My buyout price was below the current market so I figured I would CPO it and just buy it out. Dealer had to pay "market" cost for it thus I would have to PAY 6k to CPO it. I said no thanks and not wanting to keep it outside of warranty due to a battery issue I said bye bye...

[3Series]

Originally Posted by Daka

So, you mean to tell me that the "salesman" treated me like a a moron, telling me that they couldn't sell me the 09 vehicle I wanted for less than the $35,995 they quoted? They'd be loosing money on it....
The trade in according to kbb. was $31 and change..figure they paid $28 + what they pay to BMW to CPO (if that is a truth) and say $1000 to do what is necessary to bring it up to snuff.
They probably make more than they do on a new car sale....
I think I'll start looking for a private owner sale and buy an aftermarket warranty...they are really pissing me off...

That's right they definitley make more money on used car sales. Dealerships make money by servicing cars and selling used ones along with all the other stuff (warranties, financing etc.). They don't make much selling new ones.

[ard]

Originally Posted by blondboinsd

On a side note VW seems to do something odd with their lease-end CPO process. My buyout price was below the current market so I figured I would CPO it and just buy it out. Dealer had to pay "market" cost for it thus I would have to PAY 6k to CPO it. I said no thanks and not wanting to keep it outside of warranty due to a battery issue I said bye bye...

Arguably you could have immediately sold it to the dealer for $x, then they could haev CPOd it, and they sold it back to you for $X + [cpo cost]+ [little profit].

Not much in it for them. And before someone says 'you pay tax twice', you DO NO: rule in CA is that a leasee can buy a car they are leasing and sell it within 14 days without triggering a use tax payment.

[TorontoKhan]

Originally Posted by Daka

They probably make more than they do on a new car sale....
I think I'll start looking for a private owner sale and buy an aftermarket warranty...they are really pissing me off...

That's right. They make way and I mean way too much on used cars. E.g. mine was 2008, bought in Jan 2011, off lease, from a BMW dealer. His list price was $49,999, he gave it to me for $41k, and told me he would lose money if he goes low, I was surprised he went down to 41k from 50k in the first place, but since the vehicle was in immaculate condition and we liked it, we took it, and the sales guy who did the paperwork for us became a friend and after two years he told me (of course after he left the dealership lol), that car was bought for 31.7k off BMW CA that they tried to sell it for 50k to people. I found another non-BMW dealer, whose computer I fixed (lucky I guess), he told me they would have paid about 32/33k for that car in the BMW auction and would have sold it for 40k.

He told me what happen is, BMW offers its dealers the first choice to come and get whichever lease return vehicles they want, whatever is left over, they auction it to non-bmw dealers. So technically, the best of the lot goes to BMW Dealers (as per him), which is why they offer CPO on it knowing hardly anything will break down.

So yes, they make way too much money on used cars.

And yes, the best way is to find a person whose lease is up and take over on his lease and then pay it off. Here in canada, we have a great site called Leasebusters that I came across with after understanding how they shaft us.

[Daka]

TORONTOKAHN
Sounds like a good idea, I think my 06 is a good buy for someone looking for a super 06, dalers offering about $18= - so I think $22 is the right price for it (Black/Tan Sport,, Prem Rear comfort, 3.0 53,000 miles was a CPO, now just off )
Now if I can find the "right" car coming off lease...I'd buy it.
BUT i have special requirements...looking for 09 3.0, NOT Black, White or any form of Silver/Grey NO Black interior and must have Prem, Sport, Tech and Rear comfort....no 3rd seat or rear TV.....anyone
And Of course be a super mint one like mine....
Anyone????