No dealer markup on Buyouts unless CPOed?
 

I've been trying to negotiate a buyout price for my 2005 X5 4.4 due in a month. My goal was set at $23K which blueX54.4 at right coast claimed to have been offered. However, my local dealer's best offer was 25.7K(from $34.7k Residual) that expires on 18th.

With a PM assistance from CA911, I made few phone calls to sales manager within 50 miles. As soon as I mention I wouldn't want it CPOed, they were so fast to get rid of me, "you should call BMW Financial."


I spoke with my local sales manager who insists that unless it is CPOed dealer won't make a dime. It is all in customer service, him making call to BMWF, because I bought two cars there. They also told me that the buyout price BMWF offers fluctuate depends on X5's national stock it tends to go up when return days nears. Have I spoke with a wrong people, or market has changed?

Only repair the vehicle requires in foreseeable future is a torn outer CV Boots.

Dealer tells me the buyout price will go up as the returns days nears...
What shall I do?

may I ask why you don't want the extra warranty?

I always thought that CPO is way to go for 50K+ miles X5.
However, after reading some post on dealer markup on CPOed X5, 3k plus as a result, vs. Indi shop cost, I figure that would be competitive or even better.
From my experience, and my friends, with the dealer I wouldn't take my car to the local dealer for sure.

Hell has a special place reserved for the Stealers. First, I love the little pressure tactic of telling you the buyout price will go up if you wait. I would bet the opposite is true: the last thing they want is to be stuck with used V8 SUVs that very few are buying right now.
Second, you are absolutely right to reject the CPO mark-up. You are the original owner, you know the exact condition of the car and its history. You're better off going with an after-market warranty.

Personally I would stand my ground. If the dealer won't meet your price point on the buyout, shove the used X5 up his a$$, and use your buyout money to lease a nice new E70 4.8. ... IMHO of course....

I suppose you are right. E70 is out of question since I don't like the looks. I guess in worse case I should sook up Audi A6 station wagon.

I am bit attached to X5, but that should hinder my business decision.
Thanks.

Yeah, I think you should stand your ground. Worst case is they say no again.

But after that you have so many options:
1) Buy a different car ...
2) Buy a different X5 ...
3) Buy THAT exact X5 later ... I don't think it's gonna disappear immediately to auction.

Besides ... If you really, really like that X, just go in later (if they decline) and offer to meet them half-way (approx. $24,500). Tell them "Do you really want to lose a sure sale over $1.5K?!" If so, I'd tell them so be it then.

Really depends on how much you want that car. Remember there are always other cars or Xs - it's not like it's the only one. ;)

Good Luck!

He's most likely pressuring you to CPO the car since they will make money from CPO-ing also.

With CPO the price is $27,000 without the price is $3,000 less.

be sure to figure in the taxes also, in Md. they are paid in the lease and if you choose to buy it they are excluded. My 4.8is residual is $32000 they offered a CPO makeover at around $27600ish to buy out. the sales guy stands to make $500 to capture a lease customer I believe...............

Only whey they are CPOed?