What profit is "needed" for a dealer lease buyout?
 

I have shopped 1 dealer and am waiting to hear back from 2 others re: a buyout on our X5

The first dealer said the numbers don't work (and also said no choice but to wait to lease end). So my question is at what point do they work? WHAT MARGIN IS NEEDED TO MAKE THE BUYOUT ATTRACTIVE WITHOUT A PULL AHEAD PROGRAM? Here are the specifics:

Our lease terminates 3/15/12. 3 payments remaining.
Buyout now, incl. $1,500 in property tax, is 49,074.00 (was $51,112.90 when 1st dealer rejected a buyout). The retail price for an equivalent CPO car appears to be $50-52k. Minimal investment needed to CPO our car since I took off the OEM run flats at 50% tread and will remount them for turn in. The 20 inch wheels have been repaired from curb rash, and there isn't 1 ding or scratch on the car. A good detail and a new set of mats should do the trick. ALSO, the car has never been in an accident.

What incentive does the dealer have to buyout the car now at say $47,600 (after I pay prop. tax) or even $46,700 after I make the Dec. payment (waiting for a new BMW to come in), when they can just wait it out, and buy the car out in March at $44,900?

I'm looking to utilize the holiday discounts to get into a new BMW lease and delivery is required by years end. A new x will take 4-5 weeks to deliver. It's s&$t or get off the pot time. I'll order a car tomorrow if I can get a bid to buy from a dealer on our current car.

Getting replies on a meaty question like this is what the power of these forums is all about. Any responses are greatly appreciated.

Happy holidays,

If you are looking at CPO retail asking prices, at "$50-52k", the dealer cost is likely $42-46k. IMO The actual "retail" price is between these.

Dealer will wait until march...at which time YOUR buy out is $44,900...and BMWFS (who is the owner, not the BMW dealer) will sell your old car to the dealer for 40-42k.

That's about right. My original CPO retail was $52K (they reduced it after a month to $48K). The dealer showed me where their buyout off of it's lease from BMWFS was about $43K.

Thank you
 

These replies are very helpful. Thanks.

One thing I forgot...I'm on track to be 9000 miles over. A buyout would alleviate that $1,800 issue.....


Maybe my dealer can buy my car in the final month of the lease?

DRP

If memory serves me, once you fill out the loan application that locks in the current financing programs for 90 days.

I filled mine out in October to take advantage of the residuals and bonus cash, but did not order my X5 until mid Nov, it just arrived at the dealership the other day. If the December incentives are better I'll use those, if not I have the October numbers locked in.

With only 3 months left on your lease you might talk with your CA and see if you can lock in the current promotions and wait a few weeks to finalize your order.

Thanks for the advice
 

Thanks for sharing the info.

All the current promotions extend through 1/2/12 if I'm not mistaken. I'd be shocked if the leasing got worse for December, but you never know.

I think I'm going to submit an app at the end of next month and order in Jan. My lease is up 3/16 and it should take 6 weeks to get the car apparently.

Thanks
DRP