[kent11202]

So, yesterday I received a very nice 127 page brochure from BMW showing pictures of everything they make. They wanted to remind me my lease was coming to an end and share all the exciting new models. FYI, I only have a bit more than six months to go before decision time.

The lease end process is going to be very interesting in my opinion. A quick check on KBB/Edmunds indicates the "current" trade-in value is about $3,000 - $3,700 below the residual and that spread can only get worse when the 2017's hit the market around at that time.

What the heck do they do when there's such a large spread? It's not my problem I know but do they actually attempt to offer a purchase price (if you want to buy it) or do they just ask you to turn over the car/keys and have a nice day?

Just curious at this juncture because I've never been through a lease-end process.

[MKSixer]

Originally Posted by kent11202

So, yesterday I received a very nice 127 page brochure from BMW showing pictures of everything they make. They wanted to remind me my lease was coming to an end and share all the exciting new models. FYI, I only have a bit more than six months to go before decision time.

The lease end process is going to be very interesting in my opinion. A quick check on KBB/Edmunds indicates the "current" trade-in value is about $3,000 - $3,700 below the residual and that spread can only get worse when the 2017's hit the market around at that time.

What the heck do they do when there's such a large spread? It's not my problem I know but do they actually attempt to offer a purchase price (if you want to buy it) or do they just ask you to turn over the car/keys and have a nice day?

Just curious at this juncture because I've never been through a lease-end process.

Let them pull you forward and get a new lease/purchase.

[kent11202]

Let them pull you forward and get a new lease/purchase.

There was no mention whatsoever about a pull ahead. To make matters more complicated, I owe nothing on the lease so I don't know how that would work- give credit for lease payment already made vs. "forgiving" remaining lease payments?

The bigger issue is why on earth would you go there? The car will be worth significantly less than the residual and they, not you, are stuck with it. At that juncture, give them the car and you're in no different a position than if you walked in off the street and started fresh.

My suspicions are that they give you a pull-ahead and then hold relatively fast on the price of the next unit to make up for what they "lost" by having an overly generous residual value. Now, if they said the trade-in value is what we will sell it to you for (with some small paperwork charge) so we don't have to mess around with trying to retail it, that would be a different story.

Like I said, I've never been through this process so it would be interesting to hear what other people have experienced when the residual is so much higher than the value.

Just for the heck of it, I went to the BMW website that has a link to get an idea of what it's worth. I connects you with Black Book which wants you to provide all your contact info and that a dealer "may" contact you. As far as I'm concerned, it's just a fishing expedition to find people gullible enough to sell at a below-market level - just my thoughts.

[MKSixer]

Originally Posted by kent11202

There was no mention whatsoever about a pull ahead. To make matters more complicated, I owe nothing on the lease so I don't know how that would work- give credit for lease payment already made vs. "forgiving" remaining lease payments?

The bigger issue is why on earth would you go there? The car will be worth significantly less than the residual and they, not you, are stuck with it. At that juncture, give them the car and you're in no different a position than if you walked in off the street and started fresh.

My suspicions are that they give you a pull-ahead and then hold relatively fast on the price of the next unit to make up for what they "lost" by having an overly generous residual value. Now, if they said the trade-in value is what we will sell it to you for (with some small paperwork charge) so we don't have to mess around with trying to retail it, that would be a different story.

Like I said, I've never been through this process so it would be interesting to hear what other people have experienced when the residual is so much higher than the value.

Just for the heck of it, I went to the BMW website that has a link to get an idea of what it's worth. I connects you with Black Book which wants you to provide all your contact info and that a dealer "may" contact you. As far as I'm concerned, it's just a fishing expedition to find people gullible enough to sell at a below-market level - just my thoughts.

Ahhhh!

You didn't mention a 1-pay lease. That changes things in quite a major way.

Keep it to the bitter end, order a car on that day and tell them that you will keep your present unit, at their expense, until the car comes in. Negotiate the hell out of the price on the new unit.

Cheers-mk

[ljkiter]

35is galore in december... trying to resist buying now..

[dcpatters]

Originally Posted by kent11202

do they actually attempt to offer a purchase price (if you want to buy it) or do they just ask you to turn over the car/keys and have a nice day?

On the contrary, they want you to lease again.

[DDD31]

I'm in the same position as the OP and I too received the fancy brochure of all the models. I'm currently showing that my payoff now is about $6000 more than the residual value. I doubt BMW is gonna eat that much and offer me a pull ahead on my lease this early. I'll probably start looking for a replacement in the early summer.

[kent11202]

Originally Posted by DDD31

I'm in the same position as the OP and I too received the fancy brochure of all the models. I'm currently showing that my payoff now is about $6000 more than the residual value. I doubt BMW is gonna eat that much and offer me a pull ahead on my lease this early. I'll probably start looking for a replacement in the early summer.

Just curious if you're so disposed. How does the residual stack up against the trade-in value? To me, and for me, that's the real issue I'm wondering about vis-à-vis whether I buy the thing for more than it's worth (which isn't going to happen) or walk away and find something else to drive.

[DDD31]

Originally Posted by kent11202

Just curious if you're so disposed. How does the residual stack up against the trade-in value? To me, and for me, that's the real issue I'm wondering about vis-à-vis whether I buy the thing for more than it's worth (which isn't going to happen) or walk away and find something else to drive.

Well according to KBB, trade in value is ~1000-2000 less than residual value. I'm sure the dealer trade-in value would be even lower than KBB value since it's hard to get a dealer to give you what KBB shows.

As you probably already know, BMW inflates their residuals so it will never be worth the residual value on the open market.

[trey100]

As far as I know there is no pull ahead program at this point. There is a (2) payment credit of up to $500 each for a new lease.

[hockey21]

Originally Posted by DDD31

Well according to KBB, trade in value is ~1000-2000 less than residual value. I'm sure the dealer trade-in value would be even lower than KBB value since it's hard to get a dealer to give you what KBB shows.

As you probably already know, BMW inflates their residuals so it will never be worth the residual value on the open market.

residual and trade in are two totally different things. BMW FS calculates the residual on what the car is worth. they seem to subsidize thier lease a bit more. they know it was maintained, and they probably have a high percentage of getting you back into a new BMW.

[kent11202]

So, just for the heck of it I decided to see what one of the local dealers was asking for 2013 328i's comparably (or closely) equipped. Wow. They are asking (retail) for $26-27K. You can bet there's sufficient wiggle room in those prices so "maybe" you could buy one for $24-25K? What's worse, for them anyway, is that the "values" will drop even more when the 2017 models come out right when my lease expires in September.

Like I said, let the fun begin. Oh, one question. How far in advance do they want to conduct their inspection process? Two weeks, one month?