04-16-2021, 06:09 AM | #1 |
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Buying X5M off lease
Looking for a little help. I have a 2018 X5M and considering buying it when the lease ends. Not wild about the 2021 version. I have a couple of questions. First is what to expect from the dealer and if I should deal directly with BMW Financial Services. I checked with them and they said just send a check for the residual amount and that was all I needed to do. If I go through a dealer is it possible to get the vehicle CPOed and get a BMW extended warranty. The reason I ask about going through the dealer is to get a sense what others have experienced so I can determine if the dealer is providing a reasonable price. Second have any of you dealt directly with BMWFS. Thanks in advance for any advice you can provide.
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04-16-2021, 07:59 AM | #2 |
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You can go thru the dealer to get CPO, but finance thru BMWFS. That is what, I did when I bought my X5 35i years ago, then traded it in for a my X5M. It was a great experience financing thru BMWFS, with no issues. At least for me.
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04-16-2021, 09:14 AM | #3 | |
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Assuming you have good credit you should be good with BMWFS - they've been good to me for my last 3 BMWs. Keep in mind your residual is YOUR NON-NEGOTIABLE PRICE for your car and I'm sure you have it at a discount right now as used cars are currently at a premium. That is the price you either cut a check to them for or finance and IMO I would finance as rates are low right now and just keep(invest) your big chunk of change. ALSO NOTE (again - assuming you have good credit) you should shop around between BMW dealers for the BEST RATE possible rate (to finance) as some/most dealers "mark up" the interest rate provided by BMWFS. Don't know how much it cost to CPO but I'm guessing it's around $2-4k (I would also look into shopping around between dealers for that as well) and extended warranty should be around $3-4k (AFTER your CPO warranty). If you took good care of your F85 I would keep it as well! |
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04-16-2021, 10:16 AM | #4 | |
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Another thing
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I also recommend calling BMW NA to discuss the particulars of your warranties and maintenance. Not BMW FS, but BMW NA. Where they stand now, and how they can be extended. The reason for this is that in my own recent experience sometimes the dealers (even big highly rated ones like mine) sell you a contract that is self-serving and not aligned with BMW NA's standard protocol. I had to fight to get my maintenance contract aligned where it should expire, after debating it with the finance manager who "couldn't do anything" for me. (They sold me 10 months for the price of 24 and never sent me the paperwork specifically outlining the expiration, but shortly after I owned teh vehicle I figured it out on my own.) Called BS and worked with the GM to get things resolved. But it was stressful, not the way buying a luxury vehicle from a "great" dealership should be... After being out of car buying for a long time, I made some initial rookie mistakes. Some of those were assuming that buying from such a high-end/highly rated dealer provided more safety than it did. Also that I was protected through the CPO process and took an independent evaluation of the vehicle for granted. (Which you may still want to consider here) But after some unwarranted stress and aggravation, I ended up getting what is hopefully a great vehicle with some great coverage. Hope that helps a bit. Good luck! |
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04-16-2021, 12:01 PM | #5 |
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Thanks for the info. We ordered the car the way we wanted it so it fits that criteria. When the lease is up it will have 30K and is in great condition. We wrapped the entire front and the bottom of the doors and the rockers to protect against the sand blasting that others have experienced. I think that used prices right now are probably a little above my residual so I might have to deal with BMWFS. I will try to contact BMW NA about a warranty. If anyone has a phone number thanks in advance.
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04-16-2021, 12:20 PM | #6 | |
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Here is their information: BMW of North America, LLC 300 Chestnut Ridge Road Woodcliff Lake, NJ 07677-7731 Customer Relations 1-800-831-1117 Hours of Operation Monday - Thursday 9:00 AM - 9:00 PM ET Friday: 9:00 AM - 6:00 PM ET |
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04-16-2021, 03:07 PM | #7 |
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I will echo the sentiment about 3rd party service contracts - some, if not many of them can be hell to work with. The local dealership called about "extending the warranty" on my wife's X3 (less than 2 years old, less than 10K miles) and I thought he was talking about CPO-ing the vehicle, so I called him back and he sent over all of this garbage for a completely separate company the dealership (well, the guy that owns the dealer flags at several dealerships) that has horrible reviews online.
Fortunately, one of my largest clients is an auto finance group and they said this specific company is garbage and that their asset recovery group is always battling them over something. If you are offered and do consider a 3rd party service agreement, do your homework.
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04-16-2021, 07:24 PM | #8 |
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So thanks for all the input. I called both BMWFS and BMWNA and found out:
1. BMW CPO is only available to second owners. If you buy off lease no go 2. BMW offers third party warranties using Assurant (?) but you have to go through dealers to buy the warranty not direct with BMWFS or NA 3. BMWFS no longer offers dealers a discount off the residual to resell to the original lessor. So right now I am thinking that I will buy directly from BMWFS and price a third party warranty from Fidelity. They seem to have a good reputation. |
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04-16-2021, 07:31 PM | #9 |
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Yes, buy directly from BMW. I suggest you finance through your credit union, most will match BMWFS rate, and they often offer the most comprehensive extended service contract (warranty) at the lowest price. Keep in mind that you can extend your warranty up until your factory warranty expires. You do not need it now, so don’t spend the money now.
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04-17-2021, 01:16 PM | #10 |
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Here are a few specials for you to look at. I've actually had my last three BMW's financed through BMWFS and have had no problem and even easier to deal with if trading your previous BMW in for a new one.
https://www.bmwusa.com/certified-pre...al-offers.html
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04-17-2021, 11:26 PM | #11 | |
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Your dealer is essentially doing an in and out. Technically when you buy your lease you are buying it from the original owner - BMW FS as the lessor. You're the lessee and not an owner so you would in fact be the second owner by title. If your dealer is saying they can't do it then ask a different one. BMW of Dallas did mine. You will have to make sure the vehicle will pass the CPO checklist or you'll be spending money getting it in spec. |
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04-29-2021, 10:17 PM | #12 |
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On a lease do u get credit if you’ve used less miles than original lease?
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07-16-2021, 10:24 PM | #14 | |
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And I wasn’t talking to the dealer, I was talking to BMWFS |
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