Near lease end for 2020 X5. Went into dealer to look at options. Right off the bat, salesman say with such a low mileage car. I’m better off buying out the car as the newer model is essentially the same car. Payments was going to be almost double.
What was intriguing was the option salesman purpose. He said dealer can payoff BMWFS ($40K) and sell the car back to me for $40K + $595 service fee. Car would be inspected, prepped and sell back to me as a CPO. On top of that, I qualify for APR -1% on the finance.
I was wondering if anyone ever heard of this scenario before and I’m thinking what is the catch as it seems way too much work to make $595 from the dealer’s point of view.
im not sure what the CPO entails, but if increase time of warranty, it maybe worth the 600 bucks… I assume the dealer gets financing kick back or something else.
What’s your payoff amount from BMW?
What’s the car worth if you plug the VIN into Carmax, Carvana, GMTV, etc.
The market is cooling, you won’t get another lease deal for a while.
I was under the impression that if you turned the lease in BMWFS wouldn’t let you purchase the same vehicle from the dealer? Maybe this scenario is different because the dealer is purchasing and then selling to you.
In any case, figure out how much you could get if you purchased and then sold the car. You could take the proceeds and use it to purchase something else that would be a 2023 MY.
What if after you sell it to them, the CPO process involves buying tires, brakes, etc, the dealer isn’t just going to eat that.
I would get everything in writing to prevent the slightest chance of shenanigans. Otherwise, CPO would get you an extra year of factory warranty + unlimited miles. It’s a win in my books for $600.
So I only have about 11K mileage on the car. Barely drive it. My payoff is about 40K+/- a few hundred. 2023 MY is really the same car (at least to me). Just glancing thru CPO inventory similar car listed for low 60Ks. So I figure a conservative estimate would be 8-10K equity. If I buy it out, I would get extended warranty from BMW service as I have friends that skim on the warranty and regret it after the first repair (cost more than the extended warranty).
Dealer didn’t give me what the rate is as it was a very high level discussion. He mentioned everything would be written down on the sell back to me, price, etc… I agree the $600 is a good deal but I still question why would a dealer go thru all that paperwork, inspection, etc… for $600 bucks. Oh, BTW - dealer is within the 5 boroughs in NYC, hence, my suspicion and want to see if anyone on the forum has come across this before.
Most dealers would charge at least a $600 doc/admin/whatever fee just for the privilege of buying the car out through them. I get this is NY where doc fees are capped but still.
So $600 for a CPO warranty seems like a good deal, although at the end of the day you only get +1 year of warranty AFAIK on a BMW.
I would dig a little deeper on this whole thing to see exactly how much the dealer is going charge.
I think the $595 is their documentation and admin fees. The fee to CPO would be in addition to that.
Last time I asked about getting a BMW CPOed they were asking for $1500. But that’s when they used to offer 2 years additional warranty up to 100K miles total, rather than the current 1 year unlimited miles.
Are you me? Just did the exact same thing but in a different state. 2020 X5 residual was low 40s. Dealer bought out and resold to me in same moment. Didnt get offered it as a CPO which sounds odd but may be dealer or state specific.
What motivated you to do the deal with the dealer vs paying it off yourself? If I’m going to payoff the car, I can use the 595 to get a full detail and inspection and still have money left over. I will certainly buy the additional warranty if I’m going to pay it off as the market will probably change in the next year or so hence reducing the value of the trade.
FL only requires that if the bank doesnt meet certain requirements. Previously, bmwfs has met those requirements in FL. I wonder what has recently changed.
