Is BMW inflating 'buy out' amounts?

Hi All,

I negotiated down a 2020 BMW m550i last year for $72,000. From there, I’ve paid down 14 payments of 879.

With the pandemic, I’ve driven 3200 miles. Essentially, the car is brand new. I went to Vroom and got a price of $63,500 for it. The remaining cost on the car is $59,960. I figured, I don’t really need this anymore, so I’ll go pocket the difference. BMW wants $66500 for a buyout now.

Anyway, is this to be expected? It feels like used cars are doing very well, and M550is are hard(er) to find, but BMW is jacking up the buyout price.

Am I wrong?

Thanks everyone!

What is your residual value plus the sum of your remaining payments less the rent charge?

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Rent charge is $6,071.31,
Residual is $46,587.
With AZ tax, payment is $955.
Without: 879
Non tax: 22 months left, $19,352
With tax: 22 months left, $21,010.

Rent + Payments 65,939.52

So, it’s 59,868.

They can’t inflate a buyout amount. They’re contractually obligated to what is in your contract. Obviously that would need adjusted due to trying to sell early. Legally though, they can’t inflate anything after the contract is signed.

That’s not how that math works… you don’t subtract the entire rent charge. You want to know the monthly payment before the monthly rent charge.

Your monthly rent charge is 6071/36=167

So your base monthly payment is 879-167=712

So your buy out is approximately 22x712+46587=62251

Add in sales tax and I bet you’ll find yourself right at about the number they quoted you.


And did you count the first month’s payment (made at drive off)? So you could have already made 1+14 mths worth of payments

I think the math is starring at me in the face on this one -_-. I had $0 down on this deal.

Is this a high rent fee?

Anyway, thanks for all the help so far.

What was the mf on your lease?

I forgot the MF now. Looking online, it states you can back into the MF, and I got

sum of monthly fees/((lease price + residual) * lease term).

This comes out to 31667.76 (line G - total of base monthly payments) /(72183 (line C) - adjusted cap cost+46587(line D - residual)*36) = .007 *2400 or 16.8%. Which seems incredibly high. My math is probably wrong though.

that is not the correct equation

MF=(monthly rent charge)/(adjusted cap cost+residual value)


MF=(Total rent charge/number of periods)/(adjusted cap cost+residual value)

I’d just check your lease payoff on BMW FS website/the BMW Connected app. Plus disposition fee (I think).