They’re asking 40K for a 3yr old F3x lease return? Hope someone at the dealer needs a paperweight because that’s all it’s gonna be until they price it appropriately. Folks were getting these off loaner/demo service for the same or less.
I needed a good hearty laugh today! 
Best to update this. Called BMWFS for the final payoff quote to see what December promotions are like. The customer purchase promotion is now $4500, it was $800 last month. So the payoff after using my MSDs from the lease is around $28k. Opinions? I dont think this is bad at all.
Why would you think of the price net of MSDs? That (the MSD) is still cash that can be used on the open market to buy something else.
Hypothetically if you had $50,000 in MSD and the payoff was zero, would you think of it as a free car?
I had an F30 and know how hard it is to find the F31s, let alone one with Msport/EBii regardless of engine. It sounds like you know it’s a hard spec to find and if there is an additional incentive then that’s probably your best bet. Maybe see if you can negotiate CPO status on top?
It sounds like you love the car and giving it up isn’t an option, so in that case the cost difference is probably worth it for the rarity. You may have decent resale value on it down the line only because it’s an enthusiasts spec. I saw a few on Bimmerpost over the years used and they always seemed to fetch close to their asking price if in good shape.
I have the option to use the MSDs for the payoff or just outright get it back. It amounts to $3500, so if I keep the MSDs the payoff is around $31K.
I was always planning to throw the MSDs into the payoff since the money was already with BMW and I kinda wrote off that sum when I parted ways with it. Getting the MSDs back would be a plus though, but would add about $60/month to my loan payments.
I finally bought out my lease as a CPO
What I ended up doing was extending my lease by two months, which the terms are very flexible. I already made 1 of the 2 extra lease payments when I CPO the car. I ended up with a slightly lower residual as a result, the remaining payment was forgiven and not part of the payoff.
After doing the math, the 0.99% @ 48 months from BMWFS and added cost of CPO-ing the car was a wash with the 2.74% from my credit union. I shopped around several dealers for the lowest CPO cost and eventually went with Jon Shafer at BMW Santa Maria, who initially leased me this car. In the end, here is how my deal looked:
Residual: $35521
Discounts: $4500 (Customer Purchase Promo), $500 (BMWFS CPO Loyalty), $3500 (MSDs)
CPO Cost: $1595
Final price out the door was about $31k. The CPO inspection was clean, nothing required reconditioning. Whole process including paperwork took only 2-3 hours. Decided to hold off on getting the extended warranty for a couple months, while I sort out some other stuff.
capt_slow, Where did the 4500 come from?
Also what is “household?” Say I turn my car back in, wait for it to hit lot, give my father the cash to buy and he gifts back to me? Seems like a lot of trouble except in Sept. I’m turning in highly optioned 2017 750 with residual ~ 61k. I am seeing similar on dealer lots for low 50s and dropping. I keep thinking of the 2014 750 I turned in, residual ~50k, watched as it sat on dealer lot where last price 40k before disappeared and after watching thought I would rebuy my 2017. 10k discount, CPO, new tires and detailed is fantastic! Not to be! What seems dumb about this, is that where I live (sf Bay Area) there are so many other low miles off lease 750 that I could buy.
$4500 was the incentive BMWFS provided to the lessee to keep the car. I think for 3-series it jumped to $6000 now because of COVID.
Household means anyone residing in the same address. All 7 series currently have a $12k lease-end purchase incentive. But you wont know if you get it until month of your lease end.
https://www.bimmerfest.com/forums/showpost.php?p=13351193&postcount=5
revival. Do you happen to know if BMW is still incentivizing lease buy-out? thx
Not a chance with the way the used market currently is
Good point. I am approaching lease end and want to buy my vehicle but it’s worth less than residual because of some carfax blemishes.
What I find interesting is that BMWFS is obstructing me from returning my vehicle and buying it back later for less than residual value. Dealers won’t even talk to me. Dealers are depriving former lessees the right to fair marketplace negotiation. It’s not discrimination but it seems like a borderline consumer rights violation.
Why would you buy a car with a dirty Carfax? And pay more than its worth on top of that?
Bmwfs does not allow any dealer to sell a lease to the original lessee for under rv to keep dealers from cutting them out. You have a contractually preset purchase price.
I assume you’d have no problem with bmwfs getting to the end of the lease and raising your rv to market value for their right to fair marketplace negotiation?
Simple. I would buy it because I know the vehicle history and the quality of the repair where a third party with no familiarity would expect a large discount for the carfax taint. BMWFS would be better off selling the car to me at a modest discount to residual versus selling it at action for a significant discount.
Doubt there’s a team at FS tasked with running carfaxes and valuing cars individually. When the entire market needed an adjustment, that’s a different story.
Same thing will happen when you eventually go to resell or trade it.
Running into a similar situation with my M3 lease return- the inflated MSRP means a really inflated RV.
Interestingly, last month there was a minimal (2-$300) discount in my payoff quote and this month there is nothing. The used car market is absolutely INSANE right now.
If you take a look at bimmerfest posts, BMW FS was giving people 3 to 7.5k off of their RV last year during pandemic up until ~ Sept/Oct. Unfortunately for us who are at lease end nowadays, the market favors the seller and so they don’t have a good reason to discount off contracted RV 
I’d try to see if I can extend the lease and maybe the market will get around.
If you think the market will soften as i do then consider asking FS for a lease extension. I hear they will extend 3 months as of right on the same terms eith prorated miles. Perhaps their buyout offers will improve by then. Fwiw, I am also in an m3 comp. But for my unfortunate carfax blemishes, there would be equity in my lease…the residual is 55k but its a unicorn spec - 6mt, carbon slicktop, m performance exhaust, extended leather, exec, carbon exterior and only 15k miles. This is why I am tempted to keep it. I just need a little feel good incentive from FS.
Blockquote You have a contractually preset purchase price.
The present contractual price is not applicable. Once the lease expires, neither me nor BMWFS have any further obligation to one another with respect to the lease agreement. BMWFS’ work around is to penalize dealers from selling me back the car below RV (below). Just pointing out that BMWFS could make more money by selling me the car vs. selling it at auction. The business of leasing is really fascinating to me, especially the calculus of setting of RV’s.
You don’t, but the dealer does have contractual obligations with the bank.
Any Joe Schmo can walk in off the street to purchase my off-lease vehicle below RV whereas I cannot do that despite having fulfilled the terms of my lease agreement. I am at an unfair disadvantage because of the policy. This bothers me more than it should.
