I am approaching the end of my lease contract on my '21 BMW X3 M40i. I would like to purchase a vehicle (but not this particular car). If there is a spread between my buyout cost and the current retail pricing for comparably equipped M40i’s with similar mileage, can I negotiate a lower purchase price on my next vehicle based on my willingness to turn in my lease with a given dealer? Asked another way - does the desirability of my M40i create purchase leverage with a given dealer? It seems to me they get a desirable vehicle to flip AND move a vehicle on their lot. Thoughts?
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If you are trading in your car, no. You can negotiate a value of a higher trade in value for the car going back, but not for the car you are buying.
BMWs have a little gotcha where if the dealer grounds your car, they can possibly buy it lower, but that’s all their profit and they will not share it with you, and grounding would make you incur a bunch of turn in fees.
Did you mean to reply “no” to both grounding AND trading in?
I’m not following… If they plan to price my turn in at 40k and they can buy it for LESS than 33, that not desireable enough for them to discount a unit they are trying to move?
No, why should they give you any profit they make? They just take it and keep it, not pass it on to the guy who enabled them to make it. PS There is zero public documentation that says they bought it for lower, so they don’t have to pass it to you.
If it was a trade in, all is above board as all paperwork is filled out and your trade is mentioned.
No idea, it has been mentioned here a few times that BMW has such a policy but I don’t know if any other bank has that.
If you truly believe you can sell your X3 for more than what the buyout currently shows on BMWFS’ website… You could go a round-about way to tap that equity.
There’s a 60 day rollover ‘loan’ you can borrow from yourself. Basically you can take cash out of a retirement account (roth, 401k, similar). You have 60 days to put that cash back into a new retirement account to avoid the early withdrawal penalty. So you lose on the opportunity cost of what that cash could have returned, but you pay no interest or fees.
You can take that cash, and pay BMWFS to get your vehicle free and clear. The actual title should arrive in a few weeks, at which point you sell your car to whoever. Once the cash settles on your sale, you put it back in the same account (or another qualifying retirement account).
If you don’t think 60 days is enough time to turn over the car, then I guess this option won’t work for you.
