[mjr24]

Originally Posted by Merami fan

For a dealer buyout, MSDs can be applied towards the buyout balance or mailed to you as a check from BMWFS once everything is settled. The dealer should have asked you which option you wanted (no form?).

Dealers can also get incentivized residuals from BMWFS, so that explains the extra $6k. Talk to the dealer and figure out how much you would get in addition to the MSDs.

Whatever the case, take your equity as a check and work out the numbers for the new car separately, if applicable.

See above.

Thanks guys.

[xlover]

Originally Posted by mjr24

Thanks guys.

I think one of the keys you are missing here is bmwfs banned third party buyouts…. but not for bmw dealers. The 3rd party buyout ban is to actually help bmw dealers. It ensures they have priority access to used inventory and keep customers within the brand.

Which is why the dealer has access to a better buyout price

[SpeedyATL]

Originally Posted by xlover

I think one of the keys you are missing here is bmwfs banned third party buyouts…. but not for bmw dealers. The 3rd party buyout ban is to actually help bmw dealers. It ensures they have priority access to used inventory and keep customers within the brand.

Which is why the dealer has access to a better buyout price

Interesting. Is there any way to determine what that discounted amount might be?

My dealer has agreed to a fixed trade amount for my lease trade which will be netted against my buyout to determine the equity in my trade. If MY buyout from FS is $33k, but the dealer can buy it for $31k, I'd like to know that, even if I can't capture any portion of it. That would give me a little more negotiating power if needed when the numbers are finalized.

[xlover]

Originally Posted by SpeedyATL

Interesting. Is there any way to determine what that discounted amount might be?

My dealer has agreed to a fixed trade amount for my lease trade which will be netted against my buyout to determine the equity in my trade. If MY buyout from FS is $33k, but the dealer can buy it for $31k, I'd like to know that, even if I can't capture any portion of it. That would give me a little more negotiating power if needed when the numbers are finalized.

in this market the "better" buyout price is probably the lessee's lease buyout number (residual + remaining payments without interest).

In normal times the BMW dealer often had access to a price around actual market price which was below the contracted residual, to encourage the dealer to retain the vehicle in inventory vs sending it off to the auction block at BMWFS expense. Once upon a time this allowed ppl to buyout leases by having the dealer buy it out at their price then flip it back to the same customer at a price slightly above the dealer number but lower than the contract residual.

However I know of no way to access what that number is other than dealer honesty.

My opinion is: a negotiation on a lease buyout focused on 1)what price will you give me for my vehicle, 2) what is the buyout price you have access to, my buyout is x 3) price for vehicle - buyout = the check you cut to me or the amount applied to trade in
using that process at a few different dealers should net one of them bidding into that lower number if it does still exist in this market