[AudiA4]

I would like some advise on whether or not purchasing my car at the end of its lease (2 months) would be a good deal given the current offers from two dealers...car specifications below:

2014 335i
Estoril Blue
Manual Transmission

M Sport
Premium
Technology
Dynamic Handling
Cold Weather
M Sport Brakes
M Performance Exhaust
HK Audio
19" 403M wheels
Trunk Spoiler

Mileage (EOL): 45,000
Residual: ± $34,000

I've had two dealers say they would sell it to me WITH CPO for the stated residual amount from BMWFS, or ±$1,300 less without CPO.

I assumed this lease from another individual about a year ago. On the one hand, the residual seems pretty decent compared to market value (lease payments were fairly high, so more has been paid down). On the other hand, I've found quite a few "equivalent" equipped cars with half the mileage at or just above the residual for my car.

Thoughts about the market value vs. offers from the dealers?

In your experience, should I be getting a better deal from the dealers given the cost they can purchase the vehicle from BMWFS? Should I seek offers from additional dealers? I expected a better deal/more of a difference from the residual.

My main beef is with the mileage...I'm less inclined to purchase a used car at that price with this high a mileage - I could be swayed with a better price point.

Thanks for any input.

[Portimao Blues]

Your timing is perfect...I just had someone at a dealership look up my car's trade-in value and was told it was about $34,000. I have a 2014 335i xDrive with the M-Sport package and 28,000 miles (you can see my options in my signature). With the additional mileage you have, I would think $30,000 to $32,000 would be a fair price.

[adhrp]

I don't know much about leases, but paying the residual even with CPO doesn't sound like a good deal to me. Personally, I would accept the deal only with another 2k less. With what you said comparably equipped cars with lesser mileage are going for, the market is speaking for itself.

[AudiA4]

Thanks guys. I don't know a lot about leasing either. I was just looking for a lightly used, low mileage 2014 model last year, found one that I liked and discovered that it was much simpler to assume the previous owner's lease for the year remaining than to buy it outright.

It is interesting because it essentially gave me a year to try out the car. I love everything about it compared to my E90 except the steering/handling, so the price isn't the only thing that gives me pause.

[Herakles]

Originally Posted by AudiA4

Thanks guys. I don't know a lot about leasing either. I was just looking for a lightly used, low mileage 2014 model last year, found one that I liked and discovered that it was much simpler to assume the previous owner's lease for the year remaining than to buy it outright.

It is interesting because it essentially gave me a year to try out the car. I love everything about it compared to my E90 except the steering/handling, so the price isn't the only thing that gives me pause.

Even with the dhp you still miss how your e90 steering and handling felt?


I'm looking at 2014 335xdrove now and hard to find a low mileage one for under 40k especially with all your options.. Hard to find one with dhp

[adhrp]

Originally Posted by AudiA4

I love everything about it compared to my E90 except the steering/handling, so the price isn't the only thing that gives me pause.

One other thing I forgot to mention in my earlier post is that apart from the price ($2k off isn't huge anyway), a more important factor is that you have experienced the car and you love it and know that it is problem-free (I'm guessing). That has a lot of value over another car in the market that may or may not turn out to be as great. Something to keep in mind when making your decision.

[goj]

Why not try out a different brand if you're unhappy with the drive, change it up..I bet you could get a great deal on an IS or an ATS

[roll_the_dice]

I have been looking for an F30 over the last month, would have loved to get a 335, but was out of my price range for what I wanted to spend at the moment. With that said, I think the only thing that hurts you is the mileage...so I would look elsewhere for a lower mileage 335 if that is how you want to go. It also depend how many of those miles you put onit yourself...if 20k then you know the car and CPO would give you an additional 55k miles... When I was looking most 335 were going for $32-38k depending on mileage and options...even saw high mileage for around $30k. I would opt for lower mileage unless you got a killer deal....

I opted for a higher mileage 38k 2013 328i Msport for a great deal ($26k) with the options I wanted and CPO for another 3+ years/100k miles. i pick it up tomorrow.

[RPM90]

Originally Posted by AudiA4

I would like some advise on whether or not purchasing my car at the end of its lease (2 months) would be a good deal given the current offers from two dealers...car specifications below:

2014 335i
Estoril Blue
Manual Transmission

M Sport
Premium
Technology
Dynamic Handling
Cold Weather
M Sport Brakes
M Performance Exhaust
HK Audio
19" 403M wheels
Trunk Spoiler

Mileage (EOL): 45,000
Residual: ± $34,000

I've had two dealers say they would sell it to me WITH CPO for the stated residual amount from BMWFS, or ±$1,300 less without CPO.

I assumed this lease from another individual about a year ago. On the one hand, the residual seems pretty decent compared to market value (lease payments were fairly high, so more has been paid down). On the other hand, I've found quite a few "equivalent" equipped cars with half the mileage at or just above the residual for my car.

Thoughts about the market value vs. offers from the dealers?

In your experience, should I be getting a better deal from the dealers given the cost they can purchase the vehicle from BMWFS? Should I seek offers from additional dealers? I expected a better deal/more of a difference from the residual.

My main beef is with the mileage...I'm less inclined to purchase a used car at that price with this high a mileage - I could be swayed with a better price point.

Thanks for any input.

You can negotiate the selling price with your dealer.
If they don't buy the car from BMW, then the car goes to auction.
BMW gives them a price, which will be a bit higher than what the average selling price at auction will be, so it will be above wholesale.
But, it won't be anywhere near retail as there needs to be an incentive for the dealer to buy it and risk that it will sit on the lot, meaning tied up dealer owner money.
In a lease return purchase, the dealer knows the sale is good, so she/he knows if they buy the car from BMW it will be sold right away.
I would negotiate starting at $3K less than what they are offering you with CPO included.
Of course they will balk and sell you on how much it costs to get CPO.
However, CPO costs the dealer MUCH less than what a customer gets charged. The dealer thus wants a profit on selling the car and on the CPO.
Your best deal is to find where the tipping point is, where the dealer makes enough profit for his time to sell the leased car, vs your willingness to give him that amount.
When both of you feel that you could have done better, then that's when it's a good deal for both of you.
I wish I knew what the amount is exactly.

To know how much any car worth you should look up the trade-in and dealer selling prices, that you can find on various internet sites.
You will then know what cars like yours are trading for and selling for in your area. Then you'll know if the offer made to you is worth it.

45K miles seems a bit high, but again that needs to be taken into consideration when looking up the value.
The average car is about 12K miles per year. 10K per year will get a slight premium in value, and 15K may get a bit lower price.
Also, the CPO is good for 6yrs/100k miles from the cars initial date of service.
If the car was put in service in 2013, then you have 6yrs from that date.
As the car has 45k miles, then you'll have 55K miles left on the warranty.
It's important to know the in-service date for that reason.

My last two 3 series were both leased in the year prior to their model year.
I leased my 2013 335i in August of 2012, and my 2016 340i in Sept. 2015.
This can hurt in terms of mileage for the given model year because I am putting on miles before the actual year of the model year begins.
For a Sept 2015 lease of a 2016 model year, that's 5 months of mileage before 2016 comes.
So, by the anniversary date of the model year, which is September, 2017 I have driven the car for 1 year and 5 months.
If I drive the average of 12K per year, a 2016 model year car should only have about 12K miles on it's first year. But in my case the car will have 17K miles because it was put into service in 2015.
That can negatively impact the resell price by showing the car to have higher than normal mileage.

So, in your case you have a 2014 model year car with 45K miles, and by actual date the car is only 2 years old.
This will show the mileage as being high, or over the average.
For a 2 year old car the average mileage should be 24K or even 30K.
45K is thus a lot and will bring the resell price down.
I would take that into consideration if you decide to buy the car.
I would use that to your advantage to bring the price down, because, if you decide to sell it 2 years from now that mileage issue will devalue your then resale value.

[tex2670]

Originally Posted by AudiA4

I would like some advise on whether or not purchasing my car at the end of its lease (2 months) would be a good deal given the current offers from two dealers...car specifications below:

2014 335i
Estoril Blue
Manual Transmission

M Sport
Premium
Technology
Dynamic Handling
Cold Weather
M Sport Brakes
M Performance Exhaust
HK Audio
19" 403M wheels
Trunk Spoiler

Mileage (EOL): 45,000
Residual: ± $34,000

I've had two dealers say they would sell it to me WITH CPO for the stated residual amount from BMWFS, or ±$1,300 less without CPO.

I assumed this lease from another individual about a year ago. On the one hand, the residual seems pretty decent compared to market value (lease payments were fairly high, so more has been paid down). On the other hand, I've found quite a few "equivalent" equipped cars with half the mileage at or just above the residual for my car.

Thoughts about the market value vs. offers from the dealers?

In your experience, should I be getting a better deal from the dealers given the cost they can purchase the vehicle from BMWFS? Should I seek offers from additional dealers? I expected a better deal/more of a difference from the residual.

My main beef is with the mileage...I'm less inclined to purchase a used car at that price with this high a mileage - I could be swayed with a better price point.

Thanks for any input.

Isn't the baseline question "Do I want to continue to own this car?" Even if you could find the same car for $2,000 less, you still have to go through the exercise of searching and finding it--with all the features and color combo you want. Of course it's worth it to try and negotiate with the dealer to try and get them down, if you can. But to go out and find another CPO/used, with the mileage and features you want, owned by another unknown person--to me, that's worth that extra $2,000 not to have to deal with all that.

BUT--on the opposite end, if you are just buying it out because you don't want to have to look for another car, and you don't love it, I wouldn't do it.

[mbanks21]

I'm going to be in this boat next year. I know there's benefits to the fact that I've owned the car and know about the maint and how it has been driven. I love this F-ing car (especially with the JB4 and DP!) but if the $$ doesn't make sense then it doesn't make sense.

[AudiA4]

Originally Posted by mbanks21

I'm going to be in this boat next year. I know there's benefits to the fact that I've owned the car and know about the maint and how it has been driven. I love this F-ing car (especially with the JB4 and DP!) but if the $$ doesn't make sense then it doesn't make sense.

Agreed...I'll have to make the "subjective" decision about my affinity for the car on my own. I was primarily asking what you guys thought about the "objective" financial position of the offer versus model/equipment/miles. On that basis, my personal take and it seems the general take of those commenting is that it is a fair residual/purchase amount...with perhaps some margin for getting a little better deal.

I think this contrasts with what a lot of people end up doing, which is getting a great lease deal that's so good that the residual is unrealistic at the end of the lease. I don't think I'm in that position, so the option to purchase the vehicle is a viable financial consideration. Am I accurately summarizing the general sentiment here?

[Herakles]

I see you have m sport brakes - is this option if you notice the front calipers read BMW on them?

The 2024 I'm looking at has 20k miles and doesn't have adaptive bit has your other options - looking at 38k after some negotiating a little...

http://www.bmwofturnersville.com/det...-15199968.html

What are you looking at to buy yours ?didnyou really like the car?

[tturedraider]

Use this http://www.txdmv.gov/spv-calculator to get an idea of fair market value.

[AudiA4]

Originally Posted by tturedraider

Use this http://www.txdmv.gov/spv-calculator to get an idea of fair market value.

Fair market value or wholesale number? I haven't found any on the market for anywhere near that low of a number.

[tturedraider]

Originally Posted by AudiA4

Fair market value or wholesale number? I haven't found any on the market for anywhere near that low of a number.

Probably more wholesale. They're kind of vague on the description. That's probably pretty close to what BMWFS will offer the car for to your dealer.

[AudiA4]

Originally Posted by tturedraider

Probably more wholesale. They're kind of vague on the description. That's probably pretty close to what BMWFS will offer the car for to your dealer.

Got it...that's what I assumed as well. Thanks!

[tturedraider]

Originally Posted by AudiA4

Got it...that's what I assumed as well. Thanks!

Just curious, what value did it give you for your car? I imagine it was quite a bit lower than the residual or what the dealer has offered so far.

[CalCarNut]

Originally Posted by RPM90

You can negotiate the selling price with your dealer.
If they don't buy the car from BMW, then the car goes to auction.
BMW gives them a price, which will be a bit higher than what the average selling price at auction will be, so it will be above wholesale.
But, it won't be anywhere near retail as there needs to be an incentive for the dealer to buy it and risk that it will sit on the lot, meaning tied up dealer owner money.
In a lease return purchase, the dealer knows the sale is good, so she/he knows if they buy the car from BMW it will be sold right away.
I would negotiate starting at $3K less than what they are offering you with CPO included.
Of course they will balk and sell you on how much it costs to get CPO.
However, CPO costs the dealer MUCH less than what a customer gets charged. The dealer thus wants a profit on selling the car and on the CPO.
Your best deal is to find where the tipping point is, where the dealer makes enough profit for his time to sell the leased car, vs your willingness to give him that amount.
When both of you feel that you could have done better, then that's when it's a good deal for both of you.
I wish I knew what the amount is exactly.

To know how much any car worth you should look up the trade-in and dealer selling prices, that you can find on various internet sites.
You will then know what cars like yours are trading for and selling for in your area. Then you'll know if the offer made to you is worth it.

45K miles seems a bit high, but again that needs to be taken into consideration when looking up the value.
The average car is about 12K miles per year. 10K per year will get a slight premium in value, and 15K may get a bit lower price.
Also, the CPO is good for 6yrs/100k miles from the cars initial date of service.
If the car was put in service in 2013, then you have 6yrs from that date.
As the car has 45k miles, then you'll have 55K miles left on the warranty.
It's important to know the in-service date for that reason.

My last two 3 series were both leased in the year prior to their model year.
I leased my 2013 335i in August of 2012, and my 2016 340i in Sept. 2015.
This can hurt in terms of mileage for the given model year because I am putting on miles before the actual year of the model year begins.
For a Sept 2015 lease of a 2016 model year, that's 5 months of mileage before 2016 comes.
So, by the anniversary date of the model year, which is September, 2017 I have driven the car for 1 year and 5 months.
If I drive the average of 12K per year, a 2016 model year car should only have about 12K miles on it's first year. But in my case the car will have 17K miles because it was put into service in 2015.
That can negatively impact the resell price by showing the car to have higher than normal mileage.

So, in your case you have a 2014 model year car with 45K miles, and by actual date the car is only 2 years old.
This will show the mileage as being high, or over the average.
For a 2 year old car the average mileage should be 24K or even 30K.
45K is thus a lot and will bring the resell price down.
I would take that into consideration if you decide to buy the car.
I would use that to your advantage to bring the price down, because, if you decide to sell it 2 years from now that mileage issue will devalue your then resale value.

Although with the 2017s rolling out..it in fact is a 3yr old model..so @15Kmiles a year..45k is right there........

[AudiA4]

Originally Posted by CalCarNut

Although with the 2017s rolling out..it in fact is a 3yr old model..so @15Kmiles a year..45k is right there........

Correct. 15,000 miles per year for 3 years is, of course, 45,000 miles.

[AudiA4]

Originally Posted by tturedraider

Just curious, what value did it give you for your car? I imagine it was quite a bit lower than the residual or what the dealer has offered so far.

$27,400.

If that were close to their cost, I'd be happy to come to an agreement with any dealer for $30,000...maybe $31,000.

[tturedraider]

Originally Posted by AudiA4

$27,400.

If that were close to their cost, I'd be happy to come to an agreement with any dealer for $30,000...maybe $31,000.

I'd say $30k - $32k with CPO would be a good deal.