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Old 06-04-18, 09:20 AM
  #211  
SW17LS
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Originally Posted by joedaddy1 View Post
so that's the dealer making the adjustment.. They are not negotiating the residual, they are negotiating the buy price when you "re-buy" your car used.
As far as BMW corp is concerned, you returned your lease. When you re-buy, it's with the dealership.

This is different. I wouldn't be surprised if the car is marked as "bought used" with 2 owners on Carfax. Not that it matters to the owner.
No. In order to buy out your lease you buy it directly from the finance company. The dealer doesn't do this as a "used sale". When a car is turned into a dealer it belongs to BMW financial, the dealer doesn't keep it automatically, dealers bid on CPO cars through the manufacturer system, so that car might get bought by a dealer in a different state, etc.

Dealers do lease returns and buyouts as a courtesy basically, they don't make much if any money on them.

If you want to buy your Lexus out of the lease, you MUST pay the residual. No negotiation. If you buy your BMW or Mercedes out of the lease you can negotiate the residual with the finance company.

Lease buyouts always show as two owner on a carfax yes.
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Old 06-04-18, 09:24 AM
  #212  
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Originally Posted by SW17LS View Post
No. In order to buy out your lease you buy it directly from the finance company. The dealer doesn't do this as a "used sale". When a car is turned into a dealer it belongs to BMW financial, the dealer doesn't keep it automatically, dealers bid on CPO cars through the manufacturer system, so that car might get bought by a dealer in a different state, etc.

Dealers do lease returns and buyouts as a courtesy basically, they don't make much if any money on them.

If you want to buy your Lexus out of the lease, you MUST pay the residual. No negotiation. If you buy your BMW or Mercedes out of the lease you can negotiate the residual with the finance company.

Lease buyouts always show as two owner on a carfax yes.
I disagree.

BMW Corp will let you buy out at residual only.
The BMW dealer can "buy the car" and then re-sell it to you.

Lexus dealer could do the same. They can buy the returned car instead of sending it to auction and re-sell it to you at a lower price.
Lexus Corp will not.

If Lexus/BMW CORP will do this, NO ONE will buy their car at full price unless it's worth more, which is maybe 1% of the time. If not, everyone will be trading in their leased car before maturity.
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Old 06-04-18, 09:40 AM
  #213  
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Youíre just not correct. I have several colleagues who have leased BMWs and MBs and have leased them out, and their financial arms will negotiate the residual.

Lexus financial will not.

The dealer can take your car in on trade, but they have to pay LFS off at the residual in order to do that, in that situation how can they sell it to you for less than the residual? They canít. Any car they take in as a lease return CANNOT be immediately sold back to you. It must go to the LFS dealer auction and your selling dealer would have to buy it back out of that as the highest bidding dealer.

Ive leased 7 Lexus vehicles, bought two out and explored buying two others out, and I am 110% sure Iím right.
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Old 06-04-18, 09:43 AM
  #214  
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Originally Posted by SW17LS View Post
You’re just not correct. I have several colleagues who have leased BMWs and MBs and have leased them out, and their financial arms will negotiate the residual.

Lexus financial will not.

The dealer can take your car in on trade, but they have to pay LFS off at the residual in order to do that, in that situation how can they sell it to you for less than the residual? They can’t. Any car they take in as a lease return CANNOT be immediately sold back to you. It must go to the LFS dealer auction and your selling dealer would have to buy it back out of that as the highest bidding dealer.

Ive leased 7 Lexus vehicles, bought two out and explored buying two others out, and I am 110% sure I’m right.
let's just say you are correct.

It's just amazing that the shareholders of a multi-billion corporation would let this to happen.

Perhaps things have changed since my last BMW lease.

Lexus financial can't stop a dealer buying the car and then re-selling it to the same customer. The buy-out for the dealer wouldn't be worth it, so they'll send it to auction.
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Old 06-04-18, 09:47 AM
  #215  
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Originally Posted by joedaddy1 View Post
let's just say you are correct.

It's just amazing that the shareholders of a multi-billion corporation would let this to happen.

Perhaps my things have changed since my last BMW lease.

Lexus financial can't stop a dealer buying the car and then re-selling it to the same customer. The buy-out for the dealer wouldn't be worth it, so they'll send it to auction.
Of course Lexus will let the dealer buy the car and sell it to the same customer, but the point is the dealer has to pay LFS the residual to do that. That residual is not negotiable.

With MB and BMW their finance arms will negotiate the residual at lease end, not sure why you think this is so strange. IMHO itís more practical than Lexus policy. If you have a buyer there and can sell the car vs having to go through reconditioning it, auctioning it, transporting it and selling it then why not negotiate it there in the moment?

The finance arm will already take less than the residual when it goes to auction.
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Old 06-04-18, 09:51 AM
  #216  
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Originally Posted by SW17LS View Post


Of course Lexus will let the dealer buy the car and sell it to the same customer, but the point is the dealer has to pay LFS the residual to do that. That residual is not negotiable.

With MB and BMW their finance arms will negotiate the residual at lease end, not sure why you think this is so strange. IMHO it’s more practical than Lexus policy. If you have a buyer there and can sell the car vs having to go through reconditioning it, auctioning it, transporting it and selling it then why not negotiate it there in the moment?

The finance arm will already take less than the residual when it goes to auction.
I disagreed because if you are correct, then 99% of the people returning the lease would negotiate the buy residual, unless their car is worth more than residual.
This also guarantees that 99% of the people will NEVER finance or buy cash a new car. What's the point if you can re-negotiate the price of the car after 3 years?

But anyways.. Let's just say I am wrong. I've been wrong many times on this site alone
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Old 06-04-18, 09:51 AM
  #217  
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Moved the leasing discussion to leasing thread.
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Old 06-04-18, 09:54 AM
  #218  
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Originally Posted by joedaddy1 View Post
I disagreed because 99% of the people returning the lease negotiate the buy residual, unless their car is worth more than residual.
This also guarantees that 99% of the people will NEVER finance or buy cash a new car. What's the point if you can re-negotiate the price of the car after 3 years?

But anyways.. Let's just say I am wrong. I've been wrong many times on this site alone
If you buy a used car you negotiate...not sure how this is any different. If the finance company thinks they can do better selling it at auction they simply wonít accept your offer.

Bottom line if you have a car with a $40k residual and itís worth $30k, the dealer that buys it at auction isnít going to pay more than say $25k. So why wouldnít the finance arm sell it to you for $30k? Itís only practical.
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Old 06-04-18, 09:59 AM
  #219  
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Originally Posted by SW17LS View Post


If you buy a used car you negotiate...not sure how this is any different. If the finance company thinks they can do better selling it at auction they simply wonít accept your offer.

Bottom line if you have a car with a $40k residual and itís worth $30k, the dealer that buys it at auction isnít going to pay more than say $25k. So why wouldnít the finance arm sell it to you for $30k? Itís only practical.
yea. i understand that it's crazy that car companies won't let you re-nego the purchase price at the end. From what I've seen it's a standard practice.
There are some dealers that is willing to do the legwork for you. It's not Lexus or BMW that does it. It's your dealership and/or salesman.
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Old 06-04-18, 10:02 AM
  #220  
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No, itís different policies within the different financing arms. Thereís nothing a Lexus salesman can do to get you your leased car for less than the residual other than to let it go to auction, win the auction and sell it back to you. With BMW and MB they can negotiate directly with their financing arms.
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Old 06-04-18, 10:04 AM
  #221  
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Originally Posted by SW17LS View Post
No, itís different policies within the different financing arms. Thereís nothing a Lexus salesman can do to get you your leased car for less than the residual other than to let it go to auction, win the auction and sell it back to you. With BMW and MB they can negotiate directly with their financing arms.
oh I got it now.. so you are saying:

BMW Corp lets the dealer network buy the car at lower than the residual and re-sell it to you.
Lexus Corp won't even let the dealer network get first pick at the car. Lexus Corp is the Lessee or Auction only, where BMW is Lessee, Dealer, or Auction.
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Old 06-04-18, 03:43 PM
  #222  
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Originally Posted by joedaddy1 View Post
oh I got it now.. so you are saying:

BMW Corp lets the dealer network buy the car at lower than the residual and re-sell it to you.
Lexus Corp won't even let the dealer network get first pick at the car. Lexus Corp is the Lessee or Auction only, where BMW is Lessee, Dealer, or Auction.
Correct...
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Old 07-12-18, 07:25 AM
  #223  
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Originally Posted by DaveGS4 View Post
Guys keep this mature.

There is an old adage about not buying used cars from the North, but as I heard growing up it was more related to rust and underbody issues due to road chemicals, etc from the harsher winters.

A lot of advances have made that much less of a concern over the last 20+ years.
It's a valid concern....anyone who owned a 4th gen Maxima for a long time knows....my 1998, purchased new, had its lower rad support collapse, so that the cross member is detached and now the additional stress is placed on the motor mounts. I distinctly remember the brochure (I have it somehwere) showing the entire body dipped and having superior corrosion protection. Well my car really rusted, and I have often wondered wth did I do wrong (granted I did not wash it all the time once I got the BMW)? When I go up to Toronto, I see Maximas of the same vintage in bad shape. Rust all along the pinch welds, usually the right rear rusted through (additionally the power antenna drain fails here), and often the left front fender rusts out (people often discard the battery sleeve upon battery replacement and now it gasses right there), and I assume they would have the lower rad issue as well. Now look at a CA or AZ car and it experiences none of these issues...well except the rear right 1/4 as water collects..

p.s. thank goodness I met some forum members who fixed me for $130. It's like a $1,700 job at a body shop to do the lower rad support...
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Old 08-11-18, 03:28 PM
  #224  
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haven't ventured into this spirited thread in a while, but this article seemed very relevant.

https://jalopnik.com/these-common-ca...die-1828248263
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Old 10-31-18, 02:45 AM
  #225  
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FastTags, i deleted a ton of the asterisks in your earlier posts that were forcing the page to be super wide. appreciate you skipping that kind of formatting in future posts.
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