Got a call from my local BMW Dealer about selling my car

[wtwo3]

There's not really any point to this thread.... just finally had some free time after an insane couple weeks of work so figured I'd post what's going on in my life.

I got a call from my local BMW dealer about purchasing my leased M340i and getting me into an M3. The value of my car was ~$54k pending inspection, and current lease-buyout is ~$50k (So basically $4k in equity).

My comment was - that's great.... but I'd be getting screwed on the other end due to lack of discount and incentives. M3s are going for MSRP at best right now, with allocations not available till the spring at the earliest, and the only incentive is $500 loyalty.

The sales guy says, "sounds like you want to have your cake and eat it too".

Damn straight.

Anyway, I'll probably just wait till my lease ends in October 2022 and re-evaluate... maybe with hopes that pricing begins to normalize by next summer.... who knows...

[cmyx6go]

Originally Posted by wtwo3

There's not really any point to this thread.... just finally had some free time after an insane couple weeks of work so figured I'd post what's going on in my life.

I got a call from my local BMW dealer about purchasing my leased M340i and getting me into an M3. The value of my car was ~$54k pending inspection, and current lease-buyout is ~$50k (So basically $4k in equity).

My comment was - that's great.... but I'd be getting screwed on the other end due to lack of discount and incentives. M3s are going for MSRP at best right now, with allocations not available till the spring at the earliest, and the only incentive is $500 loyalty.

The sales guy says, "sounds like you want to have your cake and eat it too".

Damn straight.

Anyway, I'll probably just wait till my lease ends in October 2022 and re-evaluate... maybe with hopes that pricing begins to normalize by next summer.... who knows...

AND the residuals plummeted. I went from 58% residual on my 2019 X6M to 51 or 52% on my 2022.

[wtwo3]

Originally Posted by cmyx6go

AND the residuals plummeted. I went from 58% residual on my 2019 X6M to 51 or 52% on my 2022.

Very true.... I'm spoiled by scoring an insane deal on my 3.

$3k in incentives ($1k loyalty and $2k lease cash)
61% residual for 12k miles
10% discount

With the M3 I'd be looking at:
$500 in incentives (loyalty only)
57% residual for 10k miles
0 discount

[Th3Walrus]

Similar.. back in Aug after my final free oil change/service on my 2017 340i Msport 6MT with MPPSK, I got a call from the dealership wanting to buy it back for what I bought it for CPO a year ago.

They had absolutely nothing to offer in return with manual transmission other than an overpriced 2015 M4.

[BRAKE!]

Originally Posted by wtwo3

The sales guy says, "sounds like you want to have your cake and eat it too".

Isn’t that what the sales guy is trying to do too? Seems like they heavily underestimate people’s ability to analyze/negotiate… but then again, it’s a good deal if you can sell your car and not need a replacement

[wtwo3]

Originally Posted by BRAKE!

Isn’t that what the sales guy is trying to do too? Seems like they heavily underestimate people’s ability to analyze/negotiate… but then again, it’s a good deal if you can sell your car and not need a replacement

Well to be fair I think MOST people actually aren't able to analyze/negotiate, especially in the heat of the moment. Most consumers aren't very knowledgeable in this area, and that's how they get taken advantage of.

[vt100]

Originally Posted by Th3Walrus

other than an overpriced 2015 M4.

That at least a good looking vehicle

[SpeedyATL]

Im in the same boat. I don't think prices are going to normalize for a while. The dealers are now hooked on msrp deals and are making a mint in this environment.

So, i took the 4k in equity they offered on my expired.0.45% lease to buy something new. Better to get some equity vs buying out a lease that is $5k under water in a typical market.

Im putting half down and planning to keep the car a little longer so it still feels like a lease from a payment perspective.

We just got an offer on my wife's x3 for 7k over buyout while her 0.8% lease expires in August. Thinking hard about taking it as that plus 2k from penfed and .5k loyalty, 9.5k off a 60k replacement is a solid deal, even in a normal market.

These are strange times, but while the market may or may not normalize soon, rest assured that bmw will continue increasing prices and/or decontenting their offerings to keep up with inflation and lending rates are likely to move up as well.

[wtwo3]

Originally Posted by SpeedyATL

Im in the same boat. I don't think prices are going to normalize for a while. The dealers are now hooked on msrp deals and are making a mint in this environment.

So, i took the 4k in equity they offered on my expired.0.45% lease to buy something new. Better to get some equity vs buying out a lease that is $5k under water in a typical market.

Im putting half down and planning to keep the car a little longer so it still feels like a lease from a payment perspective.

We just got an offer on my wife's x3 for 7k over buyout while her 0.8% lease expires in August. Thinking hard about taking it as that plus 2k from penfed and .5k loyalty, 9.5k off a 60k replacement is a solid deal, even in a normal market.

These are strange times, but while the market may or may not normalize soon, rest assured that bmw will continue increasing prices and/or decontenting their offerings to keep up with inflation and lending rates are likely to move up as well.

I dunno I feel like once demand begins to fizzle out, the prices will begin to normalize as well. Currently there's pent up demand because people weren't buying as many cars in 2020 (supply was equally diminished of course so that's why we didn't see crazy discounts in 2020). So all those people who didn't purchase cars in 2020 are now purchasing cars in 2021 - supply is still low, so dealers have the luxury of charging pretty much what they want.

There's another issue that I'd have to consider. If I order a car now, it'll be several months before it's delivered. That gap in months (where I would need to keep my car because.... I need a car) would expose me to risk. If I get into a car accident between now and when I'm supposed to take delivery of the new car, even a fender bender, that'll diminish the resale value of the car. I have PTSD because this exact scenario happened when we had ordered our X5... literally a month before delivery my wife got into a fender bender in the RX and that knocked $1k off the resale value.

[tracer bullet]

Originally Posted by wtwo3

The sales guy says, "sounds like you want to have your cake and eat it too".

I hope he was trying to be funny when he said it? I'd have probably given him the verbal version of the middle finger - "Well, you're the one who called me, you A-hole".

[wtwo3]

Originally Posted by tracer bullet

I hope he was trying to be funny when he said it? I'd have probably given him the verbal version of the middle finger - "Well, you're the one who called me, you A-hole".

He was generally a nice guy so I didn't really respond to that comment.. but yeah....

[vdeebz64]

Good for you for not falling for that. You have the leverage!

[barcelona]

Originally Posted by BRAKE!

Isn’t that what the sales guy is trying to do too? Seems like they heavily underestimate people’s ability to analyze/negotiate… but then again, it’s a good deal if you can sell your car and not need a replacement

Good point.
Or in my case, from 2 to 1 car. Traded in x3 and x6 for new x3.

[barcelona]

Originally Posted by wtwo3

I dunno I feel like once demand begins to fizzle out, the prices will begin to normalize as well. Currently there's pent up demand because people weren't buying as many cars in 2020 (supply was equally diminished of course so that's why we didn't see crazy discounts in 2020). So all those people who didn't purchase cars in 2020 are now purchasing cars in 2021 - supply is still low, so dealers have the luxury of charging pretty much what they want.

There's another issue that I'd have to consider. If I order a car now, it'll be several months before it's delivered. That gap in months (where I would need to keep my car because.... I need a car) would expose me to risk. If I get into a car accident between now and when I'm supposed to take delivery of the new car, even a fender bender, that'll diminish the resale value of the car. I have PTSD because this exact scenario happened when we had ordered our X5... literally a month before delivery my wife got into a fender bender in the RX and that knocked $1k off the resale value.

Hope your wife is ok. Stressful even on benders. $1k for a bender seems a lot. My dealer keeps saying for all my traders don't drive much, lol. An accident will reduce value by 30%. The beauty of leasing.

My insurer use to offer 5 yr replacement cost insurance. Now only three years.

[wtwo3]

Originally Posted by barcelona

Hope your wife is ok. Stressful even on benders. $1k for a bender seems a lot. My dealer keeps saying for all my traders don't drive much, lol. An accident will reduce value by 30%. The beauty of leasing.

My insurer use to offer 5 yr replacement cost insurance. Now only three years.

Wish we had the option of not driving it much. But yeah definitely the beauty of leasing... drive it risk free.

I think I'll most likely hold on to both cars till end of lease... have about 10 months to go on both.

[ashmostro]

Originally Posted by wtwo3

The sales guy says, "sounds like you want to have your cake and eat it too".

That just pisses me off. My response would be “Hey you called me, asshole.”

[RPM33]

I received a call from my dealer about another customer wanting to buy my M2 CS. I declined to enter negotiations.

Problem is that I want a GT3, GT4 RS, or even upcoming GT3 RS but can’t get an allocation for any of them. Considering keeping M2 CS and saving up for a 992 911 Turbo S or even M4 CSL.

[wtwo3]

Originally Posted by RPM33

I received a call from my dealer about another customer wanting to buy my M2 CS. I declined to enter negotiations.

Problem is that I want a GT3, GT4 RS, or even upcoming GT3 RS but can’t get an allocation for any of them. Considering keeping M2 CS and saving up for a 992 911 Turbo S or even M4 CSL.

Do you have any other P-cars in your garage? I think Porsche is going the way of Ferrari in requiring you to have ownership history to qualify for GT3/GT4RS/GT3RS. Otherwise you won't have a prayer of a chance to get an allocation.

[RPM33]

Originally Posted by wtwo3

Do you have any other P-cars in your garage? I think Porsche is going the way of Ferrari in requiring you to have ownership history to qualify for GT3/GT4RS/GT3RS. Otherwise you won't have a prayer of a chance to get an allocation.

Unfortunately I have never bought a Porsche car before. Yes you are right my chances to get a GT3/GT3 RS/GT4 RS allocation are slim and none.

Which is why I’m considering a 992 911 Turbo S, 992 911 GTS, or even M4 CSL. I’m afraid of giving up my M2 CS so will look to add to M2 CS. Let me know what car you think makes the most sense. I think Turbo S may be closest to GT cars. However, Turbo S is also the most expensive so I will have to save for a year plus for decent down payment since I am adding to M2 CS and not replacing it.

[wtwo3]

Originally Posted by RPM33

Unfortunately I have never bought a Porsche car before. Yes you are right my chances to get a GT3/GT3 RS/GT4 RS allocation are slim and none.

Which is why I’m considering a 992 911 Turbo S, 992 911 GTS, or even M4 CSL. I’m afraid of giving up my M2 CS so will look to add to M2 CS. Let me know what car you think makes the most sense. I think Turbo S may be closest to GT cars. However, Turbo S is also the most expensive so I will have to save for a year plus for decent down payment since I am adding to M2 CS and not replacing it.

If you can make the turbo S happen, that'll be one hell of a car and a great entry into P-car ownership ecosystem. I feel like an M4 CSL may end up feeling a bit redundant if you're keeping your M2cs.

GT4rs right now are easily going for $125k OVER MSRP.... so you're looking at $250k-$300k range if you can get one.

[barcelona]

Originally Posted by wtwo3

Wish we had the option of not driving it much. But yeah definitely the beauty of leasing... drive it risk free.

I think I'll most likely hold on to both cars till end of lease... have about 10 months to go on both.

Hopefully, when lease ends, the cars are fully equipped. Perhaps try to keep a close eye on the supply issues, as it does change fast. Hope you can time when you end your leases.

BTW: Today, the delivery specialist has only seem 1 touch screen delete, X5.