Hello everyone,
Just wanted to get some opinions on this topic. I've enjoyed my 2015 Justa, and had planned on buying it. However the dealer is quoting a price above residual, and recommends the maintenance plan for $2200.00

Suddenly I'm looking at a $20,000 used car that costed $23,300 new.

Is the maintenance plan a wise purchase? How much are oil changes?

I'd appreciate any comments, and possible suggestions.

Thanks

 

That's one reason I've never understood car leases. You are basically making payments for the duration of the lease and when the lease is up the buyout is more than the KBB price of the car. I would trade it in on a low mileage CPO car that already comes with an extended warranty. Dealer oil change will cost you anywhere from $70 to $150 depending on dealer and location. I have an independent mechanic do my in between changes. I supply the oil and filter and he charges me $12 for labor.

 

What do you mean quoting above residual?
Does the dealer want to buy it at above residual?
Or do the dealer want you to buy it above residual?

 

Thanks for the replies so far. This was my first and probably last leased vehicle.

The dealer is quoting roughly $1100 over my residual. I think this is to call it a certified used vehicle, and I wonder if I can bypass that. They are obviously looking to make money on the deal. Understandable.

 

You DO NOT need to go to the selling dealer to close a lease, whether to turn it in, or buy it off.

The residual is the price you pay per your contract.
What is your residual per your contract??

Look carefully at the breakdown of that $1100. Does it include the 8% Cleveland sales tax?

 

Guessing worse case 60% on your 2015.
Residual is $14K??

 

Residual is $13,980, and dealer is showing $15,098 as price. They don't detail the increase, but it's NOT tax.

Perhaps I'll call BMW financial tomorrow.

 

$13,980 residual. You're saying fair price is 60% of sticker?

 

The $1100 is so the car will be a MINI Certified Pre-Owned (CPO). Here are the details. Note the extended warranty. You might be able to save the $1100 and not have it be CPO. CPO is good but up to you if it's worth it.

http://www.miniusa.com/content/miniu...-preowned.html

 

You just confirmed it.

Before you respond further.
Pull out your contract, and tell me if there is a "purchase-option fee" clause,
and how much that is. If any

But
$13,980 plus
$ 1,118 Sales tax in Cleveland equals
-----------------------------
$15098.

 

Why would buying out your lease make it a CPO??

He already has possession of the car, he's talking lease buyout.
Not selling his car, and buying it back.

 

At 60% residual, I would give them the keys, and a check for lease termination. ($300?)

Get another Mini, you now have .09% financing on leftover 2017s, plus you can also get $500 loyalty from BMW Financial.

 

There are no other fees listed, and I like this particular car, but don't want to be foolish.

 

that's interesting about the tax coincidence, but they are adding tax as a separate line item at $1483.39.

 

Then say no to the extra stuff, and just pay the residual and tax.

Its EASY!!! Just say NO!!

OR go to another dealer. You do not need to go to the selling dealer to close out a lease.

My advise, turn it in. 60% residual is good for a lease, not a ;ease buyout.

 

If you really like the car and are good with the price, ... keep it. Otherwise, turn it in and walk away.

 

I was making a guess. But I would also guess that the car would not be a CPO (with those benefits) when buying out a lease but would get the CPO benefits if you pay the CPO cost.

I looked at used MINIs before buying my MINI. The price was $X plus $1,000 if you wanted it to be a CPO.

 

I dint know what your Money Factor was, but if it was low,
you would have made low payments the last 36 months, so the residual is yours to beat if
you want to own it.
Say no to the CPO cost and buy it. Your not obligated to buy it.

 

Dealers pay less than residual when purchasing a lease return from BMW/MINI Financial Services.

One should NEVER pay more than current selling prices for similar vehicles. Auction plus $1,000 is MORE THAN fair for the dealer.

You know the mileage, you know how the car has been driven, you know that, once out of warranty, the risk falls to you. Routine maintenance isn't expensive, but repairs can be. And, yes, extended warranties can be negotiated and one needs to be VERY CAREFUL to get the right price and to understand what is and what isn't covered. Rarely a good value. CPO is best if one is buying a car off the lot where the history would otherwise be unknown. Even then, one pays a premium for limited peace of mind.

Read the art of the deal thread for more than you ever wanted to know about all of this.

 

Sounds like the age old phrase "he's sleazier than a used car salesman" still rings true. And to think I used to be one!

 

You are correct, that is sales tax, as BMW financial confirmed. I can deal direct with them to buy or finance the car.

Not sure why dealer is trying to tax me twice, maybe it's an error. Will speak to them this week.

Thanks to all for the replies and suggestions.

 

What would happen if you announce to BMW Financial that you're only willing to pay, say, $12,500 for this car? Or else you're going to simply turn it in as per the contract. BMW Financial, the car's actual owner now, doesn't really want your car and has probably already offered it to a dealer for less than $12.5 - so the dealer can sell it to you profitably for the $13,980. If you want the car I'd bet you can buy it for less than the contract residual value, and BMW Fin. would be grateful.

 

Unfortunately ther is no negotiation on a lease buy out.
They would rather send it out to auction.
They do not want a precendence.

 

Well, BMWFS supports its dealer network and will negotiate, through a dealer. BMWFS has near real time auction quotes from all over the country. They know what the car is worth.

 

Looks like clevelandrum is kind of similar situation as I am. My lease ends next month and I've read the Art of the Deal thread and found a lot of useful information.

I have a 2015 Justa + Automatic + Sports Package, MSRP $24000. 11000 miles so far so I'd like to keep it. If I return the car at end of the lease, then this means I'm never buying another MINI (although it's fun, it's not worth the price tag). The residual is $15066, no sales tax in OR, and current buy-out price is $15307.

The dealer in Portland is selling worse configuration and mileage cars for $17000+.

I tried with MINI Portland (the only dealer in OR), and also MINI Northwest at Washington. The sales rep at Mini Northwest said their buy-out price is $14500, so it's not worth it. Similar story with MINI Portland .They said they CPO the car and that would add about $2k more.

I already got a pre-approval for a car loan through a credit union, 5 years @ 2.39%. I'm probably going to just do a buy-out.


I had a lot of minor problems that was fixed, and none were major (replacing the AC evaporator was a major one though that left scars on the interior here and there). Turbo oil return line had some smearing oil leak that was fixed, but I'll keep an eye out for that while I have the warranty. I had the rain sensor gel pack replaced probably more than 5 times, which finally stopped after replacing the windshield (or they could have just silicone sealed everything in and not tell me).