Last post on Feb 17, 2013 at 10:00 AM
You are in the BMW 7-Series
What is this discussion about?
BMW 7 Series, Electrical, Engine, Sedan
#345 of 832 End of Lease Situation
Oct 24, 2005 (7:04 am)
Hello All, I have an interesting End of Lease Situation on which I need some input. I Originally Leased a 2002 745Li on a 4 year lease. After two years BMW bought the car back and gave me a 2004 do to all the troubles I experienced with the 2002. I am now at the end of the original lease.
The original residual value on the lease appears to be the same as the 2002 car. That is, they have quoted me a residual value of $44,998. The fair market value on the 2004 that I am actually driving is more like $60,000.
Does anyone have any experience with what might happen if I try to buy the car at $44K and re-sell? I am negotiating a new lease for the 650 Convertible. It sure would be nice if I could pocket the difference and put it toward the new car???
Any input would be appreciated
#346 of 832 Re: 2002 745li major things to look out for. [drive745]
Oct 24, 2005 (7:10 am)
drive745, I leased a 2002 745Li and drove it 2 years. It was in the shop more than I had it. They ended up buying it bake and giving me a 2004. Most of the problems were computer related. If they have solved those problems it might be ok. I also had some wheel and alignment problems that they finally resolved.
#347 of 832 Re: End of Lease Situation [sltools]
by MrShift@Edmunds HOST
Oct 24, 2005 (10:20 am)
I don't think your market value number is too realistic but if they let you get away with this, there is probably some profit in the car for you...but if you pay sales tax when you buy the car (I'm not sure about this), your profit when you resell, after all the smoke clears, might be more like $5K or a little less. Depends on mileage and the car's condition.
#348 of 832 Re: End of Lease Situation [Mr_Shiftright]
Oct 24, 2005 (10:36 am)
Shiftright, I received the buy out details from BMW....$45,000.00. Sales tax would be about $2600.00. I have researched resale values on Edmunds and other places. The car is in excellant condition with under 25K miles. The lowest re-sale figure I have seen is $62,995 with a high of $69,995.
The reason the residual is so low is that they set this up originally as a 2002 model then traded me out to a 2004 without changing the lease. I just can't see how I can lose on this???
Your insight would be valuable and thanks.
#349 of 832 Re: 2002 745li major things to look out for. [sltools]
Oct 24, 2005 (10:37 am)
thanks for the info. Were those problems covered under warranty, or did they make you come out of pocket?
#350 of 832 Re: End of Lease Situation [sltools]
by MrShift@Edmunds HOST
Oct 24, 2005 (10:39 am)
I don't think your numbers are right. I just priced it out on Edmunds and get $52,000 as private party retail for a 24,000 mile car. You can't go by asking prices or dealer asking prices for a certified vehicle. I mean, I hope you make good money on the car but those numbers you posted sound very high to me. This is not a "quick sell" kind of car and it's a heavy depreciator, especially as 2006 rolls around.
But it still seems worth doing if you don't mind tying up that much money. This isn't a great time of year to sell either, so....
Anyway, go recheck the numbers on Edmunds and let's see why we are coming up differently.
#351 of 832 Re: End of Lease Situation [Mr_Shiftright]
Oct 24, 2005 (11:44 am)
KBB shows $57k for the car in "Good" condition on a private party sale. Trade-in is $51k, and Retail is $66k (this number is way off). Current auction listings have them going for about $53k. FWIW, Mr_Shiftright, I get about $53k for Edmunds private party in "Clean" condition ($57k retail, $61k Certified).
Now you know why it's so tough for a dealer to appraise a car and put a number on it.... Look at the differences in numbers!
#352 of 832 Re: End of Lease Situation [bdr127]
by MrShift@Edmunds HOST
Oct 24, 2005 (2:51 pm)
Okay so looks like he'd clear about $5K on a quick sale....he's obviously not going to want to sit on this car forever to sell it if he's looking to flip it. These cars don't hold value super well so the longer you wait the less you make. Sounds like it would sell fast enough at $53K then if those are the auction numbers. Guess it depends too on the car's geography how well it would sell.
#353 of 832 2001 740iL water pump failure
Oct 25, 2005 (7:19 am)
I have a 2001 740iL with about 49,000 miles on it. The water pump just failed, which also ended up shredding the fan belt, cracking the radiator and probably breaking a hose which drained the coolant. Of course the car is now 5-months out of warranty. Needless to say a $1,500 bill for a part that (in my opinion) should typically last 50-100% longer than it did has me wondering if others have had this problem. Fro mwhat I see on this site there are some issues with early water pump failure on the 740.
Has anyone had any luck with BMW USA covering an "early" failure such as this out of warranty?
Oct 28, 2005 (9:54 am)
Well I finally made the decision to buy a 2006 750 Li and within 2 months of owning it the car stalled in the middle of me driving it twice, causing me to have to pull over, put the car in park, and re-start it. Be aware that the egineers at BMW are aware of this problem, which has something to do with the ignition system. The system had to be completely replaced, and the car re-programmed. I"m assuming if enough issues comes up, there will be a recall. If this happens, take it in immediately, it was a very dangerous situation.