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BMW M3, BMW 3 Series, Motorsports, Engine, Suspension, Car Buying, Coupe
#614 of 762 Has anyone ever heard of this from BMW?
Jan 09, 2011 (5:46 pm)
I special ordered and leased a 2007 328xi for 39 months back in August of 2007. Great car and very satisfied with the car. Returned it as scheduled on November 30th, 2010. Residual was $26K and decided not to buy the car. December and half of January has now gone by and my auto needs have changed. My previous car was COP'd and has been on the dealers lot since early December. When I inquired about buying it back (current price $25,996) I was told that BMW finance has a policy that if a previous owner wants to buy their car back after CPO, there is a $1,600 premium up charge to do so........yea I know.
I had no plans to ever come back to this car when I turned it in, but now have a need for this type of car and what better car to buy than the one I had and took care of for 39 months. Well I raised hell with the dealer and they supposedly went to the zone office for authorization to negotiate with me like any other buyer. They passed the dealer on to BMW finance and they supposedly said policy stays in force. I am miffed because any guy off the street could go in and negotiate their best deal, but I have been harnessed with the penalty. Needless to say I told them to go pound sand and the dealer says that they will be eating the $1600 along with the $3,300 COP charges, but they have only been willing to take $200 bucks off of the price (which in Illinois they are allowed to charge a $150 doc fee which is profit for the dealership, so they really haven't taken anything off of the price). Does this sound legal to you guys? It has been almost a month and half since I turned it in, so it is clear that I didn't PLAN to do pull this in order to get new tires, COP etc. Keep in mind that this is the car I want, but am trying to figure out just how far to push it before I either buy it or walk. Comments appreciated.
#615 of 762 Re: Has anyone ever heard of this from BMW? [arctic56]
Jan 09, 2011 (6:20 pm)
Sounds fishy to me. A buyer is a buyer. That would be like Walmart charging me $10.00 for a shirt, and then charging you $11.50 for the same shirt.
Why don't you try your local office of the Attorney General see if they have any thought. Of course, the car may be gone by the time you get an answer.
#616 of 762 Re: Has anyone ever heard of this from BMW? [srs_49]
Jan 09, 2011 (6:40 pm)
I thought I might place a call to BMW finance to see if this policy really exists. If so, I would like to see where it is provided to the general public. As crazy as it sounds, I do kinda see the point. They could be taken advantage by someone returning their car, it gets $$ of CPO and then turn right around with a day or two and buy it back. This is not the case with me, so what is an appropriate time limit to wait? This dealership has an excellent reputation, but this just really rubs me the wrong way. If it weren't for having a great history with this car I would have walked a week ago. It has been like watching a train wreck in slow motion.
#617 of 762 Definitely something's not kosher
Jan 09, 2011 (6:56 pm)
We turned in our '07 X3 at the end of July. BMWFS quoted the buyout of $26K from the contract if I wanted to buy the car from them. The dealer told me they'll sell me the car for $21,500 as a non-CPO BMW (just a regular used BMW) which seemed like a great deal, except they wanted $3000 to make the car CPO which I was not going for.
If you are really looking for a CPO 328xi, there are tons of them out there. You just might not be able to buy "yours."
Good luck & keep us posted.
I've never heard of the dealer charging a returning lease customer $1600 more than the CPO cost just because.
#618 of 762 Anyone heard of this from BMW finance?
Jan 09, 2011 (7:11 pm)
Thanks for your comments. My residual was also $26K, but as mentioned at the time, I had no need for a sedan of any kind. My dealer didn't make me an offer because I had only used 28K of my 32K allowance and the car is a little different from others out there. I added the sport package but did the non-leather sport seats instead of the Premium package. They wear like iron and look and feel great. I also added xenon headlights that are exceptional. There are at least five BMW dealerships within one hour of where I live and none of them are equipped the way I want and very few are Black on Beige. Not a Silver guy. I plan on bringing this thing to a head tomorrow and will let you know how it goes.
#619 of 762 So how low can I go on price?
Jan 09, 2011 (7:21 pm)
The asking price is $25,996 and the current offer is $25,800. Clearly not near good enough. They claim to have $3300 in CPO costs (new tires) and a door ding repair. So, how low can I realistically go on price. I am not buying the $1600 story, so take it from there and let me know what you would do and why.
#620 of 762 Re: Has anyone ever heard of this from BMW? [arctic56]
by MrShift@Edmunds HOST
Jan 09, 2011 (7:57 pm)
Seems like you could pick up a nice 2007 328ix for around $22K private party. I think they're charging Spring 2010 prices in Jan 2011, seems like.
#621 of 762 Re: So how low can I go on price? [arctic56]
by kyfdx@Edmunds HOST
Jan 09, 2011 (8:06 pm)
It's true... BMWFS has a "loyalty adder" (oxymoronic, I know) if you turn in your off-lease car, then want to buy it from the dealer. Though, last I heard, it was $1500.
The problem was... so many BMWs come to lease-end with values that are less than the contract residual. Lessees were finding that their dealers could buy the car from BMW at actual value, CPO them, add profit, and still sell them to the lessee for residual or less. Of course, BMWFS does best when the lessee buys the car from them at residual. Cars that have to be wholesaled below residual is a money loser.
The "loyalty adder" is their way of turning that around. Since it's their car, the only obligation to the lessee is to offer them the car at the residual price. Since they have a relationship with the dealer, they can set the terms under which they will sell them the off-lease vehicle.
Does it seem fair? Not at all... But, I don't think there is anything you can do about it.
I'm not really up on the value of the car, or what it might be worth to you... but, your dealer is being straight with you about the extra money.
#622 of 762 Advice on 2007 328xi
Jan 11, 2011 (5:37 pm)
Thanks to this forum, I feel much more informed. I have a specific question about a "no haggle" offer on a 2007 328xi. A local dealership has this car with 16,784 miles. It is equipped with the sport, premium, and cold weather packages and the Logic7 stereo. They are asking 25,990 which has come down from 27,990 since October of last year. This is an off-lease vehicle which appears to be in great shape and has the balance of the warranty/no-charge maintenance until 7/11.
Does this appear to be a good deal and, if so, why has it sat around for 4 months on the lot (granted at a higher price)? The only fees will be $249 in doc and title transfer fees. Should I be negotiating on this at the "no haggle" price? I am sure to get shafted on my trade-in regardless.
#623 of 762 Re: Advice on 2007 328xi [wperdue]
Jan 11, 2011 (5:55 pm)
Seems like a decent price, but I'm sure it's still negotiable if the car has been on the lot for 4 months. It's worth a try I would think.
Yes, you will get shafted on your trade-in. I haven't tried it myself, but it's worth a shot to see if you can get less shafted trading in through AutoTrader.