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Discussion Starter #1 (Edited)
This is an opportunity for someone looking for a terrific used M5.

I’ve decided to turn my 2002 sterling gray/caramel M5 in at the end of my 36 month lease.
Options include PDC, M-audio, and folding rear seats.

I ordered the car from my dealer in Nashville and received delivery in January 2002. Currently the car has 20,500 miles, however, it is my daily driver and I will drive it as much as possible until its gone!

It is in exceptional shape with only a very few rock flecks. It has had numerous coats of Klasse AIO and SG since I bought it (thanks to the PC orbital buffer.) The original tires are still on (Dunlops.) I bought the M logo trunk mat and an extra set of black M5 floor mats. I have the full set of nav CD’s as well.

I’d like to get the board members opinion on this deal (which I have already optioned to another board member):

My dealer is willing to buy the car from me and sell it to the intended buyer if that person CPO’s the car thru them. The buyout price is ~ $48600. I’m told the CPO fee will be in the $1500 range.

Here’s the catch....I’d like a $1000 “brokers fee” to facilitate the deal. The payoff is the buyer would get a great car for about $51100 plus tax,etc.

Is this a fair deal? :wroom:
 

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Sounds fair to me.
If you had a different interior, I'd possibly be calling you.humm.
 

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What does it mean to "facilitate the deal"? Are you not just turing your car in at the end of your lease? Sorry to say, but if you want to do something nice for a board member by directing them toward your car that's nice. Asking $1000 for this isn't. Or maybe I am just missing what it is you're doing. Sorry if so...
 

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Discussion Starter #4
Doug,

Thanks for the reply, this is the kind of feedback I was interested in hearing. The "controversial" part of the deal is the $1000..I understand that.

My thinking is I could:
1) just turn the car over to the lease company and move on
2) try to swing a deal where I try to maximize my profit, or
3) ask for a reasonable fee based on the excellent care, low mileage, etc., and facilitate getting the car in the hands of a fellow enthusiast.

I'm not going to do the ebay/autotrader thing..not interested. Also, I'm not inclined to haggle with the dealer over what they would pay,etc.
 

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M5xtc said:
This is an opportunity for someone looking for a terrific used M5.

I’ve decided to turn my 2002 sterling gray/caramel M5 in at the end of my 36 month lease.
Options include PDC, M-audio, and folding rear seats.

I ordered the car from my dealer in Nashville and received delivery in January 2002. Currently the car has 20,500 miles, however, it is my daily driver and I will drive it as much as possible until its gone!

It is in exceptional shape with only a very few rock flecks. It has had numerous coats of Klasse AIO and SG since I bought it (thanks to the PC orbital buffer.) The original tires are still on (Dunlops.) I bought the M logo trunk mat and an extra set of black M5 floor mats. I have the full set of nav CD’s as well.

I’d like to get the board members opinion on this deal (which I have already optioned to another board member):

My dealer is willing to buy the car from me and sell it to the intended buyer if that person CPO’s the car thru them. The buyout price is ~ $48600. I’m told the CPO fee will be in the $1500 range.

Here’s the catch....I’d like a $1000 “brokers fee” to facilitate the deal. The payoff is the buyer would get a great car for about $51100 plus tax,etc.

Is this a fair deal? :wroom:
I am in the exact same position, my lease ends in Feb, 05 and I have about 29k mi. same exterior color but black interior.

I think what you offer is fair for the following reason. You turn the car into the dealer. how much does he put it on his lot for, $60,000 or more? You are offering to place your well maintained car and asking for $1,000, not $12,000. Who wins? You the seller and certainly the buyer who can converse directly with the seller. Who loses? The greedy bastard dealer. Why line their pockets when we could place our cars with someone here on the board who appreciates them. You ought to be commended :byebye: not ridiculed. :grrrr:

Just make sure you are not on the hook for the sales/use tax since technically you are buying it from BMW and reselling it. Each state handles it differently.

P.S. I put an ad in the Auto Trader online.
 

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Near as I understand it, the M5xtc is acting as a broker to 'pass' ownership from the lease company through the dealer to the new owner at the lease buy out price- this avoids his tax liability if he bought it then sold it (ie a double tax). It also ensures that the dealer doesn't tack on any mark up other than a 'cpo price' onto the lease residual price (plus 1k for his efforts).

If it is at or below market pricing- it's a deal. Plus, knowing the chain of ownership can be a significant advantage...

ard
 

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If that's the case then yes, I agree it's a fair deal for all.
ard said:
Near as I understand it, the M5xtc is acting as a broker to 'pass' ownership from the lease company through the dealer to the new owner at the lease buy out price- this avoids his tax liability if he bought it then sold it (ie a double tax). It also ensures that the dealer doesn't tack on any mark up other than a 'cpo price' onto the lease residual price (plus 1k for his efforts).

If it is at or below market pricing- it's a deal. Plus, knowing the chain of ownership can be a significant advantage...

ard
 

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Johnny D said:
Who loses? The greedy bastard dealer.
Not really. The dealer is just as happy making a quick easy buck than going for more profit at the risk of being stuck with a previous model performance car for months.
 

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What is the wholesale value to the lease company on this car?

If the buyout is $48k, what will the lease company receive if they take the car back and must sell it wholesale? 48? 45? 42? Where will the auction/wholesale market be in the next few months?

I think this may be where the dealer will make money on the deal.. if the seller can ensure the dealer is charging only what he is paying (plus or minus a bit for their trouble) then the seller is surely earning their $1k fee...

Convoluted...

Ard
 

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Discussion Starter #12
My car is leased via Chase financial.

In discussions with the finance manager at my dealership he stated that the lease companies all have "residual" insurance. No matter what they get for the car at lease end they are guaranteed (via one route or another) of at getting at least the residual value stated in the contract. hmmm
 
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