Returning a leased Z4

B

bimbimmerman

Member
Hi,

Grateful for some advice - I have a 2006 2.5i black Z4 on a three year lease from BMW. I've had it for two years now, but due to money being tight I need to return it.

Since I've had it for two-thirds of the contract, I won't have to pay an early return fee. I know BMW do a return inspection, but I basically want to avoid being stung by BMW so is there anything I should watch out for?

At this point I should say the car is in immaculate condition and has been well looked after, but we all know what BMW dealers are like when it comes to making a £.

Any advice would be gratefully received!

Thanks

O
 
Main things would be that you have it returned to standard and in good condition so any dents and dings fixed, alloys refurbished if kerbed and run flat tires added back on if you have replaced them with non-run flat versions. Some things would be cheaper for the dealer to fix than you though so it depends what condition it is in now.
 
How much does it owe at the moment; will the buyback be enough to clear the finance - Im assuming theres a balloon as well or was it a full payout lease?? Just be careful cos they'll probably sting you on the valuation- winter coming on etc.. As for condition, was there a report provided when you bought it, cos they'll refer back to that if there was (if theres any damage etc..)....plus anything non-standard (non-RFTs etc..) will be taken into account I suspect - but its sort of academic really cos your on the back foot here.

Otherwise it will vary by dealer just how anal they want to get about condition, and theres not much you can do about it TBH. Bottom line is they'll give you what they give you, and the cost of rectification on any sticking points will just cost you more cash to sort yrself. Good luck though, I feel for you. ! :thumbsup:

If you get a shite valuation, might be worth advertising it, here and elsewhere? You never know.
 
Thanks guys, really appreciate the advice

Crusoe - Thanks, good advice on the alloys - there is a bit of chipping on them I will get sorted before I give it back. Otherwise then that the external body is mint.

Lacroupade - Thats the MAIN thing I am worried about - it was a balloon payment scheme, so when I bought it the dealer said after 2/3 of the contract, I can hand it back with no penalty. But the more I look at it and speak to people like you, the more it looks like I am going to be stung! Fingers crossed I won't! :cry:

And you are right - there was a condition report with the car when I bought it, so will make sure I match up to those standards again.

Thanks again guys, I really appreciate it

O
 
bimbimmerman said:
Thanks guys, really appreciate the advice

Crusoe - Thanks, good advice on the alloys - there is a bit of chipping on them I will get sorted before I give it back. Otherwise then that the external body is mint.

Lacroupade - Thats the MAIN thing I am worried about - it was a balloon payment scheme, so when I bought it the dealer said after 2/3 of the contract, I can hand it back with no penalty. But the more I look at it and speak to people like you, the more it looks like I am going to be stung! Fingers crossed I won't! :cry:

And you are right - there was a condition report with the car when I bought it, so will make sure I match up to those standards again.

Thanks again guys, I really appreciate it

O
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Strongly suspect that 'no penalty' thing means they won't charge a fee for cancelling the agreement early (its not untypical to add a couple of months interest on, i.e. charge you as if the money had been outstanding for longer)). You'd still have to take the price they offer you for the car, then deduct all oustanding payments PLUS the balloon payment - they might give you a little bit of interest rebate on early settlement but its not obligatory. But if that number is MORE than what they price the car at, then you have to pay it off at the time in full.

Trouble is that, like I said, you aren't in a position to negotiate sadly. If you want a ballpark expectation, I'd look at Parkers current Trade price, then set that against all your outstanding payments plus the balloon.

Your best bet might be to ring the BMW Finance guys at Hook and get it from the horses mouth. Typically the stealers klnow f*ck all about anything except opening your wallet, so you can't necessarily trust them, especially if they spot a wounded bunny and think they can rob his car cheap.....

One point, was the 'balloon' a Guaranteed Future Value, or just a simple balloon?.
 
Call BMW finance number 01256747000 not the 0870/0845 number and get a settlement figure. If you really like the car and want to keep it worth to convert it to a hire purchase for 2-3 yrs so u will pay less monthly payments. If you have decided to give up the car then compare settlement figure with the current what car or parker's price and see what u will be offered. sell privately will always get more than dealer.
My dealer offered me 17-18k for my //MR 06 plate fully loaded with 23k miles on it. he said its because he needs a mark up so he can make money on the car(which is the ultimate thing for all dealers). Good luck
 
Thats the killer of course; the stealer has got to make a margin for itself AND prep the car for resale AND pay a commission to the salesman that moves it on AND have a contingency to deal with warranty issues...yadda yadda yadda....which is why they pay what appears to be piss-poor money relative to a private buyer.

But you got to weigh that up against the aggravation of selling an expensive sports car and getting paid, in a market thats full of dodgy bastards out to fleece you...
 
Lacroupade - you are spot on again - the 'no penalty' means I didn't have to pay an admin charge for returning it. The dealer presented that to me as 'once you have gone past the 2/3 point you can hand the car back with no problems'. That will teach me to read the small print! On the point about the balloon payment, its a Guaranteed Future value, which they have set at £12k.

Chetalien and Lacroupade - I did phone BMW after I saw both your posts and I've got three options open to me:

1. Return the car now under 'voluntary return' and pay £3500.
2. Sell the car privately and pay off the outstanding balance of £15k on one go
3. Keep the car until next November and then hand it back with no fee.

To be honest, the first option is not a runner as I pay that a year to have the car, so I am not going to pay it to not have a car! So I think I will try and sell the car privately which would cover the remaining finance. Its an 06 plate, 2.5i roadster with 19k on the clock and I've REALLY looked after it - so much so I've got parking tickets for parking over two car parking spaces so no one scratches the bumper :)

Can you tell this is my first BMW? :)
 
Its a rock and a hard place isn't it. Imagine handing it back next year for the sake of £12k, having looked after it so well....

What does Parkers show for it, good condition private?

I really struggled with the same issue when mine came to the end of its lease, not because of affordability, but because it was a crap time to sell yet the GFV wasn't that big, so someone would have gotten a bargain if I'd just handed it back. So I didn't!

But my advice to you would be the sensible route. Much as people will say "try and find a way to keep it", but while thats tempting, if you are in any doubt about your medium-term circumstances, sell it now. Don't leave yourself loaded with a liability that you may not be able to meet if you end up having to dispose of the car in a fire sale - lots of us have been there or thereabouts, you're not on your own. So sell it now but take your time and wait for the right buyer, they are out there - it certainly sounds like your car would be worth having!

And be reasonable about price; every month you keep it, another £300 goes out the door, but remember you'll need to evidence the finance settlement to any buyer, so its also worth working out ahead of time with BMWF how you will do that (theres a Catch-22 thing here about would a buyer pay you when they know the finance isn't cleared, but you can't clear it til they pay, PLUS DO NOT give any indication as to why you are selling - the minute a buyer thinks its fire sale they'll start to take the pi55 on the price.... tell 'em its killing you to get rid of it but you're having a baby or leaving the country or something....

Remember, there is always another one out there for when the wind changes......good luck! :thumbsup:
 
Cheers lacroupade - getting advice from ppl like you who have been there and done that is exactly why I joined this forum! I've never had to go through this before so your advice is certainly appreciated!

Just had a look on Parkers as you suggested and its down for £16,500 BUT with 30k on the clock (mine has 19K so that should bump the price up a bit). As long as I can cover the finance thats the main thing....so will defintely be patient about getting right price for it privately.

And to think I had a Rover Metro 1.1 before my Z4 :D
 
bimbimmerman said:
Cheers lacroupade - getting advice from ppl like you who have been there and done that is exactly why I joined this forum! I've never had to go through this before so your advice is certainly appreciated!

Just had a look on Parkers as you suggested and its down for £16,500 BUT with 30k on the clock (mine has 19K so that should bump the price up a bit). As long as I can cover the finance thats the main thing....so will defintely be patient about getting right price for it privately.

And to think I had a Rover Metro 1.1 before my Z4 :D
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Hey listen, what goes around comes around - and sometimes you can't afford to be proud, but lifes a bloody roller-coaster when alls said and done - one door closes and another one opens!

Just remember to clarify your strategy about the finance settlement so the sale goes smoothly.

In order to keep too many miles off my Zed (I travel Oxford-West Wales most weekends) I used to run a little Citroen C2 1.4HDI - it was a cracking little car that handled really well and you could cruise at 95 and still return 60mpg, at least til some silly old bugger fell asleep in his car and drove into it at 60mph while it was parked :headbang: Cheap as chips to run and fun to drive, I happen to think Citroen has got really funky with its design last couple of years, whatever you think of build quality! :D

Sounds like the numbers will work for you though based on Parkers, which is really good news - I'd get it on PH and here as soon as you are ready, I reckon it will fly off the shelf.....and make sure you get some good quality pics - borrow a decent digital cam if you haven't got one, then clean the car up good and find a really nice photo location to set it off.....the sun is out all day Sunday apparently, so don't hang about - commit! :thumbsup: Paul
 
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