Best answer from question by MM:
Answer by Pancakes
I’ll just pick some numbers.
Purchase price is $ 30,000. End of lease purchase (residual) is $ 20,000. You will pay $ 10,000 over 3 years (plus tax and interest)
The residual price is usually fixed by a dealer book. Negotiate the purchase price lower. Also negotiate lower interest (0% is possible)
You have an advantage knowing you will purchase at end of lease. At that time, contact the bank the lease is through and offer $ 12,000 (instead of the $ 20,000 residual). The bank will call back with a counter, usually between the two, like $ 15,000.
There will not be much negotiation on a bmw coupe. They sell close to MSRP. The good thing is: most bmw salespeople aren’t looking to bang you over the head, they will make money no matter what. That being said, go in and ask for the current lease program, if they have one in stock they’ll be more willing to negotiate, if the number sounds good, go for it. You will not get cheated like at ford, chevy, dodge, toyota, nissan, they are for the most part upfront people just looking to make a living. It should be a very easy car buying experience.
THE BEST WAY TO NEGOTIATE WITH THE DEALER IS TO DETERMINE THE WHOLESALE PRICE BY CONTACTING YOUR LOAN OFFICER AT A LOCAL BANK OR CREDIT UNION, PROVIDING ALL THE DETAILS ABOUT THE VEHICLE (MAKE, MODEL, YEAR, TRIM LINE, ACCESSORIES, MILEAGE), AND ASKING FOR THE VEHICLE’S “BLACK BOOK VALUE.”
THAT’S THE AMOUNT THE BANK LENDS TO DEALERS TO BUY THAT CAR (YES, DEALERS TAKE OUT CAR LOANS, TOO), AND IT’S THE CLOSEST THING YOU CAN GET TO WHOLESALE VALUE FOR THE VEHICLE.