Lease buyout - what's real and what's dealer BS?

[scott13]

I'm at the end of a 3yr lease on a 2015 M4 and now I'm thinking about buying it out. I know, I know...that's the WORST way to end a lease, but after a lot of consideration I'm thinking it's actually not such a bad deal for my specific situation.

I've leased many cars before, but never bought one out at lease end for all the obvious reasons and I'm getting some "suspicious" info from my dealer. Just curious if anyone has bought out a lease before and might be able to help me sort out what's legit and what's dealer BS.

The things they're telling me that seem odd are:

1) I need to give them the car for ~4 days so they can secure the title from BMW FS. If nothing else, just seems like a LONG time for that process

2) Dealer will perform a mandatory "safety check" of the car at a cost of $250. Not sure why this is necessary if I'm essentially buying the car directly from BMW FS (as opposed to dealer buying it from BMW FS and then selling it back to me).

3) As part of the "safety check," they will determine any additional repair costs that I'll be responsible for. Not sure why I'd incur repair costs if I'm buying out the lease.

On top of that is the usual documentation fee, plate/registration fee and state taxes, but that seems pretty standard to me. As does the high APR they're giving me for financing through BMW FS (~4.5%).

Any help/guidance anyone could provide would be greatly appreciated.

[aerostar]

Originally Posted by scott13

I'm at the end of a 3yr lease on a 2015 M4 and now I'm thinking about buying it out. I know, I know...that's the WORST way to end a lease, but after a lot of consideration I'm thinking it's actually not such a bad deal for my specific situation.

I've leased many cars before, but never bought one out at lease end for all the obvious reasons and I'm getting some "suspicious" info from my dealer. Just curious if anyone has bought out a lease before and might be able to help me sort out what's legit and what's dealer BS.

The things they're telling me that seem odd are:

1) I need to give them the car for ~4 days so they can secure the title from BMW FS. If nothing else, just seems like a LONG time for that process

2) Dealer will perform a mandatory "safety check" of the car at a cost of $250. Not sure why this is necessary if I'm essentially buying the car directly from BMW FS (as opposed to dealer buying it from BMW FS and then selling it back to me).

3) As part of the "safety check," they will determine any additional repair costs that I'll be responsible for. Not sure why I'd incur repair costs if I'm buying out the lease.

On top of that is the usual documentation fee, plate/registration fee and state taxes, but that seems pretty standard to me. As does the high APR they're giving me for financing through BMW FS (~4.5%).

Any help/guidance anyone could provide would be greatly appreciated.

If you are buying the car out you get a loan from BMWFS or through your bank / CU and provide BMWFS the info directly. You will need to deal w/ the taxes / license plate fee, etc. as the plates can't be transferred from a lease vehicle.

You don't even need to stop into a dealership to do this.

There's no dropping the car off, they do not need to inspect it. Why would the dealer need to inspect the car if YOU are buying it?

They are literally robbing you. I would call BMW while I'm there and confirm and then tell them that the dealership tried to lie to you cough up a few hundred dollars.

Also, depending on what your car's worth and the lease buyout you should be able to negotiate if the residual is set too low.

[Aaaaaaaaa]

Sounds like they want to squeeze whatever is left of the factory warranty and be reimbursed from BMW then upcharge you for superfluous repairs and labor (topping off windshield wiper fluid).

[Franco3000]

Originally Posted by scott13

I'm at the end of a 3yr lease on a 2015 M4 and now I'm thinking about buying it out. I know, I know...that's the WORST way to end a lease, but after a lot of consideration I'm thinking it's actually not such a bad deal for my specific situation.

I've leased many cars before, but never bought one out at lease end for all the obvious reasons and I'm getting some "suspicious" info from my dealer. Just curious if anyone has bought out a lease before and might be able to help me sort out what's legit and what's dealer BS.

The things they're telling me that seem odd are:

1) I need to give them the car for ~4 days so they can secure the title from BMW FS. If nothing else, just seems like a LONG time for that process

2) Dealer will perform a mandatory "safety check" of the car at a cost of $250. Not sure why this is necessary if I'm essentially buying the car directly from BMW FS (as opposed to dealer buying it from BMW FS and then selling it back to me).

3) As part of the "safety check," they will determine any additional repair costs that I'll be responsible for. Not sure why I'd incur repair costs if I'm buying out the lease.

On top of that is the usual documentation fee, plate/registration fee and state taxes, but that seems pretty standard to me. As does the high APR they're giving me for financing through BMW FS (~4.5%).

Any help/guidance anyone could provide would be greatly appreciated.

Its all BS, you pay no excess or anything if you decide to purchase the car at lease end. Just go to the BMW Finance website, find out the pay off amount and send them a check, either from your bank, credit union, etc.,, or apply for credit through the website and finance it.

I have bought all of my leased cars in the past (albeit cash) and I have never visited a dealer.

[5soko]

Yea that is all lies and nonsense..

My friend actually went to his dealer and negotiated to lower his buyout price.

[aerostar]

I still think OP should go and complain to BMWFS about it and explain the situation.

It's not good that a dealership which is meant to keep customers is lying to peoples' faces not only to squeeze money out of BMW's warranty system but to get cash out of a loyal BMW customer, who may or may not return now that they've found out the truth.

[goneloco]

Would you be willing to PM me the dealer name? I recently had an issue with my dealer and was wondering if it's the same as yours.

[///M Ryder]

Total BS.....as others have stated, secure your financing and have your bank or CU send the draft to the dealership. This isn't any different from walking on the lot and making a purchase. GL.........Phil

[MadZarBMR]

Total and complete BS. And in fact, I am willing to bet the dealer has secured a dealer payoff from BMWFS (lower than your payoff) and is trying to make more money on top of all the BS they have told you. When you buy out a lease, you deal directly with BMW FS. You don't even need to get the dealer involved. Just get payoff and send them payment or they will finance for you if you if you qualify. I did my F30 this way entirely online with BMW FS and never set foot at a dealer.

[Aaaaaaaaa]

Originally Posted by 5soko

Yea that is all lies and nonsense..

My friend actually went to his dealer and negotiated to lower his buyout price.

Can you negotiate buy out price directly with BMWFS?

[AIRHEIR]

Originally Posted by scott13

I'm at the end of a 3yr lease on a 2015 M4 and now I'm thinking about buying it out. I know, I know...that's the WORST way to end a lease, but after a lot of consideration I'm thinking it's actually not such a bad deal for my specific situation.

I've leased many cars before, but never bought one out at lease end for all the obvious reasons and I'm getting some "suspicious" info from my dealer. Just curious if anyone has bought out a lease before and might be able to help me sort out what's legit and what's dealer BS.

The things they're telling me that seem odd are:

1) I need to give them the car for ~4 days so they can secure the title from BMW FS. If nothing else, just seems like a LONG time for that process

2) Dealer will perform a mandatory "safety check" of the car at a cost of $250. Not sure why this is necessary if I'm essentially buying the car directly from BMW FS (as opposed to dealer buying it from BMW FS and then selling it back to me).

3) As part of the "safety check," they will determine any additional repair costs that I'll be responsible for. Not sure why I'd incur repair costs if I'm buying out the lease.

On top of that is the usual documentation fee, plate/registration fee and state taxes, but that seems pretty standard to me. As does the high APR they're giving me for financing through BMW FS (~4.5%).

Any help/guidance anyone could provide would be greatly appreciated.

If u buying car out no need to deal with your dealer or any dealer. Secure financing thru any lender or bmwfs for buy out. They will also add in taxes. Don't deal with this shady dealer trying to take you behind the shed.

[AIRHEIR]

Originally Posted by MadZarBMR

Total and complete BS. And in fact, I am willing to bet the dealer has secured a dealer payoff from BMWFS (lower than your payoff) and is trying to make more money on top of all the BS they have told you. When you buy out a lease, you deal directly with BMW FS. You don't even need to get the dealer involved. Just get payoff and send them payment or they will finance for you if you if you qualify. I did my F30 this way entirely online with BMW FS and never set foot at a dealer.

This. Did this for previous e90 m3. As others have stated dealer is trying to rip you off.

[AIRHEIR]

Originally Posted by pheerlx

Can you negotiate buy out price directly with BMWFS?

No negotiation. It is agreed upon price at time of lease write up. Look on your contract it states the exact $.

[5soko]

Originally Posted by AIRHEIR

No negotiation. It is agreed upon price at time of lease write up. Look on your contract it states the exact $.

Originally Posted by AIRHEIR

No negotiation. It is agreed upon price at time of lease write up. Look on your contract it states the exact $.

You can 100% negotiate some money off the price of the car at lease end...

[Alpine300zhp]

Originally Posted by 5soko

You can 100% negotiate some money off the price of the car at lease end...

Not with BMWFS. Only the dealer has the ability to buy the car from BMWFS and sell it back to you at less than the residual. Of course, that is assuming the car is worth less than residual. Based on the value of my current m4, it looks like the 15 M4 is worth somewhere in the 3-5k range less than residual.

[scott13]

Holy cow. You guys are the BEST. Thank you all so much for the responses. I really, really appreciate it. All the info you all shared was extremely helpful.

I went back at the dealer and asked point blank if they were structuring this "deal" such that they (the dealer) were buying out the lease from BMW FS and selling it back to me. They confirmed that is indeed what they are doing.

So, knowing that...and armed with all the extremely helpful information y'all shared...I'm going to counter with two options:

1) I buy out the lease directly from BMW FS, paying the residual plus tax and handle the title/transfer stuff myself

OR

2) The dealer buys out the lease and sells it back to me at a renegotiated buyout price since they'll likely be getting it at a much lower cost than I would be able to negotiate

I guess I'd also be okay with letting them buy the car and flip it back to me as long as they handle the paperwork and I don't pay anything above and beyond what I would pay if I bought directly from BMW FS. Feels fair...leaves some meat on the bone for them and saves me the hassle of dealing with title/transfer stuff.

Sound reasonable?

[Aaaaaaaaa]

Originally Posted by scott13

Holy cow. You guys are the BEST. Thank you all so much for the responses. I really, really appreciate it. All the info you all shared was extremely helpful.

I went back at the dealer and asked point blank if they were structuring this "deal" such that they (the dealer) were buying out the lease from BMW FS and selling it back to me. They confirmed that is indeed what they are doing.

So, knowing that...and armed with all the extremely helpful information y'all shared...I'm going to counter with two options:

1) I buy out the lease directly from BMW FS, paying the residual plus tax and handle the title/transfer stuff myself

OR

2) The dealer buys out the lease and sells it back to me at a renegotiated buyout price since they'll likely be getting it at a much lower cost than I would be able to negotiate

I guess I'd also be okay with letting them buy the car and flip it back to me as long as they handle the paperwork and I don't pay anything above and beyond what I would pay if I bought directly from BMW FS. Feels fair...leaves some meat on the bone for them and saves me the hassle of dealing with title/transfer stuff.

Sound reasonable?

Try to get something out of the deal if you go with dealer.

[scott13]

Originally Posted by aerostar

I still think OP should go and complain to BMWFS about it and explain the situation.

It's not good that a dealership which is meant to keep customers is lying to peoples' faces not only to squeeze money out of BMW's warranty system but to get cash out of a loyal BMW customer, who may or may not return now that they've found out the truth.

Yeah, agree. It's kind of disappointing to realize that they're employing typical sleazy car salesman tactics. Knowing that M cars are arguably a premium model within a premium brand, it would be nice if the buying experience was also "premium". But I know we don't live in that world...

[scott13]

Originally Posted by pheerlx

Try to get something out of the deal if you go with dealer.

Great suggestion. Will do. Already wondering if I can turn this into a sweet discount on an extended warranty (for example).

[dmboone25]

Originally Posted by scott13

Great suggestion. Will do. Already wondering if I can turn this into a sweet discount on an extended warranty (for example).

Or maybe some discounted/free M performance parts?

[guess2098]

If you have lease protection, you can ask dealer to help you replace the BAD PARTS such as tires, lost key etc. anything that covered by your lease protection

[AIRHEIR]

Originally Posted by 5soko

You can 100% negotiate some money off the price of the car at lease end...

Only if u do it thru dealer. Not thru BMWFS. at least that's my experience.