2021 BMW X5 xDrive40i - sell to BMW dealer as a lease buyout but not buying another BMW?

I now work remote and hardly drive, so I am thinking of:

  • Selling my leased BMW
  • Get another non-BMW car with the “savings” I get from selling my car

I heard that BMWFS no longer allow lease buyout from 3rd party like Carvana. However, I am not sure if non-BMW dealer can (e.g. Honda, Lexus. etc.) If not, I am wondering if BMW dealer will just buy my car and give me a check for the difference?

My car:

  • Model: per the title
  • Equipment: semi-loaded (metallic paint, leather, Convenience Package, Driver Pro Package, Parking Assistance Package, 20" wheel, etc)
  • Mileage: 3,981
  • Payoff per BMWFS: $52K

For comparison, I searched in Cargurus for the same model within 200 miles of my area and the selling prices are $71K and above for cars with higher mileages than mine.

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No. “No third parties” means no to all third parties.


Make multiple BMW dealers compete
Check RODO and Autonation, who have BMW dealers in their network
Buy the car and sell it to literally anyone, including all dealers and private parties.

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Will they entertain me if I just want to sell the car, get the check and not buy another car?

Thanks for the tip on RODO! I didn’t know about this before.

I have thought about buying it myself, but then I’ll have to pay tax.

Yes, a BMW dealer will buy the car and give you a check for the equity. They would of course prefer you to buy/lease another vehicle. You may get a bit more out of them if you do get something else. Start checking with the dealers and see what you can get.

NorCal? Try mycarauction.com

Are they similar to Carvana/Vroom? If yes, I think they cannot do a lease buyout for BMW.

They can… they send payment on your behalf. Quite a few folks have worked with them on this. Search LH for mycarauction

Since they pay on your behalf, I’m assuming you’re still on the hook for sales tax?

Got it. I’ll check it out.

Uuuh… that’s a good point. I don’t know how mycarauction.com works, but maybe @Kctham18 can provide an insight about the sales tax.

BMWFS does not collect sales tax. That is only collected when applying for a new title/registration by the DMV. Many buyers these days do not accept a lessor-released title, but want title in the owners name.

Mycarauction accepts a lessor-released title

Here you go:

No. “No third parties” means no to all third parties.

I forgot to ask: how about if I take a loan to buy a car and the bank send the check to BMWFS?

Would BMWFS rejected this, too?

If the check has your name on it then you are buying the car out, not the bank that issued you the loan. The bank that issued you the loan is merely using your vehicle as a collateral so you should be able to execute a buy out with an auto loan. A form of “refinancing.” Check to see what your tax and fees burden is by going this route.

Have you actually gotten quotes for your X5? If they’re going retail for around 71k then I’d be surprised to see you get more than 54k or 55k wholesale. Probably looking at between 45k and 52k.

You’re a first party to the contract

It doesn’t matter if you pay via cash or loan, you have a contractual right to purchase the car at the price listed in the contract.

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