Our 2021 X3 lease is coming to an end, We decide to buy out because we cannot find any good deal for a BMW (X3/X5/i4) we like at the moment.
The dealer from which we originally leased the car called me and told me that they’d like to help with the buyout, and it will be much easier to buyout through them because they can do it in a day and we don’t have to go to DMV etc.
It’s our first time buying-out a car at the lease end. I understand we would typically buyout through BMWFS. The process would include paying the residual to BMWFS and getting the titled mailed to us. We would then need to go DMV to transfer the title and pay tax and any other fees.
My question to the hackers:
is it actually better to buyout through a dealer than BMWFS? Is there any hidden fee to buyout through a dealer (compared to BMWFS)
It does seem to save us time and hassle. But I cannot imagine that the dealer would help us for free. At the same time, I am just inexperienced to know if there is any catch.
I would go through BMWFS. The dealer is definitely going to charge you somewhere in that process. I’m sure of it.
I’m in the same process where my lease for my 2021 x3 m40i is coming to an end. I’m contemplating buying it out but have always leased. Since you’re buying the car out now, do you plan to sell in the future or just keep it?
That’s what I think too, but I just don’t know, that’s why I want to double check with the hackers here.
it’s funny, I just replied your topic.
We will upgrade at a later time point, 2025 or 2026. 2024 X3 is the same as 2021 just more expensive. Nothing interesting that meets our budget (500-600 monthly with 2500 down) at the moment.
Imagine how many buyouts they’ve facilitated… they know what they’re doing.
The instructions they provide for what needs to be done with DMV are clear and the process is easy.
If you have questions, they have competent people to answer them.
And btw it’s more steps in OH where I did mine than it is in CA . For one thing, in OH you have to get new plates because the plates don’t stay with the car.
The dealer’s going to have other motivations, even beyond charging a fee for the buyout itself. You’ll probably have to endure a hard sell on maintenance plans, extended warranties, and other nonsense.
I bought out my X5 last year. The dealer and BMW charged crazy fees and the interest rates were terrible. See if you can get a loan through your local credit union. They didn’t charge a fee and the rates were much lower
I just bought out my X3 at the dealership. I had to obviously pay the residual, the S Carolina $500 IMF tax free on all cars purchased/leased, and a $55 fee for registering the car I think?
Some dealers also add on a $999 (or higher) “inspection” or “certification” fee. To do this they first buy the car themselves from BMW FS and simply resell it to you, but it happens contemporaneously and it’s another easy profit for them.
Will be running into this later this year, I have read the laws in Florida have changed and buyout must be done via dealer. Anyone run into this lately in FL?
Will you pay cash or are you planning to finance? Ask them if they charge anything else other than $85 doc fee. Also ask them if you can use your own financing.
From what I could tell, I was just going to mail the check to BMWFS.
BMWFS said “you should go through the dealer, so you don’t have to deal with the DMV”, but I looked into the process, and when you mail your final payment to BMWFS, you just send them a check and like 3 pages signed, they send you the title, and it looks like you can finish title transfer on the CA DMV website without ever having to go in person. It looks super easy.
By contrast, the dealer asked to book a literal 2 hour appointment (in which I’m sure they would try to sell me an extended warranty, and probably trick me into something else).
EDIT: However, if you want a BMW extended warranty (I did not because my car is low mileage), I’m not sure if you need to get that from the dealer directly, so that is one reason to consider going dealer.
