Market is moving fast. Sold an X1 at 26.2K to Shift 2 weeks ago. They tried to sell it at 28 and now it is priced 26.5 + 1.25K service fee. They are offering only 24K for the same car now. Not sure whether there is a 10% dip in offers in 2 weeks… But it is highly likely the forces are correcting the imbalances fast…
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u/Micosilver is legit, so I trust him as a source. It is a shame that captives are going this route.
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I could still be in trouble technically
Payoff hasn’t been sent so if BMW puts an immediately halt on these before payoff check is received, I guess I’d be left up shits creek without a paddle and back to assumptions
Edit- I called GMTV and they said since it’s already dated and in process I have nothing to worry about.
That said, I’ll be worried until I see my account close.
For sure, although if I’m honest with myself I can’t say I really blame them.
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I can understand with leases, but if you are financing, you should be free to trade it in or sell it any point. I guess you always have the possibility of just paying it off then selling it, but why jump through those hoops when there is no reason to. It also messes with sale tax credits in a lot of states, which is the big reason to be upset. If you want to buy another brand, you can no longer save on sales tax (if you don’t have the cash to buy it out). So now not only can your local dealer low ball you on your BMW, but you can lose thousands in tax savings. If I was a lawyer, I would seriously be looking into a class action suit but I am sure the suits at the captives have explored that.
Since the lease terms never gave the right to anyone other than the lessee to buy the car, I do not think a class action would succeed. Additionally, on my last Audi lease, there was a mandatory arbitration clause for any disputes arising out of the lease. Assuming BMW has a similar clause, a class action lawsuit would not succeed.
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Do the captives own the car during the lease term? Was the intent of that language - regarding payoff - was to say how the lessee could take control of the car or buy it out by him/herself or through an agency - at lease end or doing lease since the car was SOLD to the lessee during the initial transaction?
I don’t understand the argument that lessee does not own the car during the lease period. Captives do own the car once it is returned until then they own the financing part of it.
Yes! Leasing = The captive buys the car from the manufacturer and rents it to you, for the terms you sign at inception.
That was a joke, because that’s where a lot of these threads eventually end up.
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They own it from day one.
The lessee owns the car as much as you own the car you rent from hertz on vacation.
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This never happened
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I’m in California. Can I still payout the lease and then sell it to Carmax? I believe I won’t be liable for the tax as long as I sell it within 10 days per CA tax code.
I was planning to sell my car to Carmax for $4k equity next Monday. Given the news, I wonder that’s a feasible route. Anyone w experience/knowledge to share?
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I see where you’re going with this. It’s because contracts don’t mean anything, right?
It’s because there was never a contract in the first place for a lease where the lessee took ownership. The car was sold to the lessor during the initial transaction, not the lessee.
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In theory yes. Plenty of reports here of people buying out their lease and reselling after receiving the title (electronically).
Just spoke with a BMWFS agent in detail about this, though it was a L1 CS person who also admitted it was a fresh change today that was still being rolled out.
It’s mainly a change in policy for who gets the quotes, not a prevention.
Earlier, Carvana or Vroom could request the payoff.
Now, under today’s revsions, for the next 90 days, either:
a) lessee will need to call BMWFS and make the request, providing dealer’s email/fax
b) lessee will need to facilitate a conference call
No stops on selling to 3rd parties; just that they need to be handheld by lessee within the process and given dealer quotes now.
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I feel like you killed the funny there 
I have a real question, though. @jeisensc mentioned that the captive buys the car from the manufacturer. Do they (the captive) not actually buy it from the dealer, or does the dealer never actually buy it from the manufacturer?
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You can never tell these days
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