BMW Lease buyout transfer

Hi I am trying to do a lease buyout transfer for a car that I am currently leasing in Arizona. The buyer is my sister in NJ. Can someone please explain how the process works? BMW sent me the buyout amount which includes AZ tax. I don’t want to pay tax on it because I am not buying the car (my sister is) and the car will not be registered in AZ.

Should my sister write a cashiers check to BMW for the buyout amount (minus tax). BMW release the title to me and I send the title to her. She gets it registered in NJ and pays tax there?


Who told you a lease buyout transfer is possible?

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This post briefly mentions it but doesn’t tell the specifics of the process:

BMWFS limits buyouts to yourself and to a BMW dealer. Secondly, no bank allows buyouts in that way even between family.

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Can I just buy the car and pay the AZ tax and then “gift” the car to her. Would she have to pay NJ tax when she registers the car there?

You can also ask a local BMW dealer if they can process a buy/transfer on your behalf. I am sure they’d charge, but it might be cleanest way to do it

If someone gifts you the money and then you gift them the car, it ceases to be a gift and becomes tax fraud. You may not get caught, but it isn’t legal.

They can gift you money or you can gift the car, but both can’t occur.

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If nothing else works you could transfer the lease to your sister and have her buy it out.


That’s probably the path of fewest complications. Though BMWFS does not do transfers in the last 6 months of the lease and your sister will still need to qualify for the transfer, per BMWFS.

Edit: the article you referenced is from 14 months ago… a lot has changed since. Many banks either limit buyouts to the lessee, or similar-make dealerships, or charge “market value” for third party sales. Also, the 10-day tax exemption described applies only in California.


I think if you put it in quotations marks you have legal immunity.

Also if you make it your Facebook status for at least 3 business days.

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Oooh. I just wrote that down.

I deleted my post. I certainly am not advocating any kind of fraud. I just assumed that if someone loans you the money to buy the car (perhaps gift was a poor choice of words), and you in turn give them the car instead of the money to pay them back, that would be a way of accomplishing this

In case it’s not obvious—I’m not a CPA. Apologies if I misled the OP

I am little less than 6 months away from my lease end so yeah lease transfer won’t work. She only needs the car for six months, so I thought may be I should just let her use this car leased to me with her own insurance on it but BMW says that’s not allowed per lease agreement

They always say that too but if she lived with you , it would probably fly, this different state thing can get very ugly.

Yeah I agree! Don’t want any trouble. I will likely buy and pay AZ tax here and then gift the car to her so that she can register it in her name in NJ.

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