BMW X3 lemon replacement

Hi guys,

I leased a BMW X3 in may 2019 and it had some Ac problems so I took it 3 times to Bmw service center. After 3rd time, they took the vehicle back and giving me replacement vehicle. They are giving only 1 month lease amount back.

What should I do? Get a refund or replacement vehicle? How much compensation should I get back for 3 months of pain and hassle?

Any suggestions?


I would ask for a full refund for everything especially since it’s only been 3 months. I’m sure you could do better on a X3 now.

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You mean will get a better deal now?

Yeah… we would need to know details of your lease to give you advice. Just got my brother a new X3 with a MSRP of $53K for $499/month with just 1st month down and MSDs as a frame of reference. It was 13% off plus incentives.


If it’s a lemon law type claim, you should be getting all your money back. You shouldn’t get anything for “pain and hassle”, but your payments, upfront costs, etc should be coming back to you.

My suggestion is to talk to a lemon law attorney. They’re generally free to you as they recoup their costs direct from the manufacture. This can vary by state.


I also had a good deal 52k msrp and they came down to 43k for a $479 per month lease and with MSD it came down to 449/month

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You can try to ask for more but litigation can take a year and fees, so if it’s worth it to you.

Did they change the mileage in the lease or they not charging for that?

You can be firm for more and keep trying as that doesn’t hurt and you may meet in the middle without litigation.

That’s a solid deal… wait to see what type of incentives & MF there are for August. Then Ask them for the same sale price but with the lower MF, higher incentives, etc.

I’d be shocked if a manufacturer that is already trying to buy back a lemon wouldn’t settle a claim for the amount legally owed. Asking for the compensation called for legally isn’t unreasonable.

Hire a lemon law attorney for 1, and not rely on the opinions of internet unknowns.


Keep in mind that “hiring a lemon law attorney”, at least in most states, doesn’t cost you a dime.

  1. +1 for Lemon Lawyer (definitely speak to one, nobody here is going to have the best advice since we don’t even know what state you are in). You also want to ask how the collateral exchange will affect any future lemon claim (I assume it resets since it’s a different VIN, but may vary state to state).

1a) DON’T tell BMW you are consulting with a Lemon Lawyer - once you sign the papers with one, they won’t deal directly with you anymore. If you’re in CA, PM me and I can recommend an excellent one.

  1. It sounds like the dealer is facilitating a collateral exchange with BMWFS on your behalf, which is very good of them. I wouldn’t get to huffy with the dealer or BMW about wanting more (e.g. payments back, money for your aggravation) until you speak with a Lemon Lawyer. Don’t accept the collateral exchange or sign anything until you speak with the Lemon Lawyer.

Others have mentioned trying to unwind the deal after 3 months (e.g. get a refund) - no manufacturer is doing to do that without a lawyer involved. The dealer has no power to do that on your behalf once the contract was funded and the vehicle was titled. Only BMWFS (who you rent the X3 from) has the power to swap out the collateral or buy it back. They are only going to do that IF a lawyer sends a demand letter, they review the claim, and they agree it’s in their best interest. They are already saying the right things and making the right moves, so it depends how huffy you want to be to insist on 3 payments refunded AND/OR a buyback just to lease another X3 (which is a little odd - it’s like a messy divorce, you may want to be married again, but probably not to that ball of negative energy EVEN if you the got 1 bad one).

Good luck!


Been through a lemon case with BMW recently. In my case they offered 2 months of payments and not get the car back, so I took it to litigation. It took me 18 months until they buy the car back. Believe me it’s a hassle and lots of stress. If they already offer you a replacement, I would take it. Actually it’s good that they offer you a payment back, I thought they would only swap the VIN number in your lease and you move on.


That’s what I’m saying to these people about the litigation. It may “cost you nothing” but that’s if it goes all the way through. If over time you just want to take the replacement it could end up costing you.

I almost got litigation but luckily I just settle for a buy back since they didn’t want to replace my vehicle.

Don’t tell them you’re going through litigation cause you do they’ll stop contact with you and have your lawyers talk to theirs.

I’d just question whether the possibility of it taking 1+ years is worth the extra 800-1000?

Unless you want a buyback then you may have to.

Thanks for your inputs guys. I think it doesn’t make sense to go with litigation if I want a replacement vehicle from BMW itself. I tried other options but BMW has so many more features then others have. So I will try to push them to get 2 months back and see if it works or I will just go with 1 month refund and replacement vehicle.


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If you decide to get a replacement car, what happens to all previously paid taxes, fees, dmv etc?
For the replacement vehicle, are you going to pay all of them again?


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If they collateral exchange the lease: no. If they do a buyback and start over, yes.

How do they handle the residual value and option to buy at the end of the lease on these car replacement situations?

Depends on the brand and the exchange, but ideally (in the instances I’m aware of) they try to find a car with the same MSRP and everything else remains the same, they just amend the VIN, mileage (start/end), and do a new odometer statement. Meaning: on a 36,000 mile lease for 36 months, you’re renting 1,000 miles a month. If they give you a new X3 at month 6 with 5 miles on it: amended contract ends at original month 36, car is due in 30 months with 30,005 miles, everything else is the same.

I figured it would be structured that way. I’m more curious if you can buy the new car at the old cars residual value? If you get a 2018 buyout and replaced with a 2019 with less mileage, if residual stayed the same it would be a great opportunity to flip it. If the residual is adjusted for the new car, you could argue you are missing out on the option to buy at the amount stated on the contract.