Buyout Lease via Dealer or BMWFS?

[wearandtearscam]

Hi Folks,

I’m planning to buyout my 2021 X3 (market value ~35k vs. buyout cost ~28k).

Should I buy it out via the Dealer or BMW Financial Services? (In CA, if it matters)

I was almost sure the Dealer would just rip me off, then called BMWFS and they recommended going to dealer. It seems like the pro/cons are:

Pros of Dealer:

1. They deal with DMV to handle title and tax (I don’t see how this is different from going to a dealership, either way I wait 2 hours)
2. They can “certify” your vehicle and sell you an extra year of warranty (perhaps this is why BMWFS is sending me to dealer)

Cons of Dealer:

1. They charge some additional fee (quick browse of this site suggests ~$600?)
2. There’s usually a gotcha at a dealership, maybe I just don’t know what it is yet?

Any recommendations on whether to do dealer or BMWFS?

Also, recommendations on whether to get the extra year of warranty? (I still have a year remaining on my initial 4 year warranty)

[max_g]

Did you search LH?

[wearandtearscam]

Yes, here and on bimmerpost, and I could not find an answer to this specific question (for BMW).

Mostly posts about “should I buyout my lease”. Not whether you should do via dealer or BMWFS.

[jeisensc]

@wearandtearscam

Should I buy it out via the Dealer or BMW Financial Services? (In CA, if it matters)

BMW 2021 X3 lease-end buyout through BMWFS or a dealer?

Buy it out directly from BMW. 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 charg…

@wearandtearscam

recommendations on whether to get the extra year of warranty? (I still have a year remaining on my initial 4 year warranty)

BMW Extended Warranty

I was feeling generous so I did the legwork for you:

Extended Warranties - BMW 2018 M5 CPO

Look into other third parties as well - Fidelity is well known and a better value in many cases. Also, very easily cancellable for a pro rata refund. Depending on your state UC + may not be cancellable. This is relevant if you ever sell before the end of the term to someone other than an individual (and thus can’t transfer it).

Extended warranty

I had third-party coverage on a previous vehicle, purchased from PenFed (the entire process was horrific and took weeks to complete, as PenFed is inept at absolutely everything they do). https://www.penfed.org/auto/extended-warranty I checked with my regular service advisor at the dealer before I bought this, and was told that customers (at least the ones who understand that oil changes and dental x-rays aren’t covered) are generally happy with it and the dealership never had problems getting …

[wearandtearscam]

Thanks for the reply!

This answer suggests looking at other warranty options, but why did you pick a warranty?

Similar to your reply, everything I’m finding online seems to talk about comparing prices across different extended warranties, vs. whether you should get one at all.

I’m asking because for example extended warranties on electronics are always a rip-off, but on the other hand I always get lease excess wear & tear protection for my leased BMWs because one big scratch and low tread depth it pays for itself.

I’ve never purchased a car before. Is it a given to get an extended warranty for a car?

[max_g]

@wearandtearscam

I still have a year remaining on my initial 4 year warranty

Best is to table that question until 4-6 weeks before expiry.

You’ll have more clarity on your own plans to hold on to the car for a while or not, plus more data on the car and motor.

[max_g]

@wearandtearscam

Not whether you should do via dealer or BMWFS.

That question has been answered many, many times on LH.

[wearandtearscam]

I just searched for an hour and couldn’t find it. I would love a link if you are able to find a thread on this.

[max_g]

@jeisensc already provided a link

[wearandtearscam]

Thanks, I do really appreciate it. However, while there are answers to that post, it was unfortunately not really resolved.

2 people assert buy from BMW because BMW knows how to do it and BMW will try to sell you something. Yes I assumed the same.

A few other people said their dealer tacked on fees, many due to financing. I am cash buying, not finance.

I was hoping to hear from people who actually successfully bought from BMWFS or actually bought from a dealer.

Only one person had done so in that thread, and it sounded like they paid $55 fee to dealer in SC (+$500 IMF fee, which we don’t have in CA), which sounds fine.

Two people asserting and one actual purchase is not really a great set to make a decision on. Other threads would be awesome, but they are also mostly about i) dealer tacked on crazy fees so they didn’t do it (which I am not seeing) ii) where should you buy extended warranty instead.

[wearandtearscam]

max_gTrusted Hackr

2h

@wearandtearscam

I still have a year remaining on my initial 4 year warranty

Best is to table that question until 4-6 weeks before expiry.

You’ll have more clarity on your own plans to hold on to the car for a while or not, plus more data on the car and motor.

Thanks

[j_e_f_f]

Buy it directly from BMWFS, unless you just want to voluntarily pay the dealer $500 or $1000 extra for facilitating the transaction.

[Wtmeyer]

To fully answer your question, why not simply go to the dealer and ask them? Personally I don’t think buying out your lease may be the best option. See what a BMW dealer will give you in trade and what it might cost to lease a new BMW. You already paid for excess wear and tear, so that money has been flushed. Dealers are asking low to mid $30K for 2021 X3 3.0. Are you sure you have as much equity as you think? Might make sense to get a newer X3 with full warranty and maintenance coverage for another 3 years. Of course I am not a big fan of the curved display, so maybe there is a reason you want to keep your 2021.