Hello Everyone, i am looking for some advice from some folks on here who understand this stuff better than i do (i hope this is not a dumb question).
My current X2 lease is nearing its end (3 more payments left). I found a decent deal on a new (non BMW) lease and am thinking of ending this X2 lease 3 payments early (still need to pay June, July and August). I currently have an offer from Car Max for $24,600 based on my current mileage and trim. Monthly payments for my current X2 are $380 a month.
The lease buyout according to my contract is $24,017 once i factor in the 7% tax, but the lease doesnt expire till August 31. Will BMW sell me my current X2 for $24,017 now or is that the price that is only valid 3 months from now?
By the time the lease ends i will probably have accumulated excess milage in the realm of 8k (thats a few thousand dollars in excess mileage, which i was originally fine eating, but turns out i may have found a solution… see below).
Am i right in think that that if i buyout the car now for $24,017 sell to Car Max for $24,600 i can avoid anything related to wear and tear/tires/mileage overage and call it a day? And with the excess 600 i can cover almost 2 months of payments.
This is the first time ive ever considered a buyout and i just wanna make sure it makes sense and im thinking about this the right way.
thanks so much - so basically the price listed on my contract is irrelevant since its not end of lease yet? if not, then what is the difference between the two prices?
In order to find out the 3rd party/dealer buy out price can i just phone my dealer tomorrow and see what they say?
There’s a couple different numbers going on here.
If you go to your bmwfs portal and request your lease buy out, it’ll tell you the price for you to buy out your lease, right now.
If you look at your lease contract, it lists the price to buy out your lease at lease end.
You want to request your dealer buy out number, which is the price bmwfs would charge a dealer to buy out your lease, right now. There are difference with taxes and fees here.
Make sure Carmax buys leases that ends very soon, some other online used car dealers don’t buy maturing leases. Quote several local BMW dealers as well.
anyone know where on my dashboard i can see the cost of an early buyout? We had our inspection last week for wear and tear and now my account just says “account terminated”… uhhh. it also says i have no payments left, when in reality ive only paid for 33/36 months.
At the end of your lease, you’ll be provided with a payoff set by BMW Financial that is different than the dealer payoff. It is never higher than the residual value (unless you have remaining payments, and if so you add those in). BMW will occasionally offer a market discount for you if they set the residuals too high, as early as 90 days prior to your lease end.
BMW ended that negotiable part of buying out leases about 3 years ago. Essentially they want the payoff you get from a dealer and the one they can provide you with directly to be the same.
You are not able to buy the lease for the dealer payoff. It is likely that the dealer payoff is different because our payoff is based on some equation factoring in residual / condition / Manheim / dealer’s standing with BMW.
I’m not sure the exact reasons for why they do it this way, but that’s how it works.
Thanks everyone. I called BMWFS. Turns out my dealer accidentally marked my account as terminated after our inspection so i need to figure that out now, was not a glitch lol
they mentioned that my price and the third party dealer payout price are the exact same, except that with the third party price, i wont need to pay any taxes? does that sound correct?
the price is $23,489 and some change (i would need to add 7% tax to that, whereas the CarMax price would be just that). this seems to be about 1.2K less than what CarMax is quoting me to buy it out
Taxes and DMV items are not included in a payoff. That would be referred to as the “total buyout.” A non-BMW dealer would get the same payoff as you would.
To clarify, since my first answer was kinda vague… At the end of a BMW lease, the customer payoff would be the residual and occasionally discounted “X” amount for market value. Dealers get a payoff that is not based on residual, but rather the market / Manheim auction value.
BMW FS provides different values because when you lease a car, the residual is technically the value at the end of the lease. However, because residuals are usually set high to keep lease payments competitive, they don’t want to make dealers buy cars at market loss.
Typically the only reasons to buy a lease out are 1) you absolutely LOVE your car and can’t get another one (we see a lot of 4er Gran Coupe buyouts lately), or 2) you don’t want to get the same model used car that you don’t know the history on, 3) your car has equity which can likely be the case right now with market conditions.
Not sure if that answers your questions, but we are seeing a higher number of lease buyouts than usual by about 20%. That’s been the case since the start of Covid, and a large number of customers buying out their cars are Certifying them as well to get the extended coverage.
