Experience buying out BMW Lease through a Dealer?

My lease is up for return soon, I’ve received a few quotes and the rates are absolutely insane, not worth discussing to be honest. Even if I am ok paying that much I at least want to finish all my contract to take advantage of the “low” payments. Talked to BMWFS this morning and they stated that I can extend 2 more months no questions asked, which I’ll undoubtedly do, and an additional 4 if I have an order.

They also walked me through the buy-out process and mentioned that an authorized dealer can help me financing my car through BMWFS and also buy Extended Warranty, and, alternatively, if I am not interested in BMWFS or Warranty I can just send them a check and call them to let them know and that’s it.

My question is, does anyone has experience recently (last 6-9 mo or so) buying out a lease through a dealer? any insights of things that I would avoid/red flags? any insight on rates? cost of extending 1 year of warranty? I’ve never bought a lease, always returned or traded in at a dealer.

And a little off-topic, if I do my own financing, do I have to take care of title change or does BMWFS asset?

I am usually against not leasing just for the peace of mind of having a new car and warranty and maintenance covering it, even if it’s a little more expensive all in than financing, but my car is very low on miles, nicely maintained and I don’t mind keeping it one more year hoping the market cools down through 2023, also there’s UDE in my area in december and that gives me another 1K lol. and last this should give me flexibility also to sell my car to carvana/carmax or any dealer by any means if I want to.

PS. If you have seen some of my other posts I asked about cashing out my equity and use on a new lease, not worth it either! :slight_smile:

If you have the ability to purchase the lease directly from BMWFS, do that. A dealer is going to add ridiculous FL doc fees, etc to the buyout, so it’ll cost you a lot more.

Recently bought out (and sold) my BMWFS lease in CA. It was the most efficient and painless process dealing with BMWFS. They send you the paperwork, you fill it out and send it back with your payoff check. MSD’s were refunded in a week, account was closed, and received title in 2.5 weeks.

If you have the option of bypassing a dealer, that would be highly recommended.

With the paperwork and title BMWFS sends back to you, you can go straight to the dmv for your new registration.


TTL and depreciation are going to make the effective monthly payment of 1-year ownership go through the roof.

Well I am taking a gamble here clearly and while I agree with you, my situation is that on my current spec, I’d have to spend ~250-300pm extra to get exactly my same car again.

In a year that’s nearly 3-3.5K + TTL + dealer fees from the new car which likely would leave me at -5K on year 1 switching to the exact same car from 2019 to 2022 (M Sport, Leather ventilated seats, Parking assist, Premium, etc.)

Depreciation can hit me hard if the markets soften too much, but given my low RV will it kill me more than 5K on year 1? not sure tbh, even I get away of the car break even without equity probably it’s a good deal, and honestly I am not even thinking of keeping the car more than 4-8 months after lease ends, I did research on extended warranty and costs seem too high, so I’ll like to offload the car before warranty is off.

And if any broker thinks I’m being ripped off terribly and want to work a SoFlo custom build X3 that is not insane hit me up, I can place the order asap.

Are you allowed to extend the extra four months with an order for something like a iX or i4 (which is probably going to take longer than 4 months to arrive)? That could give you an out later out if you cancel the order before it arrives.

They didn’t mention it so I doubt, what they did mention is that at any time in these 6 months (2+4) I can return the car without penalty and they’ll reimburse me for the unused days prorated.

Not a bad idea but talked to my dealer yesterday and they requested me 500 for an order, which it’s fine I can lose it but regular X cars non hybrid are taking 5 weeks or less which is making me believe the bmw market will soften a little. A friend got an X5 off the lot with a discount last week, he purchased it though.

Something else is that for my Audi dealers are crazy to buy my S4 pay me equity. For my X3 my dealer told me the most they’ll do is keep cover the lease payments and if I don’t likely I’m welcome to sell it privetely, another dealer offered me 2K only if I trade in, no sells, this is a low miles well kept high spec X3, not sure what’s happening there. 3 months ago before Christmas the same dealer offered a check for 3K equity for it.

Historically one of the reasons BMW has offered lower lease payments is their inflated RV. BMWs were typically under water by thousands at lease end.

So when supply and inventory are better, there will be a reversion to that mean. Your car will revert to having been worth ~10% less than RV, and in addition will continue to depreciate on a monthly basis.

And don’t expect to coincide with better leases. BMWFS is seeing just how many people are incapable of #adulting and taking on any of the basic responsibilities of ownership. Those people are paying well over double what the lease payments were before 2020, because not being responsible is priceless to them.

Not sure about your last point specially as it’s something driven by supply and a demand and lower prices mean more volume which mean better economies of scale for manufacturing and probably enough to cover the loss of RV and ultimately more cars sold which is the KPI the auto makers really measure against each other. Most cars pre pandemic had lower actual value than RV and auto makers were profitable.

Now, I don’t expect to pay 500 for my new X3 but having it in the mid 800s is disproportionate to the value of the car.

In that case - purchase on a deal. Then resell in the future. That is surely a great representation of getting fair value.

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