Weighing my maturity options on my 530ix. I called BMWFS as I’m done with payments, but the lease does not mature until July 26. I have a bit of time, but with the Fed hiking interest rates, I figure it may be advantageous to buy out now if that’s the route I choose rather than waiting for another 50 basis point hike in June.
So I call BMWFS and they tell me as of April 26, 2022 - they are no longer allowed to sell to customers directly, I have to go through a dealer in the state of Illinois. I’ve heard nothing of this until I called them and I can’t find anything online specifically about this.
Regardless of the legality, I have a feeling this is a recipe for disaster with regard toward getting a favorable deal / finance rate. I suspect dealers will try and tack on “buyout fees”, mark up financing, etc… in order to try and make coin on the transaction.
What is the straight dope here - does anyone know? If buyouts through the dealership are truly the case, what is my best option not to get taken advantage of? Now that it’s a dealer transaction, is the buyout now negotiable (I realize this will not be favorable in this market.). Are dealers obligated to honor the contracted buyout price?
BMWFS is 100% obligated to honor the price. I’d start by calling to the Dept of Consumer Affairs in your state (may be a standalone dept or may be part of the AG’s office) to see what can be done.
Making you jump through hoops or pay additional expenses not in the contract could be a breach of contract.
Any dealer in Illinois is going to charge you $324 doc fee and about $340 for plates/title. Some might try and charge a safety inspection fee on a buyout, you can try to negotiate that away. You will of course have to pay sales tax.
As for negotiating the price of the car, that’s pretty set in stone. The dealer can MAYBE buy it for less, but then can’t sell it to you per BMW policy.
For rates, you can try to use one of their lenders. Maybe BMW FS has a promotional rate for used cars. Otherwise, you can pay use a credit union and it is a “cash” deal for the dealer. I would suggest seeing if they would wave any fees if they can match whatever outside financing you find. Win-win for both of you.
Your best bet is to go to the dealer you bought it from assuming it is local. If you start calling random dealers, no one is going to want to do work for free.
