Lease buy-out BMWFS

Ask the Hackrs
1

I watched some youtubers talking about selling his lease car to carvana /carmax/etc… at end of lease instead of returning car and making money or getting free months at the end of lease. not quite understanding how it really works. if someone can enlighten me. Thanks

2
3

thanks,
though I am looking into the process of lease end, when it is time to return the car . I heard people few months before they appraise car and if it is higher than the residual, they cash this money /negotiate better deal with dealer on new car. I am reading bits and pieces and it is not really clear how it works.

4

You would sell the car to a 3rd party dealer. The dealer you’re returning it to wouldn’t have much motivation to give you more than just taking in the lease return.

5

thanks,
so let’s say the 3rd party is 2K more than payoff, do they cut the 2K check to me and pay BMWFS the pay-off?

6

Right. Make sure the payoff you are asking for is the dealer one as it may be different than your personal.

7

Yes, that’s how its typically handled.

8

didn’t catch that
so you’re saying the dealer payoff might be different than residual at end of lease?

9

Yes, because dealers may be exempted from sales tax on the buyout, whereas you may not be. Also, some companies charge dealers more to buy out the lease than the contracted buyout for the lessee.

10

Pretty much impossible on a BMW though because the residuals are inflated

11

Thanks All, appreciate it

12

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