If I’m looking to take over someone else’s lease what are the things I should be aware of at the end of the lease and also before transferring the lease? May be my question is more specific to performance cars like BMW M3, etc. Suppose I find a lease transfer with 16 months left, other than monthly payments and miles, are there other things I should consider, like maintenance - should the tires be in good shape when I turn in the lease? should the brakes be in good shape? Or none of these matter except the cosmetic/ exterior and interior?
Also when I take over the lease can I get the car inspected by the dealer and will the dealer let me know the current condition so if anything significant I can’t negotiate with the seller?
I think the videos pretty much sums it up all. Thanks again!
Does BMW perform an inspection (I can post $ out of pocket if need be) before I take over a lease?
Next question: do people negotiate on the private lease transfers? is it just like you negotiate at a dealer when you buy a used/ new car or not much?
BMW will do an inspection before turn in time and let you know what issues they find. In a private transfer you should point out the issues found by yourself or an inspection done by someone else. You can always negotiate on a private lease transfer. I have done a few private lease transfers. Typically if the deal is really good you just take it. If they have had the car listed for awhile, you can negotiate. Compare the deal with some of new deals posted and it should give you a good baseline to work from. Certain maintenance coverage comes with a new car purchase and does not carry over on a private transfer for BMW’s.
When negotiating a private lease transfer. I always let them know that I have strong credit and will complete the deal quickly. I have done a few transfers and that helps with people that have not done it. In transferring to other people, I look for someone that has done a transfer before or had approval by BMW financial before. A few people will say they have good credit and get denied by BMW.
You should consider sales tax. I assumed a lease on a 2017 BMW 430 Gran Coupe in December 2019. I live in Virginia, a state with a 4.15% sales tax paid upfront on a lease deal. Neither BMW FS or the state could give a definitive answer on my tax liability. There is conflicting information online posted by people who confuse VA’s sale tax and its annual personal property tax on vehicles. I had to pay almost a grand, a figure based on the selling price of the car in 2017. This was a transfer from South Carolina. I don’t know what I would have paid for an in-state transfer. I will never assume another lease.
Definitely consider any damage or modifications made to the car, as you will be liable for these when turning it in. Pay special attention to rims, these often get damaged and can be very expensive to replace (they will probably charge you replacement cost instead of fixing cost). Also scratches, dents, chips etc, Make sure everything in the car is stock, you will need to return the car as it was when it left the dealership. Tires should also have no more than normal wear and should be same type of tires it shipped with, many BMWs come with run flat tires.
You always have to be careful assuming someone else’s lease. You’re inheriting any damage, wear and tear, and you’re paying both a transfer fee and the disposition fee at turn-in for a shorter lease window. Many cars on a 36 month lease are below tread, so those are costs to consider.
You can take the sellers word for it, but once the transfer is complete, they don’t owe you anything if there’s something they didn’t tell you about. I’d always be weary of people transferring out in the last year of their term. Personally, the deal would have to be super compelling to convince me to take it over.
That’s fine, that’s your personal decision but I don’t see what your alternative is if you continue living there. A new GC with let’s say a selling price of $50k is going to generate sales tax of >$2,000 plus higher PPT.
You may have misinterpreted my gripe. Following the lease transfer, I paid the 4.15% sales tax on the selling price of the car in 2017 for the privilege of driving it for 9 months. I would consider it fair to be taxed on the assessed value of the car in December 2019.
My alternative to assuming lease transfers is leasing new cars every 36 months as I’ve been doing in this state for 20+ years. I pay the sales tax on the selling price of the new vehicle every 36 months.
I’m not implying that lease transfers are bad for everyone. I wanted to point out that lease transfers for out-of-state cars may cost more than you expect in VA unless you aware of how your tax liability is assessed and have factored that into your TCO for operating the vehicle for the remainder of the lease term.
Generally speaking, a car is worth less into the lease at the beginning. Where the monthly payments are equal. So you are paying the same at the end of the lease, while getting a car that is worth less than when new.
Also BMW maintenance (ultimate care) does not transfer.
This, you’ll be paying the mileage milestone maintenance out of pocket, unless you pay for it or they have ultimate care plus (I believe this transfers).
Full answer, makes sure car looks good, brakes, paint, wheels/rims, etc.
Edit: plus does, and the previous owner can choose to purchase it to let it transfer, and you can as well. Plus also covers brakes, clutches (wtf), and certain consumables google it for more (just what I know from my dealer).
