Hello,
So I have a lease that’s coming to an end soon, based out of NY. It’s leased through BMW financial, and I was wondering if I can transfer the lease to my brother. There’s plenty of reasons why I’d want to do it, end goal is to finance the car. If I can, what are the steps I should take? I have about 4 months before the lease contract ends. Thank you I’m advanced.
Transfer the lease or just go to the dealer and ask for them to facilitate your brother to buy it out?
I think you need 6 months remaining on a BMW lease in order to transfer it (someone can chime in if I’m incorrect). If you have a relationship with the dealer maybe they can facilitate your brother buying the car from BMW Financial at lease maturity. How that happens may depend on the laws in your state.
I had no idea I can facilitate him to buy it out. I’m a complete noob considering this is my first lease ever and first time dealing with end of lease options. The car is still in mint condition, it’s under on miles and I took very well care of it.
So there would be no way to get it under his name?
They charge a fee (hopefully small) but yes they ‘buy out’ your lease then ‘sell it’ to your Bro, some taxes involved but not as much as if you tried to buy it yourself and sell it to him.
No way to transfer the lease at this point. Should have done it before the 6 month mark. You’ll have to try to get the dealer to facilitate the deal I’m afraid. (I’ve done BMW transfers before)
Can I choose to finance it then transfer it to his name?
Yes, you could buy out the lease at maturity, but you would pay sales tax on the payoff amount. If you are going to “transfer” it into his name after you purchase the car, how will he be paying you for the car? Will he just write you a check for the total amount or will he need to finance this purchase? He would then have to register the car in his name and pay applicable sales taxes in your state. If the dealer facilitates this buyout, you avoid paying the sales tax when you purchase because YOU are not purchasing the car from BMW Financial, your brother is. Therefore, he would pay the applicable sales tax as part of the sales transaction.
I guess technically the dealer is buying the car from BMW Financial then selling it to your brother. BMW Financial cannot in any way sell it to your brother.
Now that is a double tax situation.
You financed it (Tax1), then transferred it. (Tax 2)
If you go to the Dealer, Sell it, and have him Buy it with their financing , then he’s the owner and is on the loan.
If he can’t afford the loan (that’s why you are financing it), don’t give him this car, you will regret it.
He might be able to extend it 2 months and then initiate a transfer. Not 100% sure on this.
Mmm…didn’t think about that. OP, find this out ASAP
Don’t forget the transfer fees.
Do your brother a favor and research or have him research the car to make sure the buyout is a decent deal.
He can afford it , the problem is I can’t. Especially when I factor in the insurance.
Will try this asap.