Why won't BMW dealers facilitate a lease buy-out without BMW Financing?

Ask the Hackrs
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My lease is nearly up and I’m trying to purchase the car; however, BMW dealerships will only facilitate the transaction IF BMW Finance is used. But they are offering a high APR. My bank is offering me a lower rate; however, they don’t seem to want to facilitate the purchase that way. I’m assuming that’s due to commission they’re earning from BMW?

I can buy direct through BMW but then I’d have to deal with the sales tax and registration of the vehicle on my own.

How can I get this facilitated through a dealership? I’m in SoCal.

Thanks!

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  1. You can buy it out yourself? (The Sales Tax and Registration isn’t that complicated)
  2. Because they need to make money.
  3. Some dealers will do it, but obviously, not the ONE you talked to.
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Is there a local title company with good reviews that you can pay to help you with this process? They should be able to guide you through the process of dealing with taxes and government registrations.

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It’s just the hassle. The sales tax would become out of pocket and I’d have to waste half a day at the DMV. But if that ends up being my only option, I’ll have to go this route. The difference in APR is 2%.

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Call a few SoCal has a ton of dealers

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Did you already ask @BMW_Dave ?

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It’s 45min to an hour tops. I did this twice. Most of the time waiting I just wrote emails, read articles and listen to content on my phone.

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You have AAA?

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What rate did they offer?

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Email me the VIN and current miles. I’ll also need your name, city and zip code. I’m in Murrieta and I can get it done for you with another lender.

dave.townsend@bmwofmurrieta.com

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Hmm, I do have AAA, that’s an option, thanks @Gearhead

BMW offered 8.49% and my bank offered 6% @IAC

So Southbay BMW was willing to do it, but they would tack on a $1550 vehicle inspection fee.

@BMW_Dave Murrieta would be out of the way, would it be possible to get the paperwork done online?

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I would spend an extra 30 mins going out of my way to get top of the line service and work with someone who has an established reputation.

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No we do require these to be signed on site. You can’t be more than 1.5 hours away. Seems better than dealing with the hassle on your own. Just ask around on this forum. I take care of my people.

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Can vouch for Dave, he’s a straight shooter.

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@mcmuney I’d be happy to send you a quote with the rates that I can get and you wouldn’t have to deal with it on you own. But I can’t help unless you can provide the info I would need.

I’m only 1 hour from SD and 1.5 hours from OC/LA. It’s an easy drive.

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Did you ask your bank? If financing through them, I’d think they’d take care of the sales tax. I mean, they have to ensure they get the title in hand, so they wouldn’t want to count on your to pay the tax.

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@BMW_Dave I’ll send you an email for a quote. Thanks.

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I did ask them (BofA) about sales tax and they said they’ll add on 6% (national average) to the loan and write me a check for that amount and I’d be responsible for paying the tax and anything beyond the 6%. Surprisingly, they’d pay off the car first and I’d have to go to the DMV after I received the title from BMW. But they made it sound fairly straight-forward.

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It is easy if you have AAA…otherwise…well…lol

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Butttt… the BMW buyout is already going to include tax. BMWFS will be paying the tax on your behalf. They can’t NOT collect tax on a vehicle they sell.

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