View Single Post
      01-18-2022, 02:41 PM   #27
hooligan_G01
Space Shuttle Door Gunner
hooligan_G01's Avatar
6403
Rep
5,293
Posts

Drives: 2022 X3 M40i BG/Taco Red
Join Date: Nov 2017
Location: Back in the Mitten

iTrader: (0)

Quote:
Originally Posted by Gsavarese View Post
This is interesting because in this market lots of lessees are looking to have Carvana and Driveway etc buy out their leases and BMW has cracked down on this. But in this suit the Toyota dealer was buying out the lease and giving equity to the buyer. I thought a lease was just a rental from a bank and you had no ownership interests in the car. So I donít know how successful this suit would be. Buyer should have bought out the X3 for 27k then itís his car to sell. Interesting follow though
The fact is, that any given point in time, a lease can be bought for the specified residual, plus the total of the remaining lease payments.

It shouldn't matter to BMW FS whether it's you or someone else buying the car. They are simply doing this as a protection to the BMW dealer network.

An owner could always buy out the lease, then turn around and "sell" the car to Carvana or Vroom or whatever, but the owner would pay tax on the purchase and thus reduce the overall equity.
Appreciate 4