[bluefenderX3]

I'm planning to buyout my 2021 X3 when my lease ends next week. I like it, and buyout cost is like $7k less than market value.

Should I buy it out via the Dealer or BMW Financial Services? (In CA, if it matters)

I was almost sure the Dealer would just rip me off, then called BMWFS and they recommended going to dealer. It seems like the pro/cons are:

Pros of Dealer:

- They deal with DMV to handle title and tax (I don’t see how this is different from going to a dealership, either way I wait 2 hours)
- They can “certify” your vehicle and sell you an extra year of warranty (perhaps this is why BMWFS is sending me to dealer)

Cons of Dealer:

- They charge some additional fee (they told me $85)
- There’s usually a gotcha at a dealership, maybe I just don’t know what it is yet?

Any recommendations on whether to do dealer or BMWFS?

[huggy509]

I did same earlier this year in UK by getting cheapest finance available from bank
BMW tried to get me to change cars and when i said I was his buying it out wanted to quote even though I didn’t think they would be competitive
When I got their quote it made me LOL as it was ridiculously more expensive

[carchrism5]

I did the buyout on mine a while back and I know it varies state by state, some require dealership visits, some do not. I had the option on one car and chose not to use the dealer for the cons you mentioned. If you're financing the buyout you can actually do the transaction directly with whichever bank you choose and the rates will be lower, leaving ultimate cost to be less. BMW FS will allow you to do CPO but that is an expensive process. If you go with a great credit union some of them have options for excellent extended coverage warranty if that matters to you (Route 66, Fidelity, etc), just do your research on offerings as all are not the same.

I also did a buyout recently in a state that required a dealership visit an it was horrible, numerous dealership tactics tried and they even became rude when I told them I was not interested and just wanted to buy the car out.

Given the choice I would personally avoid the dealership.

[Chitown_vroom]

Originally Posted by bluefenderX3

I'm planning to buyout my 2021 X3 when my lease ends next week. I like it, and buyout cost is like $7k less than market value.

Should I buy it out via the Dealer or BMW Financial Services? (In CA, if it matters)

I was almost sure the Dealer would just rip me off, then called BMWFS and they recommended going to dealer. It seems like the pro/cons are:

Pros of Dealer:

- They deal with DMV to handle title and tax (I don’t see how this is different from going to a dealership, either way I wait 2 hours)
- They can “certify” your vehicle and sell you an extra year of warranty (perhaps this is why BMWFS is sending me to dealer)

Cons of Dealer:

- They charge some additional fee (they told me $85)
- There’s usually a gotcha at a dealership, maybe I just don’t know what it is yet?

Any recommendations on whether to do dealer or BMWFS?

Certifying your own car to then buy it [from yourself] as “certified pre-owned” seems like a farce that only a dealer could dream up! And for the *privilege* of being sold an overpriced insurance policy masquerading as a warranty.

Don’t take this route. The dealership is not your friend — minimize any time and contact with them to the fullest extent possible is my advice.

[Sportstick]

I am not aware of state-by-state variation, but when I called BMWFS to confirm the incentive they offered online on their site for the buyout process of my prior 330iGT, they handled the entire transaction without a dealer visit, which, to me, is a good thing. It was as easy as possible. I soon received the documentation needed to re-register the car in my name. If you have a car that is in need of more warranty, I would reconsider the purchase or ask your dealer over the phone if they can sell it to you either without a pre-buyout inspection or after the transfer is complete.

[richardyc]

you shouldn't need to go thru the dealer, if you do, they might charge you a 'doc fee' like you are buying a car off their lot.

[gphin]

Ditto above. Dealer tried to charge me an $800 doc fee when I bought mine at lease end. Go directly thru BMWFS.

[sbt007]

There will be a doc fee at dealer. Which is probably fair if they are spending time with admin work.

Why wait till the end of the lease? I bought it out 3 months before the end from BMWFS. Worked with a credit union that advertises lease buyout (since you are in CA I can say it is Golden 1) and they sent a check directly to BMW and did all the paperwork. I have also done the case where I bought out directly from Honda finance, very similar -sent them a check, they sent me the paperwork. I took it to AAA (instead of DMV) and paperwork done in quick time with no lines.

It is possible BMWFS suggested dealer because now it is quite late in the lease and there may not be enough time to do this without going to a dealer. Make ot clesr to the dealter that you do not want to by another new car (they might push for this).

[MauiSteve]

I bought my 2020 540i sedan off the lease around month 35. Just go to your BMW online account and begin the buyout process. In my state (Hawaii) it did require a visit to the dealership- the online system will inform you if this is required and it does vary by state. If in your state a dealership visit is required then contact your client associate or if you don't have a client associate then contact the finance manager of the dealership to schedule an appointment.

At the dealer they did a free vehicle inspection- they sort of insist. I think they are looking for any codes and also to see if any evidence of tuning. In my case this was actually a good thing because they found a faulty headlight switch that was causing codes and this was later replaced under warranty.

With a dealership visit to buy out your lease this will involve a sit down in the finance manager office. You will be offered to purchase extended warranty (but might not be if they have found evidence of tuning). If you intend to buy an extended warranty I suggest researching the forums about the BMW Platinum Extended Service Contract so that you know how much to pay as this is a negotiable cost item.

The rest of the process is pretty simple in that you digitally sign a bunch of stuff and write the big check to make the car yours. The dealership will handle the crap at the DMV and they will advise you to contact your insurance company to inform them that you now own the car and are not leasing anymore. Then you swing back by in about 2 weeks to pick up your vehicle title.

[EWL5]

Assuming you are coming off a 3-year lease, you'd still have one year of factory warranty left. What good is buying an additional year? I'd probably CPO but ask for an additional 3 years at least (someone besides your dealer can do the CPO)!

Also, I don't know of any doc fee < $300 (especially from BMW). And yes, they will most certainly doc(k) you fees that you already paid for the first time around! None of these issues exist if you pay BMWFS directly!

[Plusforce]

Buying out the lease directly through bmwfs should be only in cash or still it can be financed without going to the dealer?

[MauiSteve]

Originally Posted by EWL5

Assuming you are coming off a 3-year lease, you'd still have one year of factory warranty left. What good is buying an additional year? I'd probably CPO but ask for an additional 3 years at least (someone besides your dealer can do the CPO)!

Also, I don't know of any doc fee < $300 (especially from BMW). And yes, they will most certainly doc(k) you fees that you already paid for the first time around! None of these issues exist if you pay BMWFS directly!

When you purchase a BMW Platinum Extended Service Contract you are typically extending your 4 year factory warranty by an additional 3 years so that your total coverage is 7 years. Mileage limits apply and typically you choose between 75,000 or 100,000 mile coverage. The Platinum ESC warranty covers most everything, but of course you must read the fine print. The warranty info goes right into the BMW of North America computer system so you are covered at any dealership. This is why you see threads about contacting Steve Thomas BMW for buying these warranties as they are supposedly less aggressive with ESC mark up costs.

You can not turn in your leased car and then buy it back as a CPO. BMW forbids dealerships from allowing this, so once you turn in your leased vehicle you won't be the next owner. Not really sure what you mean when you say someone besides your dealer can do the CPO.

And again, not all states allow you to buy your lease out on the BMWFS website. I tried to do this and ended up on a screen informing me that in my state the buyout had to be done at the dealership. This is the exact text:

Dear Steven :

Thank you for contacting BMW Financial Services NA, LLC regarding the payoff for the referenced account. We are delighted to provide you with the information you requested.

All information regarding your payoff can be found in the following pages. To proceed with the purchase option for your vehicle, please contact your preferred BMW Center for assistance. The purchase must be processed by an authorized BMW Center due to your state guidelines.

In accordance with the terms of your Motor Vehicle Lease Agreement, you may either purchase your leased vehicle or return or trade-in the vehicle to an authorized BMW Center. BMW Financial Services will not accept payoffs received from third-party dealerships.

In the event a payoff is received from a third-party dealership, BMW Financial Services will return the payment by mail to the original sender. Please contact your preferred BMW Center for further information on your purchase options.

This account is currently set up on EasyPay, our automatic recurring payment program. EasyPay will remain active until the payoff is received and your account is paid in full. If you decide to purchase your vehicle, please cancel your enrollment prior to your next scheduled payment and before submitting your payoff. You may cancel your enrollment by logging into My Account at bmwusa.com, the My BMW App, or by calling the number below. The cancellation will become effective within three business days after receipt or notification by BMW Financial Services. If you cancel your enrollment and do not pay off the vehicle, you will be responsible for making your payments by another payment method.

[MauiSteve]

Originally Posted by Plusforce

Buying out the lease directly through bmwfs should be only in cash or still it can be financed without going to the dealer?

You're gonna need to write the big payoff amount check for a lease buyout either to BMWFS or at the dealership depending on your state. I'd not count on any favorable financing offer from BMW for this purpose if at all, so my advice would be that you should have external financing pre-arranged if you are going to need this structure.

[Plusforce]

Originally Posted by MauiSteve

You're gonna need to write the big payoff amount check for a lease buyout either to BMWFS or at the dealership depending on your state. I'd not count on any favorable financing offer from BMW for this purpose if at all, so my advice would be that you should have external financing pre-arranged if you are going to need this structure.

Because bmwfs finance interest rates are high or because it can be done only through the dealer? I am looking for options to not to go through the dealer but still use bmw financing.