Lease Question-Buyout!

bubbahead · 03-13-2012, 07:29 AM

Hi
If someone wanted to buy out my lease before the lease ends, what is the process and fees?

I called couple dealerships, including the one which I leased my car from, and they mentioned I need a cheque in the amount of what is owing on the car, $795 admin fee, safety/inspections etc

Can I do the safety anywhere?
What is this $795 fee consist of?

Thanks

CanadianDriver · 03-13-2012, 10:02 AM

no fees required. deal with bmw canada directly. do you have a bmw owner's circle account? just sign in and you'll see your amortization schedule by month.

or, you can call them and ask for the exact balance due on a certain date. let them know when you plan to come over. they will give your name to reception.

- bring your bank draft to richmond hill HQ
- reception will check your amount due and issue you a temporary receipt (that's it. you're done!)
- the following day, you'll receive a fedex package (bill of sale and the other half of your registration, signed by them)
- go for safety inspection at bmw toronto. it's only $199.
- be sure to have RFT tires ON before heading for inspection. non-RFT = failed
- since your car is still "new", you are not required to do emissions test. just fill up the proper form at MTO

good luck

bubbahead · 03-13-2012, 10:34 AM

Quote:

Originally Posted by CanadianDriver

no fees required. deal with bmw canada directly. do you have a bmw owner's circle account? just sign in and you'll see your amortization schedule by month.

or, you can call them and ask for the exact balance due on a certain date. let them know when you plan to come over. they will give your name to reception.

- bring your bank draft to richmond hill HQ
- reception will check your amount due and issue you a temporary receipt (that's it. you're done!)
- the following day, you'll receive a fedex package (bill of sale and the other half of your registration, signed by them)
- go for safety inspection at bmw toronto. it's only $199.
- be sure to have RFT tires ON before heading for inspection. non-RFT = failed
- since your car is still "new", you are not required to do emissions test. just fill up the proper form at MTO

good luck

Thanks..

Ive been getting conflicting fee's ..ranging from $400 to $1800
I don't have bmw circles account but i do get fax buyout confirmation if I do call.

CanadianDriver · 03-13-2012, 11:28 AM

Quote:

Originally Posted by bubbahead

Thanks..

Ive been getting conflicting fee's ..ranging from $400 to $1800
I don't have bmw circles account but i do get fax buyout confirmation if I do call.

bmw dealerships asks for more money on top of $199 inspection fee, as their admin fee. for that admin fee, they'll ask their staff to courier your check to bmw canada in richmond hill and that's it... easy $400 for them.

the rest of the process, you'll still do on your own.

bmw dealers will help you with the paperwork for new or cpo sales for obvious reasons. i still have to hear of a lease-buyout where the dealer took care of all paperwork from cheque payment to having it registered to customer's name.

maybe others can chime in with their experiences...

SG07 · 03-13-2012, 11:58 AM

I bought back my car last year. Dealership asked for the same admin fee but I called BMW Financial and dealt with them direct. Like others have said, you basically send them a cheque and they will send you the ownership and a letter confirming you are buying back the car. There's no fee for this at all, just a phone call and stamps.

Afterwards, you'll need to get your emission and safety tested then go to a MTO office to finish the transfer process.

d-burn · 03-13-2012, 11:45 PM

Does this same process work for a 3rd party buy-out at lease end? E.g. Someone here has their lease ending, and plans on returning the car, so instead lets me buy out the car at the residual lease end value instead of returning.

alanchan · 03-14-2012, 02:05 PM

The way I see it is there's no easy way, am I right?

rather than keeping thing simple, I guess its not
is this a 2 step process?
first, you need to buy out the car from BMW
pay the balance
then BMW will release the ownership to you
after that, you can sell the car.

bubbahead · 03-14-2012, 03:38 PM

Quote:

Originally Posted by alanchan

The way I see it is there's no easy way, am I right?

rather than keeping thing simple, I guess its not
is this a 2 step process?
first, you need to buy out the car from BMW
pay the balance
then BMW will release the ownership to you
after that, you can sell the car.

Thats my understanding now...but my whole issue was if I went to BMW dealership, they want fee's ranging from $500 to $1500...But now I've found out if someone wants to buy-out my leased car, I can go to BMW office in Richmond Hill, Ontario and pay zero.

If someone wanted to assume my lease payments, their is still a transfer fee...not sure on that amount. But i'm pretty sure if you were gonna get another car, they might waive that fee.

d-burn · 03-18-2012, 09:10 PM

Do you have to buy it and then sell it, because that incurs taxes, certification, etc. twice?

It's been suggested that you can follow the same process, but it's a third party doing it. E.g. the third party would cut the cheque to bmw and then the ownership would be released to their name.

Anyone done this?

bubbahead · 03-19-2012, 11:02 AM

Quote:

Originally Posted by d-burn

Do you have to buy it and then sell it, because that incurs taxes, certification, etc. twice?

It's been suggested that you can follow the same process, but it's a third party doing it. E.g. the third party would cut the cheque to bmw and then the ownership would be released to their name.

Anyone done this?

hmmm...i think your right..taxed twice..buyer and seller... gotta think about this one

CanadianDriver · 03-19-2012, 03:23 PM

Quote:

Originally Posted by bubbahead

hmmm...i think your right..taxed twice..buyer and seller... gotta think about this one

request bmw for a lease transfer first. ask bmw financial services how to initiate the process. my thinking is, you need to allow at least 2-3 months before lease-end

bubbahead · 03-19-2012, 07:26 PM

I think have to get someone to take over lease, then that person can do his own buyout.

CanadianDriver · 03-19-2012, 10:03 PM

Quote:

Originally Posted by bubbahead

I think have to get someone to take over lease, then that person can do his own buyout.

yup, esp. if you're transferring to a relative/friend. you can help them avoid being "double-taxed" by doing a lease transfer.

there is a fee of $250, IIRC

bubbahead · 03-20-2012, 03:38 AM

Quote:

Originally Posted by CanadianDriver

yup, esp. if you're transferring to a relative/friend. you can help them avoid being "double-taxed" by doing a lease transfer.

there is a fee of $250, IIRC

Can I do the lease buyout at BMW Headoffice also? Dealer wants over 1g for lease transfer

What is the $250 for?

CanadianDriver · 03-20-2012, 04:59 AM

Quote:

Originally Posted by bubbahead

Can I do the lease buyout at BMW Headoffice also? Dealer wants over 1g for lease transfer

What is the $250 for?

- yes. give bmwfs a call and ask what to bring / prepare before going to bmw hq
- their processing fee for lease transfers

alanchan · 03-20-2012, 03:08 PM

I guess I am facing the same situation here too
I am interested in taking over someone else CRZ lease....
the tax issue kind of uncertain at this point.

03-13-2012, 07:29 AM	#1
bubbahead Captain 188 Rep 855 Posts Drives: 2022 G05 40i Msport Join Date: May 2009 Location: Toronto iTrader: (0)	Lease Question-Buyout! Hi If someone wanted to buy out my lease before the lease ends, what is the process and fees? I called couple dealerships, including the one which I leased my car from, and they mentioned I need a cheque in the amount of what is owing on the car, $795 admin fee, safety/inspections etc Can I do the safety anywhere? What is this $795 fee consist of? Thanks
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03-13-2012, 10:02 AM	#2
CanadianDriver Captain 99 Rep 614 Posts Drives: P3D- Join Date: Jun 2008 Location: Canada iTrader: (0)	no fees required. deal with bmw canada directly. do you have a bmw owner's circle account? just sign in and you'll see your amortization schedule by month. or, you can call them and ask for the exact balance due on a certain date. let them know when you plan to come over. they will give your name to reception. - bring your bank draft to richmond hill HQ - reception will check your amount due and issue you a temporary receipt (that's it. you're done!) - the following day, you'll receive a fedex package (bill of sale and the other half of your registration, signed by them) - go for safety inspection at bmw toronto. it's only $199. - be sure to have RFT tires ON before heading for inspection. non-RFT = failed - since your car is still "new", you are not required to do emissions test. just fill up the proper form at MTO good luck
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03-13-2012, 11:58 AM	#5
SG07 Second Lieutenant 17 Rep 263 Posts Drives: E90 Join Date: Apr 2010 Location: Toronto, Canada iTrader: (0)	I bought back my car last year. Dealership asked for the same admin fee but I called BMW Financial and dealt with them direct. Like others have said, you basically send them a cheque and they will send you the ownership and a letter confirming you are buying back the car. There's no fee for this at all, just a phone call and stamps. Afterwards, you'll need to get your emission and safety tested then go to a MTO office to finish the transfer process.
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03-13-2012, 11:45 PM	#6
d-burn Private First Class 3 Rep 190 Posts Drives: '11 e92 335i xDrive M-Sport Join Date: Jan 2010 Location: Toronto iTrader: (0)	Does this same process work for a 3rd party buy-out at lease end? E.g. Someone here has their lease ending, and plans on returning the car, so instead lets me buy out the car at the residual lease end value instead of returning.
	Appreciate 0 Quote

03-14-2012, 02:05 PM	#7
alanchan Major 72 Rep 1,402 Posts Drives: 2006 323i Join Date: Jul 2006 Location: Vancouver, BC, Canada iTrader: (21)	The way I see it is there's no easy way, am I right? rather than keeping thing simple, I guess its not is this a 2 step process? first, you need to buy out the car from BMW pay the balance then BMW will release the ownership to you after that, you can sell the car.
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03-18-2012, 09:10 PM	#9
d-burn Private First Class 3 Rep 190 Posts Drives: '11 e92 335i xDrive M-Sport Join Date: Jan 2010 Location: Toronto iTrader: (0)	Do you have to buy it and then sell it, because that incurs taxes, certification, etc. twice? It's been suggested that you can follow the same process, but it's a third party doing it. E.g. the third party would cut the cheque to bmw and then the ownership would be released to their name. Anyone done this?
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03-19-2012, 07:26 PM	#12
bubbahead Captain 188 Rep 855 Posts Drives: 2022 G05 40i Msport Join Date: May 2009 Location: Toronto iTrader: (0)	I think have to get someone to take over lease, then that person can do his own buyout.
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03-20-2012, 03:08 PM	#16
alanchan Major 72 Rep 1,402 Posts Drives: 2006 323i Join Date: Jul 2006 Location: Vancouver, BC, Canada iTrader: (21)	I guess I am facing the same situation here too I am interested in taking over someone else CRZ lease.... the tax issue kind of uncertain at this point. __________________ 323i, Arctic metallic , Cream beige leatherette interior , Titanium matt trim , Premium , Auto , 18" style 189 sport wheels , 335i bumper + kidney grills, CF pillars, Chrome window trim package , LCI halogen.
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