[0_steve]

BMW dealers are franchises, so you can shop the buyout/inspection fee. I am out of both FL & NC and both states no longer allow the direct buyout from BMWFS. BUT each state has some sort of rule for maximum pricing. My local quote in NC was $695. I think its higher in FL. I'm going to check with the dealer in Atlanta I originally leased from to see how competitive they are. Doesn't matter much to me who I send a check to.

[GrokuE7]

I sent an email to BMWFS to get their take on selling a leased vehicle to an entity that said their payoffs would be accepted by BMW. Interesting response I received from BMWFS. See below:

Thank you for contacting BMW Financial Services. We are happy to assist you.

Currently, only BMW centers can purchase your vehicle. Please be aware that as this is our vehicle any equity will be kept by BMW Financial Services. We invite you to visit your local BMW center.

We are committed to providing you with the highest level of service. If you have any further questions, please respond to this message or consult a Customer Service Advocate at (800) 578-5000, Monday through Thursday from 9:00 a.m. to 9:00 p.m. ET, and Friday from 9:00 a.m. to 6:00 p.m. ET.

Sincerely yours,
BMW Financial Services NA, LLC

I've read people were selling their vehicles to a 3rd party and getting the equity in return. I know the rules have changed. So, now I'm wondering if anyone has been successful in selling their leased BMW to a BMW dealership and walking out with a check.

[ceebee100]

I actually traded my 21 M550 for a 23 X5 M50 and got $3k in equity toward the X5.
I tried several other non BMW dealerships as well as the usual online suspects (Carmax, Vroom etc) and they all lowballed me based on what KBB said it was worth. Dealer ended up being the best deal for me.

[LuvMyE92]

Thanks to all of you guys and gals for sharing your experiences. I will think three times before I lease another BMW.

Some of these dealers are low-life scumbags. I've had them try games on me in the past too.

I saw on CNBC this morning that dealers are having record profits despite the shortages. Much of that is surely due to service revenues, not sales, but the average dealership pre-covid made about $1.5M (US) profit per year. Now it's over 4. Yes, four. Million. Dollars. PROFIT.

The story was not specific but implied that it was per dealership store, not per chain/company.

[The J-Man]

I attempted to buy out my lease today at Gebhardt BMW in Boulder Colorado (a total dump, by the way).

They insisted that I pay them a $600 dealer fee. They said it was permitted per my lease contract because they weren't increasing the price of the car. They are wrong.

Next week, I will be:
1.) Opening a complaint against both BMWFS and Gebhardt BMW with my state Attorney's General Office and other applicable state agencies.
2.) Opening a complaint against BMWFS and Gebhardt BMW with the Consumer Financial Protection Bureau which has authority over the federal Consumer Leasing Act. In my past experiences dealing with this agency, they seem to have an immense amount of influence, all of my complaints have been resolved to my full satisfaction within weeks.
3.) Opening a complaint against both BMWFS and Gebhardt BMW with the BBB.
4.) Writing a letter to state reps in both my district and Gebhardt BMW's district encouraging them to investigate.
5.) Retaining legal counsel (don't care what this costs) to pursue BMWFS and Gebhardt BMW under the Consumer Leasing Act, including pursuit of all damages and attorney's fees allowed at both state and federal levels. I have already located a local attorney who has experience with this
6.) Contacting all local news agencies and local newspapers here in Colorado and encouraging them to run with the story similar to what Channel 10 did in Florida.
7.) Many other things I haven't thought of yet.

Stay tuned. Time to hold these scumbags accountable.

[TurtleBoy]

^ Might as well add calling Tom Martino to the list, he will likely pursue it.

[smovva]

I had good luck with just sending a letter via FedEx to the CEO of BMWFS in NJ along with a copy of the dealer paperwork where they asked for all sorts of fees. Within two biz days of receipt two South Florida dealers called me to come in and they did the lease payoff with zero additional fees. I paid the payoff amount, the FL sales tax and a $150 tag transfer fee.

It's important to get in writing whatever the dealer BS fees are so you can forward to BMWFS and demand they keep to the terms of the legal lease contract between BMWFS and you for the payoff amount. From my understanding BMWFS pays the dealers (I heard $650 but not verified) to handle the transaction for them in the states that require BMWFS have a dealer license for handling payoffs.

Copy of letter I sent via FedEx: YMMV.
Ms. Birgit Boehm
CEO
BMW Financial Services NA LLC
300 Chestnut Ridge Rd
Woodcliff Lake, NJ 07677

Re: Financial harm to a significant class of consumers in 16 states

Dear Ms. Boehm

Please allow me to congratulate you on your recent appointment as CEO of BMW Financial Services NA LLC (BMWFS).

I am writing to bring to your attention significant financial harm that has been and continues to be caused to consumers in 16 states due to the failure of BMWFS to meet their contractual obligations on lease buyouts.

I leased my 2019 X5 (VIN: XXXXXXXXXXXX) in May 2019 from BMWFS (Account # XXXXXXXX) and have enjoyed the superb quality of this vehicle since picking it up in person at the Spartanburg facility.

The lease on my 2019 X5 originally expires on May XX 2022 and I have since extended it to July XX, 2022. When I reviewed the lease payoff documents (attached) in April I saw that I could simply send a cashier’s check to BMWFS for the lease payoff and own the car with no further costs beyond the payoff and state tax amounts. When I reviewed the payoff process in May (attached) it no longer gave me the option to send BMWFS the payoff check but instead directed me to local BMW dealers to perform the payoff.

I approached the selling dealer, Braman BMW of West Palm Beach Florida, and was informed that I would need to pay for certification of the car ($3000-$5000), Inspection fees ($1000), Dealer Fees ($899), Document Fees ($450), Tax/Title fees ($450) for approximately between $5849 to $7849, over and above to the payoff amount to BMWFS and state tax. NONE of these additional fees are listed in my contract with BMWFS for lease end purchase and none of these are required by my state for me to own this car.

After calling your customer service center I was informed that BMWFS can no longer directly accept lease payoffs in 16 states and I must go through a dealer. At their suggestion I approached my servicing dealer, Holman BMW of Pembroke Pines Florida, who sent me a buyer’s order (attached) that included dealer fees ($899), Electronic filing fees ($149) and Additional fees ($450) for a total of $1498 over and above the amount I would have had to pay BMWFS for the direct payoff. Again, none of these are costs that are included in my financial contract with BMWFS and I would NOT have had to pay any of these if I had done the early buyout in April.

I understand that due to regulations in some states BMWFS may need to use a dealer as an intermediary to perform its obligations under the lease contract. However, any such arrangement is between BMWFS and its dealer and any additional costs beyond those specified in the financial contract between BMWFS and lessee are the responsibility and obligation of BMWFS and not the lessee. It is BMWFS obligation to find and contract with dealers who will perform the payoff work with no cost to the consumer, in accordance with the lease terms which are a legal financial contract.

I am sure you can see how BMWFS failure to perform its obligations under this financial contract have caused and continues to cause significant financial harm to a large class of customers of BMWFS in these states.

I request that BMWFS perform its contracted obligations to me under the financial contract between us where I pay the contracted payoff amount to BMWFS or a dealer of its choice and that any and all fees charged by the dealer beyond the contracted payoff amount are borne by BMWFS.

I look forward to your timely response so that I may decide how best to proceed next.

Your Sincerely

Originally Posted by The J-Man

I attempted to buy out my lease today at Gebhardt BMW in Boulder Colorado (a total dump, by the way).

They insisted that I pay them a $600 dealer fee. They said it was permitted per my lease contract because they weren't increasing the price of the car. They are wrong.

Next week, I will be:
1.) Opening a complaint against both BMWFS and Gebhardt BMW with my state Attorney's General Office and other applicable state agencies.
2.) Opening a complaint against BMWFS and Gebhardt BMW with the Consumer Financial Protection Bureau which has authority over the federal Consumer Leasing Act. In my past experiences dealing with this agency, they seem to have an immense amount of influence, all of my complaints have been resolved to my full satisfaction within weeks.
3.) Opening a complaint against both BMWFS and Gebhardt BMW with the BBB.
4.) Writing a letter to state reps in both my district and Gebhardt BMW's district encouraging them to investigate.
5.) Retaining legal counsel (don't care what this costs) to pursue BMWFS and Gebhardt BMW under the Consumer Leasing Act, including pursuit of all damages and attorney's fees allowed at both state and federal levels. I have already located a local attorney who has experience with this
6.) Contacting all local news agencies and local newspapers here in Colorado and encouraging them to run with the story similar to what Channel 10 did in Florida.
7.) Many other things I haven't thought of yet.

Stay tuned. Time to hold these scumbags accountable.

[mikenyc]

Just checked my BMWFS account out of curiosity and ofc I see this dealer bs in my payoff quote ( I'm from PA state ). I'm like 1+ and 2+ years away from my lease end process , but this should be stopped now!

I just did one lease return back in February 2022 with extra equity applied towards my MSD but I can see how this "new process" can change all logistics of negotiating new lease deals. Hopefully in 12-18 months things will turn backwards, obviusly no equity in old cars and many new cars will be again at 10-15+% off, economy sure tanking down as we speak and I do remember 2008 when I was able to get my M6 at 25% discount with low MF and RV above 60+ and 20014 i8 for a fraction of its price

Do we have a list of those 16 states ?

Originally Posted by smovva

I had good luck with just sending a letter via FedEx to the CEO of BMWFS in NJ along with a copy of the dealer paperwork where they asked for all sorts of fees. Within two biz days of receipt two South Florida dealers called me to come in and they did the lease payoff with zero additional fees. I paid the payoff amount, the FL sales tax and a $150 tag transfer fee.

It's important to get in writing whatever the dealer BS fees are so you can forward to BMWFS and demand they keep to the terms of the legal lease contract between BMWFS and you for the payoff amount. From my understanding BMWFS pays the dealers (I heard $650 but not verified) to handle the transaction for them in the states that require BMWFS have a dealer license for handling payoffs.

Copy of letter I sent via FedEx: YMMV.
Ms. Birgit Boehm
CEO
BMW Financial Services NA LLC
300 Chestnut Ridge Rd
Woodcliff Lake, NJ 07677

Re: Financial harm to a significant class of consumers in 16 states

Dear Ms. Boehm

Please allow me to congratulate you on your recent appointment as CEO of BMW Financial Services NA LLC (BMWFS).

I am writing to bring to your attention significant financial harm that has been and continues to be caused to consumers in 16 states due to the failure of BMWFS to meet their contractual obligations on lease buyouts.

I leased my 2019 X5 (VIN: XXXXXXXXXXXX) in May 2019 from BMWFS (Account # XXXXXXXX) and have enjoyed the superb quality of this vehicle since picking it up in person at the Spartanburg facility.

The lease on my 2019 X5 originally expires on May XX 2022 and I have since extended it to July XX, 2022. When I reviewed the lease payoff documents (attached) in April I saw that I could simply send a cashier’s check to BMWFS for the lease payoff and own the car with no further costs beyond the payoff and state tax amounts. When I reviewed the payoff process in May (attached) it no longer gave me the option to send BMWFS the payoff check but instead directed me to local BMW dealers to perform the payoff.

I approached the selling dealer, Braman BMW of West Palm Beach Florida, and was informed that I would need to pay for certification of the car ($3000-$5000), Inspection fees ($1000), Dealer Fees ($899), Document Fees ($450), Tax/Title fees ($450) for approximately between $5849 to $7849, over and above to the payoff amount to BMWFS and state tax. NONE of these additional fees are listed in my contract with BMWFS for lease end purchase and none of these are required by my state for me to own this car.

After calling your customer service center I was informed that BMWFS can no longer directly accept lease payoffs in 16 states and I must go through a dealer. At their suggestion I approached my servicing dealer, Holman BMW of Pembroke Pines Florida, who sent me a buyer’s order (attached) that included dealer fees ($899), Electronic filing fees ($149) and Additional fees ($450) for a total of $1498 over and above the amount I would have had to pay BMWFS for the direct payoff. Again, none of these are costs that are included in my financial contract with BMWFS and I would NOT have had to pay any of these if I had done the early buyout in April.

I understand that due to regulations in some states BMWFS may need to use a dealer as an intermediary to perform its obligations under the lease contract. However, any such arrangement is between BMWFS and its dealer and any additional costs beyond those specified in the financial contract between BMWFS and lessee are the responsibility and obligation of BMWFS and not the lessee. It is BMWFS obligation to find and contract with dealers who will perform the payoff work with no cost to the consumer, in accordance with the lease terms which are a legal financial contract.

I am sure you can see how BMWFS failure to perform its obligations under this financial contract have caused and continues to cause significant financial harm to a large class of customers of BMWFS in these states.

I request that BMWFS perform its contracted obligations to me under the financial contract between us where I pay the contracted payoff amount to BMWFS or a dealer of its choice and that any and all fees charged by the dealer beyond the contracted payoff amount are borne by BMWFS.

I look forward to your timely response so that I may decide how best to proceed next.

Your Sincerely

[TurtleBoy]

Originally Posted by mikenyc

Just checked my BMWFS account out of curiosity and ofc I see this dealer bs in my payoff quote ( I'm from PA state ). I'm like 1+ and 2+ years away from my lease end process , but this should be stopped now!

I just did one lease return back in February 2022 with extra equity applied towards my MSD but I can see how this "new process" can change all logistics of negotiating new lease deals. Hopefully in 12-18 months things will turn backwards, obviusly no equity in old cars and many new cars will be again at 10-15+% off, economy sure tanking down as we speak and I do remember 2008 when I was able to get my M6 at 25% discount with low MF and RV above 60+ and 20014 i8 for a fraction of its price

Do we have a list of those 16 states ?

Unfortunately there is no chance the laws will change. The dealer lobby is too strong and the legislation is written to favor them. Hopefully though, BMW can influence them to not charge extra fees.

[mikenyc]

I think bmwfs simply in violation with their lease agreement if they will not enforce this dealer bs, unless new lease agreements will include stipulation that will provide dealers with ability to legally charge things, but again it’s open market and people probably will deviated to other brands that will be able to enforce things with their franchise dealers.

Originally Posted by TurtleBoy

Unfortunately there is no chance the laws will change. The dealer lobby is too strong and the legislation is written to favor them. Hopefully though, BMW can influence them to not charge extra fees.

[smovva]

Or BMWFS can get themselves a dealers license in each state to handle lease payoffs... Its possible as BMWFS is just a finance company and not a manufacturer and thus not forbidden to sell cars directly to consumers but ... still unlikely to happen! The strong dealer lobby coupled with our very malleable legislators means the consumers will have little recourse.

BTW, not to throw only BMWFS under the bus here - Had the same exact thing happen with our Chrysler Pacifica leased with Ally Bank - but the Chrysler dealer was not egregious - only charged me $150 inspection fee above the lease payoff + state sales tax. The $s were too small for me to fight that one.

The other thing most all of the captive lease companies are doing is you cannot sell your leased vehicle to a third party or a different brand. i.e cant sell your leased vehicle to CarMax, Vroom, Carvana or any other brand dealer (Mercedes, Audi etc) - not sure if this is only in some states or all. Ally Bank, because it's not a captive, did not care what brand dealer I did the lease payoff with.

Originally Posted by TurtleBoy

Unfortunately there is no chance the laws will change. The dealer lobby is too strong and the legislation is written to favor them. Hopefully though, BMW can influence them to not charge extra fees.

[arRod1981]

Originally Posted by smovva

Or BMWFS can get themselves a dealers license in each state to handle lease payoffs... Its possible as BMWFS is just a finance company and not a manufacturer and thus not forbidden to sell cars directly to consumers but ... still unlikely to happen! The strong dealer lobby coupled with our very malleable legislators means the consumers will have little recourse.

BTW, not to throw only BMWFS under the bus here - Had the same exact thing happen with our Chrysler Pacifica leased with Ally Bank - but the Chrysler dealer was not egregious - only charged me $150 inspection fee above the lease payoff + state sales tax. The $s were too small for me to fight that one.

The other thing most all of the captive lease companies are doing is you cannot sell your leased vehicle to a third party or a different brand. i.e cant sell your leased vehicle to CarMax, Vroom, Carvana or any other brand dealer (Mercedes, Audi etc) - not sure if this is only in some states or all. Ally Bank, because it's not a captive, did not care what brand dealer I did the lease payoff with.

We almost traded in a '21 Audi SQ5 Sportback Prestige to our BMW dealership back in June when we got our 45e.

To get around the rule of not selling to a third-party the BMW dealership was going to have the Audi dealership that's under the same parent company tell Audi FS say they were going to "buy" it. In the end we went with the Audi dealership we initially leased from because they offered slightly more than BMW.

[mikenyc]

I see few pathways of resolution.. those 16 states elected officials starting to loose their spots in midterm elections and going forward or this law/rule being reversed with us consumers pushing thru all available channels or in 1-2 years BMWFS will be allowing again to sell to any deanships across the country or getting dealer license in every state which is probably not that expensive relatively to extra fees they will be paying to each car they have to process.

I hope BMW Corporate office reading thru this forum and making quick changes as we go since market power of consumers will bring this wonderful company to SAAB like state in 5-9 years

Originally Posted by arRod1981

We almost traded in a '21 Audi SQ5 Sportback Prestige to our BMW dealership back in June when we got our 45e.

To get around the rule of not selling to a third-party the BMW dealership was going to have the Audi dealership that's under the same parent company tell Audi FS say they were going to "buy" it. In the end we went with the Audi dealership we initially leased from because they offered slightly more than BMW.

[The J-Man]

Originally Posted by The J-Man

I attempted to buy out my lease today at Gebhardt BMW in Boulder Colorado (a total dump, by the way).

They insisted that I pay them a $600 dealer fee. They said it was permitted per my lease contract because they weren't increasing the price of the car. They are wrong.

Next week, I will be:
1.) Opening a complaint against both BMWFS and Gebhardt BMW with my state Attorney's General Office and other applicable state agencies.
2.) Opening a complaint against BMWFS and Gebhardt BMW with the Consumer Financial Protection Bureau which has authority over the federal Consumer Leasing Act. In my past experiences dealing with this agency, they seem to have an immense amount of influence, all of my complaints have been resolved to my full satisfaction within weeks.
3.) Opening a complaint against both BMWFS and Gebhardt BMW with the BBB.
4.) Writing a letter to state reps in both my district and Gebhardt BMW's district encouraging them to investigate.
5.) Retaining legal counsel (don't care what this costs) to pursue BMWFS and Gebhardt BMW under the Consumer Leasing Act, including pursuit of all damages and attorney's fees allowed at both state and federal levels. I have already located a local attorney who has experience with this
6.) Contacting all local news agencies and local newspapers here in Colorado and encouraging them to run with the story similar to what Channel 10 did in Florida.
7.) Many other things I haven't thought of yet.

Stay tuned. Time to hold these scumbags accountable.

Items #1,2,3,5 complete. Will work on this more tomorrow.

I also called BMWFS this morning. Two phone reps indicated to me that BMWFS is under no obligation to honor my lease agreement.

I requested a call back from a manager. They indicated it could take 3 business days.

[smovva]

Wow! BMWFS is digging themselves a hole saying they are NOT obligated to honor a legal contract! If you do write to the BMWFS CEO, include that nugget in as well!

Originally Posted by The J-Man

Items #1,2,3,5 complete. Will work on this more tomorrow.

I also called BMWFS this morning. Two phone reps indicated to me that BMWFS is under no obligation to honor my lease agreement.

I requested a call back from a manager. They indicated it could take 3 business days.

[The J-Man]

Originally Posted by smovva

Wow! BMWFS is digging themselves a hole saying they are NOT obligated to honor a legal contract! If you do write to the BMWFS CEO, include that nugget in as well!

Yep, they said it's between me and the dealer and the dealer is allowed to run their business how they want. The phone reps wouldn't give me their last names or titles.

[smovva]

Well I hope Tesla is successful in their lawsuit against Louisiana and eventually all US states will allow Manufacturers to sell direct and we can say sayonara to the stealer network.

https://www.wsj.com/articles/tesla-s...hare_permalink

Originally Posted by The J-Man

Yep, they said it's between me and the dealer and the dealer is allowed to run their business how they want. The phone reps wouldn't give me their last names or titles.

[Chetak]

I am in the same boat. My lease is ending by end of this month.I heard the same story .In my case they honored residual prices but asking for inspection fee. I will get more clairty by Thurday next week.
Can any one form Texas run lease buyout in BMWFS portal?

[TurtleBoy]

Originally Posted by Chetak

I am in the same boat. My lease is ending by end of this month.I heard the same story .In my case they honored residual prices but asking for inspection fee. I will get more clairty by Thurday next week.
Can any one form Texas run lease buyout in BMWFS portal?

Tell them no inspection fee is needed and that it violates your contract with BMWFS to require one. If they insist let them know you will be contacting BMWFS (call them and let them know what the dealer is doing) as well as your state’s consumer protection agency. Hopefully that will get them to change their mind about the inspection. Let us know how it turns out.

[Chetak]

Originally Posted by TurtleBoy

Tell them no inspection fee is needed and that it violates your contract with BMWFS to require one. If they insist let them know you will be contacting BMWFS (call them and let them know what the dealer is doing) as well as your state’s consumer protection agency. Hopefully that will get them to change their mind about the inspection. Let us know how it turns out.

Thank you Brother..

I stopped by dealer today and submitted the docs for title change and registration.
They didn't charged anything extra.
Final charges are residual + state taxes + tags
have to properties taxes upon receiving registration document and tags.
Thanks to the guys who raised their voices for rights.

[TurtleBoy]

Originally Posted by Chetak

Thank you Brother..

I stopped by dealer today and submitted the docs for title change and registration.
They didn't charged anything extra.
Final charges are residual + state taxes + tags
have to properties taxes upon receiving registration document and tags.
Thanks to the guys who raised their voices for rights.

Glad to hear it. Good luck, enjoy and be safe.