[TurtleBoy]

Originally Posted by rmorin1249

BMWFS told me that they will not accept payment from anyone except the lessee.

They misspoke, they will accept payments from dealers.

[FCX5]

Originally Posted by parkstr8

Our 2018 Q7 Prestige lease is up and just as I was about to buy it out (it only has 18k on it) - I discovered it is worth 10k more (cash offer from Carvana and Carmax) than I owe.

The payoff AFS gave us included the TTL, so 34.9k actual payoff and 4 places gave me within 250 of each other - 44k+.

So we might just take the cash and buy something else as, after 69 cars, this is the first time that much cash has come back on a leased used car. Thank goodness for shortages. lol

In general Audi and Porsche are much more conservative with their residual values than BMW. I know of others whose residuals are below market for an Audi. But if you have a Prestige with such low miles, isn't it worth buying it since you already paid a higher lease payment to cover the low residual. JMHO

[rmorin1249]

Originally Posted by TurtleBoy

They misspoke, they will accept payments from dealers.

Any dealer or only BMW dealers?

[TurtleBoy]

Originally Posted by rmorin1249

Any dealer or only BMW dealers?

My understanding is that they will accept them from any dealer, that is why they put dealer instructions in the Payoff letter.

[rmorin1249]

I went to the BMWFS website and extracted my information including payoff and it said very plainly that only the lessee can buy the vehicle.

Here is the exact wording:

If you are interested in paying off your BMW Financial Services financing contract at any time, or want to purchase your BMW at the conclusion of your lease, refer to the information below and use the provided link to download the payoff documents you will need to print, complete and include with your certified funds.

Please Note: This payoff is intended for you. This payoff will not be honored if sent in by a third party dealership.

[TurtleBoy]

Originally Posted by rmorin1249

I went to the BMWFS website and extracted my information including payoff and it said very plainly that only the lessee can buy the vehicle.

Here is the exact wording:

If you are interested in paying off your BMW Financial Services financing contract at any time, or want to purchase your BMW at the conclusion of your lease, refer to the information below and use the provided link to download the payoff documents you will need to print, complete and include with your certified funds.

Please Note: This payoff is intended for you. This payoff will not be honored if sent in by a third party dealership.

That is not correct, you are misreading into that. What that is saying is that the payoff quote you received is for you. Look at the letter, it says dealers need to contact them for the dealer quote.

Again:

[rmorin1249]

We'll, I guess I'll find out if I decide to sell it to CarMax. Thanks, I'm a leasing newbie.

[TurtleBoy]

Originally Posted by rmorin1249

We'll, I guess I'll find out if I decide to sell it to CarMax. Thanks, I'm a leasing newbie.

I don't know if they will sell it to CarMax or not. I recently read a post where Ford would not allow CarMax to buy a leased vehicle. I think someone in this thread mentioned that some manufactures are only allowing dealers of the brand to buy them. Not sure if BMW does that or not.

[Jetrik]

Originally Posted by TurtleBoy

That is not correct, you are misreading into that. What that is saying is that the payoff quote you received is for you. Look at the letter, it says dealers need to contact them for the dealer quote.

Again:

I wish I knew that they could by other cars on lease. I just returned an Infiniti that was in supremely great shape and now the dealer is set to make at least a $5k profit on it. The good part there is that I apparently owe nothing further to Infiniti since they purchased it upon my returning the vehicle.

[rmorin1249]

Originally Posted by TurtleBoy

I don't know if they will sell it to CarMax or not. I recently read a post where Ford would not allow CarMax to buy a leased vehicle. I think someone in this thread mentioned that some manufactures are only allowing dealers of the brand to buy them. Not sure if BMW does that or not.

I'm betting BMW wants to give their dealers first crack at lease returns. I'll find out next week.

[Therealmatzaman]

I’m in this situation currently. Ive got 6 mo left on the lease. The carmax and carvana quotes online are 3-5k higher than the payoff. I’m wondering if the dealer will come close to that for a trade so I don’t have to go thru the hassle.
The used market seems pretty hot but so does the new one given the low supply.

[FCX5]

Originally Posted by Therealmatzaman

I’m in this situation currently. Ive got 6 mo left on the lease. The carmax and carvana quotes online are 3-5k higher than the payoff. I’m wondering if the dealer will come close to that for a trade so I don’t have to go thru the hassle.
The used market seems pretty hot but so does the new one given the low supply.

They move together because of demand and supply. Carvana and Carmax are having a hard time since the car companies are sending fewer leased cars to the auction and selling them as CPO. Any reason you don’t want to buy it? How often do you have positive equity in a car? Remember right now the car belongs to BMWFS, unless you can buy it, the profit is all theirs…not yours.

BMW by removing some options in 2021 actually increased the value of their used cars with options not available now.

[FCX5]

Originally Posted by Jetrik

I wish I knew that they could by other cars on lease. I just returned an Infiniti that was in supremely great shape and now the dealer is set to make at least a $5k profit on it. The good part there is that I apparently owe nothing further to Infiniti since they purchased it upon my returning the vehicle.

Ah. A friend of mine was leasing an Infiniti Q70L (fully loaded and beautiful blue in great condition), bought it after his lease ended and made around $7K on it! He bought it for something like $26K and sold it for $33K. My assumption is that he paid more during the lease since the residual seemed low. But it was quick $, but he had to buy it with his cash first…

[rmorin1249]

Originally Posted by FCX5

They move together because of demand and supply. Carvana and Carmax are having a hard time since the car companies are sending fewer leased cars to the auction and selling them as CPO. Any reason you don’t want to buy it? How often do you have positive equity in a car? Remember right now the car belongs to BMWFS, unless you can buy it, the profit is all theirs…not yours.

BMW by removing some options in 2021 actually increased the value of their used cars with options not available now.

This is true. I ordered mine with acoustic glass, spare tire and trailer hitch. These seem to be hard to find options now. I probably should buy it and then sell it on my own or to CarMax.

[Ilyam5]

I think - its always been like that - you buy it for residual value and resell it. Question is - how do you transfer title quickly to avoid paying sales tax?

I think it has to be done within hours - otherwise they charge you sales tax and in some cases charge both parties - you and your buyer the sales tax.

[FCX5]

Originally Posted by rmorin1249

This is true. I ordered mine with acoustic glass, spare tire and trailer hitch. These seem to be hard to find options now. I probably should buy it and then sell it on my own or to CarMax.

That is what I would do, you can only end up equal or better. Worst case, you keep the car which is likely every bit as good as a new one when it comes to engine and transmission, etc AND you have features you can't get on the new.

[xlover]

I am very curious how much bmw is marking up another dealer purchase.... the strategy is obviously to make it more difficult to upgrade outside the brand but they are in a unique spot right now where the dealers aren't passing all that value back to consumers because of that leverage.
Not going to leave a good taste on consumers mouths

[Ilyam5]

Did some digging on leasehacker - avoiding double sales tax is not easy - even though you have 10 days to transfer title

Your buyout is different from 3d party (dealer buyout) some times by 20-25%. So lets say we are looking for personal buyout and then bringing it to the 3d party buyer (private or carmax etc). #d party needs the title to be in your name to buy the car from you

here is the process:

- Get a buyout quote from your leaseholder and mail them a check. You must stop driving the car at this point. Any use of the car after this will trigger a use tax bill in CA. Pay them for whatever expedited title processing (and hope they don’t lose your check for that,).

- Wait for the original title-release to arrive. The day it arrives, take it to the DMV, transfer the title into your name, and pay the sales tax. Pay for expedited title processing to speed this process up. At this point, your 10 day clock starts. ("The sale of a vehicle to a lessee by a lessor may be considered a nontaxable sale for resale. If the lessee transfers title and registration to a third party within 10 days from the date the lessee acquires title from the lessor at the expiration or termination of a lease, the sale will be presumed to be a sale for resale. Transfer of title and registration occurs when the lessee endorses the certificate of ownership.)

- Within 10 days, you need to receive the new title from the DMV and sign a bill of sale with Vroom, Carvana, etc. showing that you sold the car. This may be impossible, given the time it takes to get a title from the DMV, but the way the law is written, this is what is required.
Use this bill of sale and the paperwork from the original title transfer to show that you sold the car within 10 days and request a refund of the sales tax paid. This should be technically possible using CDTFA-101, but I would contact the CDTFA first to find out exactly what documentation they will ask you to provide .

[TurtleBoy]

Originally Posted by Ilyam5

Did some digging on leasehacker - avoiding double sales tax is not easy - even though you have 10 days to transfer title

Your buyout is different from 3d party (dealer buyout) some times by 20-25%. So lets say we are looking for personal buyout and then bringing it to the 3d party buyer (private or carmax etc). #d party needs the title to be in your name to buy the car from you

here is the process:

- Get a buyout quote from your leaseholder and mail them a check. You must stop driving the car at this point. Any use of the car after this will trigger a use tax bill in CA. Pay them for whatever expedited title processing (and hope they don’t lose your check for that,).

- Wait for the original title-release to arrive. The day it arrives, take it to the DMV, transfer the title into your name, and pay the sales tax. Pay for expedited title processing to speed this process up. At this point, your 10 day clock starts. ("The sale of a vehicle to a lessee by a lessor may be considered a nontaxable sale for resale. If the lessee transfers title and registration to a third party within 10 days from the date the lessee acquires title from the lessor at the expiration or termination of a lease, the sale will be presumed to be a sale for resale. Transfer of title and registration occurs when the lessee endorses the certificate of ownership.)

- Within 10 days, you need to receive the new title from the DMV and sign a bill of sale with Vroom, Carvana, etc. showing that you sold the car. This may be impossible, given the time it takes to get a title from the DMV, but the way the law is written, this is what is required.
Use this bill of sale and the paperwork from the original title transfer to show that you sold the car within 10 days and request a refund of the sales tax paid. This should be technically possible using CDTFA-101, but I would contact the CDTFA first to find out exactly what documentation they will ask you to provide .

States can be different in how taxing and the process works, or doesn't work. It is best for a person to contact the DMV/Dept. of Rev/etc in their state to get the specific process, if it can be done at all.

[akin67]

Originally Posted by Ilyam5

I think - its always been like that - you buy it for residual value and resell it. Question is - how do you transfer title quickly to avoid paying sales tax?

I think it has to be done within hours - otherwise they charge you sales tax and in some cases charge both parties - you and your buyer the sales tax.

Some manufacturers won't even tell you your buyout price without including sales tax. In certain states you will not be able to buy it without it being registered under your name and where the manufacturer collects the sales tax. That was definitely the case with Genesis I just sold to a Genesis dealer. If I did buy it and sell it myself I was on the hook for $2000 in sales tax. Although I could not transfer my lease purchase option to any other dealer or third party, I could do so to a Genesis dealer. I signed same papers assigning my lease and purchase option back to the Genesis dealer and in return the Genesis dealer cut me a check in the agreed upon amount.

So the bottom line is your leverage is you can do this with any dealer from your own brand. You are not limited to your own dealer.

[videoman535i]

In a possibly related matter, my dealer, through their retention department, has contacted me by mail and email with an offer for me to end my lease early (11 months remaining). Their claim is that I can replace my 2019 40i with (what I assume) is a comparable 2021 and save $74 a month due to a $1500 BMW loyalty credit and a $3500 dealer preferred customer bonus (and a possible waiving of the $350 lease disposition fee, whatever that is).

I figured this offer was some sweet deal for the dealer so blew it off, but this thread has me taking another look. Is the white hot used car market making these kinds of deals possible and should I give it some consideration?

I'm not even sure how I would evaluate the offer. When I read the email my first thought was that I would surely come out on the short end as the dealer would get a one year (well, 11 month) newer vehicle, but still be giving me the original 3yr/36k mile residual value as described in the lease agreement. Wouldn't there would be tax and registration for the new vehicle?

Has anyone else seen a similar offer?

Any insight into how I might properly evaluate this offer?

This 2019 is my first leased vehicle so this is new to me.

[videoman535i]

Oh and given the way BMW has screwed with the options, I'm pretty sure I couldn't even get a comparable vehicle.