[Aeromotive]

Hello all,

I currently drive a 2018 340i M Performance Edition, for which I extended the lease twice (4 months total) because of the unending delays with the M3 order. The tires (20" RFT, mind you) are worn out and a meteorite smashed my windshield, which I didn't get fixed since I was getting rid of the car *soon*, or so I thought (I knew I wouldn't get all my money back for fixing it anyways).


My current dealer offered $3800 positive equity when they appraised my car back in September 2021. They were confident they could give me the same amount a few months later (the value goes down but so does the residual) when the M3 would arrive.

Another BMW dealer offered 2800$.

I understand that the used car market is even hotter than it was a few months ago, and I'd like to take advantage of it.

What are my options to have a dealer buy out my lease? I want to avoid purchasing the car myself because I'd have to pay a $999 admin fee and taxes. Can a non-BMW reseller buy it out? I'm ready to shop around.

It's my first time doing this. Any tips are welcome!

N.B.: I can't trade it in to save on taxes because the M3 will be leased under a business.

[Kimchiguy79]

Originally Posted by Aeromotive

Hello all,

I currently drive a 2018 340i M Performance Edition, for which I extended the lease twice (4 months total) because of the unending delays with the M3 order. The tires (20" RFT, mind you) are worn out and a meteorite smashed my windshield, which I didn't get fixed since I was getting rid of the car *soon*, or so I thought (I knew I wouldn't get all my money back for fixing it anyways).


My current dealer offered $3800 positive equity when they appraised my car back in September 2021. They were confident they could give me the same amount a few months later (the value goes down but so does the residual) when the M3 would arrive.

Another BMW dealer offered 2800$.

I understand that the used car market is even hotter than it was a few months ago, and I'd like to take advantage of it.

What are my options to have a dealer buy out my lease? I want to avoid purchasing the car myself because I'd have to pay a $999 admin fee and taxes. Can a non-BMW reseller buy it out? I'm ready to shop around.

It's my first time doing this. Any tips are welcome!

N.B.: I can't trade it in to save on taxes because the M3 will be leased under a business.

I recently traded my 2020 X3M early to my dealership and put the positive equity towards the incoming M3 (that seems like it will never get here - my RAM port campaign is still open). I traded in early since I bought a 2022 Lexus IS500, so I have a car to drive. I attempted to see what Lexus would offer and the best they could do was cover the amount owing on the X3M. Note that your BMW dealership will have the most to gain since they can CPO your trade so they'll likely give you the highest amount of equity compared to non-BMW dealers. Also, the $999 fee has to be factored in as well but if your lease has ended, would that admin fee still apply? If you trade your 340i into a BMW dealer the fee does not get assessed.

[Aeromotive]

Originally Posted by Kimchiguy79

I recently traded my 2020 X3M early to my dealership and put the positive equity towards the incoming M3 (that seems like it will never get here - my RAM port campaign is still open). I traded in early since I bought a 2022 Lexus IS500, so I have a car to drive. I attempted to see what Lexus would offer and the best they could do was cover the amount owing on the X3M. Note that your BMW dealership will have the most to gain since they can CPO your trade so they'll likely give you the highest amount of equity compared to non-BMW dealers. Also, the $999 fee has to be factored in as well but if your lease has ended, would that admin fee still apply? If you trade your 340i into a BMW dealer the fee does not get assessed.

Thanks, I figured I wouldn't get as much from a non-BMW dealer.

I'll call BMWFS next week to ask if the $999 admin fee still applies after the lease has ended. My guess is it would.

One other question : do you know how they calculate the buyout value after the lease has ended and I made 2-3 extra monthly payments? Do they just substract the payments from the residual value at lease end? I'm asking because I checked the prices for used similar models and I think it'd be worth buying it out and selling it myself after all...

Thanks again.

[Gfit]

As of 10/1/21 BMW no longer allows 3rd party buyouts. Perhaps BMW dealers are still allowed. That I don't know but since they know your options are limited I doubt they will give you top dollar.

[Kimchiguy79]

Originally Posted by Aeromotive

Thanks, I figured I wouldn't get as much from a non-BMW dealer.

I'll call BMWFS next week to ask if the $999 admin fee still applies after the lease has ended. My guess is it would.

One other question : do you know how they calculate the buyout value after the lease has ended and I made 2-3 extra monthly payments? Do they just substract the payments from the residual value at lease end? I'm asking because I checked the prices for used similar models and I think it'd be worth buying it out and selling it myself after all...

Thanks again.

From what I've heard they are supposed to deduct the extra payments you made from the buyout amount. One thing you also want to keep in mind is that if you buy the vehicle out you need to pay the HST. If the vehicle is traded in for another car, no HST is assessed since businesses don't need to pay it in order to payoff the car.

[Aeromotive]

Originally Posted by Gfit

As of 10/1/21 BMW no longer allows 3rd party buyouts. Perhaps BMW dealers are still allowed. That I don't know but since they know your options are limited I doubt they will give you top dollar.

Interesting, I didn't know that!.

Originally Posted by Kimchiguy79

From what I've heard they are supposed to deduct the extra payments you made from the buyout amount. One thing you also want to keep in mind is that if you buy the vehicle out you need to pay the HST. If the vehicle is traded in for another car, no HST is assessed since businesses don't need to pay it in order to payoff the car.

I found out I have the current buyout amount in my BMWFS online account. It turns out they don't deduct the whole amount, so it turns out I'm losing half the monthly payment when I extend the lease... in other words, for every 1$ I pay as a monthly lease extension, half of it goes towards decreasing my buyout.

Now I need to find out if the hassle of buying it and paying both taxes is worth it for the extra gains at the end.

[Reson7]

I had a 2020 S5. BMW offered me $56000 for it. Audi offered me $50000 for it. I posted it on kijiji and a Honda dealership bought it the next day for $77000.

Maybe try posting it online and see if any used car dealerships make offers. You may get far more that way like what happened to me.

[Aeromotive]

Originally Posted by Reson7

I had a 2020 S5. BMW offered me $56000 for it. Audi offered me $50000 for it. I posted it on kijiji and a Honda dealership bought it the next day for $77000.

Maybe try posting it online and see if any used car dealerships make offers. You may get far more that way like what happened to me.

Wow crazy numbers. I just posted it, we'll see what happens!