3rd party lease buyout question

Type-S · 09-13-2011, 10:26 PM

Hi everyone,

Does anyone have experience with 3rd party lease buyouts from BMW fs Canada?

I have a substantial down payment on my 2008 M3 and am thinking of selling privately and recovering some of that cash

Anyone know if that is possible?

And is anyone interested in a 2008 E92 M3?

bobbyz · 09-14-2011, 05:42 AM

I'm assuming, you would need to find a buyer willing to pay you cash and the lease transfer fee to transfer the lease into their name. Then they would pay the buy back plus HST to BMWFS.

Type-S · 09-14-2011, 09:40 AM

Just spoke to BMW FS - looks like this is possible - it would just have to go through a dealership and the buyer would pay an admin fee to the dealer

Simma · 09-16-2011, 04:08 PM

This is possible ... the buyer will pay a $500 admin fee (or you can pay it or split it with buyer) plus your buy out price plus HST.

d-burn · 09-16-2011, 10:03 PM

Looks like there are two seperate threads going on this topic now. I posted a question as to process in the other thread.

Seems to be conflicting info coming back. Some claim that you can avoid the dealer, and deal directly with BMW FS, others say the dealer has to be involved.

If the only cost involved for the Dealer to do it would be $500, might be a viable option, however isn't it in the dealers best interest to buy the car back at a discount from BMW FS services themself, and sell it for the +$15K mark-up they would probably put on a lease return M3...Yes, CPO is worth something...maybe $1-2K, but certainly not $15K.

If you can keep the dealer out of it, it seems like a better option. Would be great to hear from someone who has done this before (either as a buyer or seller) to know the process they went through (if not with the dealer). BMW FS technically owns the car, so couldn't the lease owner just say "so-and-so" is buying my lease at the residual price remaining at the end of the lease (arrange a few weeks before lease expires), they will be sending you a cheque. Please release lien to them at lease end date, and send bill of sale to them to take to MTO, pay taxes on that, and the car is yours?

The residual on a 3-year lease on a M3 seems to be around the $38-$40K range (depending on options), so this would obviously be a better route to take if the car is going to be returned, plus the original lease owner will get some money for their efforts to put towards next lease/purchase. Definitely not seeing $40K 3-year old M3's on the market.

Type-S · 09-17-2011, 02:10 PM

My ad posted in the classified section

http://www.m3post.com/forums/showthread.php?t=585527

09-13-2011, 10:26 PM	#1
Type-S Private First Class 36 Rep 110 Posts Drives: F82 M4/E92 M3/E82 1M Join Date: Sep 2009 Location: Toronto iTrader: (0)	3rd party lease buyout question Hi everyone, Does anyone have experience with 3rd party lease buyouts from BMW fs Canada? I have a substantial down payment on my 2008 M3 and am thinking of selling privately and recovering some of that cash Anyone know if that is possible? And is anyone interested in a 2008 E92 M3?
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09-14-2011, 05:42 AM	#2
bobbyz First Lieutenant 13 Rep 311 Posts Drives: E90 M3 Join Date: Aug 2006 Location: Canada iTrader: (0)	I'm assuming, you would need to find a buyer willing to pay you cash and the lease transfer fee to transfer the lease into their name. Then they would pay the buy back plus HST to BMWFS.
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09-14-2011, 09:40 AM	#3
Type-S Private First Class 36 Rep 110 Posts Drives: F82 M4/E92 M3/E82 1M Join Date: Sep 2009 Location: Toronto iTrader: (0)	Just spoke to BMW FS - looks like this is possible - it would just have to go through a dealership and the buyer would pay an admin fee to the dealer
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09-16-2011, 04:08 PM	#4
Simma First Lieutenant 28 Rep 333 Posts Drives: E92 M3 Join Date: Apr 2011 Location: Toronto iTrader: (0)	This is possible ... the buyer will pay a $500 admin fee (or you can pay it or split it with buyer) plus your buy out price plus HST.
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09-16-2011, 10:03 PM	#5
d-burn Private First Class 3 Rep 190 Posts Drives: '11 e92 335i xDrive M-Sport Join Date: Jan 2010 Location: Toronto iTrader: (0)	Looks like there are two seperate threads going on this topic now. I posted a question as to process in the other thread. Seems to be conflicting info coming back. Some claim that you can avoid the dealer, and deal directly with BMW FS, others say the dealer has to be involved. If the only cost involved for the Dealer to do it would be $500, might be a viable option, however isn't it in the dealers best interest to buy the car back at a discount from BMW FS services themself, and sell it for the +$15K mark-up they would probably put on a lease return M3...Yes, CPO is worth something...maybe $1-2K, but certainly not $15K. If you can keep the dealer out of it, it seems like a better option. Would be great to hear from someone who has done this before (either as a buyer or seller) to know the process they went through (if not with the dealer). BMW FS technically owns the car, so couldn't the lease owner just say "so-and-so" is buying my lease at the residual price remaining at the end of the lease (arrange a few weeks before lease expires), they will be sending you a cheque. Please release lien to them at lease end date, and send bill of sale to them to take to MTO, pay taxes on that, and the car is yours? The residual on a 3-year lease on a M3 seems to be around the $38-$40K range (depending on options), so this would obviously be a better route to take if the car is going to be returned, plus the original lease owner will get some money for their efforts to put towards next lease/purchase. Definitely not seeing $40K 3-year old M3's on the market.
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09-17-2011, 02:10 PM	#6
Type-S Private First Class 36 Rep 110 Posts Drives: F82 M4/E92 M3/E82 1M Join Date: Sep 2009 Location: Toronto iTrader: (0)	My ad posted in the classified section http://www.m3post.com/forums/showthread.php?t=585527
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