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      08-09-2011, 11:18 PM   #1
Lay-Z M3
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Lease return M3's

Hello all,

I was just curious is anyone had a 2009 E92 M3 on lease - that expired towards the end of this or early next year, that they were planning to hand back??

If yes please let me know what you have and if you would entertain me buying the vehicle out at lease end

Preference given to Western Canada located vehicles!

Many thanks

Best regards

M
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      08-10-2011, 02:20 AM   #2
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I am also interested in 09 E92 lease returns. Located in Toronto. Let me know if anyone is returning anytime soon.
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      08-11-2011, 01:36 AM   #3
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What are your plans for your AW '08 then Simma?? Does it have Nav? If 'No' then let me know what you'd like for it please!
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      08-11-2011, 01:39 AM   #4
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Sorry - just noticed 'M-Drive' as part of your vehicles spec tagline...........
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      08-21-2011, 10:03 AM   #5
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FYI, I have a 2009 M3 (MR on Black) on lease that I am going to return in September 2012. I currently have only 17K kms on it.
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      08-22-2011, 12:24 AM   #6
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Quote:
Originally Posted by Lay-Z M3 View Post
What are your plans for your AW '08 then Simma?? Does it have Nav? If 'No' then let me know what you'd like for it please!
I am looking for a new M3 because I no longer have my 08.
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      09-14-2011, 09:43 AM   #7
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if either of you are interested in an 08 E92 let me know

its Black/Black, 6MT
every option (including high gloss) except EDC
currently has 58,000 kms
Clean, no accidents
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      09-15-2011, 11:05 PM   #8
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I'm very interested in this idea, depending how exactly it goes down. It seems like an excellent way for an enthusiast to get a great car at an great price, while avoiding the substantial mark-up dealers place on lease returnes. Please educate me if I'm way off base.

Is this what would happen?:

- 335i, M3, etc lease owner's lease expires in upcoming month. Owner plans on returning the car, and entering into a new lease, or buying something else.
- Rather then let the dealer take the car back and place huge mark-up on the car and re-sell it, agreement is made between lease owner who is returning the car and a buyer that would like to purchase the vehicle at lease end
- Buyer and lease owner agree to price (residual value/buy-out price at lease end + small profit for lease-owners efforts ($500, $700, $1000?)
- Lease owner arranges with leasing company that 3rd party will be buying the car at the buy out price at lease end, and buyer cuts a cheque to the leasing company to receive ownership papers / lease lein cleared on vehicle
- Buyer cuts seperate cheque/cash to lease owner for being such a swell person and letting buyer (i.e. me) buy their lease return at the buy-out residual value price from leasing company
- Or does the dealer have to arrange the 3rd party lease end buy out with the finance company (and probably charge some sort of crazy admin fee)?

Am I right, close, or way off?
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      09-16-2011, 01:12 AM   #9
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Quote:
Originally Posted by d-burn View Post
I'm very interested in this idea, depending how exactly it goes down. It seems like an excellent way for an enthusiast to get a great car at an great price, while avoiding the substantial mark-up dealers place on lease returnes. Please educate me if I'm way off base.

Is this what would happen?:

- 335i, M3, etc lease owner's lease expires in upcoming month. Owner plans on returning the car, and entering into a new lease, or buying something else.
- Rather then let the dealer take the car back and place huge mark-up on the car and re-sell it, agreement is made between lease owner who is returning the car and a buyer that would like to purchase the vehicle at lease end
- Buyer and lease owner agree to price (residual value/buy-out price at lease end + small profit for lease-owners efforts ($500, $700, $1000?)
- Lease owner arranges with leasing company that 3rd party will be buying the car at the buy out price at lease end, and buyer cuts a cheque to the leasing company to receive ownership papers / lease lein cleared on vehicle
- Buyer cuts seperate cheque/cash to lease owner for being such a swell person and letting buyer (i.e. me) buy their lease return at the buy-out residual value price from leasing company
- Or does the dealer have to arrange the 3rd party lease end buy out with the finance company (and probably charge some sort of crazy admin fee)?

Am I right, close, or way off?
What I bolded is what I read in another thread, i.e. that it can be done through a dealer. Somebody called BMW Canada and asked. I'm not sure what the admin fee is for such a transaction but the admin fee to buy out a BMW lease (i.e. your own) is $600. If the transaction cost is something like that, that would be just fine by me! As that would be peanuts compared to the mark up BMW dealers put on lease return M3s....

I'll ask my dealer next time I talk to him. I may be interested in this as well.

Maybe call BMW Canada if you're looking to purchase earlier? If so, let us know if you find out anything.
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      09-16-2011, 03:34 PM   #10
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The way it works is this; I've done it.

Buyer gives the owner the required funds (wire or bank draft) with a guarantee of the owner that it will be used against the lien. The owner would call BMW to find the remaining value, and sends them a bank draft via courier. At that point, a bill of sale is done up and once the keys are handed over at the registry, it's done.

The key thing is that ownership cannot be transfered until the lien is removed. This protects both sides as BMW would need to deposit the money and ensure it's good before releasing the lien and allowing the owner to sign over the registration.

Alternatively, assuming the owner has the funds, they could buy out the lease in expectation that funds will be given to him upon sale. This would have to be done after a bill of sale (contract) is written to ensure the buyer can't back out after the owner pays. Personally, I would go with the first strategy.
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      09-16-2011, 03:44 PM   #11
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One of the good things about getting a car off lease, through the dealer though, would be it's BMW CPO. Most off lease cars get CPO'd and that is where some of the costs go.

If you were to source your own warranty or go sans coverage, disregard above statement.
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      10-02-2011, 07:44 PM   #12
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I posted this in the other thread about leases, but then realized that thread was discussing transferring a lease mid-lease vs. transferring the buy-out to a third party at lease end, so not really same situation.

For end of lease transfer of buy-out privledge/price, there seems to be conflicting info coming back, and I'd love to get a solid handle on it from several others with experience to see if there was a single process followed, or several options that could be followed. Seems like a win-win situation for the buyer and "seller" as the "seller" ends up getting some money (whatever is negotiated between the lease-owner and the buyer) for a car he would be turning back to BMW for nothing anyways. 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 $36-$40K range (depending on options), so this would obviously be a better route to take for a buyer and lease owner if the car is going to be returned, plus the original lease owner will get some money for their efforts (if they choose) in being so nice as to let the buyer save 10-15K off on their used M3, 335i, etc. to put towards next lease/purchase. Definitely not seeing $40K 3-year old M3's on the retail market.

Last edited by d-burn; 10-02-2011 at 07:50 PM.
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      10-05-2011, 12:14 AM   #13
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Is a 2008 AW E92 DCT of interest? 44 000km. 19 wheels, EDC, M Drive package and executive package. Immaculate. Car in Calgary. PM if interested
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      10-10-2011, 11:00 PM   #14
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Is a 2008 AW E92 DCT of interest? 44 000km. 19 wheels, EDC, M Drive package and executive package. Immaculate. Car in Calgary. PM if interested
Are you selling this car privately (you own it)? Based on the price in your ad, it appears this is what you are doing? This thread is discussing 3rd party buy out of lease end residual value for someone that is planning to return their lease at the end of lease period.
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      10-11-2011, 09:29 AM   #15
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Quote:
Originally Posted by d-burn View Post
Are you selling this car privately (you own it)? Based on the price in your ad, it appears this is what you are doing? This thread is discussing 3rd party buy out of lease end residual value for someone that is planning to return their lease at the end of lease period.
Sorry - I assumed it might be clear from the thread. This is a lease vehicle I have that is due to be returned shortly. If I find a buyer I would purchase and resell - or perhaps follow some of the other suggestions made in this thread.
Price is definitely negotiable. PM if interested. Thanks
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      10-14-2011, 11:14 PM   #16
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I think the whole idea here is for a third party (myself as an example) to purchase the vehicle at the residual price at lease end since the owner was planning to return it anyways.

Buying the car and reselling it privately would incur double taxation, so not a good option.

Therefore, your lease end residual is probably somewhere in the $37-$39K range...me being the third party would pay that amount directly to BMW Financial services, and then maybe cut you a cheque/cash personally for $1-2K for being so nice as to let me buy your car that you were returning anyways at the residual price. The idea isn't to end up paying the lease returner $10-$15K on top of the residual price...otherwise there is no incentive, and I can just buy at the dealer and get CPO.
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      10-15-2011, 12:59 PM   #17
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Quote:
Originally Posted by d-burn View Post
I think the whole idea here is for a third party (myself as an example) to purchase the vehicle at the residual price at lease end since the owner was planning to return it anyways.

Buying the car and reselling it privately would incur double taxation, so not a good option.

Therefore, your lease end residual is probably somewhere in the $37-$39K range...me being the third party would pay that amount directly to BMW Financial services, and then maybe cut you a cheque/cash personally for $1-2K for being so nice as to let me buy your car that you were returning anyways at the residual price. The idea isn't to end up paying the lease returner $10-$15K on top of the residual price...otherwise there is no incentive, and I can just buy at the dealer and get CPO.
+1. Well said. You covered all the main points.
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      10-15-2011, 01:34 PM   #18
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Quote:
Originally Posted by d-burn View Post
I think the whole idea here is for a third party (myself as an example) to purchase the vehicle at the residual price at lease end since the owner was planning to return it anyways.

Buying the car and reselling it privately would incur double taxation, so not a good option.

Therefore, your lease end residual is probably somewhere in the $37-$39K range...me being the third party would pay that amount directly to BMW Financial services, and then maybe cut you a cheque/cash personally for $1-2K for being so nice as to let me buy your car that you were returning anyways at the residual price. The idea isn't to end up paying the lease returner $10-$15K on top of the residual price...otherwise there is no incentive, and I can just buy at the dealer and get CPO.
Is the lease end residual actually around $37K-$39K? If it is, I don't think anyone is that stupid to return it while he can easily sell it for around $50K.
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      10-15-2011, 01:42 PM   #19
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I was told by my sales, who now works for Porsche(so no reason to lie), that the dealer has first dibs in the case of a third party buyout. The alternative would be a third party buyout through lease takeover. But that means the third party would need to pay 6 months of payment(minimum time for lease takeover) + the residual. This all depends on the interest and residual number at signing. I never bothered to verify, but I probably should soon.
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      10-18-2011, 11:12 PM   #20
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Quote:
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Is the lease end residual actually around $37K-$39K? If it is, I don't think anyone is that stupid to return it while he can easily sell it for around $50K.
Well you have to factor in a few things. If someone is planning to return at lease end, they are most likely buying/leasing another vehicle. Thus, they probably don't have the extra $37K-$39K lump sum sitting around to drop on a vehicle, just to try to make a few thousand selling it. If the original lease holder buys it, they will also have to pay tax on the buy-out amount plus whatever admin fee the dealer decides to apply, which would all cut into their bottom line if selling it for $50K to another person. So at the end of the day, all they would be making is a few thousand, plus all of the hassle trying to sell, and tying up a large amount of money to buy it out.

If an agreement is made beforehand, and the third party buys it out, and cuts the lease holder a cheque for $1K or something, very painless way for the original leasee to make some easy coin to put towards their new ride, without having to expel any capital.
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      10-19-2011, 12:58 AM   #21
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Honestly, have you guys called BMW financial to verify if this works? I can't say for sure what my sale's said was true. But it makes sense for BMW/Dealer to get first dibs, just so what you're discussing here doesn't happen often. A clause that allows them to buy back the car before any other third party will put this to rest. That said, I also said you can take over someone's lease 6 months before it ends. But that means you'd end up paying a couple thousand more, depending on the person's payment.
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      10-19-2011, 06:01 PM   #22
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This works because when I was shopping for my car I was almost about to pull the plug on two different lease returns but I found last minute flaws in them. The residual is not $39K in Canada. It's roughly about $46K - $52K. The seller usually doesn't tell you the actual residual but you get a rough idea of what the residual is for the car. They may make a profit of about 2 to 5K depending on the deal.
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