Does BMW Allow Third Party Buyouts?

Just so you know, BMW is no longer accepting third-party dealer buyouts for the BMW M3 G80 G82. All of these tangentially linked yet market-related topics. As of 10/1/21, BMW no longer accepts lease buyouts from third parties from dealers.

Rent an automobile and resell it for a profit.

Values for used cars are higher than ever. You will receive a payment from Equityhackr for the equity in your leased vehicle.

Works even for automakers like BMW, Chevrolet, Honda, Hyundai, Mercedes-Benz, and Nissan that have restricted third-party buyouts.

If needed, Equityhackr can help you discover a great price on a new car to help you maximize your equity.

BMW lease buyout by a third party

My BMW dealer told me that they—meaning BMW dealers—are the only ones who can buy my leased M3CS because things have changed since six weeks ago.

I am aware that the topic of third parties being unable to obtain direct quotes from BMWFS has been covered in depth here. However, once the lessee has obtained a price, the process is straightforward, and any third party may purchase a leased vehicle.

I mentioned this to the manager, who stated that this was untrue and that other parties could still purchase BMW leases.

Last week, I gave my BMW to Carvana. The only thing that has changed is that the dealer will no longer receive Dealer Payoff directly. You must acquire it and send it to the merchant.

You can sell your BMW to other people, as Sabros said. Three weeks ago, I gave Carmax the keys to my Z4 M40i.

You can transfer the email that BMWFS sends you to Carmax, Carvana, or any other company willing to buy out your lease by calling, asking for your buyout, and making it clear that it is for a third party.

Good luck. My experience is that the dealer declared my automobile to have negative equity without even looking at it. walked out of Carmax with $3,500.

According to the lawsuit, automakers are breaking California law.

In the past, if you were leasing a car, you could trade it in at any dealership as opposed to returning it to the manufacturer. Numerous automakers are no longer permitting these third-party lease buyouts as a result of the used car shortage, and a California luxury car dealer has sued Mercedes and BMW as a result of these new limitations.

If you were leasing a car, you had three alternatives when the lease ended before the market went crazy and inventory became scarce. First, you might return it to a retailer who carries the same brand. The leasing business, which is the automaker’s financial division, is another option, as is trading in or selling your vehicle to a different dealership.

Before, the leasing business didn’t seem to care which party covered the buyout sum. Lessees may receive better offers on their lease from other dealers like Carvana, Vroom, Carmax, or any dealer not affiliated with the brand they leased from, but dealerships have been exerting pressure on leasing companies to adopt restrictions since they are starving for used inventory.

Several automakers, notably Honda/Acura, Nissan/Infiniti, BMW, and Mercedes, have recently passed regulations outlawing lease buyouts from third parties. A California luxury auto dealer has reportedly sued BMW and Mercedes, claiming that these limits are illegal under California law, according to a recent story from Automotive News. The dealership has requested that the U.S. Central District Court of California permanently enjoin such limitations and grant legal expenses to the business. It also wants to file a class-action lawsuit against all dealers who have been harmed by these restrictions.

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BMW and Mercedes are accused in the lawsuit of “cornering the used vehicle market by refusing to allow lessees to trade-in their vehicles with anybody other than Defendants’ affiliates,” according to the indicted dealer Calabasas Luxury. In doing so, Calabasas Luxury Motors asserts that these limitations violate the California Vehicle Code’s terminology governing trade-ins, which refers to buying or accepting trade-ins of automobiles “subject to a prior credit or lease amount.”

The defendants in this case, BMW and Mercedes, did not respond to AutoNews with a statement. As a victory for the dealers would also be a victory for customers, it will be interesting to observe how this case develops and whether other dealers who stand to gain from removing similar limits also file a lawsuit against the automakers.

Problems are being caused by the leasing arrangement for BMW, which favors brand dealers over independent vendors.

When the lease on his 2019 BMW X3 expired in October, Allen Ozeran was prepared to sell it to Culver City Toyota. The X3 had a residual value of $27,078.05; but, considering the state of the used car market by the time the lease expired in October, that value had increased by approximately $13,000. Because he couldn’t pay the buy-out, Ozeran signed a deal with Culver City Toyota under which they would purchase his X3 for $31,000.

Up until the dealer contacted BMW Financial about the payoff, everything appeared to be in order. At that point, BMW turned down the X3’s sale. The suit says:

Following standard procedure, on or around October 15, 2021, the Culver Dealer asked Defendant BMW Financial for the payback instructions in order to obtain client payoff information. BMW Financial, however, declined to give the Culver Dealer payoff instructions, claiming that effective of October 1, 2021, third-party dealers were not allowed to send payoff funds on behalf of lessees as stated in Defendants’ October 14, 2021 letter. This was in accordance with Defendants’ policy.

BMW spoke to Automotive News about this adjustment in September despite declining to comment on an active case. BMW essentially modified the lease agreement to favor its own dealers so they could have first dibs on buying lease returns given the used car market and dealers’ demand for inventory. Adapted from Automotive News

By providing possibilities to keep more vehicles in our franchise network, our main objective is to support BMW franchise dealers “He then continued. “In order to give franchise dealers additional possibilities to buy off-lease vehicles, we are giving them priority on our online auction platform. As of October 1, we will also temporarily stop paying out to outside dealers.

Then, according to what Ozeran claims BMW mischaracterized in the lawsuit, BMW informed Ozeran that state laws stated only a BMW dealer or the vehicle’s lessee could get the title. BMW allegedly gave Ozeran an ultimatum: return the vehicle or risk defaulting on the loan. Not only did Ozeran have his back against the wall, but the lawsuit claims BMW added additional fees:

The added fees were greater than the profit he would have made had he been able to sell the car to Toyota.

Now that his father is representing him, Ozeran is suing BMW, claiming the carmaker interfered “with potential economic advantage and contractual relations; misrepresentation; violating the California Unfair Competition Law; demonstrating a lack of good faith and fair dealing, and unjust enrichment.” The lawsuit is also seeking class-action status for others who may have experienced a similar situation.

Another nearby vehicle dealer is also suing BMW for the same reasons; this lawsuit is not the first to be brought against BMW for its leasing methods.

Does Toyota Financial permit buyouts by outside parties?

To view your lease payoff amount, download the payoff form, and find out where to ship your payoff, customers who have already made an account on the website should log in.

Customers who have not yet made an account on the website should do so first. You can see your lease payback information once your online registration is complete and your account number has been entered.

Depending on how your payout is handled, the procedures change. You can find instructions on your statement’s back.

Payoff must be sent to: and must be made payable to WOFC QI Exchange LLC.

Important Information

  • By getting in touch with us directly and paying the Payoff Amount, you can buy your leased car. No dealer or other third party is required on your part. If you decide to work with a dealer or other third party, they might bill you more for the services they offer. We have no control over those sums.
  • For a variety of reasons, including any payment shown in this quote being dishonored or reversed, the payback amount in your account that is actually realized may differ from the payoff amount quoted in your account. Even if the real payoff amount is different from the payoff amount shown above, payment in full of the actual payoff amount is necessary to pay off the account balance.
  • There is a chance that if a third party has agreed to settle your account, their payment won’t be honored, in which case you would still be liable for your debts to us and your account would be reopened. Before giving the third party your car and/or the title, you should demand documentation that their payment has been accepted by their financial institution, unless they have paid using a cashier’s check, money order, or certified check.
  • FLORIDA RESIDENTS: The automobile title is handled by a third party on our behalf. To account for fees like as titling, licensing, registration, and the title agency processing fee, we have added $500 to your payback amount. The agency will provide you a check for the difference between $500 and the actual prices if the cost of these things is less than $500.

A third party buyout is what?

When a customer sells their leased car to a company other than the dealer from whom they originally leased it, that transaction is known as a third-party lease buyout. Dealers typically give customers the option to purchase a vehicle altogether at the end of a lease for a price specified in the original lease agreement.

This buyout price relates to the vehicle’s residual value, which is determined by a number of variables, such as predicted lease mileage (for example, 30,000 or 45,000 miles), wear and tear, and other elements that affect how much a vehicle has depreciated from its initial worth.

However, occasionally the car’s actual value may be more than its residual value 2-3 years later. In certain situations, the customer might make money by turning in the car to a third party prior to the lease’s expiration. You would only be profitable in this situation, it must be mentioned, if the residual value is less than the actual evaluated value and there are no additional significant expenses to take into account, such as bodywork, repairs, DMV fees, etc.

CarMax buys out BMW leases, right?

Do you purchase rented cars? Yes! You can often sell your leased vehicle in a manner similar to that of any other financed vehicle. We will assess the vehicle, then get in touch with the lease company to get a payment quote and handle any equity you may have.

BMW does it permit lease transfers?

Fortunately, when it comes to early lease termination, BMW is one of the most accommodative manufacturers to work with because they permit lease transfers.

How will I receive my BMW payoff?

Call 1 (866) 845-3079 toll-free. Make a collect call to international at (701) 461-2543. Visit the Message Center to send us a message about your financial services account or vehicle.

Which automakers’ finance firms limit sales to third parties?

However, the majority of automakers forbid third-party dealers like Carvana, Vroom, and CarMax from purchasing leases. Leasehackr is working with our business community to overcome the restriction by purchasing leases through a countrywide network of accredited dealers in order to assist our members access their lease equity.

Can I sell Carvana my lease on a BMW?

Many lessees are discovering that their automobiles are worth significantly more than their current payback amount as used car values surge. You might be able to sell the car for a profit to a third party (such Carvana, Shift, Vroom, and CarMax) rather than just returning it after the lease expires.

However, some lenders are making it difficult for customers to access this “lease equity” by requiring third parties to pay a higher lease buyout price than consumers do, or by outright banning third parties.