[bloozemanAZ]

Looking for the experience of those with MSDs in play on a lease and chose the buy out option. I know in general that is sacrilegious in nature and BMW FS will transfer them to a new lease but what happens in a buyout situation?

Will BMW FS automatically apply the MSD value against the residual buy out? Or does one just buy out the car and wait for a check from BMW FS returning the MSD amount? I'm somewhat expecting the latter knowing corporate america but any insight would be greatly appreciated as I make my plan to buy out my 2020 coupe this December.

It's all about cash flow and the insight can help me plan appropriately for the loan I'm pursuing for the buy out as well as the extended warranty planned. Thanks in advance for any insight/guidance anyone can share.

[CaliforniaDrew]

Originally Posted by bloozemanAZ

Looking for the experience of those with MSDs in play on a lease and chose the buy out option. I know in general that is sacrilegious in nature and BMW FS will transfer them to a new lease but what happens in a buyout situation?

Will BMW FS automatically apply the MSD value against the residual buy out? Or does one just buy out the car and wait for a check from BMW FS returning the MSD amount? I'm somewhat expecting the latter knowing corporate america but any insight would be greatly appreciated as I make my plan to buy out my 2020 coupe this December.

It's all about cash flow and the insight can help me plan appropriately for the loan I'm pursuing for the buy out as well as the extended warranty planned. Thanks in advance for any insight/guidance anyone can share.

You can get the MSD amount deducted from the payoff - ask for the payoff documents and it's in there:

[bloozemanAZ]

Originally Posted by CaliforniaDrew

You can get the MSD amount deducted from the payoff - ask for the payoff documents and it's in there:

Thanks. I've been holding off on actually talking to the Finance team at the dealership until I got all of my ducks in a row. Good to know it will come off the residual if I check the box.

Guessing they'll just have me execute the referenced authorization form all at the same time when I have to burn a hour going through the buy out process.

[xmanpro]

Wait you have to go to a dealership to do the buyout? Can't just pay online?

[bloozemanAZ]

Originally Posted by xmanpro

Wait you have to go to a dealership to do the buyout? Can't just pay online?

Actually, guessing I can and that was an afterthought after my last post. Going to log into the BMW FS portal to verify can request payoff docs, etc. directly. That should indeed be the case but then again some aspects of BMW are abysmal failures in the digital world. Done correctly to your point and my suspicion don't even need to involve the dealer whatsoever on a buy out. Lease return on the other hand absolutely.

[bloozemanAZ]

The answer is a definitive "yes" can buy out directly with BMW FS without involving the dealer. Can pull the payoff docs now but my next auto payment for October hits on the 9th so will do it after that and then the quote is good for 30 days. They'll deal with the DMV and title (good as otherwise I stand in line or pay some ridiculous doc fee at the dealer. However, as expected they still live in the stone ages, i.e.,

What form of payments are accepted to payoff my account?
Please send a payoff using certified funds. If you choose to send non-certified funds, such as a personal check, the release of the title will be delayed by up to 15 business days.

Certified funds can be obtained from a bank. The common types of certified funds include cashier’s checks and money orders. BMW Financial Services does not accept wire or electronic transfers for payoffs.

Seriously? No issues with getting a cashiers check but that includes me wasting my time at a branch vs a few clicks of a mouse to authorize the EFT. WTF? I've EFT'd the value of the car 5X over on personal transactions and in my business world 2000X. Stone ages.

[MJeff]

Just paid off a 2019 lease and could no longer do it through BMW FS , had to go through the dealer.

[Vic55]

Originally Posted by MJeff

Just paid off a 2019 lease and could no longer do it through BMW FS , had to go through the dealer.

There are certain caveats where one has to go to the dealer but in general, the payoff pack that can be printed via the FS website does not require one to go to the dealer.

Its simple signed odo statement if the buyer is currently in the middle of the lease. End of lease situations could differ as its just a residual payout. And there were times when residuals were so high (start of covid) that FS was discounting the buyouts and that required the buyer to see his or her dealer.

Was your lease past term and on an extension by chance??

[bloozemanAZ]

Originally Posted by Vic55

There are certain caveats where one has to go to the dealer but in general, the payoff pack that can be printed via the FS website does not require one to go to the dealer.

Its simple signed odo statement if the buyer is currently in the middle of the lease. End of lease situations could differ as its just a residual payout. And there were times when residuals were so high (start of covid) that FS was discounting the buyouts and that required the buyer to see his or her dealer.

Was your lease past term and on an extension by chance??

Thank you for the extra insights and guidance. Can't see a discount on the residual a factor whatsoever and the FAQ indicates BMW FS will not negotiate on it whatsoever. So perhaps there was a gray area but although purchased in December of 2019 doubt it falls under the COVID caveat.

Will pull the docs once my October 9th payment on auto pay hits. Some of the caveats listed on the site being lease in good standing, i.e., no late/past due payments, etc. Well mine has been on autopilot with the account set up to EFT the funds since the lease execution so should be golden from that perspective.

[Vic55]

Originally Posted by bloozemanAZ

Than you for the extra insights and guidance. Can't see a discount on the residual a factor whatsoever and the FAQ indicates BMW FS will not negotiate on it whatsoever. So perhaps there was a gray area but although purchased in December of 2019 doubt it falls under the COVID caveat.

Will pull the docs once my October 9th payment on auto pay hits. Some of the caveats listed on the site being lease in good standing, i.e., no late/past due payments, etc. Well mine has been on autopilot with the account set up to EFT the funds since the lease execution so should be golden from that perspective.

Yes the adjusted residuals were for lessee's ending their lease at the start of covid where the inflated residuals to market were excessive.

BMW FS was trying to help out their end users. If they only knew what would transpire with inventory or lack of it. This is why they stopped allowing third party dealers to payoff their leases. People were selling cars and making a pretty penny since supply was so dismal. BWMFS decided to protect their dealer network (Oct of 2021) and only allow Rooftops to payoff their leases (retail anyone can payoff). This actually hurt some people who were trying to get of their lease early because ACV's were high but the BMW dealers would not step up due to many factors but not limited to: market desires, inability to lease said unit, flooring costs, capital constraints, etc.

I have a friend whose G82 X clearly is worth 96k wholesale but its a lease and he cant get a BMW dealer to take it for more than 86k. He has offers at 95 but the third party storefront cant pay it off. So now he has to fork out cash to get title and then sell it outright ... crazy.

Tesla is the same but on the 3 series its even worse. NO early pays even to trade in, it has to go to term or be a total loss on the 3 series. They are building a rental fleet empire

[bloozemanAZ]

Originally Posted by Vic55

Yes the adjusted residuals were for lessee's ending their lease at the start of covid where the inflated residuals to market were excessive.

BMW FS was trying to help out their end users. If they only knew what would transpire with inventory or lack of it. This is why they stopped allowing third party dealers to payoff their leases. People were selling cars and making a pretty penny since supply was so dismal. BWMFS decided to protect their dealer network (Oct of 2021) and only allow Rooftops to payoff their leases (retail anyone can payoff). This actually hurt some people who were trying to get of their lease early because ACV's were high but the BMW dealers would not step up due to many factors but not limited to: market desires, inability to lease said unit, flooring costs, capital constraints, etc.

I have a friend whose G82 X clearly is worth 96k wholesale but its a lease and he cant get a BMW dealer to take it for more than 86k. He has offers at 95 but the third party storefront cant pay it off. So now he has to fork out cash to get title and then sell it outright ... crazy.

Tesla is the same but on the 3 series its even worse. NO early pays even to trade in, it has to go to term or be a total loss on the 3 series. They are building a rental fleet empire

As always, thanks for the insight and apologies on the ignorance regarding "rooftops". Guessing to your point not applicable to me as pure retail purchase through my dealer but curious as to what classifies for the other scenario.

I got in a bit of hot water on the overall BMW EV thread now that the new legislature is active and may impact potential fed tax breaks. As called out I had several friends purchase Model 3s in late 2019 as fed tax breaks for Tesla still in play plus they qualified for an AZ environmental plate that gives a free pass in the carpool lane regardless of the number of occupancy in the car.

I disclosed that I chose ICE, still drive in the carpool lane when necessary and if caught will gladly pay the $450 fine as a rounding error at this point. Pure math, i.e., 3 years later the fine is no where near the opportunity cost lost of my time if ever caught. That went over like a led zeppelin with one guy in the thread but he ended up with a negative 10 reputation by the time it was all done and didn't even know that was possible, i.e., negative reputation on Bimmerpost.

[bloozemanAZ]

Well so much for that, i.e., not having to deal with my dealer in the buy out as October payment hit so pulled the buyout docs from BMW FS and found this lovely item:

"All information regarding your payoff can be found in the following pages. To proceed with the purchase option for your vehicle, please contact your preferred BMW Center for assistance. The purchase must be processed by an authorized BMW Center due to your state guidelines."

Irony being as was picking up the M850i today with the new rubber and the originally planned oil and brake fluid change. Ran into my CA so we discussed my lease buyout as they have squat for 8-series (several M840i coupes with two in Tanzanite). The lack of a true LCI/facelift on the 2023s, etc. As for the terms of the buyout, he explained in April of this year that clause came into effect, i.e., need to deal with the dealer on the buyout. Prior to that could have went straight to BMW FS so seems to be state dependent or the docs just eluded to that BS as a smoke screen.

Upside is he'll run all the docs so I won't have to deal with their FS team. Don't know if it is just me but 30 minutes with any vendor's finance team is 30 wasted minutes of my life plus I feel like I walk out with some slime of some sort still clinging to me. In my professional life I negotiate multi-million dollar deals and that is with the equivalent of a CA aka account rep vs the sleaze bags the vendor tries to bring to the table.

Have the financing in play at 3.29% APR if decide to go that route or just cash buyout. Cash is king these days so leaning towards the former but will get it done with my CA within the next 2 weeks. Irony being as mentioned certified vs personal check he said the former would be no problem but they'll pull my credit on the latter. Seriously? Paid the $30K plus down payment for my wife's X5 with a personal check with no credit check required (loan was in her name but tied to my commitment on the down payment as was rebuilding her credit).

Upside is can do an EFT via my CA on the buyout so F the personal check and wasting my time getting a certified check. He also committed to getting me a 1st right of refusal on a build slot for a 2024 when they open up. Small wins.

[mjr24]

Originally Posted by bloozemanAZ

Well so much for that, i.e., not having to deal with my dealer in the buy out as October payment hit so pulled the buyout docs from BMW FS and found this lovely item:

"All information regarding your payoff can be found in the following pages. To proceed with the purchase option for your vehicle, please contact your preferred BMW Center for assistance. The purchase must be processed by an authorized BMW Center due to your state guidelines."

Irony being as was picking up the M850i today with the new rubber and the originally planned oil and brake fluid change. Ran into my CA so we discussed my lease buyout as they have squat for 8-series (several M840i coupes with two in Tanzanite). The lack of a true LCI/facelift on the 2023s, etc. As for the terms of the buyout, he explained in April of this year that clause came into effect, i.e., need to deal with the dealer on the buyout. Prior to that could have went straight to BMW FS so seems to be state dependent or the docs just eluded to that BS as a smoke screen.

Upside is he'll run all the docs so I won't have to deal with their FS team. Don't know if it is just me but 30 minutes with any vendor's finance team is 30 wasted minutes of my life plus I feel like I walk out with some slime of some sort still clinging to me. In my professional life I negotiate multi-million dollar deals and that is with the equivalent of a CA aka account rep vs the sleaze bags the vendor tries to bring to the table.

Have the financing in play at 3.29% APR if decide to go that route or just cash buyout. Cash is king these days so leaning towards the former but will get it done with my CA within the next 2 weeks. Irony being as mentioned certified vs personal check he said the former would be no problem but they'll pull my credit on the latter. Seriously? Paid the $30K plus down payment for my wife's X5 with a personal check with no credit check required (loan was in her name but tied to my commitment on the down payment as was rebuilding her credit).

Upside is can do an EFT via my CA on the buyout so F the personal check and wasting my time getting a certified check. He also committed to getting me a 1st right of refusal on a build slot for a 2024 when they open up. Small wins.

Not surprised BMW has changed this. It just gives their dealers ways to gouge customers for more money.....basically by offering really low trade in value or trying to harp on you to buy another car. Wouldn't be shocked if some unscrupulous dealers add on some sort of garbage fees to people when turning in. Was very convenient to just pay BMWFS before.

[Vic55]

Originally Posted by bloozemanAZ

Well so much for that, i.e., not having to deal with my dealer in the buy out as October payment hit so pulled the buyout docs from BMW FS and found this lovely item:

"All information regarding your payoff can be found in the following pages. To proceed with the purchase option for your vehicle, please contact your preferred BMW Center for assistance. The purchase must be processed by an authorized BMW Center due to your state guidelines."

Irony being as was picking up the M850i today with the new rubber and the originally planned oil and brake fluid change. Ran into my CA so we discussed my lease buyout as they have squat for 8-series (several M840i coupes with two in Tanzanite). The lack of a true LCI/facelift on the 2023s, etc. As for the terms of the buyout, he explained in April of this year that clause came into effect, i.e., need to deal with the dealer on the buyout. Prior to that could have went straight to BMW FS so seems to be state dependent or the docs just eluded to that BS as a smoke screen.

Upside is he'll run all the docs so I won't have to deal with their FS team. Don't know if it is just me but 30 minutes with any vendor's finance team is 30 wasted minutes of my life plus I feel like I walk out with some slime of some sort still clinging to me. In my professional life I negotiate multi-million dollar deals and that is with the equivalent of a CA aka account rep vs the sleaze bags the vendor tries to bring to the table.

Have the financing in play at 3.29% APR if decide to go that route or just cash buyout. Cash is king these days so leaning towards the former but will get it done with my CA within the next 2 weeks. Irony being as mentioned certified vs personal check he said the former would be no problem but they'll pull my credit on the latter. Seriously? Paid the $30K plus down payment for my wife's X5 with a personal check with no credit check required (loan was in her name but tied to my commitment on the down payment as was rebuilding her credit).

Upside is can do an EFT via my CA on the buyout so F the personal check and wasting my time getting a certified check. He also committed to getting me a 1st right of refusal on a build slot for a 2024 when they open up. Small wins.

You have your PM ...

[bloozemanAZ]

Originally Posted by Vic55

You have your PM ...

Thank you as always!

[bloozemanAZ]

Originally Posted by mjr24

Not surprised BMW has changed this. It just gives their dealers ways to gouge customers for more money.....basically by offering really low trade in value or trying to harp on you to buy another car. Wouldn't be shocked if some unscrupulous dealers add on some sort of garbage fees to people when turning in. Was very convenient to just pay BMWFS before.

In my world there is no BS fees, low ball trade-in value, etc. as I'll sit on the car if need be and do a private sale after the buy out. Thanks to my full time WFH status the wife and I can get by with a single car (her X5 owned outright) while I figure things out.

Worse case post buy out on a private sale I credit the $2K on the bumper damage to the prospective buyer. Outside of that the car is literally flawless out sans the new car smell. The quote is from the Penske collision center who does all the repairs on their dealer sales from A to Z with Bentley, Ferrari, Lambo and McLaren in the mix.

The work they did on my wife's X5 was flawless so with the buyout I'll get the front bumper work done plus all new PPF and then private sale before the 48 month factory warranty is up. 👍

[bloozemanAZ]

As posted on RJC-1's tough decision thread I did close the deal and buy out the 2020. Kudos to my CA who did 90% of the legwork so only had to sit with the finance guy for 10 minutes to sign the docs (including waiving extended warranty, etc ). All in about 45 minutes and now I wait to see what the final run of the 8-series brings me for a 2025 build.

[RJC-1]

Originally Posted by bloozemanAZ

As posted on RJC-1's tough decision thread I did close the deal and buy out the 2020. Kudos to my CA who did 90% of the legwork so only had to sit with the finance guy for 10 minutes to sign the docs (including waiving extended warranty, etc ). All in about 45 minutes and now I wait to see what the final run of the 8-series brings me for a 2025 build.

Congrats on keeping your '20, if you know you've got a good one, why take a chance especially for the same thing?

[bloozemanAZ]

Just an update on the lease buyout as it got a little stressful. So the buyout number included my November payment and was good through 11/6 with November payment on the 9th.

Did all the paperwork at the dealership back on 11/1 but as of the 7th BMW FS said lease still active and they'd take my auto payment on the 9th. Talked to the FS guy at the dealership who did the final paperwork (CA did all the prep) and he said the CU was so backed up they still had not funded the loan. Recommended canceling the auto payment if I could (was able to do so) but told him I don't want BMW FS reporting it as late if the loan still hadn't processed, etc

As of finally this past Friday, the loan funded and the dealer finished the buyout with BMW FS. Moral of the story in the states in which you now have to deal with a dealership vs directly with BMW FS the date goes by when the paperwork is filed with the dealership. Oddly the status states although the account is terminated a final bill is being processed. Yeah like I'm going to pay a cent more and if it's a late fee on the November payment going to have the dealership eat that.

[bloozemanAZ]

Final update. Yep they were looking for a late payment fee for the November payment. Well that didn't happen. 😜

[bloozemanAZ]

Okay, one last final update (feel like a retired sports star coming back for one more season ). I did pull the trigger on the Platinum extended warranty for 84months/75K miles via the friends and family discount offered by a dealer on the forum. The logic being I wanted the M850i under warranty into 2025 when the decision time comes to replace it or keep it another year.

Still planning on a 2025 8-series but could be a 2025 LC500 or 2025 SL. Not sure what the future holds but I have a great car now to ride me over with miles of smiles until then.

On a side note of info for the forum (why I'm posting) is Christine from the dealership told me the extended warranty packages are going up in pricing. She said BMW increased the pricing of the Ultimate Care+ packages in February and the extended warranty increase is likely going to hit in June or July. So if anyone out there is considering a BMW extended warranty then now is the time to do so.

She also demystified how the mileage impacts the cost. It's a flat cost from leaving the lot up to at least the first 20K price break point. She didn't elaborate on the price points past that. I only asked for clarity as I got the same price she quoted last November but I have about 1500 more miles on the car now. So in theory I could have waited until November to purchase the Platinum package at the same cost as I'd still be well under 20K in miles but the looming price increase dictated to do so now.

[snowbimmer]

Hey, bloozemanAZ, I'm kinda thinking right in line with you're thinking. I burned through two leased "forever" F90s in 18 months each, so warranties weren't an issue. Then I bought the M850 a year ago, and I feel it could also be a "forever" car. I'll cross 25,000 miles this week. The 50k warranty end is suddenly looming, and getting more expensive the longer I wait to extend. But, I'm also thinking like you: Do I want to start over in 2025, with the last model year of this version, before they eff it up or partially de-ICE the thing?