Lease Buyout: Go through BMWFS or Dealership?

corntamale · 02-19-2024, 03:31 PM

Hey everyone!

New forum member here looking to have a couple questions answered about purchasing my 2021 330i xDrive at the end of my lease.

Some details about the car:
Initial Lease Terms: 36 mo. / 30k miles, terminating end of this month
Negotiated Finances: 11.5% off MSRP (dont have the exact number on hand)
Residual Value: $28,907.20
Current Mileage: ~23,000 miles

My local dealership here in NC (BMW Southpoint) is trying to charge me $500 "inspection fee"+ $750 "dealership administrative fee" + tax, tag, title to purchase the car as is. Alternatively, I can opt to buy-out my lease as a CPO, and the dealership would charge $1500 for CPO inspection fee + $750 dealership admin fee + tax, tag, and title.

However, I also found out through the MyBMW portal that I can just cut BMWFS a check for $28,907.20 and not have to deal with all the BS junk fees that the dealership is attempting to charge.

My questions are:
1) Am I right in my gut feeling to just cut BMWFS the check and buy out the car as is? I would be cutting a check for the entire residual as a lump sum so financing isn't a consideration.

2) I was initially thinking about doing the lease buy-out as a CPO. Is there any benefit to purchasing the car CPO through the dealership and dealing with all the fees (plus probably having to pay for a tire since I'm pretty sure the remaining tread is below CPO spec)? Instead of CPO, would purchasing an Extended Warranty + buying it as is through BMWFS be the better option?

Overall, I have really enjoyed the car, there havent been any mechanical/electrical issues thus far (except for a weird tinny rattling noise coming from the engine bay when gently accelerating in 5th/6th gear). Mileage is also quite low, and I plan on keeping the car for another 4-5 years if it will make it that long. What are your thoughts?

Thanks for your help and insight!

TurtleBoy · 02-20-2024, 06:47 PM

Your location shows NC so you are not allowed to buy directly from BMWFS and must go through the dealer. You do not have to pay those extra fees, just the residual, taxes, tags/title. Tell the dealer those fees are not part of your contract.

I see no advantage to having it CPO'd or purchasing an extended warranty since those rarely make financial sense.

Good luck and let us know how it turns out.

Tony216 · 02-25-2024, 09:58 PM

I also plan to buy out my leased 2021 330ix next month as I've only used about 22,000 miles. When I bought out my wife's X1 a year and a half ago the dealer didn't hit me with fees, and also didn't mention the CPO alternative. Interestingly, they found a local bank that offered better interest rates than BMW Financial.

02-19-2024, 03:31 PM	#1
corntamale Registered 0 Rep 1 Posts Drives: 2021 330i xDrive Join Date: Feb 2024 Location: North Carolina iTrader: (0)	Lease Buyout: Go through BMWFS or Dealership? Hey everyone! New forum member here looking to have a couple questions answered about purchasing my 2021 330i xDrive at the end of my lease. Some details about the car: Initial Lease Terms: 36 mo. / 30k miles, terminating end of this month Negotiated Finances: 11.5% off MSRP (dont have the exact number on hand) Residual Value: $28,907.20 Current Mileage: ~23,000 miles My local dealership here in NC (BMW Southpoint) is trying to charge me $500 "inspection fee"+ $750 "dealership administrative fee" + tax, tag, title to purchase the car as is. Alternatively, I can opt to buy-out my lease as a CPO, and the dealership would charge $1500 for CPO inspection fee + $750 dealership admin fee + tax, tag, and title. However, I also found out through the MyBMW portal that I can just cut BMWFS a check for $28,907.20 and not have to deal with all the BS junk fees that the dealership is attempting to charge. My questions are: 1) Am I right in my gut feeling to just cut BMWFS the check and buy out the car as is? I would be cutting a check for the entire residual as a lump sum so financing isn't a consideration. 2) I was initially thinking about doing the lease buy-out as a CPO. Is there any benefit to purchasing the car CPO through the dealership and dealing with all the fees (plus probably having to pay for a tire since I'm pretty sure the remaining tread is below CPO spec)? Instead of CPO, would purchasing an Extended Warranty + buying it as is through BMWFS be the better option? Overall, I have really enjoyed the car, there havent been any mechanical/electrical issues thus far (except for a weird tinny rattling noise coming from the engine bay when gently accelerating in 5th/6th gear). Mileage is also quite low, and I plan on keeping the car for another 4-5 years if it will make it that long. What are your thoughts? Thanks for your help and insight!
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02-20-2024, 06:47 PM	#2
TurtleBoy General 13266 Rep 19,785 Posts Drives: 2019 X5 40i,2021 M340i Join Date: Jan 2019 Location: Colorado iTrader: (0)	Your location shows NC so you are not allowed to buy directly from BMWFS and must go through the dealer. You do not have to pay those extra fees, just the residual, taxes, tags/title. Tell the dealer those fees are not part of your contract. I see no advantage to having it CPO'd or purchasing an extended warranty since those rarely make financial sense. Good luck and let us know how it turns out. __________________ 2021 BMW G20 M340i xDrive - Verde Ermes/Black - 03/2024.40 2019 BMW G05 X5 xDrive40i - Phytonic Blue/Cognac - 11/2023.50
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02-25-2024, 09:58 PM	#3
Tony216 New Member 5 Rep 10 Posts Drives: 330ix, x1, 328ix Join Date: Feb 2021 Location: NE Ohio iTrader: (0)	I also plan to buy out my leased 2021 330ix next month as I've only used about 22,000 miles. When I bought out my wife's X1 a year and a half ago the dealer didn't hit me with fees, and also didn't mention the CPO alternative. Interestingly, they found a local bank that offered better interest rates than BMW Financial.
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