[Gamyr]

I have a 2019 BMW 330xi with over 29,000 miles, and lease ends August 2022, however, I extended the lease until October 2022 (two extra months). I am now highly considering buying out the car and keeping it due to the crazy current lease market. I am sure the tires and brakes need to be replaced soon, as they were never replaced before. What steps should I take before buying out the lease to be most efficient and avoid losing money? ha
What do I need to do exactly, especially for extended the maintenance and warranty, etc? For example, should I get the dealer lease buyout certification (CPO)?
TYIA

[chenry]

Originally Posted by Gamyr

What do I need to do exactly, especially for extended the maintenance and warranty, etc? For example, should I get the dealer lease buyout certification (CPO)?
TYIA

While I can't address all your points here is info re extremely aggressive nationwide extended warranty pricing for forum members
https://f30.bimmerpost.com/forums/sh....php?t=1670964
GOLFFRR

[SpeedyATL]

Originally Posted by chenry

While I can't address all your points here is info re extremely aggressive nationwide extended warranty pricing for forum members
https://f30.bimmerpost.com/forums/sh....php?t=1670964
GOLFFRR

Christine is good to work with. Her pricing for the extended warranty product, from my experience anyway, seems to be about $1000 below what the BMW MyGarage site quotes for your specific car. It is also my understanding that there is about $2k in total mark up in those products so that would imply that there is potentially up to another $1k of savings to capture by shopping around.

I'll be looking for the extended warranty for my car in about 6 months, so it would be great if someone else would invest the time to see if there are any better deals to be found.....any retired members offering up their time to shop for us working stiffs???

[DocL]

Originally Posted by SpeedyATL

...I'll be looking for the extended warranty for my car in about 6 months, so it would be great if someone else would invest the time to see if there are any better deals to be found.....any retired members offering up their time to shop for us working stiffs???

At least you admit you're lazy lol.

Here's part of your research. I can tell you that the price from Christine can't be beat for any extended warranty plan. I got a third party one from her and it was at least 50% less than most other good plans with the same coverage.

[TTV8M]

From my past experience working at used car dealers and at a new car store (Metro Honda in Jersey city), typically on lease buyouts, they treat it like buying a used car, the problem with that is the dealership has its markups like document fees, etc etc, I'd say my advice is to contact your financial bank directly who holds the lease and ask them if you can buy it out directly from them.

Issue there is they would want a wire transfer in full.

So one way around that would be to go to a bank directly let's say Bank of America and see what their used car rates are and you can get Bank of America to pay off your lease. This also depends on if Bank of America's used car rates are competitive with the dealership rates. Typically the dealership rates have the best rates but used car rates are higher than new cars. Lots of variables.

The other problem is with a least buy out you have to pay sales tax.

One other angle is lower financing APR at a credit union, typically they're 5%, but with the rates going up lately, not sure if that's even an option or if it's competitive

[BMWCCA1]

At least in my state (VA) you do not have to pay tax if you're buying your own car out of a lease direct through your lessor or the dealership where you leased the car.

If you want CPO and you need tires and brakes, you'll be charged for those items in addition to the CPO cost. If you purchase extended Maintenance, brakes are covered.

[F32Fleet]

Originally Posted by Gamyr

I have a 2019 BMW 330xi with over 29,000 miles, and lease ends August 2022, however, I extended the lease until October 2022 (two extra months). I am now highly considering buying out the car and keeping it due to the crazy current lease market. I am sure the tires and brakes need to be replaced soon, as they were never replaced before. What steps should I take before buying out the lease to be most efficient and avoid losing money? ha
What do I need to do exactly, especially for extended the maintenance and warranty, etc? For example, should I get the dealer lease buyout certification (CPO)?
TYIA

Cut a check to BMWFS for the buyout plus sales tax. You don't have to worry about tires/brakes etc.

You can buy an extended warranty until the factory warranty has expired. Price out BMW Platinum warranty for whatever miles/years you want. It's essentially the CPO warranty.

Don't go through the dealership on the buyout.

[TTV8M]

Originally Posted by F32Fleet

Don't go through the dealership on the buyout.

100% correct.

Also, if you wanted, I think you can extend the BMW warranty with the dealer before it expires.

[Gamyr]

Originally Posted by F32Fleet

Cut a check to BMWFS for the buyout plus sales tax. You don't have to worry about tires/brakes etc.

You can buy an extended warranty until the factory warranty has expired. Price out BMW Platinum warranty for whatever miles/years you want. It's essentially the CPO warranty.

Don't go through the dealership on the buyout.

Why don't I have to worry about tires/brakes ?

[Gamyr]

Originally Posted by TTV8M

100% correct.

Also, if you wanted, I think you can extend the BMW warranty with the dealer before it expires.

How can I extend the BMW warranty with the dealer before it expires?

[F32Fleet]

Originally Posted by Gamyr

Why don't I have to worry about tires/brakes ?

Because you're buying the car. After which you can replace them whenever you want/need.

[bayarea328xit]

Originally Posted by F32Fleet

Don't go through the dealership on the buyout.

My credit union sells a very competitively priced MBI (mechanical breakdown insurance) policy - they will only include it if you finance the purchase through them. However, they will only finance a car with a purchase order/contract from a (CA/state) licensed dealer.

In order to get the MBI from my credit union, I paid a BS inspection fee to a local dealer so that they can issue the purchase order/contract. The purchase price was the end of lease residual value + $600 (dealer profit). In the past, BMWFS gave a residual discount to encourage lease buyouts - of course, that is no longer happening.

This still ended up being a lot cheaper than any other option for MBI/extended warranty coverage.

Note: the MBI coverage is pretty expansive/complete; however, using it to cover a breakdown will not be as seamless as a BMW extended warranty policy. I'm okay with that given the price.

[F32Fleet]

Originally Posted by bayarea328xit

My credit union sells a very competitively priced MBI (mechanical breakdown insurance) policy - they will only include it if you finance the purchase through them. However, they will only finance a car with a purchase order/contract from a (CA/state) licensed dealer.

In order to get the MBI from my credit union, I paid a BS inspection fee to a local dealer so that they can issue the purchase order/contract. The purchase price was the end of lease residual value + $600 (dealer profit). In the past, BMWFS gave a residual discount to encourage lease buyouts - of course, that is no longer happening.

This still ended up being a lot cheaper than any other option for MBI/extended warranty coverage.

Note: the MBI coverage is pretty expansive/complete; however, using it to cover a breakdown will not be as seamless as a BMW extended warranty policy. I'm okay with that given the price.

I'm not familiar with terms of the policy through your credit union but the BMW Platinum package is essentially a bumper-to-bumber warranty (I don't remember if it covers upholstery). Of course one can purchase lower levels of coverage for shorter periods of time and less miles. It just depends on the scope and duration of coverage.

[Efthreeoh]

Extending the lease may have changed the original terms, but if you leased in 2019, you probably have a lot of "equity" in the car. The lease document will have the pre-determined price to buy the vehicle at the end of the lease term. Without the foresight in 2019 of the Pandemic drastically increasing the value of used cars, at the time of the lease, the buy-out price was determined based on the 2019 used car market for BMWs and the price is most likely undervalued for the 2022 used car market and that is where your equity is now in 2022.

However, you need to carefully look at the lease extension documents (if there are any) and see if BMWFS changed the buy-out price to reflect the used car market in 2022. I've not had experience with a lease extension, so I don't know if the Lessor can change the terms of the lease when you extend it. I would say if BMWFS approached you with extending the lease, they probably did it to change the buy-out price.

Each state is different, but you need to check the tax situation. You already paid the sales tax through the lease when you leased the car in 2019, and you shouldn't have to pay tax again. A friend of mine in Virginia got screwed and had to pay sales tax when she bought her lease out because the dumbass at the DMV didn't understand the process and the Lessor did not properly document the tax situation with the purchase paperwork (she is appealing...).

As far as an extended warranty, you can buy one at any time once the 50,000-mile BMW original warranty expires. Tires are on you; just buy new tires. I doubt the brakes need replacing; the car will tell you anyway. I'm sure there is a CBS menu somewhere in the computer that indicates the remaining miles-to-go on the brakes.

[Gamyr]

Originally Posted by Efthreeoh

Extending the lease may have changed the original terms, but if you leased in 2019, you probably have a lot of "equity" in the car. The lease document will have the pre-determined price to buy the vehicle at the end of the lease term. Without the foresight in 2019 of the Pandemic drastically increasing the value of used cars, at the time of the lease, the buy-out price was determined based on the 2019 used car market for BMWs and the price is most likely undervalued for the 2022 used car market and that is where your equity is now in 2022.

However, you need to carefully look at the lease extension documents (if there are any) and see if BMWFS changed the buy-out price to reflect the used car market in 2022. I've not had experience with a lease extension, so I don't know if the Lessor can change the terms of the lease when you extend it. I would say if BMWFS approached you with extending the lease, they probably did it to change the buy-out price.

Each state is different, but you need to check the tax situation. You already paid the sales tax through the lease when you leased the car in 2019, and you shouldn't have to pay tax again. A friend of mine in Virginia got screwed and had to pay sales tax when she bought her lease out because the dumbass at the DMV didn't understand the process and the Lessor did not properly document the tax situation with the purchase paperwork (she is appealing...).

As far as an extended warranty, you can buy one at any time once the 50,000-mile BMW original warranty expires. Tires are on you; just buy new tires. I doubt the brakes need replacing; the car will tell you anyway. I'm sure there is a CBS menu somewhere in the computer that indicates the remaining miles-to-go on the brakes.

Thanks!
This is NY. This is a $49,000 MSRP - 2019 330xi.
I paid about $600 upfront for first month and DMV. $440 per month for what will be a total of 38 months - I extended the lease 2 months (38 months), and have already paid about ~$16,000 total so far for the lease. Last month, I requested BMW FS the extension of 2 months.
The current residual buyout is about ~$33,000, and BMW FS states this includes tax (NYC).

(MSRP is $42,000 and includes: convenience package, remote engine start, heated steering, heated seats, ambient light, park distance, and live cockpit pro for a total of about ~$49,000)

[tturedraider]

Originally Posted by F32Fleet

Cut a check to BMWFS for the buyout plus sales tax. You don't have to worry about tires/brakes etc.

You can buy an extended warranty until the factory warranty has expired. Price out BMW Platinum warranty for whatever miles/years you want. It's essentially the CPO warranty.

Don't go through the dealership on the buyout.

BMWFS has recently changed their policy about how lease buyouts are handled. In some states they require that you do the buyout through a dealer. In those states if you send BMWFS a check they will return it to you.

[F32Fleet]

Originally Posted by tturedraider

BMWFS has recently changed their policy about how lease buyouts are handled. In some states they require that you do the buyout through a dealer. In those states if you send BMWFS a check they will return it to you.

I know BMW made changes disallowing third party payees (i.e CarMax). In any case I guess it's no surprise that they now want a crack at the car and customer but the dealership should not get involved by adding fees onto the buyout. I would surmise that it's borderline illegal if not a breach of contract to do so.

The contract is between BMWFS and the customer. So bring the check and let the dealer send it.