# BMW Lease Buyout in Florida no longer can send check to BMWFS, must go to dealer



## Autoputzer (Mar 16, 2014)

I've bought six new cars in Floriduh. That enough for me to know which fees are legitimate and which ones aren't. The "Floriduh Motor Vehicle WTF" fee is actually legitimate. Being the Emir of Excel, I have a worksheet made up of with all the fees and taxes. 

My offers for BMW's of late (not including my E46 M3 for which I was just about at the front of a two-year waiting list) is to split the difference between "dealer invoice" and MSRP, with me getting any incentives. "Dealer invoice" prices aren't published anymore, but when they were they were 93% of MSRP on the base car and 92% of MSRP on the options. I code my worksheet to deduct any of the bogus fees from that split-the-difference offer, taking the before taxes and legitimate fees price back to split-the-difference. 

I always factory order my cars, even my old Chevy Cobalt. BMWoB doesn't ask for a deposit, since for a deposit I'd want a final-firm price on a dealer signed contract. They're hoping to slip a few fees on while I'm distracted by my shiny new BMW (to replace my shiny old BMW). BMWoB's not tricky but Chevrolet of Bubbaville (CoB) sure was. They were also really pissed when at the last minute I slipped in almost $4k in rebates from my GM MasterCard.


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## Ibiza (Jun 15, 2007)

casper said:


> Hello
> Until a month ago, if I wanted to buyout lease in Florida, it was possible to send a check to BMWFS and they would send me the title, I found out yesterday that is no longer possible, the force to go to a dealer to buy out your lease.
> 
> Are there any dealers in Florida where you can buy out your lease paying only your residual price as indicated on lease agreement, without additional fees or charges?


Dealerships can not charge a fee for the lease buy out as its not in the lease agreement…..Interesting that I just found this article regarding the Consumer Leasing Act “ affords the consumer not only reimbursement of their damages, the amount of the overcharge, but up to $2,000 in statutory damages, as well as attorney’s fees”, as per Florida Attorney Josh Feygin.









Did you pay a dealer fee when buying out your lease? If so, you’re entitled to a refund, attorney says


With new car inventory shortages and the surge in used car prices, more people are buying out their leases, but some are being hit with unexpected fees and forced car certifications that were not in the original lease.




www.local10.com


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## Ibiza (Jun 15, 2007)

A class action lawsuit is brewing about the recent policy changes by BMWFS regarding restricted lease buy outs. 









Restricted Car Lease Buyout | Class Action Lawsuit


Auto manufacturers are preventing consumers who wish to buyout their car lease from performing profitable transactions. Learn more!




mccunewright.com


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## TheTurtleBoy (Jun 3, 2018)

Ibiza said:


> A class action lawsuit is brewing about the recent policy changes by BMWFS regarding restricted lease buy outs.


No chance that BMWFS will be sued as part of that, the lease contract has always stated the lease could be terminated by the lessee buying the vehicle. The only change is that BMWFS decided enforce the contract language and not allow third parties.


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## 1968BMW2800 (Aug 13, 2016)

TheTurtleBoy said:


> No chance that BMWFS will be sued as part of that, the lease contract has always stated the lease could be terminated by the lessee buying the vehicle. The only change is that BMWFS decided enforce the contract language and not allow third parties.


Well...maybe. There is no language I can find in my lease document that specifies how a lease termination via purchase needs to be funded or paid. It basically says the leasee can purchase the vehicle and it specifies how the cost of any such purchase is to be calculated. Can't find anything in the lease that says who can or cannot write the check to BMWFS.


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## TheTurtleBoy (Jun 3, 2018)

1968BMW2800 said:


> Well...maybe. There is no language I can find in my lease document that specifies how a lease termination via purchase needs to be funded or paid. It basically says the leasee can purchase the vehicle and it specifies how the cost of any such purchase is to be calculated. Can't find anything in the lease that says who can or cannot write the check to BMWFS.


I'm sure an attorney can try and play word games like that but it will easily get thrown out. The wording and meaning of section 27 is quite clear. It is not about who writes the check. It specifically talks about the lessee titling the vehicle in their name. When a third party pays off the lease that is not the case since they take ownership.


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## 1968BMW2800 (Aug 13, 2016)

TheTurtleBoy said:


> I'm sure an attorney can try and play word games like that but it will easily get thrown out. The wording and meaning of section 27 is quite clear. It is not about who writes the check. It specifically talks about the lessee titling the vehicle in their name. When a third party pays off the lease that is not the case since they take ownership.


Right. So it is a two step process. Leasee gets title signed over from BMWFS, meaning BMWFS has been paid and they have released any claim to the car. Then the (now former) leasee takes the signed-off title received from BMWFS and signs it over to a car dealer as part of the next car deal. At least here in Left Coast California, there is a window from the time clear title is received from BMWFS until the use tax must be paid, during which the car can be resold, and retitled to anyone.

Yes, it would be a bit cumbersome, and, yes, the car dealer who is buying the car from the former leasee would need to be cooperative, and yes BMWFS is certainly adding as much friction as possible and isn't being very friendly to it's loyal leasees, but then, did we ever think car manufacturers or dealers were looking out for the end customer's best interests?

Where this gets interesting, in a lawyerly sort of way, is, if it can be demonstrated that BMWFS is intentionally and unnecessarily interfering with a leasee's ability to enter into a beneficial commercial transaction, cans of worms open up for sure. 

I'm glad I bought my car prior to lease end and don't have to go try and make a car deal for a de-contented, over-priced new car that I don't really need. And, while this may be naïve on my part, I believe, had I wanted to realize the inflated current value of my car without having to pay use tax, I would have been successful in locating a car dealer who would have facilitated the transfer of my vehicle to their ownership. 

Instead, I sent BMWFS a personal check. They sent me the signed off title and related docs. I took the BMWFS receipt and title docs to the local Auto Club office, wrote a check to cover the use tax, and two weeks later a brand new Pink Slip, properly titled in my name, arrived in the mail from the DMV. Easy peasy. Bid-ness is bid-ness.

And the New Car Smell spray is working so far....


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## Ibiza (Jun 15, 2007)

TheTurtleBoy said:


> I'm sure an attorney can try and play word games like that but it will easily get thrown out. The wording and meaning of section 27 is quite clear. It is not about who writes the check. It specifically talks about the lessee titling the vehicle in their name. When a third party pays off the lease that is not the case since they take ownership.


This “ I also agree to re-register and re-title the Vehicle at my own expense in my name at the time I purchase it. If I fail to do so, you reserve the right to cancel the registration.” Only recourse from BMWFS is cancel said registration. Is BMWFS going to audit the customer that the vehicle was re-titled in the correct name? 

Section 27 “At the Scheduled Termination of the Lease, the purchase price will be the Residual Value (Section 10.D)”. Now with BMWFS directing the customer to a BMW center to submit payment who is tacking on additional fees is illegal. 

There is no exclusion of a third party paying the residual value at lease end.


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## Ibiza (Jun 15, 2007)

1968BMW2800 said:


> Where this gets interesting, in a lawyerly sort of way, is, if it can be demonstrated that BMWFS is intentionally and unnecessarily interfering with a leasee's ability to enter into a beneficial commercial transaction, cans of worms open up for sure.


A class action claim needs to survive a motion to dismiss, then discovery would surely open up cans of worms. There is collusion between BMWFS and BMW centers with the current end of lease buy out process.


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## Autoputzer (Mar 16, 2014)

Ibiza said:


> Dealerships can not charge a fee for the lease buy out as its not in the lease agreement…..Interesting that I just found this article regarding the Consumer Leasing Act “ affords the consumer not only reimbursement of their damages, the amount of the overcharge, but up to $2,000 in statutory damages, as well as attorney’s fees”, as per Florida Attorney Josh Feygin.
> 
> 
> 
> ...


Floriduh's good about establishing set damages for civil misconduct. I've seen that in their HOA laws. There are also legal concepts of "reasonableness" and "unconscionability." that allows a court (judge or jury) to ignore the specific terms of a contract.


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## adrian's bmw (Feb 14, 2003)

TheTurtleBoy said:


> No chance that BMWFS will be sued as part of that, the lease contract has always stated the lease could be terminated by the lessee buying the vehicle. The only change is that BMWFS decided enforce the contract language and not allow third parties.


BMW FS is not the only leasing company doing this. Other finance arms of manufacturers are applying stricter enforcement of their lease agreements. 

Here's an interesting nugget though. When a customer buys their lease out from a dealer, the dealership actually owns the car at that point because they buy the lease from BMW FS and essentially flip it to the customer. It technically becomes their inventory. 

If you want to avoid any fees, inspections, etc, send a check directly to BMW FS. If you want to have your leased BMW certified and/or financed, then buying from a BMW center is the best option.


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## casper (May 23, 2004)

adrian's bmw said:


> BMW FS is not the only leasing company doing this. Other finance arms of manufacturers are applying stricter enforcement of their lease agreements.
> 
> Here's an interesting nugget though. When a customer buys their lease out from a dealer, the dealership actually owns the car at that point because they buy the lease from BMW FS and essentially flip it to the customer. It technically becomes their inventory.
> 
> If you want to avoid any fees, inspections, etc, send a check directly to BMW FS. If you want to have your leased BMW certified and/or financed, then buying from a BMW center is the best option.


Works well in GA. but not an option in Florida, we are forced to go thru dealer.


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## 1968BMW2800 (Aug 13, 2016)

I would encourage anyone wishing to buy out a BMWFS lease to read all the language in the lease document. That document is the entire contract.

Buyouts are contractually allowed. The way the cost for a buyout is to be calculated is clearly specified in the lease contract.

If, in your state, you have to go through a franchised BMW dealer in order to exercise the contractually allowed buyout, the only costs allowed are those specified in the lease contract.

I ain't no lawyer, but I can read.


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## casper (May 23, 2004)

1968BMW2800 said:


> I would encourage anyone wishing to buy out a BMWFS lease to read all the language in the lease document. That document is the entire contract.
> 
> Buyouts are contractually allowed. The way the cost for a buyout is to be calculated is clearly specified in the lease contract.
> 
> ...


What you say is correct, but in reality I would have to retain a lawyer to make my dealer comply, and that would cost me more than the dealer fee. So, what is easier to find , a lawyer that works for free or a dealer that works for free? Neither. So I have too chose the option with the lowest cost to me.


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## 1968BMW2800 (Aug 13, 2016)

BTW, where this gets interesting is in the fact that BMWFS "owns" the vehicle but, in certain states, isn't allowed to sell it because BMWFS isn't a franchised auto dealer and, thus, is limited to selling no more than 3 vehilces/year, or whatever.

So, in effect, the owner of the vehicle (BMWFS) is limited, by law, in its ability to enter into a commercial transaction with the person who is contractually entitled to purchase the vehicle (the leasee).

Yet BMWFS can "sell" the vehilce to the dealer???

What a mess.


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## 1968BMW2800 (Aug 13, 2016)

casper said:


> What you say is correct, but in reality I would have to retain a lawyer to make my dealer comply, and that would cost me more than the dealer fee. So, what is easier to find , a lawyer that works for free or a dealer that works for free? Neither. So I have too chose the option with the lowest cost to me.


I would call BMWFS and give the problem to them, telling them I want to exercise my contractual option to buy out my lease without incurring any additional costs not specified in the lease contract and ask them to help me to facilitate this transaction. Let BMWFS pay the dealer to act as their agent if need be.


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## casper (May 23, 2004)

1968BMW2800 said:


> I would call BMWFS and give the problem to them, telling them I want to exercise my contractual option to buy out my lease without incurring any additional costs not specified in the lease contract and ask them to help me to facilitate this transaction. Let BMWFS pay the dealer to act as their agent if need be.


I did call them, they say I sorry but you have to go thru a dealer.
I have negotiated with the dealer. residual+sales tax+ $250 inspection fee+ tag/registration, nothing is in writing yet, I imagine they will say tag/registration is $500 if not more.


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## 1968BMW2800 (Aug 13, 2016)

casper said:


> I did call them, they say I sorry but you have to go thru a dealer.


That's just the start of a conversation. 

If you have to "go through a dealer," then fine. Just only agree to pay what the lease contract says you are required to pay. One hopes BMWFS will support you on this.


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## Me530 (Feb 17, 2005)

Call up the state AG and file a complaint.


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## Forddenial (9 mo ago)

casper said:


> What you say is correct, but in reality I would have to retain a lawyer to make my dealer comply, and that would cost me more than the dealer fee. So, what is easier to find , a lawyer that works for free or a dealer that works for free? Neither. So I have too chose the option with the lowest cost to me.


This, to kinda sound mean, is why this kind of bull gets pulled. Because the dealers know that many people will look for the easy way out. If more people were willing to stand up to all the ridiculousness then everything would be so much easier.

In any situation or location where a binding legal or financial contract is drawn up and unanimously and consentually agreed upon by all parties involved, it is to be held to in use by any and all parties involved in the agreement (consent and agreement given in proxy if applicable), including broker parties, as a legal and binding statement of agreement to all terms and conditions applied to the contract.
Translation: dealers can't charge you **** above the agreed upon price in the end-of-lease contract (not counting tax/title costs).


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## adrian's bmw (Feb 14, 2003)

casper said:


> I did call them, they say I sorry but you have to go thru a dealer.
> I have negotiated with the dealer. residual+sales tax+ $250 inspection fee+ tag/registration, nothing is in writing yet, I imagine they will say tag/registration is $500 if not more.


That's interesting. My sister in MD simply called, got the payoff (lease residual) and sent a check. Got the title a week and half later and she went to motor vehicles and converted title to MD in her name. How hard can it be? 

Again, unless you're financing or intentionally want the car certified, why not just send a check to BMW FS and skip the dealer rigmarole ya'll are complaining about? If a dealer acquires your leased vehicle from BMW FS, then it's technically treated as a lease return, IMO. If you signed an odometer statement and final lease inspection, it becomes the dealer's car at that point. The lease effectively is over and done. It's like leaving an apartment you leased. When you move out, you're gone and liable for wear and tear and disposition fee. 

The dealer on the other hand treats a lease buy out as a sale for the dealership. They acquired the car, sent a check or ACH'd the money for the car to BMW FS. They are going to want to be equitable as they're a for profit enterprise. If it's customary to charge a doc fee or have a safety inspection performed, that's the cost of doing business with that franchised dealership. When they buy a leased car for residual and flip it back to you, they make no money. They still have to stock in the car, put a pack on it (management fee, internal expenses, commission to the sales person, etc), so after they do that, it's what we would call a negative deal. While every deal counts even if it's negative, most dealers have to charge a documentation fee for every customer sale and that cost varies by state. But it's still an opportunity- if it's financed or paid in full, the dealer gets the opportunity to sell F&I products (warranties, maintenance plans, other protections) that the customer may find value in. But it's a new sale. If the customer skips the dealer and sends a check to BMW FS, that opportunity is lost. It's like losing a deal to another brand. 

I do get the technical aspect of the lease agreement where it does say your contractual obligation is residual value though.


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## TheTurtleBoy (Jun 3, 2018)

adrian's bmw said:


> That's interesting. My sister in MD simply called, got the payoff (lease residual) and sent a check. Got the title a week and half later and she went to motor vehicles and converted title to MD in her name. How hard can it be?
> 
> Again, unless you're financing or intentionally want the car certified, why not just send a check to BMW FS and skip the dealer rigmarole ya'll are complaining about?


In order to comply with state regulations, BMWFS has changed its policy for 16 states. In those states BMWFS is not allowed to selll the vehicle directly to the consumer, it must be done by an organization with a valid dealer license in that state.


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## alex2364 (May 8, 2006)

Does anyone have the list of 16 states? And is it the state that you currently live in when you want to buyout the lease or the state you originally leased the car from?


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## TheTurtleBoy (Jun 3, 2018)

alex2364 said:


> Does anyone have the list of 16 states? And is it the state that you currently live in when you want to buyout the lease or the state you originally leased the car from?


I have not seen a list but so far have seen Florida, North Carolina, Colorado and South Carolina.


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## 1968BMW2800 (Aug 13, 2016)

adrian's bmw said:


> That's interesting. My sister in MD simply called, got the payoff (lease residual) and sent a check. Got the title a week and half later and she went to motor vehicles and converted title to MD in her name. How hard can it be?
> 
> Again, unless you're financing or intentionally want the car certified, why not just send a check to BMW FS and skip the dealer rigmarole ya'll are complaining about? If a dealer acquires your leased vehicle from BMW FS, then it's technically treated as a lease return, IMO. If you signed an odometer statement and final lease inspection, it becomes the dealer's car at that point. The lease effectively is over and done. It's like leaving an apartment you leased. When you move out, you're gone and liable for wear and tear and disposition fee.
> 
> ...


Great explanation, Adrian.

What is happening is too few cars chasing too many customers and, as would be expected, everyone is trying to act in their immediate self-interest.

I always marvel when organizations who spend a fortune on building customer loyalty and brand status miss easy opportunities to do the right thing.

In the case of this latest legalistic twist wherein the laws in some states preclude BMWFS (and other franchised brands) from selling lease buyouts directly to customers (even though the practice has gone on for years), the easy work-around is not used and, instead, dealers are swooping into the middle of the transactions and, in some instances, attempting to add fees.

Dealerships have overhead. BMWFS knows this and could easily pay dealers to process lease buyouts for customers, thus enabling BMWFS to honor the language of their lease contracts with customers, build good will, and support their dealers.

History is filled with examples of, to paraphrase H. L. Mencken, "for every complex problem there is a simple solution that's clear, direct, and wrong." Forcing non-contractual fees into a contractually specified transaction is an example of an unnecessary wrong.


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## SteveinArizona (Sep 12, 2016)

Art234 said:


> In New York that fee is capped at $95.00. Sorry Adrian, but that is an unnecessary fee, and pure profit for the dealer.


If the dealer is acting as an agent for BMWFS, then the fee seems reasonable to me as there is a cost for the dealership to process the buy out and the dealer isn't getting anything out of the transaction.


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## Ibiza (Jun 15, 2007)

1968BMW2800 said:


> BTW, where this gets interesting is in the fact that BMWFS "owns" the vehicle but, in certain states, isn't allowed to sell it because BMWFS isn't a franchised auto dealer and, thus, is limited to selling no more than 3 vehilces/year, or whatever.
> 
> So, in effect, the owner of the vehicle (BMWFS) is limited, by law, in its ability to enter into a commercial transaction with the person who is contractually entitled to purchase the vehicle (the leasee).
> 
> ...


Exactly! For the said 16 states how is BMWFS legally selling the car to the dealership upon lease turn-in? How is BMWFS selling the car at auction if the dealership doesn’t purchase (I highly doubt this occurring these days)?

A legal argument can be that the lease agreements in the said 16 states are effectively void as BMWFS can no longer honor the contractual language and has breach the contract. Dealerships charging end of lease buy out fees would be in violation of the covenant of good faith and fair dealing.

I further believe that for any lease entered into prior to April 2022, BMWFS can not legally change the buy out language that the leasee agreed to. After April 2022 would be negligent misrepresentation.

Only mater of time before either state AG‘s or Congress investigates this.


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## Ibiza (Jun 15, 2007)

SteveinArizona said:


> If the dealer is acting as an agent for BMWFS, then the fee seems reasonable to me as there is a cost for the dealership to process the buy out and the dealer isn't getting anything out of the transaction.


What cost is there for the dealership to accept a check on behalf of BMWFS?

Is the dealership now going to release the title to the customer? How does BMWFS release the title to the customer if BMWFS can’t sell the car directly to the customer at lease end? But BMWFS can sell the car to the dealership, so I assume that the dealership will have the title now. Lots of questions now.


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## jvogt1 (Aug 29, 2007)

1968BMW2800 said:


> BTW, where this gets interesting is in the fact that BMWFS "owns" the vehicle but, in certain states, isn't allowed to sell it because BMWFS isn't a franchised auto dealer and, thus, is limited to selling no more than 3 vehilces/year, or whatever.
> 
> So, in effect, the owner of the vehicle (BMWFS) is limited, by law, in its ability to enter into a commercial transaction with the person who is contractually entitled to purchase the vehicle (the leasee).
> 
> ...


It is a mess and the politicians in Tallahassee have designed it that way so the Florida dealers can make a quick buck. We need to start raising hell with our elected representatives to change the law that a buyout of a lease is not technically a new sale but is a simple transfer from a leasing company. That, or BMW has to require originating dealerships to process the paperwork for a lease buyout without charging fees not spelled out in the lease contract. Ridiculous! I would never have leased (and will not again) if I knew there was some loophole that prevented a simple certified check sent to BMWFS to get me the title to my leased car.


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## Ibiza (Jun 15, 2007)

Appears that the FTC is close to banning “Surprise Junk Fees” as I would consider lease end buy out “document fees” pure junk.









FTC Proposes Rule to Ban Junk Fees, Bait-and-Switch Tactics Plaguing Car Buyers


The Federal Trade Commission has proposed a rule to




www.ftc.gov





As of June 15th Ford is removing the end-of-lease buy out for EV vehicles to keep the batteries in network.








Ford Won't Let You Buy Your Leased EV When the Contract Ends


Effective June 15, Ford removed the buyout option for customers leasing EVs such as the Mustang Mach-E and F-150 Lightning. The change is part of Ford's plan to keep batteries in the Ford network.




www.caranddriver.com


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## Me530 (Feb 17, 2005)

Ibiza said:


> Appears that the FTC is close to banning “Surprise Junk Fees” as I would consider lease end buy out “document fees” pure junk.
> 
> 
> 
> ...


Dealers will just switch from surprise junk fees to double secret probation fees.


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## 1968BMW2800 (Aug 13, 2016)

Me530 said:


> Dealers will just switch from surprise junk fees to double secret probation fees.


These fees only stick if customers agree to pay them.


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## Art234 (Jun 25, 2011)

SteveinArizona said:


> If the dealer is acting as an agent for BMWFS, then the fee seems reasonable to me as there is a cost for the dealership to process the buy out and the dealer isn't getting anything out of the transaction.


Yes, $95 is reasonable. Anything over $200 is a rip off....


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## alicht (Dec 21, 2012)

Anybody have any good experience with buying out their lease at the end of the contract with south Florida dealerships they can share. Considering purchasing mine at lease end or buying it and trading it in on a 2023


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## Alpine300ZHP (Jan 31, 2007)

alicht said:


> Anybody have any good experience with buying out their lease at the end of the contract with south Florida dealerships they can share. Considering purchasing mine at lease end or buying it and trading it in on a 2023


Try my buddy at Coggin BMW. His buyouts are very fair and easy. Basically he will sell you the car for your residual plus a dealer fee and that’s it. No games and straightforward. I’ll PM you with specifics. 


Sent from my iPhone using Tapatalk


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## PCK (5 mo ago)

Alpine300ZHP said:


> Try my buddy at Coggin BMW. His buyouts are very fair and easy. Basically he will sell you the car for your residual plus a dealer fee and that’s it. No games and straightforward. I’ll PM you with specifics.
> 
> 
> Sent from my iPhone using Tapatalk


Please send me that information on your friend at Coggin. I’m in the same situation and it’s ridiculous


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## Alpine300ZHP (Jan 31, 2007)

PCK said:


> Please send me that information on your friend at Coggin. I’m in the same situation and it’s ridiculous


Done. 


Sent from my iPhone using Tapatalk


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## fdeschouwe (Jun 4, 2012)

Coggin BMW pushed me to come in and insist I finalize the lease end buyout process through them. I went direct to BMWUSA Finance online. It was an easy and straight forward buy out. Send the check and got the title 3 weeks later. Went to DMV for title and plate change. Zero issues. Coggin sales rep was not happy and tried to make me finance the residual but I refused. Dealers are sneaking in fees on all ends. Leasing is almost become impossible at the dealership as BMW Finance is allowing dealers to charge the customer any money factor they feel is justified. I continue to fight the battle as BMW Finance shows a certain lease or finance number on the BMW USA website configurator and the dealer cooks up another quote.


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## fdeschouwe (Jun 4, 2012)

This happened in late April


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## TheTurtleBoy (Jun 3, 2018)

fdeschouwe said:


> Leasing is almost become impossible at the dealership as BMW Finance is allowing dealers to charge the customer any money factor they feel is justified. I continue to fight the battle as BMW Finance shows a certain lease or finance number on the BMW USA website configurator and the dealer cooks up another quote.


This is not correct, they can't charge any MF they feel like. They are limited to the .00040 markup that they always have been limited to.


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