Least buy out question?

flyer333 · 09-01-2009, 04:35 PM

Hey guys,

My three year lease is up and I think I will buyout my car.

But The BMW Store told me I have to pay a buy out fee of CAD495.00?

I thought I only have to pay the residual plus the GST and PST?

Plus I looked at my contract I paid a documentation fee of CAD495.00
upfront when I picked up my car, is the documentation fee the same
as the buy out fee?

Anyone know what the buy out fee is for?

Thanks.

alanchan · 09-01-2009, 05:08 PM

Man,

that buy out fee is BS... WTF?
you should not any extra, pay per the contract buy out amount.

good luck man, why buy out a 323i? get a new coupe or something.

jasonintoronto · 09-01-2009, 05:24 PM

there will be a fee to buy it out, althought $500 is excessive. check your original contract.

Kid Eh · 09-01-2009, 05:27 PM

Tell them to eat the fee or they can have the car. They will waive the fee immediately.

alanchan · 09-01-2009, 05:41 PM

hey hey, my friend lease a Benz before and he bought out without paying a buyout fee.

why is BMW charging their customer?

unless they have a fine print written in the contract somewhere that normal people don't really take the time to read upon signing.
this is a nasty hidden cost that we all should be aware....

flyer333 · 09-01-2009, 05:42 PM

yea i am looking on the contract..they didn't say a thing about a buyout fee nor was I ever informed by their SA.

ehhhwik · 09-01-2009, 05:56 PM

thats a pile of BS, just give them back the keys and tell them to screw themselves, buying out your lease right now doesnt make sense because your residual will be too high from 3 years ago, unless you love your car to death and you dont care paying more for it

CHCCubs · 09-01-2009, 06:22 PM

You should contact BMW Financial about that. It might be a fee the dealer is charging that has nothing to do with the lease contract. Reminds me of how some dealers charge large fees for a lease transfer on top of the standard fee charged by the finance company.

MechUT · 09-01-2009, 06:39 PM

The dealer has to buy the car from BMW Canada and then sell it to you, and this is what the fee is for. As the dealer told me when my lease was up, "We're not going to do all that for free."

You can just buy it directly from BMW Canada, as per the lease agreement, and then there will be no additional fees (mail them a cheque) but then you have no dealer financing. I just financed my buyout myself, through a bank.

Gotta remember when you lease a car, the agreement is between you and BMW Canada, and not the dealer.

flyer333 · 09-01-2009, 07:00 PM

Thanks for the info guys, so basically if the dealer wants to charge a fee I can just deal directly with BMW Canada right?

MechUT · 09-01-2009, 07:21 PM

Yup, just no financing...

edison_chen · 09-01-2009, 09:51 PM

I've talked to somebody about a similar situation. My friend's lease will be up next March, and I will probably be buying the car. However, one of the business managers that I talked to, said my friend just needs to pay the residual plus tax (GST/PST).

flyer333 · 09-01-2009, 10:03 PM

I talked to Autowest and they don't have this stupid $495.00 buyout/handling fee.
I think The BMW Store was just trying to juice some cash. Shitty.

You just need to pay the residual plus GST and PST... no BS handing or buyout fee.

edison_chen · 09-01-2009, 10:24 PM

Quote:

Originally Posted by flyer333

I talked to Autowest and they don't have this stupid $495.00 buyout/handling fee.
I think The BMW Store was just trying to juice some cash. Shitty.

You just need to pay the residual plus GST and PST... no BS handing or buyout fee.

+1 @ Autowest Business Managers

alanchan · 09-02-2009, 12:04 PM

Quote:

Originally Posted by edison_chen

I've talked to somebody about a similar situation. My friend's lease will be up next March, and I will probably be buying the car. However, one of the business managers that I talked to, said my friend just needs to pay the residual plus tax (GST/PST).

Correct

this is what most car finance depts do, no BS hidden cost on top.

alanchan · 09-02-2009, 12:08 PM

Quote:

Originally Posted by flyer333

I talked to Autowest and they don't have this stupid $495.00 buyout/handling fee.
I think The BMW Store was just trying to juice some cash. Shitty.

You just need to pay the residual plus GST and PST... no BS handing or buyout fee.

just tell BMW Store to waive the fees or else return the car.
If you have over $24,000 cash to buy out, take this cash and lease a new one from another dealer

good luck

dpwr · 09-02-2009, 01:37 PM

should not be any fees, tell them to point it to you in the contract... if they can't find it in your contract then there's no fee

A.Kon · 09-02-2009, 05:19 PM

I thought the buy-out admin fee was to safety the car and certify it. I've leased cars from dealers before and there's always been an admin fee at the end of the term.

I wasn't aware you could buy directly from BMW Canada - but I think they will make you do a safety cert on it first. I'm pretty sure there's something in the law (maybe through OMVIC) that car dealers can't sell the title of a car without certifying it (and that includes lease buy-outs) - hence the admin fee. Private sales can be sold as-is without certification.

Not sure though.

alanchan · 09-02-2009, 06:53 PM

here are some clarifications from my friend who buy out a Benz recently.

He is not required to pay any admin fees at all.
The price he paid is the EXACT amount on the contract which states the "End of term" value.
+ tax and GST
which is the same as in your BMW lease contract.

He does not get charge if the current mileage is over the limit.

He does not need to bring in the car to the dealership for any kind of fee base inspection or certified BS
The dealership does not want to see the car because he is dealing with Mercedes Benz Financial instead, In your case = BMW Financial

He does not need to replace the tires or fix up any visiual damages.

flyer333 · 09-02-2009, 07:49 PM

Quote:

Originally Posted by alanchan

here are some clarifications from my friend who buy out a Benz recently.

He is not required to pay any admin fees at all.
The price he paid is the EXACT amount on the contract which states the "End of term" value.
+ tax and GST
which is the same as in your BMW lease contract.

He does not get charge if the current mileage is over the limit.

He does not need to bring in the car to the dealership for any kind of fee base inspection or certified BS
The dealership does not want to see the car because he is dealing with Mercedes Benz Financial instead, In your case = BMW Financial

He does not need to replace the tires or fix up any visiual damages.

Yep that sounds correct!

shipill · 09-24-2009, 10:36 AM

any updates? did you pay that fee?

Type-S · 09-24-2009, 11:04 AM

Not sure if this is true so maybe someone can shed some light on it, but I spoke to one of the business managers at BMW and I was told that BMW finance was rebating the buy outs on 3 series leases and 5 series leases that were due this year

I didn't pay too close attention to the amounts since they didn't apply to me but I believe they were about 3,000

09-01-2009, 04:35 PM	#1
flyer333 GSS CORP. 73 Rep 1,598 Posts Drives: E90/E93 Join Date: Jul 2007 Location: Vancouver, BC, Canada iTrader: (3)	Least buy out question? Hey guys, My three year lease is up and I think I will buyout my car. But The BMW Store told me I have to pay a buy out fee of CAD495.00? I thought I only have to pay the residual plus the GST and PST? Plus I looked at my contract I paid a documentation fee of CAD495.00 upfront when I picked up my car, is the documentation fee the same as the buy out fee? Anyone know what the buy out fee is for? Thanks. __________________ Don't teach a pig how to read, it's a waste of time and it annoys the pig.
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09-01-2009, 05:08 PM	#2
alanchan Major 72 Rep 1,402 Posts Drives: 2006 323i Join Date: Jul 2006 Location: Vancouver, BC, Canada iTrader: (21)	Man, that buy out fee is BS... WTF? you should not any extra, pay per the contract buy out amount. good luck man, why buy out a 323i? get a new coupe or something. __________________ 323i, Arctic metallic , Cream beige leatherette interior , Titanium matt trim , Premium , Auto , 18" style 189 sport wheels , 335i bumper + kidney grills, CF pillars, Chrome window trim package , LCI halogen.
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09-01-2009, 05:24 PM	#3
jasonintoronto Captain 33 Rep 703 Posts Drives: 2007 335i coupe (sold) Join Date: Mar 2008 Location: toronto iTrader: (0)	there will be a fee to buy it out, althought $500 is excessive. check your original contract. __________________ 2007 Porsche Carrera 4 2007 BMW 335i Coupe (SOLD)
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09-01-2009, 05:27 PM	#4
Kid Eh I used to be conceited, now I'm perfect. 570 Rep 1,826 Posts Drives: 2018 M3 CS Join Date: Sep 2006 Location: Toronto iTrader: (1) Garage List 2018 BMW M3 CS [0.00]	Tell them to eat the fee or they can have the car. They will waive the fee immediately. __________________ 2018 M3 CS - Alpine White l l "I used to be conceited. Now I'm perfect"
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09-01-2009, 05:41 PM	#5
alanchan Major 72 Rep 1,402 Posts Drives: 2006 323i Join Date: Jul 2006 Location: Vancouver, BC, Canada iTrader: (21)	hey hey, my friend lease a Benz before and he bought out without paying a buyout fee. why is BMW charging their customer? unless they have a fine print written in the contract somewhere that normal people don't really take the time to read upon signing. this is a nasty hidden cost that we all should be aware.... __________________ 323i, Arctic metallic , Cream beige leatherette interior , Titanium matt trim , Premium , Auto , 18" style 189 sport wheels , 335i bumper + kidney grills, CF pillars, Chrome window trim package , LCI halogen.
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09-01-2009, 05:42 PM	#6
flyer333 GSS CORP. 73 Rep 1,598 Posts Drives: E90/E93 Join Date: Jul 2007 Location: Vancouver, BC, Canada iTrader: (3)	yea i am looking on the contract..they didn't say a thing about a buyout fee nor was I ever informed by their SA. __________________ Don't teach a pig how to read, it's a waste of time and it annoys the pig.
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09-01-2009, 05:56 PM	#7
ehhhwik Brigadier General 114 Rep 3,431 Posts Drives: 09' BMW 335d, 07' BMW E92 328i Join Date: Oct 2006 Location: Vancouver, BC iTrader: (5)	thats a pile of BS, just give them back the keys and tell them to screw themselves, buying out your lease right now doesnt make sense because your residual will be too high from 3 years ago, unless you love your car to death and you dont care paying more for it __________________ Current: 09' E90 335d - Titanium Silver/Black Leatherette/Sports Package/6AT Paddle Shift/USB Integration/19" Staggered Breyton GT Gloss Black Retired: 07' E92 328i (Jet Black) Last edited by ehhhwik; 09-01-2009 at 06:50 PM..
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09-01-2009, 06:22 PM	#8
CHCCubs Colonel 97 Rep 2,101 Posts Drives: 2013 BMW 328i xDrive Sport Join Date: Apr 2009 Location: Toronto, ON, Canada iTrader: (0)	You should contact BMW Financial about that. It might be a fee the dealer is charging that has nothing to do with the lease contract. Reminds me of how some dealers charge large fees for a lease transfer on top of the standard fee charged by the finance company. __________________ 2013 BMW 328i xDrive Sport Line Mineral Grey on Everest Grey
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09-01-2009, 06:39 PM	#9
MechUT Captain 16 Rep 854 Posts Drives: 06 SG 330i Join Date: Apr 2007 Location: Mississauga iTrader: (0) Garage List 2012 BMW 335i [0.00]	The dealer has to buy the car from BMW Canada and then sell it to you, and this is what the fee is for. As the dealer told me when my lease was up, "We're not going to do all that for free." You can just buy it directly from BMW Canada, as per the lease agreement, and then there will be no additional fees (mail them a cheque) but then you have no dealer financing. I just financed my buyout myself, through a bank. Gotta remember when you lease a car, the agreement is between you and BMW Canada, and not the dealer.
	Appreciate 0 Quote

09-01-2009, 07:00 PM	#10
flyer333 GSS CORP. 73 Rep 1,598 Posts Drives: E90/E93 Join Date: Jul 2007 Location: Vancouver, BC, Canada iTrader: (3)	Thanks for the info guys, so basically if the dealer wants to charge a fee I can just deal directly with BMW Canada right? __________________ Don't teach a pig how to read, it's a waste of time and it annoys the pig.
	Appreciate 0 Quote

09-01-2009, 07:21 PM	#11
MechUT Captain 16 Rep 854 Posts Drives: 06 SG 330i Join Date: Apr 2007 Location: Mississauga iTrader: (0) Garage List 2012 BMW 335i [0.00]	Yup, just no financing...
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09-01-2009, 09:51 PM	#12
edison_chen Registered 0 Rep 4 Posts Drives: 2009 Toyota Camry SE Join Date: Aug 2009 Location: 604 Vancouver iTrader: (0)	I've talked to somebody about a similar situation. My friend's lease will be up next March, and I will probably be buying the car. However, one of the business managers that I talked to, said my friend just needs to pay the residual plus tax (GST/PST).
	Appreciate 0 Quote

09-01-2009, 10:03 PM	#13
flyer333 GSS CORP. 73 Rep 1,598 Posts Drives: E90/E93 Join Date: Jul 2007 Location: Vancouver, BC, Canada iTrader: (3)	I talked to Autowest and they don't have this stupid $495.00 buyout/handling fee. I think The BMW Store was just trying to juice some cash. Shitty. You just need to pay the residual plus GST and PST... no BS handing or buyout fee. __________________ Don't teach a pig how to read, it's a waste of time and it annoys the pig.
	Appreciate 0 Quote

09-02-2009, 01:37 PM	#17
dpwr Captain 36 Rep 852 Posts Drives: a good one Join Date: Oct 2008 Location: Toronto iTrader: (0)	should not be any fees, tell them to point it to you in the contract... if they can't find it in your contract then there's no fee
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09-02-2009, 05:19 PM	#18
A.Kon Second Lieutenant 9 Rep 259 Posts Drives: AW F10 Join Date: Apr 2009 Location: Toronto iTrader: (4)	I thought the buy-out admin fee was to safety the car and certify it. I've leased cars from dealers before and there's always been an admin fee at the end of the term. I wasn't aware you could buy directly from BMW Canada - but I think they will make you do a safety cert on it first. I'm pretty sure there's something in the law (maybe through OMVIC) that car dealers can't sell the title of a car without certifying it (and that includes lease buy-outs) - hence the admin fee. Private sales can be sold as-is without certification. Not sure though.
	Appreciate 0 Quote

09-02-2009, 06:53 PM	#19
alanchan Major 72 Rep 1,402 Posts Drives: 2006 323i Join Date: Jul 2006 Location: Vancouver, BC, Canada iTrader: (21)	here are some clarifications from my friend who buy out a Benz recently. He is not required to pay any admin fees at all. The price he paid is the EXACT amount on the contract which states the "End of term" value. + tax and GST which is the same as in your BMW lease contract. He does not get charge if the current mileage is over the limit. He does not need to bring in the car to the dealership for any kind of fee base inspection or certified BS The dealership does not want to see the car because he is dealing with Mercedes Benz Financial instead, In your case = BMW Financial He does not need to replace the tires or fix up any visiual damages. __________________ 323i, Arctic metallic , Cream beige leatherette interior , Titanium matt trim , Premium , Auto , 18" style 189 sport wheels , 335i bumper + kidney grills, CF pillars, Chrome window trim package , LCI halogen.
	Appreciate 0 Quote

09-24-2009, 10:36 AM	#21
shipill Major 412 Rep 1,287 Posts Drives: Macan S Join Date: Jan 2007 Location: Canada iTrader: (7)	any updates? did you pay that fee?
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09-24-2009, 11:04 AM	#22
Type-S Private First Class 36 Rep 110 Posts Drives: F82 M4/E92 M3/E82 1M Join Date: Sep 2009 Location: Toronto iTrader: (0)	Not sure if this is true so maybe someone can shed some light on it, but I spoke to one of the business managers at BMW and I was told that BMW finance was rebating the buy outs on 3 series leases and 5 series leases that were due this year I didn't pay too close attention to the amounts since they didn't apply to me but I believe they were about 3,000
	Appreciate 0 Quote