Buying out someone’s lease can look like easy money when the car is worth more than the payoff. One Florida car dealer thought he had that kind of deal on a 2024 BMW X5. Months later, though, he says he may lose money on it.
The dealer, Craig, runs the lot behind @FlyingWheels. An acquaintance in New Hampshire offered him the X5 because the lease was ending. Based on photos, a VIN check and the owner’s answers, Craig paid the $37,600 buyout and had the BMW X5 shipped to him sight unseen.
What Showed Up On The Trailer
The SUV arrived late at night, and he rode his daughter’s scooter two miles to pick it up. At first glance, the BMW X5 looked great inside, with perforated leather and a huge screen. However, the next morning told a different story.
“I bought this car sight unseen, a 2024 BMW X5.”
According to him, the tires sat at the wear bars and showed weather cracks. He found a deep scratch he says no one mentioned, a missing center cap and a broken shifter trim piece. Even after two car washes, the paint looked oxidized, and salt from a New England winter caked the mats.
Under the hood, the positive battery cap was off, which suggested a jump-start. He also noticed the plates had expired in January, so the SUV had sat unregistered for months.
Overdue Service And A Late Warning
Next, he checked the service menu. The X5 was about 7,000 miles overdue, with spark plugs and brake fluid due. He says the seller only mentioned the spark plug warning after the money had changed hands.
“That’s why you buy with your eyes and not with your ears.”
Meanwhile, the window sticker in the glove box showed the SUV had cost about $80,000 new with the M Sport package. In his view, it had lost roughly half its value in two years.
Three Months Without A Title
The bigger problem was paperwork. After the payoff, the leasing company signed the title over to the person who had leased the car. Because of that, the lessee had to apply for a new title before signing it over to him.
“I still have no title for this car, meaning I cannot sell this car.”
With roughly $40,000 tied up, he let his wife drive the BMW X5. Then a tire blew out. So he bought four new tires on a car he did not yet legally own. Finally, his office reached the DMV after almost an hour on the phone, and a new title went out in November.
Lessons For Anyone Buying Out A Lease
Here is our take on buying a lease car you have never seen:
- Ask for close-up photos of every tire, wheel and panel, not just wide shots.
- Check the service menu and warning lights before you pay, not after.
- Find out exactly how the leasing company will sign the title, and who it will name.
- Budget for tires, brakes and overdue maintenance on any car coming off a lease.
- Remember that a delay in paperwork can cost more than a repair.
Where The BMW X5 Stands Now
By his count, he has spent about $1,400 on spark plugs, roughly $2,200 on tires and $300 on an oil service, plus filters, fluids, a detail and paint correction. Meanwhile, the wholesale value has slipped by about $2,000 since July.
“There is no profit left to be made on this car anymore.”
The title is now on its way, and the BMW X5 is listed for sale. Still, he says the whole experience makes him dislike the business he used to love.
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