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How does a dealer buy off your lease of a different brand?
I'm going to finalize the paperwork for a new 2023 Audi Q7 in a couple days at an Audi dealership. I got a decent deal overall but part of it includes the Audi dealer taking my BMW X3 with only two lease payments left. My expiring X3 lease is with BMW Financial Service. The Audi dealer examined my X3 and took a pic of the odometer. The Audi dealer said they will pay off the final two payments for me and take care of the BMW X3 process. I'm confused as to how the process works. Can someone please explain? I have a legal binding contract with BMW Financing Service. How is Audi able to just take my X3 as part of the Audi Q7 transaction without BMWFS intervention / consent? Audi / VW Credit Leasing and BMW Financial Services are different companies. BMW FS will chase me for the X3 because I'm the lessee and legally, I will need to return the vehicle to BMWFS when the lease expires in two months.
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But, that might not be what is happening. They may actually be purchasing your vehicle from BMWFS. Do you have any idea of the value of your vehicle? Maybe, it's worth more than the payoff?
Any number of things might be happening, but what you don't want: Audi dealer makes the last two payments, and you are responsible for end-of-lease charges. If that's the case, wait two months, then make your best deal, then.
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I will need to go to the Audi dealership and see what paperwork i will be signing to get comfortable with. Am I thinking too much about this? I was told that it's very common for a dealer to buy off a lease of a different brand.
It's also common that you are credited with equity in your current vehicle. If they are actually buying your vehicle, they should give you the price they are paying you, and the payoff amount of the lease. If they aren't disclosing these numbers, then I doubt they are actually taking the vehicle in trade.
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