[Sims320]

Hey all, pardon my ignorance on this one but wasn't able to locate any useful information with a quick google search.

Question is how does a 3rd party dealership get their hands on a lease back vehicle. Example here is I have my eye on a local 2013 335xi which I went to test drive at a non-BMW dealer. When speaking to the guy there he said it was a lease back and he had some details about the original owner. Lets put aside the fact that these dealers can of course say whatever they want and it IS in fact a lease back. My question is how do these end up being resold by someone other than the original BMW dealer themselves. I know that the dealer may auction it off, and if that is the case do they do so because something about it indicates it would be more hassle than its worth for them to sell it themselves? Or just a matter of stocking etc?

It's a loaded 335 with very low mileage for the year (20,000 miles on a 2013). So it makes me wonder how this dealer got their hands on it. As a side note the car fax is completely clean on this car as well.

Thanks in advance!

[jim256]

It could have been traded by the lessee on something at the third party dealer, they paid off the lease buyout and put it on their lot. They get a payoff and buy the vehicle.

[Coercion Shaman]

The Carfax should show it was a lease and if it was sold at auction. What does it say?

And if the dealer isn't happy with a residual they work out with BMW, they don't buy it. And as you noted, may not feel it fits in with their current inventory. But a four or five year lease? That isn't so common and seems more suspect.

[Savageenterprise]

Smart 3rd party dealers have agreements with new car dealerships and grab cars off lease from them at a small profit to the dealer. The dealer gets to sell right away instead of hold onto a used car for who knows how long and then it’s the 3rd party problem to sell. Most of the time they are the ones with a little higher mileage but there’s always exceptions to the rule

[Sims320]

thanks for the replies. Lease payout and trade in makes sense. The carfax only shows a single owner and lease information consistently. Nothing about auctions etc. Guess I'll take a closer look into this car and see.

[xlover]

Also did not have to be a bmwfs lease. 3rd party leasing companies send the cars to auction

[LMK5]

Originally Posted by Savageenterprise

Smart 3rd party dealers have agreements with new car dealerships and grab cars off lease from them at a small profit to the dealer. The dealer gets to sell right away instead of hold onto a used car for who knows how long and then it’s the 3rd party problem to sell. Most of the time they are the ones with a little higher mileage but there’s always exceptions to the rule

True. There is a used car dealer here that only sells BMWs. When I asked him where he gets his cars he said he gets them all from dealers. He said that dealers can't handle the amount of lease returns they get.