[Staszek]

Hoping some of the financial geniuses on this board can help me with something.

We put a deposit on our order for an X7 M50 last week so we could hold the allocation since we are going with an individual color.

I have a 2019 750i xdrive lease that ends in April that I will be turning in.

Now I know KBB isn't perfect but the trade-in value is between $65-$71k. Checking Autotrader and a few other places they seem to be selling in the $68-$71k My car has super low mileage only 17k so it would probably be up there with that.

That being said my residual is $59k. I don't think it's worth the hassle of me buying and reselling it, but is there anything I can do with the dealer to get a few thousand out of it?

Every time I have returned a lease in the past it's been at or well below the residual, this is a new one for me.

[Ex_Stig]

Originally Posted by Staszek

Hoping some of the financial geniuses on this board can help me with something.

We put a deposit on our order for an X7 M50 last week so we could hold the allocation since we are going with an individual color.

I have a 2019 750i xdrive lease that ends in April that I will be turning in.

Now I know KBB isn't perfect but the trade-in value is between $65-$71k. Checking Autotrader and a few other places they seem to be selling in the $68-$71k My car has super low mileage only 17k so it would probably be up there with that.

That being said my residual is $59k. I don't think it's worth the hassle of me buying and reselling it, but is there anything I can do with the dealer to get a few thousand out of it?

Every time I have returned a lease in the past it's been at or well below the residual, this is a new one for me.

Yes. Ask your dealer for a "buy price". They can treat your car as a trade in and roll forward any equity. However, that is only if they agree that there is equity in the car.

[Staszek]

Originally Posted by Ex Stig

Yes. Ask your dealer for a "buy price". They can treat your car as a trade in and roll forward any equity. However, that is only if they agree that there is equity in the car.

Thanks that is helpful. I will talk to my SA about it.

[davecraze]

Is the lease through BMWFS? If so, the BMW dealer can probably take in trade and roll forward the equity as mentioned above. With the market the way it is, the dealer will likely want the inventory

If it is through a third party, most of the leasing companies will only allow the dealer to buy it at an inflated residual price (only you on the lease have the right to buy at the contracted residual price).

[Staszek]

Originally Posted by davecraze

Is the lease through BMWFS? If so, the BMW dealer can probably take in trade and roll forward the equity as mentioned above. With the market the way it is, the dealer will likely want the inventory

If it is through a third party, most of the leasing companies will only allow the dealer to buy it at an inflated residual price (only you on the lease have the right to buy at the contracted residual price).

It's through BMWFS.

[TrecNY]

Originally Posted by Staszek

Hoping some of the financial geniuses on this board can help me with something.

We put a deposit on our order for an X7 M50 last week so we could hold the allocation since we are going with an individual color.

I have a 2019 750i xdrive lease that ends in April that I will be turning in.

Now I know KBB isn't perfect but the trade-in value is between $65-$71k. Checking Autotrader and a few other places they seem to be selling in the $68-$71k My car has super low mileage only 17k so it would probably be up there with that.

That being said my residual is $59k. I don't think it's worth the hassle of me buying and reselling it, but is there anything I can do with the dealer to get a few thousand out of it?

Every time I have returned a lease in the past it's been at or well below the residual, this is a new one for me.

Just did this on my wife's lease over the weekend, an X3 M40 with about 22k miles, and was able to get $4k. Could have gotten more if we bought and sold it, but this way was easy and quick since the car was already due back. We didn't purchase her new X7 from that dealer either.

Since you have some time, I recommend getting offers from a few dealers and go with the one that offers the most money, and/or pin the dealers offers vs one another to try to squeeze some extra money out of them
Again, doesnt need to be the same dealer you purchase your new car from.

Good luck!

[unfoundnemo]

I keep my cars clean and tend to have something desirable or at least easily sellable, and across 6 "turn-ins" I only had 1 that the dealer didn't buy out rather then letting the turn in happen. That was only because BMWFS had the "pull ahead" incentives at the time and the dealer just couldn't compete. I also got a few hundred back from BMWFS in that instance because the car was under mileage.

From my understanding, it's a bit of a pain in process for a BMW dealer to buy the car from BMWFS on turn-in, after all, BMWFS owns the property and wants to make a little bit of money. So don't let them low-ball you on the equity because it's easier... the used car manager certainly wants/needs your car right now. I noticed they were trying to buy my X5 35d with a 3rd row that was due on turn-in, and knew I was going to be due to get a credit again (which was probably about equal to the tax savings from the "trade"), but figured if they wanted it bad enough to try to slip it in, they could give me another $1k for it.

[gsobol]

Just be careful with taxes. You do have to pay taxes on a purchase of the vehicle even if it's just a paper buy/sale.

[Staszek]

Originally Posted by gsobol

Just be careful with taxes. You do have to pay taxes on a purchase of the vehicle even if it's just a paper buy/sale.

Thanks!

[stockguru]

Originally Posted by gsobol

Just be careful with taxes. You do have to pay taxes on a purchase of the vehicle even if it's just a paper buy/sale.

If it's a trade in, it should go against the new vehicle so you only pay taxes once. Assuming you are buying in the new car.

[760Lifan]

If it's leased and the dealer buys it prior to the lease end, there are no taxes to pay since you currently don't own the vehicle and once the dealer bought it, you still don't own it and never did. All you get is the potential equity but you don't have to worry about taxes.

That's what I did....

[gsobol]

Originally Posted by 760Lifan

If it's leased and the dealer buys it prior to the lease end, there are no taxes to pay since you currently don't own the vehicle and once the dealer bought it, you still don't own it and never did. All you get is the potential equity but you don't have to worry about taxes.

That's what I did....

Yes, that's also why the quotes from the dealer are so much lower than private sale. In a trade-in situation (lease end buyback through dealer), dealer will calculate what you would lose on taxes. Just wanted to make sure people have all the facts before going one way or the other.

[xlover]

Recapping, summarizing, and clarifying a few of the above comments
-the residual value is the price YOU can contractually buy the car out from bmwfs
-however your bmw dealer can access that same price to facilitate a transaction, pre-shortages bmw would allow any dealer to buyout at that price
-this is as simple as asking your dealer to make you an offer for your current car, and deciding if you can part with it right away or upon delivery of your new car
-in most states (I don't know every state nuance) you would not pay taxes as the dealer is buying the car from bmwfs with you authorizing the early termination of the lease contract. You would pay taxes if you bought the car out yourself, became the owner, then proceeded to decide on an exit strategy
-your options for what to do with the equity are 1) have a check handed to you and handle the x7 transaction totally independently 2)roll into down payment if purchasing 3)roll into lease down payment if leasing (do not do this)

I would shop your car to several bmw dealers no matter what… but especially if your dealer won't play ball. Considering you have already committed to the x7 your dealer may hesitate to "help you out". Without some pushing on your end and/or threats to shop it around. As we know cars are in high demand and if you just turn in the lease they will get your car at a much lower than current market/auction price (more profit for them). Which is probably what they think is going to happen.

You have 2 options
1) you can/want get rid of the 7 series today, then shop around to any bmw dealers in your area and take the best price
2) if you need to keep your current car until the x7 arrives that adds uncertainty to the transaction and another dealer may not be willing to put a number that they will honor X months out, especially for an individual order which take longer. your dealer may lowball versus todays market price for that reason alone. So you would have to wait until x7 arrival to shop the 7 around.

Pre-shortages you could have taken your car to any dealer but I believe bmwfs has followed suit with the industry and adjusted buyout to market price for non-bmw dealers.

[PNWM3]

Originally Posted by stockguru

If it's a trade in, it should go against the new vehicle so you only pay taxes once. Assuming you are buying in the new car.

That’s not true in WA and doesn’t make sense elsewhere either otherwise it creates a huge sales tax loophole.

Since you only pay sales tax on the lease itself and never did on the residual, you don’t get that part off on your sales tax. If you bought it 100% out, even financed, you pay all the sales tax up front.

[Staszek]

Originally Posted by xlover

Recapping, summarizing, and clarifying a few of the above comments
-the residual value is the price YOU can contractually buy the car out from bmwfs
-however your bmw dealer can access that same price to facilitate a transaction, pre-shortages bmw would allow any dealer to buyout at that price
-this is as simple as asking your dealer to make you an offer for your current car, and deciding if you can part with it right away or upon delivery of your new car
-in most states (I don't know every state nuance) you would not pay taxes as the dealer is buying the car from bmwfs with you authorizing the early termination of the lease contract. You would pay taxes if you bought the car out yourself, became the owner, then proceeded to decide on an exit strategy
-your options for what to do with the equity are 1) have a check handed to you and handle the x7 transaction totally independently 2)roll into down payment if purchasing 3)roll into lease down payment if leasing (do not do this)

I would shop your car to several bmw dealers no matter what… but especially if your dealer won't play ball. Considering you have already committed to the x7 your dealer may hesitate to "help you out". Without some pushing on your end and/or threats to shop it around. As we know cars are in high demand and if you just turn in the lease they will get your car at a much lower than current market/auction price (more profit for them). Which is probably what they think is going to happen.

You have 2 options
1) you can/want get rid of the 7 series today, then shop around to any bmw dealers in your area and take the best price
2) if you need to keep your current car until the x7 arrives that adds uncertainty to the transaction and another dealer may not be willing to put a number that they will honor X months out, especially for an individual order which take longer. your dealer may lowball versus todays market price for that reason alone. So you would have to wait until x7 arrival to shop the 7 around.

Pre-shortages you could have taken your car to any dealer but I believe bmwfs has followed suit with the industry and adjusted buyout to market price for non-bmw dealers.

Thanks, I can turn the car in tomorrow if I really wanted too, as is it would have gone back way before the X7 comes in due to the production run I am getting into and the individual color pushing it back.

That being said I would like to get close to March before I turn it in so I dont have to break the M3 out of storage deep into the winter. The plan was to get rid of the 7, wait for the X7 to give to my wife and take her X5 until I decide what I actually want, which is a Taycan but I refuse to pay over list so I am ok waiting for a while, or maybe an i4 M50 while I am waiting who knows.

Thanks for everyone's help I think I will start asking some dealers what they will give me for it.

[Patgilm]

The taxes depends on the state. In MD you pay sales tax on the total sales price of the car, not just the leased portion, so re-registering the car is easy and takes no time. So when I was looking to sell my M340 before my new car was here, I contacted the BMW dealer because they were the only ones that could buy my car without me having to buy out my lease and their offer wasn’t bad, about $3k more than the lease buyout. I ended up buying the lease out myself (only took 3 days to get the title from BMWFS) and paying $300 to register and get new tags and then selling it two weeks later for $6k more than my buyout.

[MELLOWYELLOW06]

I had the same situation with my Escalade. If I would have turned it in, disposition fee, about 3k in over miles, and some damage at approx. 3k.

I sold to a GM dealer and cleared close to 10 k as it was.

All these years we have taken it in the chin,
now its time to make up for it a little.

[CruiseControl]

This thread is very helpful but need to verify a few things. My 2020 x7 40i sport lease is up in early October. I want to take advantage of the equity I have. The residual is $55K ($61 right now). I have 14k miles on it and I see current used prices as much as $70k.

1. How do I request a "buy price" from BMW dealers? Who specifically do I talk to?

2. Can I obtain a check and pocket it without committing to buy a new vehicle?

3. How does the process work? Would they ask me to bring it in for an inspection or send someone to inspect it?

4. Would the disposition fee by waived?

Thanks

[Setllarboss]

Originally Posted by Staszek

Hoping some of the financial geniuses on this board can help me with something.

We put a deposit on our order for an X7 M50 last week so we could hold the allocation since we are going with an individual color.

I have a 2019 750i xdrive lease that ends in April that I will be turning in.

Now I know KBB isn't perfect but the trade-in value is between $65-$71k. Checking Autotrader and a few other places they seem to be selling in the $68-$71k My car has super low mileage only 17k so it would probably be up there with that.

That being said my residual is $59k. I don't think it's worth the hassle of me buying and reselling it, but is there anything I can do with the dealer to get a few thousand out of it?

Every time I have returned a lease in the past it's been at or well below the residual, this is a new one for me.

I am assuming your lease ends in April 2023. If this is correct, the total amount you will owe on the car if you trade in today will be Residual Value $59K plus any remaining payments. You may still have equity and you can utilize the trade-in option like others have mentioned, but the equity will be lowered by any remaining payments.

[Setllarboss]

Originally Posted by CruiseControl

This thread is very helpful but need to verify a few things. My 2020 x7 40i sport lease is up in early October. I want to take advantage of the equity I have. The residual is $55K ($61 right now). I have 14k miles on it and I see current used prices as much as $70k.

1. How do I request a "buy price" from BMW dealers? Who specifically do I talk to?

2. Can I obtain a check and pocket it without committing to buy a new vehicle?

3. How does the process work? Would they ask me to bring it in for an inspection or send someone to inspect it?

4. Would the disposition fee by waived?

Thanks

You can sell the car to any dealer, including CARMAX or CARVANA. The amount you will get is Sales Price less residual less any remaining payments.

I sold my leased car to the dealer earlier this year and did not buy anything. Also, no disposition fee applied. This is charged end of lease if you decide not be get a new lease. In this case, the person you sold actually bought the car from the lessor.

Good luck.

[awesoM]

Originally Posted by Staszek

Hoping some of the financial geniuses on this board can help me with something.

We put a deposit on our order for an X7 M50 last week so we could hold the allocation since we are going with an individual color.

I have a 2019 750i xdrive lease that ends in April that I will be turning in.

Now I know KBB isn't perfect but the trade-in value is between $65-$71k. Checking Autotrader and a few other places they seem to be selling in the $68-$71k My car has super low mileage only 17k so it would probably be up there with that.

That being said my residual is $59k. I don't think it's worth the hassle of me buying and reselling it, but is there anything I can do with the dealer to get a few thousand out of it?

Every time I have returned a lease in the past it's been at or well below the residual, this is a new one for me.

For a quick and dirty price put your VIN on Carvana, Vroom and Carmax website to see what is their cash offer. That way you know what the worst case offer you will get. BMWFS I believe has a clause right now that disallows you to sell the vehicle to 3rd party other than to buy the vehicle yourself or turn in. If the cash offers are more than your residual that is a sign to buy it and resell yourself. Let your fingers do the walking for you to point you in the right direction. Good luck.

[CruiseControl]

Originally Posted by awesoM

BMWFS I believe has a clause right now that disallows you to sell the vehicle to 3rd party other than to buy the vehicle yourself or turn in.

This is my understanding as well. If I were to sell it, my options are sell it to the dealer or buy it and sell it myself.