06-22-2022, 11:26 AM | #1 |
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M5 Comp Lease Return and New Lease/Purchase
Hi All,
Wondering if ya'll have any advice for me. I currently have a 2019 M5 Competition with a $1,200 monthly lease and 18k miles. The lease ends in October. I'm way under the 30k miles lease and the current buyout is $76k with the lease-end buyout being $72k. Had an accident, insurance replaced front fender and front bumper after a car side swiped me (nothing major, only cosmetic) I have a new 2022 M5 Comp that's delivering in 2-3 weeks. I will either purchase or lease it, not the discussion here today. What I'm wondering, what should I do with my current M5 Comp lease? Should I return it to the dealer when the new one comes in, can I negotiate if I have positive equity in it? I have someone interested in assuming the lease, should I just let them do that? Thank you for your help! |
06-22-2022, 11:41 AM | #2 |
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19' M5C with 18k miles has value well above the $72k payoff (at least based on the pricing I've been seeing). I would buy the car from BMW and turn around and sell it to CarMax. You get get an online offer that's good for a certain number of days (don't recall).
I did this recently with my son's VW GTI (16k miles) when his lease expired. I was able to pocket about $9k in equity which I then used to offset the payment on new VW GTI we leased. Maybe the BMW dealership has an interest in buying the car from you and something can be worked out. Good Luck!
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06-22-2022, 11:51 AM | #3 |
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I agree with josec. I mean make sure you get the offers and they are a worthwhile chunk more than the buy out price. Based on your description I would think you can make some decent money but I have no idea how a minor item showing up on a Carfax impacts the offers even if it has no bearing in reality. Then you can also just use that as your lowest offer. Selling privately would also be in the table and likely net you a chunk more than an offer from CarMax, carvana, vroom, etc.
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06-22-2022, 12:27 PM | #4 |
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BMWFS will not let you transfer the lease if under 6 month until maturity. I'd shop the car around to carmax, vroom and then see what your dealer would give you. Obviously anything over $75k is free money. There is no tax advantage since you don't own the car, but keep in mind if you sell to non-bmw dealer, BMW will require that you buy the car and pay tax first so really suggesting Vroom and carmax as just value data points. You can obviously try the other BMW dealerships in your area as well.
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06-22-2022, 03:53 PM | #5 |
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While the car is under lease with BMW you can not sell it to Carmax, Carvana, etc. You would have to purchase the car at lease end, then sell. Now of course, you will have to pay taxes on the sale.
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06-22-2022, 07:47 PM | #8 |
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I had a 2019 M5 that I sold to a BMW dealer. Car had 24k miles. This was last October. I had 7 months left on my lease. After paying out my lease the dealer sent me a check for 10k in equity.
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06-22-2022, 08:03 PM | #9 |
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I sold my 2019 M5C with 25k miles in excellent condition at the end of February for $80,000. I sold it to a VW dealer that had a sister BMW dealer that processed the lease buyout. You try something like that, or draft up an email with a detailed description and a bunch of pictures. Send it to 3 or 4 nearby BMW dealers and take bids on who will write the biggest check to have you turn it it at their store. These guys are hurting for inventory so I’ve got to believe you’ll get decent offers.
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06-23-2022, 12:39 AM | #10 |
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Yes, this is true. There may be some rare exceptions but I saw the paperwork myself and if you try to unload your BMW car that is still within the lease period, 3rd party buyouts are not allowed.
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06-23-2022, 05:45 AM | #11 |
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I was in the exact same scenario. The dealer gave me around $10K so I just traded my 2019 in when I took delivery of my 2022. I could've made more trying to sell it myself but honestly it felt like it would be a hassle so I took the "easy" way out.
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06-23-2022, 02:17 PM | #13 | |
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06-23-2022, 03:28 PM | #14 | |
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06-24-2022, 11:40 AM | #15 |
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Yes, we pay full sales tax upfront and then we pay it AGAIN if we buy out the car at lease-end. I think that's why they started the owner's choice program to try and avoid that.
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07-21-2022, 11:31 AM | #16 |
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If they treated it as a trade in you don't pay taxes on that. Sounds like you had a good Sales rep team. For this reason alone i have been looking at going in for an allocation now and just "buying out my lease" when the new M5 comes in and taking equity and using that for payments on the new one.
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