M5 Comp Lease Return and New Lease/Purchase

mpower3330 · 06-22-2022, 11:26 AM

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!

josec70 · 06-22-2022, 11:41 AM

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!

crypto · 06-22-2022, 11:51 AM

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.

SpeedyATL · 06-22-2022, 12:27 PM

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.

Greer · 06-22-2022, 03:53 PM

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.

Willie_Beamen69 · 06-22-2022, 04:53 PM

I sold my 2019 M5 with 36k miles to a used car dealership and they took care of everything, they gave me 8k in equity.

aj_g80 · 06-22-2022, 07:45 PM

i thought bmw stopped 3rd party buyouts?

CGM · 06-22-2022, 07:47 PM

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.

AGS · 06-22-2022, 08:03 PM

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.

Greer · 06-23-2022, 12:39 AM

Quote:

Originally Posted by aj_g80

i thought bmw stopped 3rd party buyouts?

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.

trev230 · 06-23-2022, 05:45 AM

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.

mpower3330 · 06-23-2022, 08:27 AM

Thank you all for the guidance. The BMW Dealer offered me $78k, I may shop it to other BMW dealers since I have 2 weeks before the new one arrives.

shellbmb · 06-23-2022, 02:17 PM

Quote:

Originally Posted by SpeedyATL

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.

I think it varies from state to state, but when I traded in my leased 2018 M5 towards my 2022 M5, I was able to get a tax savings on my new car. BMW viewed the buy-out of my 2018 as a trade in so I saved 75k * 6.25% in taxes towards the 2022. So I got my equity plus my tax savings which was nice. I only mention this since OP is getting another BMW. But again, might vary from state to state.

mpower3330 · 06-23-2022, 03:28 PM

Quote:

Originally Posted by shellbmb

I think it varies from state to state, but when I traded in my leased 2018 M5 towards my 2022 M5, I was able to get a tax savings on my new car. BMW viewed the buy-out of my 2018 as a trade in so I saved 75k * 6.25% in taxes towards the 2022. So I got my equity plus my tax savings which was nice. I only mention this since OP is getting another BMW. But again, might vary from state to state.

I believe that's because in Texas you paid the full sales tax on the 2018 upfront, unlike in california where we pay sales tax only on the monthly payment amount. I may be wrong though.

shellbmb · 06-24-2022, 11:40 AM

Quote:

Originally Posted by mpower3330

I believe that's because in Texas you paid the full sales tax on the 2018 upfront, unlike in california where we pay sales tax only on the monthly payment amount. I may be wrong though.

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.

Maverik259 · 07-21-2022, 11:31 AM

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.

06-22-2022, 11:26 AM	#1
mpower3330 First Lieutenant 197 Rep 357 Posts Drives: F90 M5 Comp Join Date: Feb 2012 Location: Bay Area iTrader: (0)	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!
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06-22-2022, 11:41 AM	#2
josec70 Major General 4074 Rep 5,233 Posts Drives: 22' Individual Chalk M5C Join Date: Dec 2015 Location: Miami iTrader: (2)	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! __________________ CURRENT: 22' INDIVIDUAL M5\| CHALK \| TARTUFO \| CCB \| MPE \| H&R \| IND GONE: 19' M5C\| SINGAPORE GREY\| ARAGON\|VELOS VLS-06\|H&R\|iPE\|IND\|XPEL\|CF\|RADENSO GONE: 15' F10 M5\|BSM\|BLACK\|VELOS VSS-S2\|KW\|AKRA\|IND\|CF \|ESCORT 360\|VELOS PIGGY GONE: 13' F10 M5\|SG\|BLACK\|AKRA\|KW\|IND LONG GONE: 09' E60 M5\|02' E39 M5
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06-22-2022, 11:51 AM	#3
crypto ... 1471 Rep 1,308 Posts Drives: 2022 M5 CS Join Date: Oct 2011 Location: Northern Virginia iTrader: (1)	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. __________________ Current: 2022 M5 CS Past: 2021 M550i (BSM) Past: 2010 535 xDrive (Alpine White)
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06-22-2022, 12:27 PM	#4
SpeedyATL Major 1877 Rep 1,142 Posts Drives: Z4 M40 Join Date: Dec 2021 Location: GA iTrader: (0) Garage List 2015 Yamaha FZ-09 [10.00] 2018 BMW S1000XR [9.83] 2018 BMW R1200RT [10.00] 2023 BMW X4 [7.88] 2022 BMW Z4 [9.78]	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. __________________ 2022 Z4 M40 Alpine White/Magma Red 2023 X4 30i MSport BSM/Cognac 2018 BMW S1000XR & BMW R1200RT 2015 Yamaha FZ-09
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06-22-2022, 03:53 PM	#5
Greer Colonel 1893 Rep 2,511 Posts Drives: 2022 M5 Competition Join Date: Dec 2007 Location: Los Angeles iTrader: (0)	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. __________________ 2022 F90 M5 Competition & 2019 M2 Competition 2019 F90 M5 Competition 2017 F80 M3 Competition 2014 F10 M5 Competition 2003 E39 M5
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06-22-2022, 04:53 PM	#6
Willie_Beamen69 Second Lieutenant 57 Rep 211 Posts Drives: BMW M5 F90 Join Date: Apr 2013 Location: Brooklyn iTrader: (0)	I sold my 2019 M5 with 36k miles to a used car dealership and they took care of everything, they gave me 8k in equity.
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06-22-2022, 07:45 PM	#7
aj_g80 Captain 551 Rep 638 Posts Drives: 720s Join Date: Sep 2021 Location: south florida iTrader: (0)	i thought bmw stopped 3rd party buyouts?
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06-22-2022, 07:47 PM	#8
CGM Private 18 Rep 55 Posts Drives: tbd Join Date: Nov 2018 Location: tbd iTrader: (0)	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
AGS Major 501 Rep 1,399 Posts Drives: 2022 M5 Competition Join Date: May 2012 Location: NJ iTrader: (0)	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, 05:45 AM	#11
trev230 Captain 351 Rep 604 Posts Drives: 2022 M5C Join Date: Sep 2013 Location: Charlotte, NC iTrader: (0)	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, 08:27 AM	#12
mpower3330 First Lieutenant 197 Rep 357 Posts Drives: F90 M5 Comp Join Date: Feb 2012 Location: Bay Area iTrader: (0)	Thank you all for the guidance. The BMW Dealer offered me $78k, I may shop it to other BMW dealers since I have 2 weeks before the new one arrives.
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07-21-2022, 11:31 AM	#16
Maverik259 Major General 4140 Rep 7,160 Posts Drives: F90 M5 / F15 50i Join Date: Jun 2017 Location: Virginia iTrader: (1) Garage List 2020 BMW M5 [10.00] 2014 X5 50i [0.00]	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. __________________ '07 Yamaha R1 (sold) '06 C55 AMG (sold) ‘?20 M5, MP Carbon Pro Spoiler, MP Carbon Diffuser, MP Black grille and gills, MP Carbon Mirrors, CF side sills, 789M w/ Ti studs, eventuri, Dinan X pipe '14 X5 50i (wife’s now)
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