[mjr24]

So I am looking at a 2020 M8 Comp. that a dealer has (it's a Land Rover dealer but the owners/company also own a BMW dealer in the same city).

IDEALLY, I would love for the BMW dealer to buy my car (so then I don't have to pay sales tax on it) and then apply that money as trade-in money towards the M8 (so I don't hardly have to pay sales tax on that, either). Is this possible?

Obviously....their BMW store would have to buy it from me because BMW won't allow non-BMW dealers to buy out leases, correct?

[micvite]

Originally Posted by mjr24

So I am looking at a 2020 M8 Comp. that a dealer has (it's a Land Rover dealer but the owners/company also own a BMW dealer in the same city).

IDEALLY, I would love for the BMW dealer to buy my car (so then I don't have to pay sales tax on it) and then apply that money as trade-in money towards the M8 (so I don't hardly have to pay sales tax on that, either). Is this possible?

Obviously....their BMW store would have to buy it from me because BMW won't allow non-BMW dealers to buy out leases, correct?

You have 2 options, not sure if one will work, but option 1 is their bmw store buys your car and then takes that money and I stead of applying it towards your other car just decreases the price they're selling it for by that amount.

Option 2 which I've had done before is that the land rover dealership sells the car to the bmw dealership as a "gift" aka no tax burden on them and you do everything through bmw

[mjr24]

Originally Posted by micvite

You have 2 options, not sure if one will work, but option 1 is their bmw store buys your car and then takes that money and I stead of applying it towards your other car just decreases the price they're selling it for by that amount.

Option 2 which I've had done before is that the land rover dealership sells the car to the bmw dealership as a "gift" aka no tax burden on them and you do everything through bmw

Let's just take option 2…..if the BMW dealer buys my lease out I don't have to pay sales tax on the car I'm selling, correct?

[spuntyb]

Why not buy the car for the residual price and then sell it yourself?

[mjr24]

Originally Posted by spuntyb

Why not buy the car for the residual price and then sell it yourself?

Because then I have to pay $6-7k sales tax on it which makes it pointless to just turn around and sell.

[spuntyb]

Originally Posted by mjr24

Because then I have to pay $6-7k sales tax on it which makes it pointless to just turn around and sell.

I would call BMWFS about a 3rd party buying out your lease. Last I checked, they don't disallow it, but 3rd party dealerships can't request the payoff quote. BMWFS won't sell directly to them. You have to facilitate it through BMWFS by giving them the 3rd party dealership info and then go from there. I haven't done this myself, but it's a similar process with other manufacturers as well as of late.

As for the sales tax, I'd think the only way around it would be as you mentioned above, by selling it to LR, and since it's the same family of dealerships, they release it to BMW within so many days after purchase (I think like within a week, but don't quote me).

Best bet though is to call BMWFS. They've been surprisingly helpful in the past, which is part of why I continue to lease BMWs tbh.

[Laoschris]

If the group owns a BMW store, Land Rover can take your car as a trade in, and get the dealer payoff from their BMW store.

The BMW store can ground the lease and purchase it, and the Land Rover store can proceed with the transaction/sale like it's a regular trade.

You obviously won't get tax savings for the trade because it's a lease, but this is how it's done.