PSA for those coming off a lease

merlin3008 · 05-11-2021, 07:27 AM

All,

Just wanted to share my experience with my current two leased cars in that it may help some of you. As we all know, the used car market is on fire right now. With new car prices high and availability low, the preowned market is crazy. I have two leased cars maturing that I will be getting out before I get into the M3.

I checked the residual values and compared them to the current private party sale prices for the same models. On my wife's GLA250, I will be making $3,000. The minute I put it online for sale, I had 20+ dealers posing as buyers trying to buy it for their inventory since auctions are less productive now. I sold it to a local family in 18 hours! It looks like I'll be able to sell my AMG C43 for at least $8,000 more then the residual. Rolling that over takes a big bite out of those lease payments.

mttolson · 05-11-2021, 07:52 AM

I'm seeing the same thing on my M2 right now which is in month 26 of a 36 month lease. I've got offers right now that are $5-7.5K over buyout. The offers have actually increased by 5% compared to 2 months ago. I think the market is only going to continue to get worse so I'm trying to decide how long to ride it out before pulling the trigger.

ROBERT1183 · 05-11-2021, 08:18 AM

I just sold my 18 M3 comp 6 speed that was coming off lease this month. I was able to recoup most of the lease on the car. I calculated quick numbers and im pretty much just out tax on the car. Not bad for 3 years of ownership.

merlin3008 · 05-11-2021, 08:18 AM

Quote:

Originally Posted by mttolson

I'm seeing the same thing on my M2 right now which is in month 26 of a 36 month lease. I've got offers right now that are $5-7.5K over buyout. The offers have actually increased by 5% compared to 2 months ago. I think the market is only going to continue to get worse so I'm trying to decide how long to ride it out before pulling the trigger.

That's awesome. I"m just hoping it lasts until December when I'll be ready to get out of my AMG.

acre22f90 · 05-11-2021, 08:20 AM

Quote:

Originally Posted by ROBERT1183

I just sold my 18 M3 comp 6 speed that was coming off lease this month. I was able to recoup most of the lease on the car. I calculated quick numbers and im pretty much just out tax on the car. Not bad for 3 years of ownership.

You profited $25k+ off the residual?

Bch53211 · 05-11-2021, 08:42 AM

Interesting I have a 2018 m3 comp , the lease is done at the end of June but I’ve been talking about extending it 2-3 months so I can order an m4 comp awd. Dealer says I can do that if I have an order in . I’ll look into paying it off and selling once I have an order in and an idea of when the m4 will be delivered . Thanks for posting .

Delmoney335 · 05-11-2021, 09:58 AM

Sold my '18 M3 comp for 5.5k over residual in March. Lease was coming up in June. Definitely worth looking at that option.

Transfer · 05-11-2021, 10:50 AM

Are you guys doing private sale transactions at the dealership? If you're selling at lease end I would expect you pay tax on the residual and then any "profit" comes after accounting for that tax. Tax here in Seattle area is 10%. Is there a way to avoid that in a lease end private sale transaction?

acre22f90 · 05-11-2021, 10:53 AM

Quote:

Originally Posted by Transfer

Are you guys doing private sale transactions at the dealership? If you're selling at lease end I would expect you pay tax on the residual and then any "profit" comes after accounting for that tax. Tax here in Seattle area is 10%. Is there a way to avoid that in a lease end private sale transaction?

I've only sold to dealerships to avoid that issue.

I believe California has a 10 day window/grace period in which you can acquire and sell the car to avoid tax. But I also do believe you are at their mercy of getting the title in time (which could be a huge gamble).

Transfer · 05-11-2021, 11:08 AM

Quote:

Originally Posted by ACremona22

I've only sold to dealerships to avoid that issue.

I believe California has a 10 day window/grace period in which you can acquire and sell the car to avoid tax. But I also do believe you are at their mercy of getting the title in time (which could be a huge gamble).

Yeah I'm expecting to basically trade in instead of lease turn in, and will do it about 9 months early most likely.

Delmoney335 · 05-11-2021, 12:35 PM

Quote:

Originally Posted by Transfer

Are you guys doing private sale transactions at the dealership? If you're selling at lease end I would expect you pay tax on the residual and then any "profit" comes after accounting for that tax. Tax here in Seattle area is 10%. Is there a way to avoid that in a lease end private sale transaction?

Sold to an Autonation Dealer here in Florida. Was an easy process all around.

NoynuR · 05-12-2021, 01:47 PM

Quote:

Originally Posted by Delmoney335

Sold my '18 M3 comp for 5.5k over residual in March. Lease was coming up in June. Definitely worth looking at that option.

Sold my F80 comp for 10K over residual! Sold within 2 days of posting it to a dealer in Arizona

ROBERT1183 · 05-12-2021, 02:28 PM

Quote:

Originally Posted by Transfer

Are you guys doing private sale transactions at the dealership? If you're selling at lease end I would expect you pay tax on the residual and then any "profit" comes after accounting for that tax. Tax here in Seattle area is 10%. Is there a way to avoid that in a lease end private sale transaction?

No I sold the car to a wholesale dealer so I did not have to pay the tax on the buy out. They buy it from BMW and cut me a check for the difference.

ROBERT1183 · 05-12-2021, 02:29 PM

Quote:

Originally Posted by ACremona22

You profited $25k+ off the residual?

I recouped $20k from what i paid out over the lease.

Tyga11 · 05-12-2021, 07:50 PM

Quote:

Originally Posted by merlin3008

All,

Just wanted to share my experience with my current two leased cars in that it may help some of you. As we all know, the used car market is on fire right now. With new car prices high and availability low, the preowned market is crazy. I have two leased cars maturing that I will be getting out before I get into the M3.

I checked the residual values and compared them to the current private party sale prices for the same models. On my wife's GLA250, I will be making $3,000. The minute I put it online for sale, I had 20+ dealers posing as buyers trying to buy it for their inventory since auctions are less productive now. I sold it to a local family in 18 hours! It looks like I'll be able to sell my AMG C43 for at least $8,000 more then the residual. Rolling that over takes a big bite out of those lease payments.

How are you selling your C43 for $8k over residual? Who are you selling too?

xlover · 05-12-2021, 08:10 PM

Quote:

Originally Posted by Delmoney335

Quote:

Originally Posted by Transfer

Are you guys doing private sale transactions at the dealership? If you're selling at lease end I would expect you pay tax on the residual and then any "profit" comes after accounting for that tax. Tax here in Seattle area is 10%. Is there a way to avoid that in a lease end private sale transaction?

Sold to an Autonation Dealer here in Florida. Was an easy process all around.

Did bmwfs have a different buyout price for a non bmw dealer? I understand many brands are doing that now.

MavRick · 05-12-2021, 08:36 PM

sold my wife's '19 F82 for $7500 more than the payoff, last month, to a private seller. and thats with putting nothing down at original acquisition other than 1st month and fees. she wasnt really happy with selling it 3 months before the lease was over but it was just a no brainer.

only problem is that BMWFS has screwed up the title transition so the new owner still hasnt gotten it registered.

Delmoney335 · 05-12-2021, 09:24 PM

Quote:

Originally Posted by xlover

Did bmwfs have a different buyout price for a non bmw dealer? I understand many brands are doing that now.

No they didn’t.

05-11-2021, 07:27 AM	#1
merlin3008 Captain 891 Rep 869 Posts Drives: 2022 M3 Comp xDrive Join Date: Jul 2015 Location: Chicago, IL iTrader: (0)	PSA for those coming off a lease All, Just wanted to share my experience with my current two leased cars in that it may help some of you. As we all know, the used car market is on fire right now. With new car prices high and availability low, the preowned market is crazy. I have two leased cars maturing that I will be getting out before I get into the M3. I checked the residual values and compared them to the current private party sale prices for the same models. On my wife's GLA250, I will be making $3,000. The minute I put it online for sale, I had 20+ dealers posing as buyers trying to buy it for their inventory since auctions are less productive now. I sold it to a local family in 18 hours! It looks like I'll be able to sell my AMG C43 for at least $8,000 more then the residual. Rolling that over takes a big bite out of those lease payments. __________________ 2022 M3 xDrive, Brooklyn Grey over Tartufo 2021 Tesla Model Y 2019 MB AMG C43 (Sold) 2016 M235i xdrive, Alpine White, Terra Leather, Orbit Gray Wheels (Sold)
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05-11-2021, 07:52 AM	#2
mttolson Registered 0 Rep 1 Posts Drives: 2018 M2 DCT Join Date: May 2021 Location: NE Ohio iTrader: (0)	I'm seeing the same thing on my M2 right now which is in month 26 of a 36 month lease. I've got offers right now that are $5-7.5K over buyout. The offers have actually increased by 5% compared to 2 months ago. I think the market is only going to continue to get worse so I'm trying to decide how long to ride it out before pulling the trigger.
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05-11-2021, 08:18 AM	#3
ROBERT1183 Captain 1569 Rep 989 Posts Drives: 2021 BMW M3 DRAVIT GREY 6SPEED Join Date: Nov 2017 Location: ROCKAWAY NJ iTrader: (0)	I just sold my 18 M3 comp 6 speed that was coming off lease this month. I was able to recoup most of the lease on the car. I calculated quick numbers and im pretty much just out tax on the car. Not bad for 3 years of ownership.
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05-11-2021, 08:42 AM	#6
Bch53211 Major 728 Rep 1,250 Posts Drives: 2015 M4 Join Date: Aug 2015 Location: Shorewood, WI iTrader: (0) Garage List 2015 M4 [0.00] 2015 M4 [0.00] 2015 M4 [0.00]	Interesting I have a 2018 m3 comp , the lease is done at the end of June but I’ve been talking about extending it 2-3 months so I can order an m4 comp awd. Dealer says I can do that if I have an order in . I’ll look into paying it off and selling once I have an order in and an idea of when the m4 will be delivered . Thanks for posting .
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05-11-2021, 09:58 AM	#7
Delmoney335 Captain 915 Rep 863 Posts Drives: 2021 BSM G80 comp Join Date: Feb 2010 Location: South FL iTrader: (2) Garage List 2015 BMW M4 [0.00] 2012 BMW M3 Coupe [0.00]	Sold my '18 M3 comp for 5.5k over residual in March. Lease was coming up in June. Definitely worth looking at that option. __________________ 2021 G80 Comp
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05-11-2021, 10:50 AM	#8
Transfer Major General 5254 Rep 5,874 Posts Drives: Bronco Wildtrak, Tesla MYP Join Date: Mar 2010 Location: Issaquah, WA iTrader: (1)	Are you guys doing private sale transactions at the dealership? If you're selling at lease end I would expect you pay tax on the residual and then any "profit" comes after accounting for that tax. Tax here in Seattle area is 10%. Is there a way to avoid that in a lease end private sale transaction?
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05-12-2021, 08:36 PM	#17
MavRick Captain 688 Rep 750 Posts Drives: My Wife's M Join Date: Mar 2015 Location: USA iTrader: (0)	sold my wife's '19 F82 for $7500 more than the payoff, last month, to a private seller. and thats with putting nothing down at original acquisition other than 1st month and fees. she wasnt really happy with selling it 3 months before the lease was over but it was just a no brainer. only problem is that BMWFS has screwed up the title transition so the new owner still hasnt gotten it registered.
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