Trying to determine the best way to handle my next car purchase. My 2022 X4 M40i lease ends in 10 months. I’m thinking about getting out of the lease early due to equity in the lease. I would like a lower payment so I’m willing to downgrade to a 330e xdrive. When I did some inquiring a few months ago, the quotes were crazy high and the payments were higher than what I pay now even though i have equity and loyalty.
My issue is the Milwaukee city and county tax will increase from 5.6% to 7.9% starting 1/1/24. So I would like to make a decision before next year.
Option 1 - Trade in lease now to BMW with equity and lease another BMW depsite prices being horrible but probably better than next year with new tax law.
Option 2 - Buyout Lease at lease-end with new tax law.
Option 3 - Buyout Lease now before new tax law.
Option 4 - Turn in lease at lease end and start from scratch next August.
For reference, I owe $46,726.71 on my lease. Payment is $696. My last appraisal in August was for $56K but I feel like it may have gone up since then. KBB shows 56k-61k. Only have 13,016 miles driven.
Generally, that applies to purchases of tangible personal property in general, which is why it says “new purchases.” I haven’t looked it up, however, and I would be very surprised if it didn’t apply to your monthly payments going forward. Every lease I’ve seen in other states with monthly tax has auto-adjusted when the rate changed.
