Hey everyone I am trying to get out of my 2018 Audi A4 lease early to buy a new 2021 BMW X5 and I wanted your opinion on which of these two options I should take. Vroom offered me 25,500 and BMW offered me 24,000 for my X5 purchase.
Should I let Vroom buyout the car for $26,568 (dealer payoff price) from Audi and I pay the difference of $26,568-25,500 = $1068 or save the hassle and just trade it into BMW? (Do I save taxes towards my purchase of a new car from the lease trade-in when the dealer buys the car directly from the finance company?)
Bonus question that isnât a lease but would love your feedback:
I am looking to buy a BMW X5 that has an MSRP of $80,000 through financing. I did some negotiating and I got around a $2500 discount + $2500 APR credit +$1000 incentive. APR is 1.9% for 60 months and I feel like I can do better after seeing all these 10%+ discounts off of MSRP before incentives and rebates success stories. What should I aim for? (I live in the NC Raleigh area)
I have no clue what youâre trying to say here. If you pay $25600, everything else goes away, other than the thousands in extra sales tax youâll have to pay when you buy it.
Okay it looks like we have a two part Ask the Hackrs question.
and
Letâs take a peek at one at a time, then we can go from there.
This is your only option. Because if you did this \ / as @mllcb42 explains,
youâll have to pay sales tax to buyout the car, and not recoup that when selling to Vroom. Say you have a sales tax of 5%, and a buyout of 25,600 (assuming this is residual + remaining payments and fees). After tax, you will have spent 27136, and still can only sell it for $25,500 to Vroom, Carvana, etc.
Youâll have lost 1650 versus only 1070 even with the difference in first and third party buyouts.
Second part, X5 purchase,finance, or lease whatever.
Bloody awful, Iâd want at least 10% pre-finance rebates or grad rebates. If you have to pay 399 for a broker fee through @AutoCompanion to get that on an inventory or build and ship/take delivery on a custom car in SC at Spartanburg.
Any particular reason you need to get out of the Audi? Could just wait and save some money.
Why do you want to buy a BMW, with their overinflated residuals it doesnât make much sense to buy.(run the numbers and do the math) And if youâre driving a ton of miles, the BMW is the wrong choice. Itâs not the kind of car you want to drive out of warranty.
Thank you for your reply! I think Iâm going to go with the Vroom buying directly from Audi option lol I was underestimating sales tax and it seems like itâs more than $2000. Also, for the X5, I know that I wanted to aim for 10% discount but being that 2021 models are just now rolling out and this is a custom order (not inventory) I was thinking 10% isnât achievable. Also, I do live in Raleigh NC so the dealership is not huge I would say compared to FL or CA. Do you still think I should ask for 10% discount + 1k grad incentive?
Thanks for your reply! I really want to buy an X5 because Iâm a pretty tall and big guy and Audi A4 is getting really tight in space and looking for a family vehicle of 4. Also, I dont drive as much (less than 7k miles per year) and I was only looking a luxury SUVs like GLE and X5 and X5 had more safety feature and fun to drive I guess for a 24 year old lol.
Contact @AutoCompanion or another broker, and build a car and have it delivered in South Carolina. You can have a New York or pa or wherever dealer order and sell you the car, and pickup 3.5 hours away in Spartanburg South Carolina, with a delivery excursion at their track and other perks.
You can get 10% off via Sina for a purchase, then add the graduate incentive, and finance credit if any.
Anything is possible if a dealer plays ball, youâre armed with an appropriate discount and what you should be getting in addition. Message an internet sales manager with your offer on an in stock unit and if they say yes, congrats.
Honestly, my opinion is if you build a car, you get it exactly as you want, color, interior, etc. itâs your car. Itâs 3.5 hours away, you can take a weekend trip out and drive some really nice bmws around on their dime, but with a family I understand.
Yeah⌠I would love to but I donât think I can realistically. Also, I wanted to ask you that BMW dealership that I worked with for my new 2021 X5 gave me a trade in value of 24,000 for my A4 with 26,500 dealer pay off price. Should I go this route instead of Vroom to make it easier and save $800 on taxes with trade in? (I guess my question is do I get to save taxes on the new X5 with the trade in even if that trade in is a dealer to dealer transaction?)
I canât stress enough to NOT BUY a $80K X5. I didnât see what trim level it is (4.0i, M50i, etc.). If your heart desires one, lease it. If this is a loaded 4.0i, even more so. Unless your hobby is lighting batches of $100 bills on fire of course.
Depreciation on the higher MSRP X5s is no joke⌠You will be hopelessly upside down in it if youâre financing, or out a massive amount of money if paying cash or making a large down payment.
Exhibit 1: My own 2018 X5 50i XDrive MSport. MSRP $86,450. 21k miles. Carvana number today: $40,936.
If I lease it what are potential savings I could take compared to financing? I heard opposite advices saying that I should stay away from leasing an X5 cause the residual is so bad? (55%)
You should lease it because they depreciate like a rock⌠(picture a piano being getting thrown off a tall building). Mine right now has 13 months left on the lease term. The RESIDUAL, 13 months from now is $49,859.19, easily $8,000 over the current wholesale/trade in value.
My current lease payoff, today, is $16,601.63 above the Carvana offer (just checked it). Keep in mind, I am way under miles on my lease, and got a very nice discount along with rebates as the 2018 MY was the last year of F15 platform. Throw in another unknown, if you happen to get into an accident that shows up on Carfax/Autocheck, youâd be out even more money on the value of a car if you bought it.
The problem is the actual depreciation over 3 years will be much more than that. If the car is worth less than 55% at 3 years (it will be), youâre left holding the bag oâ excess depreciation rather than bmw holding it.
Here is an update to the offer
2021 BMW X5 - (a custom order, not inventory)
MSRP 81,745
Discount 3,600
Incentive 1,000
APR credit (rebate) 2,500
Taxes and fees 2,500
Trade Allowance 24,000
Trade Payoff 26,500
Interest Rate 1.9%
Questions are
Should I still aim for a 10% discount (8k off + 1k grad incentive) even if itâs a 2021 and custom order? I live near Raleigh NC which isnât a huge market and I donât really want to drive to other states to pick up the car. If not, how much should I aim for?
Do I save taxes towards my purchase of a new car from the lease trade in when the dealer buys the car directly from the finance company? Or is that only when I take ownership of the car by buying the lease off and trading it in?
With all the brokers here offering larger discounts, why would you accept this deal? Talk to some of them and see what they can do with delivery to you and compare prices.
Trading in your lease shouldnât offer tax savings.
I still think youâre crazy to purchase this rather than lease it.
Ya know what, knock yourself out. Just please keep to yourself when you start wondering 10,000 miles in why your newly financed car is $21,000 upside down.
