So end of my lease, not sure what I should do. The buyout is ~$37k. I’m fine with keeping the car, but I’m also thinking I should capture the equity and put it towards another lease. Is this a mistake? I could save ~$10k on my next lease, could also own my car in a few years and use the equity later. I could talk myself in circles here.
Should I buy and keep it or put equity towards a new lease? Or are new deals so bad that if I’m asking questions here about trying to capture $10k I should buy my car out and wait a year or two? Or what am I missing?
Any input is appreciated, this situation has had me sit on the sidelines for way too long.
For whatever reason I can’t quote the first question, replie’s here:
The equity I’m referring to is the difference between the RV of $37k I’m buying it for and whatever I can trade it in or sell it for - which might be $0 to $5k, it was almost $10k a few months ago when I was considering getting a new car, but I’m sure things have changed.
Yes, in a nutshell. I was going to buy it out, but second guessing the decision. I’ve never put anything down on a lease, but leasing right now doesn’t look like a good idea.
If we saw the used car cars depreciating quicker than normal over the next couple years as inventories return and people start to trade in the lease-buyouts - it’s that situation that I’m thinking that it wouldn’t be a bad idea to capture whatever equity, if there is any, from this car and put it towards a new car.
Are you thinking that your M340 is worth $47k and that your Cap is at $37k? This would be the equivalent of putting $10k as a down payment. Probably not the best thing to do on a lease.
If you buy the car, will you have to pay taxes and registration again in your state? If so, that will eat into any potential equity. It looks like you could get about $42K in trade for your car, but don’t expect that from a BMW dealer, which is where you may have to ‘trade’ your lease. The dealers know this game and will do everything they can to screw you out of as much equity as they can. Sorry if that comes across as a harsh opinion of dealers, but I have been low balled by them way too many times.
Im sorta in the same boat except not going to trade for the same brand. If i were, i would ask if you could put the equity towards one pay or the MSD. Not sure if the dealer is willing to do that but only one way to find out. They may give you more on the current lease as opposed to just selling it back.
Was in same situation coming out of 2020 M340. Buyout was around $36K or so. Sold it to autonation for 2K in profit. Like others said, putting whatever equity toward down payment of lease is not recommended. Also, where are you getting this $10k amount from? You can only sell to BMW dealerships or Autonation and they won’t be so generous. Buying yourself and then reselling could be an option if the private sale was big enough to make it worth it… Dealer will try to sell your car for at least $45K
And with leases now, there are still deals out there. Just can’t be as picky.
Er, no, but my asking OP to clarify isn’t about “justifying” anything. It’s about helping OP and other people reading (esp those new to car buying and such) to better understand the whole process.
And what do you think those “different answers” depend on? Oh, right. The amount of equity. The amount to put down in terms of risk vs. reward generated its own thread a few yrs ago:
So, yeah, the amount down matters.
So if someone wants to know what the monthly looks like if they can get 50% off MSRP, we should all just point them to the calculator rather than asking them if 50% is based in reality? Doesn’t really make too much sense to me.
No, I don’t see anything from the OP in a post directly above yours. Are you referring to the part where he mentioned that the $10K equity (again, from an unclear source) was a few months ago, and he admits it could’ve changed by now? Yeah, I did see that.
You can name call all you like (and I’ve flagged your post).
If being a pr-ck means that I want to help generate useful, reliable information on the LH, then I’ll con’t to be a pr-ck all-day, everyday.
I was in the same boat. Buyout on my 21’ m340i lease was also around 37k, ended up selling to local BMW dealership for 43.5k (back in May). Replaced the BMW with a 2023 MB EQE 350 4matic and took advantage of fleet (2.5k), EV credit (7.5k), 11% discount and base MF. I put the equity and MSDs from the BMW toward the much higher MSD on the EQE. Missed out on some of the better lease deals from early in the year, but didn’t do too bad overall.
In both scenarios you would be buying out your lease (assuming you meant lease anywhere — as opposed to just a new BMW lease), which is a good option if you actually do have $10k worth of equity currently. The real question you’re asking is, how long should you hold on to the vehicle once you do that. It’s harder to answer, but I would say the buyout gives you more options on WHERE to sell your equity instead of turning that back in directly to BMW and getting a lower payout (the dealership will also have a different payoff than your own personal payoff amount from BMW FS)
