BMW Dealer Offering to Buy Current X1 Lease and Exchange for Another w/ Same Terms

I’m in Milwaukee, #wi and my loaner X1 lease expires in Feb. I currently pay ~$360/mo. I did MSDs if that matters.

My dealer offered a pull ahead on a new '21 X1 with supposedly the same monthly payment and $0 DAS. It seems like a good deal to me, but it feels fishy and they keep trying to get me to come in “to inspect the car.”

My original plan was to just buy the car and hope leasing scene improves, but this seems better. Thoughts?

You need to compare how much equity is in the vehicle with how much is being used to get you to that price point. I’m sure they’re not doing this out of the goodness of their heart.


You need to know your numbers.

:point_up_2::point_up_2:- What he said.

What is your current buyout? Reach out to another BMW dealer to check your equity, if any.


I think y’all are asking what my residual will be. If so, that’s $20,714. on a 60 month loan @ 2.6% it comes out to $370, which is essentially the same as my lease payment.

Am I doing this right so far? If so, for the same monthly cost, my options are:

  1. lease a new X1 for 3 yrs
  2. buy my current X1 on a 5 yr loan and pay maintenance, but have equity in a depreciating asset

I’m leaning towards Option 1.


The dealer is proposing that they purchase your current lease, for some amount more than you owe, and then roll that amount into a new lease.

There are two questions that need to be answered I’m that scenario:

  • Are they buying your current car for a good price
  • Are they leasing the new car for a good price

Considering they’re trying to push the deal on you, chances are the both is “no”


I’m probably oversimplifying things but to me, the dealer’s calculus/motivations are much less important than what are my options.

And in those regards I feel I have the two options I previously stated. Please help me see the error of my ways!

The error is that you’re likely being taken to the cleaners, or at the very least, not fully taking advantage of potential equity.

A) chances are they’re lowballing you on what your current car is worth given current market conditions


B) chances are you’re not getting a good deal on the new X1

Taking both into account, you should be able to do better by independently negotiating A & B, potentially even with different dealers if need be.

It comes down to knowing what they’re offering for A and the deal structure for B - they’re (likely) attempting to pull a fast one by calling it apples to apples on the payment, but until you get those breakdowns, it’s rather hard to give definitive advice and for us to do much more than speculate based on what many other dealers are currently doing with similar offers.


Option 3 may be to lease a new car for the same monthly payment, but also put lots of cash in your pocket.


But there’s no way to get an X1 for close to $350 in this market. I sold a different X1 earlier this year to Carvana and made about $3,000. Even if I could repeat that, applying those gains to a new x1 lease still would not get me close to $350.

BMW has blocked third party sales so I’m restricted to selling my lease to a BMW dealer, yeah? If I pay it off and sell it to carvana I have to pay taxes. Are y’all suggesting I try to sell my current lease to a BMW dealer?

Thank you everyone for your patience. Sorry if this logic makes your eyes roll.

That’s exactly what this dealer is doing.

The dealer isn’t offering you a pull ahead. He’s offering to buy your current lease, probably for a lot less than it is worth, and then lease you a new vehicle.

Ask the dealership to give you a price without trading in the X1.

They are using your equity as a down payment/ cap cost reduction to lower the monthly.



At the very least, you’d be better off taking a check for the equity and going with minimal DAS on the new lease (albeit with a higher monthly payment).

As others have mentioned, shop around different bmw dealers to see what they’ll buy your vehicle for, and get a lease quote exclusive of any trade in.

Why not just stick to your original plan?

Because there are a lot better cars one can buy than a used X1?

I guess OP will have to decide which option works best for them.

I’m struggling to see how buying the car is superior to continuing the same lease given the payments would be equal in both scenarios. I suppose I’d own it after 5 yrs and could sell it, but then I’m paying maintenance.

I’m going to contact all the WI and IL dealers next week to see who will pay the most for my current lease and who will cut a deal on a new X1 as I think y’all have suggested.

Stay tuned!

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Your assumption here is flawed. The payment might seem the same, but the dealer is probably rolling. equity from your existing lease into the new deal.


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The flaw is that he can probably improve the deal by independently selling the old car and leasing the new one. And I would repeat my recommendation of taking an equity check along with a higher monthly payment, rather than using the equity as a CCR.

However, I agree with him that the net result of leasing the new one is better than buying out the old one. At the very least, the new lease will have a full warranty and brand new tires & brakes. Also, depending on his state, tax laws could be more favorable on a lease (eg. on a California lease you only pay tax on the payment, rather than full value of the vehicle).

As one of the other posters said, there’s a lot better options than purchasing a 3 year old x1.

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Ok, this is very simple. Before you do anything else, plug your car into Carvana, Vroom, and Autonation to get buy quotes from them. Do NOT check the box saying it is a lease. Just say you own it outright. THEN, find out what your CURRENT PAYOFF is on your car. Report back here with the payoff and the purchase offers.

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Probably, but it appears OP is also payment shopping.