# BMW I5: Trade in a vehicle towards a lease? **URL:** \ **Category:** Ask the Hackrs\ **Tags:** va, bmw\ **Created:** [December 11, 2023, 12:12am UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831 "2023-12-11T00:12:01Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Jordan4606](https://leasehackr.b-cdn.net/letter_avatar/jordan4606/32/5_5575768a8748004e209b776fc1b2916d.png) [@Jordan4606](https://forum.leasehackr.com/u/Jordan4606)\ **Post date:** [December 11, 2023, 12:12am UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/1 "2023-12-11T00:12:01Z")
Hello, I’m looking to lease a new BMW I5 and will be trading my truck in towards it. I’m thinking I should get about 17k in equity to reduce the payment. Is it normal trade a vehicle in towards a lease? ---
**Author:** ![mattsrs](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/mattsrs/32/70914_2.png) [@mattsrs](https://forum.leasehackr.com/u/mattsrs)\ **Post date:** [December 11, 2023, 12:15am UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/2 "2023-12-11T00:15:05Z")
Put that $17k in your pocket and invest it elsewhere. Paying down payment for a lease is not wise.Why? Read more [here](https://www.realcartips.com/leasing/0314-dont-put-down-payment-on-car-lease.shtml) ---
**Author:** ![Batistuta](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/batistuta/32/70364_2.png) [@Batistuta](https://forum.leasehackr.com/u/Batistuta)\ **Post date:** [December 11, 2023, 12:23am UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/3 "2023-12-11T00:23:12Z")
Sell your truck separately to the highest bidder. ---
**Author:** ![EC99](https://leasehackr.b-cdn.net/letter_avatar/ec99/32/5_5575768a8748004e209b776fc1b2916d.png) [@EC99](https://forum.leasehackr.com/u/EC99)\ **Post date:** [December 11, 2023, 12:26am UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/4 "2023-12-11T00:26:24Z")
With rates where they are, reducing the lease financed amount might make sense some times. But if you were going to do that you would want to do a one pay lease. That way, for most automakers, if the car is totaled or stolen you don’t lose your down payment. As a side note, there can be tax benefits of trading your car in in some states. But you don’t have to worry about that consideration in Virginia cause Virginia taxes equity from your trade in. ---
**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\ **Post date:** [December 11, 2023, 1:00am UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/5 "2023-12-11T01:00:03Z")
MSD or one-pay would be a better use than CCR. Or keep the $17k in the bank to buy out the car. ---
**Author:** ![Jordan4606](https://leasehackr.b-cdn.net/letter_avatar/jordan4606/32/5_5575768a8748004e209b776fc1b2916d.png) [@Jordan4606](https://forum.leasehackr.com/u/Jordan4606)\ **Post date:** [December 11, 2023, 1:19am UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/6 "2023-12-11T01:19:38Z")
What’s MSD and CCR stand for? ---
**Author:** ![Batistuta](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/batistuta/32/70364_2.png) [@Batistuta](https://forum.leasehackr.com/u/Batistuta)\ **Post date:** [December 11, 2023, 2:04am UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/7 "2023-12-11T02:04:21Z")
Multiple security deposit and cash conversion ratio. ---
**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\ **Post date:** [December 11, 2023, 2:53am UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/8 "2023-12-11T02:53:24Z")
> [@Batistuta](#): > > cash conversion ratio. Capitalized (“Cap”) Cost Reduction. Colloquially known as down payment ---
**Author:** ![Ursus](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/ursus/32/4944_2.png) [@Ursus](https://forum.leasehackr.com/u/Ursus)\ **Post date:** [December 11, 2023, 3:35am UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/9 "2023-12-11T03:35:11Z")
> [@EC99](#): > > But you don’t have to worry about that consideration in Virginia cause Virginia taxes equity from your trade in. Put equity into MSDs. ---
**Author:** ![Jordan4606](https://leasehackr.b-cdn.net/letter_avatar/jordan4606/32/5_5575768a8748004e209b776fc1b2916d.png) [@Jordan4606](https://forum.leasehackr.com/u/Jordan4606)\ **Post date:** [December 11, 2023, 12:18pm UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/10 "2023-12-11T12:18:56Z")
Do you think that’ll really make a big difference in the payment? And, whenever I get rid of the car, do I always get that money back? Regardless of how I get rid of it? i.e., trade it in, just return it, or buy it out? ---
**Author:** ![HersheySweet](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/hersheysweet/32/201247_2.png) [@HersheySweet](https://forum.leasehackr.com/u/HersheySweet)\ **Post date:** [December 11, 2023, 12:57pm UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/11 "2023-12-11T12:57:18Z")
Yes, depends on the condition of the car if you get it back, and to the last 3 yes. ---
**Author:** ![Jordan4606](https://leasehackr.b-cdn.net/letter_avatar/jordan4606/32/5_5575768a8748004e209b776fc1b2916d.png) [@Jordan4606](https://forum.leasehackr.com/u/Jordan4606)\ **Post date:** [December 11, 2023, 1:18pm UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/12 "2023-12-11T13:18:45Z")
Thank you. If I put the trade into MSDs, that won’t reduce the cap cost so my tax bill would be higher, right? ---
**Author:** ![Jordan4606](https://leasehackr.b-cdn.net/letter_avatar/jordan4606/32/5_5575768a8748004e209b776fc1b2916d.png) [@Jordan4606](https://forum.leasehackr.com/u/Jordan4606)\ **Post date:** [December 11, 2023, 1:27pm UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/13 "2023-12-11T13:27:20Z")
Is there a way to calculate how the MSDs affect the monthly payment? ---
**Author:** ![HersheySweet](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/hersheysweet/32/201247_2.png) [@HersheySweet](https://forum.leasehackr.com/u/HersheySweet)\ **Post date:** [December 11, 2023, 1:39pm UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/14 "2023-12-11T13:39:54Z")
Correct. > [@Jordan4606](#): > > MSDs affect the monthly payment? For BMW each of the 7 possible MSDs reduces MF by 0.00006. If you take a car you find at a dealer, and input your rebates in the calculator - sourcing MF and RV from RateFindr, take a look at the discount and see what discount you’d need. I’ve seen very high initial discounts on the i5. Speak to @SSmith and he might be able to hook you up as he’s close to you. ---
**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\ **Post date:** [December 11, 2023, 7:06pm UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/15 "2023-12-11T19:06:13Z")
> [@Jordan4606](#): > > Thank you. If I put the trade into MSDs, that won’t reduce the cap cost so my tax bill would be higher, right? Virginia taxes the selling price; it doesn’t matter what your cap cost or payment is. ---
**Author:** ![Jordan4606](https://leasehackr.b-cdn.net/letter_avatar/jordan4606/32/5_5575768a8748004e209b776fc1b2916d.png) [@Jordan4606](https://forum.leasehackr.com/u/Jordan4606)\ **Post date:** [December 11, 2023, 7:26pm UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/16 "2023-12-11T19:26:39Z")
Oh YIKES! That could be real painful. ---
**Author:** ![HersheySweet](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/hersheysweet/32/201247_2.png) [@HersheySweet](https://forum.leasehackr.com/u/HersheySweet)\ **Post date:** [December 11, 2023, 7:55pm UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/17 "2023-12-11T19:55:37Z")
It is very painful - there’s a reason many VA ppl don’t lease or their payments are significantly higher - plus correct me if ur wrong but ur FS will still bill you for that prop tax. ---
**Author:** ![Jordan4606](https://leasehackr.b-cdn.net/letter_avatar/jordan4606/32/5_5575768a8748004e209b776fc1b2916d.png) [@Jordan4606](https://forum.leasehackr.com/u/Jordan4606)\ **Post date:** [December 11, 2023, 7:57pm UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/18 "2023-12-11T19:57:03Z")
Well thankfully I’m 100% w/ the VA and my spouse is active duty so we don’t have to pay the luxury tax the City of Alexandria charges. ---
**Author:** ![max\_g](https://leasehackr.b-cdn.net/user_avatar/forum.leasehackr.com/max_g/32/9426_2.png) [@max\_g](https://forum.leasehackr.com/u/max_g)\ **Post date:** [December 11, 2023, 8:37pm UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/19 "2023-12-11T20:37:32Z")
Are you planning to buy out the I5? Getting into a cycle where you keep paying sales tax on the full value of the vehicle every 3 years, that’s pretty painful. ---
**Author:** ![EC99](https://leasehackr.b-cdn.net/letter_avatar/ec99/32/5_5575768a8748004e209b776fc1b2916d.png) [@EC99](https://forum.leasehackr.com/u/EC99)\ **Post date:** [December 11, 2023, 8:42pm UTC](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831/20 "2023-12-11T20:42:18Z")
> [@Jordan4606](#): > > my spouse is active duty Can you say your domicile is somewhere else? I don’t know many military folks in NoVa with Virginia tags on their cars. For some reason they are all from Florida 🤣 [Next page](https://forum.leasehackr.com/t/bmw-i5-trade-in-a-vehicle-towards-a-lease/514831.md?page=2)