BMW M340 Lease ends in 5 months, buy it now or wait


I am in S Fla. My 2020 M340 lease ends in 5 months, right now I can only sell it a BMW dealer and they won’t pay more than the lease buyout, I am considering buying it now while the interest rate is apron 2.49%, and then , even tough I pay sales tax, I will be able to sell it to anyone.

I have a deposit for a BMW I4, car will be arriving hopefully around October, at that time I can try to sell my M340 to anyone or trade it in to BMW dealer.

If I sell it to anyone I have to recoup the sales tax, if I trade it in at dealer I save sales tax on the trade in value.

Car has only 12,500 miles, has an MSRP of $65k ion 2020 and is in great condition, what do you recommend I do? I don’t want to just turn it in at lease end, I want to recoup some equity.

If your new car is scheduled to arrive around the same time your current lease is ending then I’m not following at all why you would buy it out now. Is it just because rates are low and you’re worried they’ll go up?

If so then that doesn’t make much sense, especially if you’re just buying it to flip. Even if rates double you’re hopefully only paying for 1-2 months of interest so minimal in the grand scheme.

Basically I don’t see any reason to buy it out now if your goal is just to sell it in a few months. Waiting gives you options, whereas buying it now you’re stuck (especially worrying with only a breakeven offer currently).

See what the market looks like in 5 months. Might be able to sell it to a dealer for more, or worst case if the market goes down just turn it in. Could also extend your lease since you have another on order, etc.


Interest rates is part , but also to be able to sell it to anyone, right now my only choice is to sell it to a BMW dealer and they don’t offer more than pay off. If I buy it today with current interest rate, in November 2022 my balance will be $ 40,839, if I wait for lease end my residual with tax will be $ 42,968 or $40,614 without tax. So if I buy today and want to sell it in November I need to sell it above $40,839 to anyone, carmax, caravana, anyone.

What has been your highest offer from 3rd party buyers?

I’m still a little confused - it’s a lease, right? So you can simply trade it in when the i4 arrives, and that’ll even waive your disposition fee. What’s the reasoning behind wanting to buy it out at all, unless you want to keep it? Do you even have positive equity? Even in this nutty market, many leased BMWs don’t due to their inflated residuals.

$ 45, 000 online

What is your current payoff after taxes? You might not have much equity in it.

I don’t follow your logic. Why would you pay sales tax now to save on sales tax when you trade your car towards an I4? If there is no equity in your 340i now it’s very unlikely that your car will gain value 6 months from today.

Is that $45000 an actual offer to buy (Carvana, Vroom, etc) or just a KBB value? Are you able to sell the car today if you got the right price or do you need it until your new car comes in? If you still need the car - why not wait until you’re ~30 days out and then see what car is worth then? In this market a lot could change in 5-6 months.

$45k real cash offer,. But bmw won’t allow me to sell to anyone except dealer.

I won’t just drop it off at dealer when lease ends, I want to get some cash, if I wanted to buy a M340 similar to mine in options and mileage, I’d have to pay over $50k.

There is equity now, but BMW dealers won’t pay it, others will.

the end goal is to obtain some benefit from cars equity, in order to do so I have to own it or trade it in at a BMW dealer. BMW dealer won’t pay anything over BMW financial pay off, they realize 100% of the equity, I want some of it.

Are you trying to sell your car now or not until your new car arrives in Oct?

If you’re trying to sell now, then shop it with other BMW dealers.

But if you’re not trying to sell until your new i4 comes in then it doesn’t make sense to do anything now.


Care to answer? It will help determine whether you have any equity.

$45,000 - current payoff with taxes = Equity.

I can do the math, but I want to keep the car until I4 arrives, is not looking good, may be end of year.

I will wait until I have a better idea when I4 May come in

I’m out. Good luck selling the M340i


Thank you all for your responses

Can you please mention your buyout today?
And also the residual at the end of lease.
People will be able to help/advice you better.

Buy out today (good until May 10) $ 42,073 w/o tax, and $ 44,597 w/tax
Residual in 4 months $ 39,235 w/o tax, $ 41,589 w/tax

BMW Dealer where I ordered I4 offered $ 43,500, another online place offered $45,000 without seeing the car.

KBB says Trade In value $ 48, 229, private party sale $ 54,353

How hard is it these days to sell it by owner, I could buy it, pay sales tax and be at $44,597, sell it for $49,900 ? are people buying used cars from private sellers?

Sell by owner has never changed really.
There are ups and downs and dealing with $50k in CASH can add a little bit of danger.

That’s why people like selling to the dealers, no danger in there.
And why would someone pay you $49k when Carvana is selling it for the same price?

I know selling by owner is a PITA, but it doesn’t have to be cash, a person can finance with their bank or credit union and get a check or direct deposit, etc. As to why would someone buy from a private seller vs carvana? why not? I probably rather buy from the original owner that has kept the car in a garage than from a used car lot. The thing is I do not want to deal with placing ads and showing the car, etc etc.