This is helpful. Thank you for posting. My 2018 BMW 340xi lease is up next month (11/09/21) in CT. Will be attempting to see if local CarMax will purchase. The same statement from post above is on my payoff document. Planning on having CarMax call BMW FS for payoff. Sold leased 2019 Volvo XC40 back in April 2021 so hopefully will work again for leased BMW.
Bmw is no longer allowing 3rd party buy outs. Carmax is aware of this and will tell you that when you tell them it’s a lease.
likely worthless.
Thanks for the great tip regarding the 10 days. Did that work? I have a lease that is due end of December and I ma getting an offer for $2,000 over the payoff amount.
2k is a bit iffy with all the hoops you have to go through.
I ended up selling the car directly to CarMax before BMW FS completely pulled the plug.
You can study this thread if you are interested in the flip route. But I agree with forbs, depending on how much you value your time, $2k might not worth your effort to jump through all the hoops with DMV.
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BMW wants $26k payoff for my 2019 X2 lease. CarMax is offering $34k. Is it worth buying from BMW Financial Services and flipping to CarMax?
I am thinking of doing the same. One option to explore is selling to a bmw dealership. Some might be open to buying leases
I supposed you need to pay tax on the 8K profit? 34K - $26
Let’s no confuse recouping expenses with profit.
Depending on your state, I believe you pay taxes on the the 26K. If its NJ, let’s just say 7%. Deduct $1820 from the $8K net. So you’d walk away with a equity of $6180.
If the payoff is 26K that should be after tax? (residual + tax = pay off amount?)
I was wondering if the 8K is taxed at the end of the year like income tax.
I’m in a situation that BMW wants $32,700 payoff for my 2019 430GC. Vroom is offering $34200. The car is over mileage and I need to pay ~$1300. Is it worth buying and flipping for 3K?
Or find a dealer that will consider matching less the tax you’d pay on buyout to make your life easier.
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Just called BMWFS and yup learned they pulled the plug in October. Now can only sell to bmw dealer without having to buy it yourself first.
MyCarAuction is a way around this. They will buy the car with a lessor released title.
Quick question, for those who had a positive equity from selling their leased car, will we have to pay income tax on the profit ?
I sold my leased bmw few months back and make ~11k profit from positive equity. I’m in IL.
If anyone needs help, we’re able to buyout BMW FS leases and cut checks for positive equity. Anyone can shoot me a PM or email me (thomas@autoleaseninjas.com).
That is a question you should being up with your cpa. You should also be sure to recognize that profit and equity are not the same thing.
Personally, it’s not worth buying and flipping for $3000. Once you factor in tax, the $3K reduces. Based on your tax rate, you could only be saving about $1500-$2000. It’s a to each his own situation to buyout and resell for $2000. You might end up paying fees to buy out also
That’s assuming the 32,700 doesn’t include taxes and fees. A lot of payoff quotes already include that. So if the 32,700 is the final price, why not? It’s probably not that much effort to buy it out. A half day of your time for a $3000 difference. The only issue I see is that when you buy out you’ll have to wait for title and what not so your quotes will probably expire.