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.
Had no issue getting dealer payoff quotes from them a few months ago, but now they are stating that they no longer allow it? Has anyone else experienced this? Is this another consequence of the crazy market we are living through right now? I understand why they want to reduce competition and protect inventory now but really sucks to change policy on us like that.
Edit: This got moved from other thread. Seeing that I am not alone here.
Your choices are either buy it out yourself to resell (and most likely pay sales tax) or sell it to another BMW dealer.
I am in the process of buying mine out. Almost out of miles and I have offers from Carvana et al to buy it for more (slightly) than I owed to buy it out. Gets me a slight insurance savings as I’ve already acquired a replacement vehicle.
BMW FS has made this much more difficult than it needed to be. As a result, I just paid off the balance on a loan I had with them. I don’t want to support the company anymore.
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