BMW negative equity - in a lease?

Hello, first timer here. I have a 2021 BMW 530i xDrive coming off lease with BMWF in August. I went to the dealership since they want my car (12k miles under). The payoff amount is $37k before fees/taxes. I would like to lease a 2023 same car, coming off being a loaner with 8K miles. The reason is because the extended warranty/maintenance on the 2021 is $8k if I purchased it at lease end. That’s not the issue.

They are telling me that the ”trade-in” for my 2021 is only $30,000, so if I lease another car, that negative equity of $7k would be rolled into my new lease.

  1. I didn’t know leases had “negative equity”.
  2. I’ve been leasing for 15 years and the ending leased car was never referred to as a “trade-in” for the next leased car.
  3. The lease end and a new lease were considered separate transactions, now this appears together?

There is no negative equity if you turn it in in August. If you want to turn it in early, then there may be.


Good point, it would be $2,500 for those payments. But the salesperson said they’d cover them.

Tried AutoNation, CarMax, etc?

A couple diff sites said $35k for “trade-in”. There are four 2021 same car, on their lot for $45-47k sale price, these are for purchase, not lease.

I don’t understand what changed now from just turning in the car, then getting a new lease on a newer vehicle. I’ve always done that. If I don’t lease another car, would I owe the $7k?

I’m not adept enough to sell a car on my own. Just stating the facts.

No, you won’t owe anything unless there’s excess wear and tear at lease maturity. No need to pay 7k regardless even if everything else makes it irresistible to get that 2023 when your next 5 pmts only add up to 2500. Have a family member you like and trust who may use this car until August?

Lastly, that dealer doesn’t want your car, they want to unload the 2023 before the end of lease of support currently set at 3/31.

1 Like

Oh, trust me, you’d be the one covering them. Probably multiple times.

Your instincts for coming here, creating an account, and starting a thread are correct.

There’s a lot to dissect in your initial post, but first and foremost they’re asking you to do an early termination at considerable expense to you (read your current lease agreement for how the costs – essentially penalties – are calculated).

They do not want your car, they sense that you may be catastrophically uninformed and smell blood in the water.

The most basic way to protect yourself here is to finish out the lease, turn the car in, and get your next one from a broker. Block this dealer’s number.


You aren’t wrong. I’m naive. Something doesn’t feel right at all. That’s why I searched out this site in the middle of the night to figure it out. : )

I’m perfectly fine keeping my car until it’s due. The salesperson told me they’d take care of the last months, etc. I keep my cars in excellent condition, so it’s beautiful.

Thank you for your direct honestly. I need to put some questions together, I’m speaking with the sales person in the morning.


It breaks my heart to see people getting screwed like this. You see it coming, so PLEASE go with that instinct and take some time to determine the next step.

This is probably the most important thing I posted:

We’re here to help you with your questions, and we have no profit motive.


Thank YOU!

1 Like

Don’t speak again with the salesperson. He doesnt have your interest period. This is what you should do:

  1. Determine if you have equity on the car. The way to do this is simple. Check your current payoff amount, get the vin number and get a quote from carmax, carvana, autonation etc.

  2. If you have equity, sell your car to the highest bidder. Come back here and find a broker to help you get a deal on a new lease

  3. If you dont have equity, ride out your lease, turn it in. Come back here and find a broker to help you get a deal on a new lease.


Why? He’s already proven he’s not being honest with you.

You can get it for a lot less than that.


Start your search in July, find a new lease and return your current car in August. Problem solved.


If ordering another 5er I’d say do this in May.

1 Like

Yes, ordering would make a difference but looks like they want a loaner.

1 Like

There won’t be lease support on 2023s in July but the prices are likely to drop a bit so purchase might be an option.

Make sure you test drive new body style '24 5 series before committing - it is a much bigger car than your 2021. You may be ok or may want to switch to 4 series which would be slightly smaller.

In any case, come back here to look at the marketplace for the current deals when ready.


This is interesting because my cousin is telling me a similar story. Not that they’ve asked her to turn in her RAV4 early, but she is under the impression that when she turns the car in and say doesn’t lease another Toyota, if they can’t sell it for the residual, she’ll owe the difference. Told her I’ve been leasing for 30+ years and have never heard of this.

1 Like

It makes no sense to trade in your car and eat $7K if you only have 5 payments left. If you are dead set on the 2023 loaner, then just make the last 5 payments and turn in the car early.

The problem here is the dealer is not being honest with you. The only way to combat this is to tell them the deal YOU want, not take the deal they are offering.

Personally I don’t think getting out of your 2021 early for a loaner 2023 is a good idea especially if your 2021 is in good shape. In 5 months there likely will be similar deals on 2024 models as the 2025s start to roll out.

Do you like the 2023 interior layout better than the newer 2024 layout with the wide screen ( I know I like the older layout better)? What is driving you to the 2023 vs 2024 model?

1 Like

What does the contract say?

1 Like

Probably dealers scaring customers who don’t like to read their contracts and make them sign new leases with this.