BMW X3: Maximizing lease exit value

Ask the Hackrs
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1

Hi all,

Few questions, hoping you guys can help me think through.

The car:
-2021 BMW X3 M40i on 3/30k lease with 12 months left

  • sticker was ~$65k
    -15,500 miles on car, so approx 1,300mi/mo left
    -end of lease buyout value (RV) is $35k, private market offers on car are $47k today

I don’t need the car anymore (just bought new C8 Corvette and we already have a second car) but I want to maximize the value I get from the car and it still has 12 mo on the lease.

I’m trying to better understand my options and would love some expert input:

  1. Transfer the lease (my payment is ~$560/mo so I think I could get $2-3k in DAS from whoever takes it)
  • this option seems like it has the least headache and tax complications but feels like I’m leaving lots of money on table
  1. Buyout the lease early, sell to BMW dealer (I can’t get my current payoff number because they just did a freakin recall)
  2. Buyout the lease early, pay cash myself, then sell to 3rd party (current offer is $47k)
  • live in illinois so I have to figure out tax implications and whether I’d still have to pay sales tax even if I sell the car immediately after buyout

Given that the car has been driven so little and there is so much equity left in the car, trying to figure out what my best option would be.

I tried to calculate the payoff offer myself based on the Adjusted Lease Balance but I honestly don’t understand that equation (if anyone can explain that I would appreciate)

Which option would you go for if you were me? Am I thinking through this correctly?

2

What is the current buy out from the bmwfs portal?

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3

If you buy it out to resell it, you have to pay taxes on the buyout. California is the only state with a resale exception.

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Thanks for quick answer- I need to get another service done to get recall lifted from car, they won’t show me the payoff number until this is done.

Was hoping I could calculate it myself with information in lease agreement but struggling to understand adjusted lease balance formula.

5

Adjusted cap cost - number of payments made * base payment amount + taxes/fees

Base payment is the depreciation portion of the payment without rent charge / monthly taxes

6

The end of lease RV is 35k, not the CURRENT buy out. You need the current buy out to see if there really is any equity on the table. Get the recalls done and go from there, or call BMWFS and pretend to be a dealer. The private party values unfortunately don’t mean anything until you have the check in your hand. Selling to a BMW dealer could be way below the other offers you have gotten. Not sure if Carmax, Carvana, etc can buy out BMWs but look into this route as well. The used car market/trade in values are plummeting. Good luck though!

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7

Gonna guess that this will be a requirement for lease transfer too.

I think you could get ~$5,000 for a transfer … might be more than on a sale.

8

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This one doesn’t need a buyout.

  • Walk into a BMW dealer and ask if they want to buy your leased car and give you equity.
9

That would make for an effective payment of $1018 / month, right?

$560 per month + $5,000 + 500 Transfer fee for a 12 month lease?

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Got it, will get the codes cleared then get the payoff number and report back.

@max_g : you really think there’s $5k on a transfer with 12 months left? Would put the payment up around $950 a month…

Am seeing around $850 for new 2022 3/36 on signed/marketplace but I guess mine does have high mileage remaining?

11

Wouldn’t surprise me at all.

A shorter term is more attractive than a similar payment for a full 36 months, provided no major maintenance needs

12

We can buyout your BMW lease, send us an inquiry below and give us the opportunity to put a number on it :slight_smile:

13

I’m going to guess that your current buyout is right around 42K +/- 1K. Get offers from all the online platforms and have a bmw dealership in your area match your highest offer if you are okay with it. Probably the cleanest and easiest way to get your equity.

14

You should also take into account what you plan on leasing/buying next. I know certain counties in Illinois have very high tax rates on auto/leases. Going the trade in route may provide extra benefit this way. Just beware you don’t lose track of how much you’re actually receiving for your trade. Dealers often take trade ins as an opportunity to obfuscate the components of the deal.

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Better do it quick, used values aren’t getting any higher.

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16

Circling back for a quick update!

Buyout was ~ $41K from BMW, got offer from dealer for ~$47.

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Hopefully you can execute on it quick!

18

Car was picked up yesterday!

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