Hey everyone! Forst post here so please bear with me. I’m looking at getting a lease on a BMW through my local dealership however I don’t plan on keeping the lease for longer than 3-6 months and will buy it out to sell. So I had 2 questions regarding this:
How will the early buy-out affect my buyout price? Will they want a higher purchase price or tack on fees, or other added items if I initiate an early buyout a few months into the lease?
Also, a friend of mine told me that in California, you don’t have to pay tax on the purchase price if you are buying to sell and I wanted to know if that was accurate and how that works?
Would appreciate some guidance on these topics if possible!
just use the leasing calculator to estimate how much you will owe after 3-6 months of payments on the lease.
If I remember correctly bmw FS does not charge you sales tax when you buy out the lease.
You will get a title that is “released to you” from BMW FS as they owned the car.
When you re-register the car under your name DMV will calculate tax owed.
If you want to flip a car, most business/dealers will not accept the released title. So you will need to pay bmw off, register the car in your name, pay sales tax at DMV to get the clean title. THen you can sell the car.
If you are selling private party, you can get the other person to pay the tax when registering. Pay off bmw, get the released, instead of signing it under your name, you can sign it over to their name on the back. They take the released title from bmw and register it at dmv and pay taxes/registration.
Awesome! Thanks so much for all the info guys. I’m still trying to figure out which path to go down but the least and buyout just seems like a headache and issues waiting to happen with all the restrictions rn. Only reason I was considering this is because a friend could get me a car at MSRP without a markup and that would have given me enough of a leg up to break even or be a potential moneymaker but need a lot more research into it
