DEAL CHECK 2024 M340i 12 months left. Is this a good deal?

[WoodyT]

@WoodyT

2024 M340I with 13000 miles, (30k allowed) only options are the premium package and 19” staggered wheels.12 months left on lease at 570 a month with 2k down. Buy out at the end is 35k (he put 13k down) Planning on buying the car at lease end then reselling to recoup some of my investment. I’m a first timer so any input is greatly appreciated. Be sure to specify your location when asking for input on a deal! Tagging by state (e.g. CA, NJ, NY, usa-nationwide) is mandatory.

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[Batistuta]

How much do you think you will sell it for? Is the car registered in VA currently?

[WoodyT]

Thanks for the reply, Batistuta. The current KBB for trade in is 46k based on it having 30k miles at time of sale. Obviously this number will decrease over the next 12 months but I’m thinking it should still give me a cushion. Maybe 43k? Would likely sell it to Carmax. If I could get back 5 to7k buying and reselling it would seem to be worth it? Right now it’s registered in FL but per my research VA will tax the remaining payments on the car at 10% as if it were a rental because it’s less than 12 months. Meaning I avoid the sales tax. I’m in sales so the approx. 18k miles left over the 12 months is ideal.

[gohawks23]

@WoodyT

Buy out at the end is 35k (he put 13k down)

What he put ‘down’ has no effect on the buyout…it just lowered the payment. The RV is set and based off MSRP.

Look on autotrader to see what similar age/mileage/optioned M340s are being listed for and take a few grand off to get estimate.

[Batistuta]

Only BMW dealers or dealers with BMW stores under their umbrella can buy your car. So keep that in mind as well.

[WoodyT]

Yes, understood. I plan on buying it myself and then reselling it. Good point gohawks23, down payment doesn’t affect value. . The 35k buyout looks quite low compared to current and estimated (2027) market value.

[gohawks23]

@WoodyT

I plan on buying it myself

If you do this you generally will pay taxes on the RV which could be a few thousand dollars.

[douglashowitzer]

Just be sure you’ve considered the disproportionately steeper annual depreciation once the warranty has expired.

[max_g]

Not sure that’s a thing

[douglashowitzer]

When I’ve looked at the values there’s a larger drop off after year 4. Maybe I’m missing something, but when I questioned it with some folks supposedly in the know, that was the suspicion they confirmed.

[WoodyT]

Appreciate all of the responses. It does have the 4 year 50k warranty so there will be 1 year and 20k miles left when I sell. I’m looking at 23’s with 30k miles to get an approx. value for this 24 next year to take into account depreciation. The taxes do make a dent in any potential gains. It looks like a realistic recoup of 4k or so if all goes well. Not a lot but it does get me my down payment back and a few thousand more. Totally different story if the market tanks.