I have two questions as my lease is ending on my 2021 BMW x4 m40i and I’m debating keeping this one, or buying / leasing a new one. The '21 car market was very different than right now, so I’m trying to get up to speed.
Question 1: How to negotiate fair value of my end of lease equity?**
Current residual value is $37k based on end of lease paperwork.
The dealer I got it from is willing to give me $48k for it and put towards a new one.
KBB is saying the car is worth ~$50-55k - perfect condition, garage kept, 12k miles on it.
I used LeaseHackr and they said ~$50k.
**Question #2: Are there any discounts off MSRP for new X4m40is or X4M?
Given where the car market is, I’m not clear on discount levels. On this forum, in reviewing brokers, i’m seeing ~3% discounts on x4m40is ~70k MSRP and on x4M models nothing.
The dealer was willing to give me $1k as part of loyalty program and they matched another 1k it for $75k MSRP 2023 x4m40i.
Early days of research to debate keep and buy current car, lease a new one, or buy a new one. Thank you.
I would separate the selling of the old car from buying the new car. Newer X4s are significantly more expensive than they were in 2020, especially with the lack of incentives compared to past years.
As for where you sell it, I’m not sure if Equityhackr uses dealership payoff or your payoff. If the dealership is giving you $2,000 less, it may end up being the same amount of cash in your pocket because the dealership payoff is pre-tax.
You are spot-on with about 3% off on a new one. The X4 is not easy to get, and allocations are few and far between. You’re going to spend a lot of money on the lease, and a purchase may be better on this. However, you’ll have to worry about maintenance and warranty on the old one, and eventually maintenance and warranty on a new one (if you keep it past 3 years). It’s a tough call, but if you’re not married to the X4, you can do better on an X3, and the MSRP is lower too.
If you’re just going get the same car probably makes sense to just buy it. If you want to get into something different then I’d take the money and run. For most of us if something no longer leases well we move onto something that does.
Thanks for the insight. They gave me a deal sheet for a new lease and this is how they factored in my lease equity (I think they are factoring in the tax). Residual Value is $37k (I know this from my lease terms), Trade Pay off they wrote $39k and they are giving me $48k as “Trade Allowance”- So basically less than 10k of equity. The MF they are using is also .0023 (unclear if this is high) - a moot point given I’d rather finance if I buy a new one or if I buy my current one outright. But trying to see how much they are swindling me. I am tied to the X4 as I love it, I’d consider an X4M or an X6 - but not sure they are any better on incentives or discounts.
Have you run the numbers? Is going to be a bloodbath.
If you open something different then find a vehicle that leases better and cash out the equity in the x4. (what I meant by take it and run). That 300 a month towards your next lease.
Thanks, I may just outright buy my current car and wait- I don’t think the value will depreciate significantly in the next year or so. Thats really my debate now, don’t think I want to do another lease - I don’t drive too much but love cars - the $ overtime isn’t worth the amount of time I spend driving. So the debate is - do I buy my current car or buy just a newer version of it. The lease #s they quoted me were
Hello
I’m not getting straight answers from dealers in Pa on what current finance rates or manufactures incentives are for 2024 BMW x4M are for August.
It would be approx 90k MSRP with competition package that I’m looking for.
My lease is up in October on my x4m 40i so debating if I buy it outright or buy a new x4m. I have equity in the lease. Residual 36k vs market value of 50k+ with 13k miles.
Questions are
What are the manufacturers incentives on x4m
Discount levels to buy - same or diff from leases?
