Hey everyone! I searched the forum and I know they was asked before but wanted to make sure the information is correct
Currently leasing 2021 BMW X3 from South Florida dealership.
10k/36 months
Buyout price is $27,500
Carvanna is offering $29k
Lease expires 08/2024
Situation
From my understanding, I have to go to the dealership to buy out my lease in Florida. What am I expected to be charged in addition? Dispo fee ($350) including sales tax (7%) to buy the remaining portion.
If we find another BMW from another dealership or from another state, do I need to pay sales tax again? Does it need to be at the same dealer to avoid sales tax?
If I go to the same dealer, price match Carvanna - and do a “trade in” then no sales tax? What other fees can I expect to avoid?
What is the best way to get out of a lease early and into another car with BMW?
Thank you so much and please let me know if I can provide any additional information.
I am in the same boat. 21 X3si. 36/12k buyout $28300 end of November. S Carolina lease. Buy out has to be at BMW dealership. Additional $55 paperwork fee to get title. No disposition fee due to buying car. No sales tax in SC, but do get taxed on property owned each year based upon value. Vroom offering $33300, so have some equity even after 3 remaining payments. Regardless, leasing new is out of my budget even with the equity. Not much discount, little manufacturer incentives, decent residual, but lousy money factor. Would have to put down full MSD’s in order to make it even come close to working. Good luck.
Agreed - I am pricing an X5 is ~$800/month and X7 is a cool $1,200+/month
What do you factor when you decide how much equity is enough to get you out of the current lease, dispo (or not), paperwork etc? How much buffer should I keep in general?
If you have equity, sell it to the dealer would be the easiest IMO, no tax no disposition fees at least in California. If it’s through BMWFS, they will cut you a check pretty quickly. You can do a lease transfer and ask for the person taking it over pay you a lump sum, it is also fairly simple.
About 3-4 months ago, I had about $5-6k in equity on my BMW after an offer from Carvana. I normally don’t put anything down on a lease except 1st mo and nominal feels ($100-200). I called around searching for the same vehicle planning on putting the equity into the new lease. ($5000 equates to roughly $140/Mo). I was going to drop down in miles from 12k to 10k which is about $15-18/mo. The car MSRP probably increased about $1500 from 2021. You pay about 45% on options in a lease. I figured a “wash” with the lower mile change? The new lease price was still approximately $170/mo higher than current lease? The 1% rule is now closer to 1.5% and higher. 1. % off MSRP sucks. 2. Incentives are average at best. 3. Residuals are not great. 4. Money factors are horrible. At the end of November I will be buying out my lease unless something in the automobile market changes, which it won’t. I have no other choice. Good luck in your search.
Unfortunately, other than a data point or perhaps negotiating point, the Carvana and Carmax quotes are useless. They can not buy out your BMW. Any BMW or autonation dealer can buy out the lease and you would get a check for any equity assuming there is some.
There is no reason for you to buy out the lease and sell it yourself unless your personal buyout and a Carvana/Carmax offer was somewhere in the 5k+ range. If you do go this route you would have to pay sales tax, title the car in your name, register it etc, and then hope the Carmax quote didnt tank. Take the easy road here.
Keep the two transactions separate. Sell your current car and get into a new car on two different deals. Dealers love to play games and will make it look like they are doing you favors offering a higher buyout or trade in, when they are moving money from column a to column b.
In todays market, leases are terrible. Look into perhaps a lease extension as well to see if it makes sense. An X3 lease these days is in the high 7-low 1000s on a sign and drive depending on trim and features. If you have “free” equity money you can use that, but be prepared for some serious sticker shock. Don’t forget the infamous S FL dealer fees to add to your overall costs. Depending where you are in S FL, I know a lot of dealerships (looking at you Delray BMW) jack up the money factor too.
