Leased BMW X3 M40i bought out on residual

Here’s an option when you can’t find a new car to lease.

I have leased 7 BMW X3sand X5s during the past 25 years in CA. My X3 M40i lease was up and I wanted to order and lease a X5 45e. The MSRP was 66,000. I sent my specs and terms to 5 dealers 4 in AZ where we now live and my old one in SOCAL. NOT ONE dealer came in without adding at least $6000 to $16,000 over MSRP and insisting on 5000 down. Never have I put anything down in the past. Plus no guarantee when it would come in. I refused. I spoke to BMW financial and they said they are hearing that complaint. My residual on my loaded 2019 X3 M40i was $36000 with 23000 mi. So I bought it. 2.7 % interest and payments are 759.00. Nothing down through USAA. Similar vehicles are on auto-trader for $57,000. I’ll just wait this out before I get a new one. I refuse to be ripped off. Hint: get the financing yourself and then pay it off - rather than going thru your bmw dealer. I have done both and now see where I paid far more for the residual with a former leased bmw thru the dealer than if I did this time myself. It was easy also.


I refuse to be ripped off :clap::clap:.

Well done, don’t feed greed.


AZ dealers are terrible but you should be able to find the 45e at MSRP in CA if you put some effort. @BMW_Dave had a 45e slot at MSRP couple weeks ago. If you truly have this much equity in your car you should consider taking it because it will evaporate.


This is so true and if you buy your lease out you just lost a large chunk of your equity in sales tax. Also, I do have two more build slots available (at MSRP with no markup). In case anyone is interested. Call, text or email.

Dave Townsend
951-440-2483 call or text


Never thought of this option. Appreciate the guidance :roll_eyes: lol


you guys took great care of me on my 2017 m240i purchase… enjoyed that car

in the same boat. just regretting eating $3k in taxes to hold the car another year before the warranty expires.

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Extend the warranty and amortize those taxes over a longer period

Realistic chance things aren’t much better in a year.

“we’re calling about your cars extended warranty”

really considering dumping all my equity into a new one. well not literally since it doesn’t make sense to put all that money into a lease. use the cash to cover my first 8 payments or whatever the math works out to

If you can find a decent lease :+1:t4:

But otherwise a bad lease is a bad lease, regardless of where the cash is coming from

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its just me accepting that normally my car would have zero equity

Dave, would you recommend selling to a dealer in this environment?

That’s probably your only chance because Vroom and Carvana will lowball you. The problem is that dealers know that and won’t likely offer you much more unless you have a very clean and desirable car.

Actually Vroom and Carvana and CarMax are highballing people because they know that the manufacturer’s aren’t accepting third party payoff. So the offer from them is irrelevant (unless you buy your car first). If you lease a BMW and you sell it to a BMW dealership, you may get a little less than what the “other” stores offered but you get all the money/equity.


I know what you mean, BMW dealer will typically come a little below Carvana but still better when you account for sales tax. Maybe I got a little lucky when I sold my BMW about 2 weeks ago but I ended up getting a better offer from my bmw dealer. I started the process mid January when I got 58K offer from Carvana and 53K from Vroom. The BMW dealer where I used to service the car came at 56K which was pretty good given no sales tax. I was able to get another BMW dealer to beat Carvana’s offer by a few bucks. Meanwhile my Carvana offer expired and their new offer was 53K. Vroom’s offer at the same time was 49.8K. I ended up selling to my BMW dealer for 58K which is equivalent to 62K 3rd party when you account for the sales tax savings. Vroom has always been too low for me. 2 days ago I got a Vroom offer for a 2020 X5 m50 lease that I was looking into taking over, but it came with negative equity after sales tax which was a little surprising for an SUV.

Quick question - I bought out my LR few month ago for the same reason and now looking to get back into a new lease. Are you guys saying that if I sell my my car to the dealer I will not need to pay taxes? I thought I paid taxes when I bought out the car?

In California, if you purchase and then immediately resell, there’s a path to recouping the taxes paid from when you bought out the car. Since you bought out the LR months ago, you’re long past that window.

I’ve had a lot of customers tell me they were going to go this route and sell to [enter third party buyer here] (instead of selling me their car at what they though wasn’t a fair offer :roll_eyes:). All I can do is shake my head and think to myself…best of luck! Getting anything “recouped” from the state of CA is a pipe dream at best. Bird in the hand is worth two in the bush. That phrase says it all in this situation.

There have been several folks here that have been successful in doing on. Agreed that it is much more painful that most people think though.

I know it can happen. But there is still a value to convenience and the state of CA is not known for their sense of urgency in anything. :rofl:

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