I’ve already signed, seeking feedback but maybe just to make me feel better
My last two leases were through the help of this forum and were superb deals. Those probably aren’t coming back until 2023.
A few things about the M340i “deal”
I live in Texas. Full tax on the entire purchase price of the vehicle when leasing. Full tax AGAIN if you buyout at the end of the lease
My current lease was a 2019 BMW 440i with a buyout of $34.8k. Pre BMW preventing 3rd party buyouts I only had about $1k in equity. Fast forward and it’s now up to $5k. I have no way to get that out of the car as local dealers don’t want to offer me a buyout (lease is due back end of December). If I buy the car I pay full sales tax at just over $2k so $37k, wait for the title and hope the Vroom/Carmax offers don’t go down as we roll into 2022. Lots of risk for maybe $2-3k. Shopped the car to several dealers this was the best I got:
2022 M340i
Term:12/36
Selling price: $59,925
Discount: 0
Incentives: $1k OL, $1k loyalty
MF: max markup (fought hard they wouldn’t budge)
Trade Equity: Valued trade at $39.5k so close to $5k in equity
Drive Off: $925 initiation, monthly payment, MSDs
Monthly: 670
Total out of pocket over the lease term: Around $25k, roughly $5k more than the 440i I leased in the “good old days”
We initially had a few percent discount on the car and less on the trade. They moved it all to the trade to show they sold the car at MSRP and also lower the tax burden. Rolled my previous MSDs over and only paid the $925 initiation fee and first month, plus delta in MSDs (which i’ll get back)
Squeezed $5k in equity out of the old car (which I couldn’t easily do myself), plus $2k in incentives, plus $3k in tax saving since I live in TX and would pay full taxes if I gave the old car back and then leased something in a few months at a higher discount.
My way of looking at it that I saved nearly $10k which isn’t terrible. No fees or garbage add-ons from the dealer except the MF markup.
If handed the car back and waited, I’d score maybe 10% so $6k and hope for $4k or more in rebates to do significantly better.
Not a great deal, but maybe not terrible in current times. Thoughts on how I could have done better?
@IAC knows the local market better, but the good payment and #s comes from the fact that you have equity in the 440.
If you want to separate it out, you’re getting 6k+ msds at drive off, plus 670/month - that equity exists, even if you decided to roll it into this lease via trade in. You will be saving on taxation ofc (whoo texas), however you need to analyze if this is worth it.
Yup, completely know that it’s all from the equity in the 440i. I would have preferred to have cashed out that equity and sat on the cash, but no easy way to do that without buying the car, paying tax, praying that numbers don’t go down while I wait for the title to show up (through the holidays so who knows how long the state will take). Rolling that $5k into the lease and taking advantage of the tax breaks seemed to make sense in my unique case.
Chatted with @IAC but the hard part was finding a dealer to cash out the existing car. Tried two local dealers who wouldn’t give me more than $1k and the third who was willing to deal. Surprised the others were being so difficult since they could just buy it out and send it to auction and pocket the money.
Auction costs, transportation, if it sells for under MMR (unlikely, but who knows, my Altima didn’t even touch adjusted MMR back in July '20) when I sent it through auction. Theres Dallas, DFW, SA, etc. but whatever.
I know it’s a tough car to move, i’ve tried 3 dealers in the DFW area. This was the first one who didn’t completely lowball me. I happened to be in to get a tire fixed (they price-matched Discount Tire for me several months ago) and started chatting with a CA. I worked with this CA before and purchased elsewhere when they couldn’t make the deal happen, so maybe that’s what motivated him
More than happy to share my experience over email/text regarding specific dealers. One local dealer told me they flat-out wouldn’t give me more than $1k since they can buy the cars at the buyout price all day long. Another has been working on my “deal” for over a week even though they appear to have incoming inventory to sell.
Hopefully you get to move the other 2 F3xs at great prices, happy I could cash equity out of the car. Will definitely work with @IAC again when i’m in the market again.
Deal’s already done, you should really just enjoy the car.
Since ur insisting on feedback……here’s my take.
Is this a deal that you can brag about, not really.
Is this a deal to feel terrible about? Not at all.
You should be able to sleep at night, this deal is above average. A normal consumer is likely doing much worse today. An educated LH’er could do better with patience and working with a broker to fill an allocation at a discount while u wait for ur title work to come in and squeeze that equity out.
You did OK given the market is terrible and cashing out ur equity 1-2 months from now may have been a risk (albeit unlikely, time will tell).
Only other thing you could have done is got a “sell my car” quote on autonation . com. Then taken your car and certificate to an autonation BMW dealer.
Thanks for the feedback. Keep in mind that buying the vehicle out in Texas means paying the sales tax (again!) so immediate loss of $2k.
Appreciate the feedback and completely agree. Nothing to scream about, just wanted to feel better about it since my previous leases were great (440i in 2019 with massive incentives and a Chevy Bolt in March of this year)
