I know the common market says to take the positive equity in form of check instead of building into the new car lease. What about tax? If they cut you a check do you have to pay tax on the value?
That’s a question best confirmed with a cpa. There’s a few different questions wrapped up in there as well. There’s a difference between profit and equity. Equity is just recouping some of your costs. Profit goes beyond your net outlay.
If you have to pay taxes or not likely makes no difference if you take a check or pay it as a cap cost reduction into the next lease.
Thanks but a dealer wouldn’t send a tax document in either case right?
I have never heard of a dealer sending a tax document.
My wife flipped her 500/month 2018 GC altitude for a 2020 GC Overland (54k msrp) for 500/month. Traded into jeep dealer. Her jeep needed tires, had dings and scrapes and still had 5k equity.
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Hey guys, my 2018 gls 450 lease is ending 2/28/22. That said this market is crazy right now and I cannot find a good lease anywhere nearby. What do you guys recommend that I do? Is there an option to extend the lease by six months for a nominal fee? Or do you guys think I should just sell the car in to a third-party like Carvana? What do you guys think the market will look like at the end of February? I don’t really need a car but it would be really nice and convenient as I live in the suburbs of New York City.
I think you will need to buy it out beforehand.
Just buy your car and forget about car market for a year, at-least.
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I’m just afraid of the gls450 maintenance. My car has gone to the shop way too many times. I don’t feel like dealing with it and more problems after the fact. That’s the biggest hesitation.
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I’m ok with that. If I can get guarantee that carvana/broom will buy it from my right after so I have no risk of getting stuck with a lemon.
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Check around with all aggregators to see about what they would pay for it. I believe @AutoNinjas may be able to get you going and cash out equity.
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Do you think I should do this closer to when I end the lease (2/28/22) or should I just sell it now and look around for “deals” for a used car to tie me over for a year(ugh).
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I’ve a Mercedes A220 and I’m just 2 years into the lease term. Dealer reached out today to upgrade or sell since there are some good “deals” for the year-end and there’s demand for pre owned cars now.
I have 12 remaining payments ($385 each). Is this common ? What’s my best step forward ? Ignore and continue paying the lease and walk away ? Honestly, I was caught off guard since I hadn’t even thought it since I have another 12 months to go.
Buy-out amt at the end of lease term - $23k
Remaining lease payments - $4,620 (385*12 months)
Car history - One accident
Carmax gave a $27k quote online.
Apologies in advance if any of this doesn’t make sense.
Being marketed-to? Yes it’s common
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Year end deals? Yes, like how the buyer gets the shaft deal, or help the dealer keep paying for his Tesla deal. Just keep paying the monthly, its the best deal you will find.
Now if you have money and want a nice E class, go for it
I sold my significant other’s leased 2019 X4 last week for a little less than 12K over payoff. He didn’t want to buy his car and refuses to entertain the idea purchasing a non-luxury SUV. Basically, he only wants to lease a luxury SUV with included maintenance. We seem to have two options given his limited criteria and need for a car: 1) MSRP 52K BMW X3. We are applying the equity; $11,500 drive off, $410/month including 7.75% sales tax for 36/36. 2) BMW X4 (MSRP 59K) around $625/month, $11,500 drive off, 36/36. Affordability isn’t the biggie here. I hate the situation and am trying to make the most of it. I don’t know if I am missing an alternative or haven’t taken important factors into consideration. I am truly grateful for any advice you have to offer.
Those numbers seem excessive.
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Both lease deals are terrible. Why not just finance either car and apply the $11.5k as down payment?
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Haven’t run the numbers there but they almost even seem too high to be at straight sticker.
Maybe marked up MF and dealer add-ons? I seriously can’t believe OP is considering this deal.
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