Depending on which state you leased the vehicle in, the taxes are based on either the total selling price or the monthly lease payment or the total lease payment up front.
So in the later 2 scenarios, at the time of a buy out you have to pay the tax on the remaining buyout amount.
Most people who buy luxury cars have lots of money and are willing to spend it in order to get what they want. I know if I were to drop 80k on a car, I’d want a brand new one.
Plenty of poseurs too, who are living paycheck to paycheck, but drive a pricey ride. But a lot less of them.
Been to South Florida? It’s overrun by posers driving BMWs from offlease only and HH Gregg Lux
Hi! There are no autos to be had here in Charlotte area (NC/SC line); and if you do find one, plan to pay well above MSRP. So, do I extend my lease, buy out the suv or sell? Important: only 15,500 miles!
Seems like no brainer to take the cash & run, but then what?
Thanks
buy it out and drive it knowing that you have a vehicle with equity.
What s/he said.
Prices aren’t dropping soon, so buy and drive while waiting for a good deal on a replacement.
2 options
OR
Thank you. Curious. If we buy it out, waiting for prices to normalize for our next vehicle, wouldnt the resale value of this car decrease as well? Just wondering why “extend the lease” was not a choice.
Cuz extending for 6 months probably won’t change stuff too much. It might get better, it might not. No one can tell. Buying it out just gives you best of both worlds as you can still get out when market gets better without worrying about anything else.
Extending the lease is absolutely worth considering, especially if you have a low money factor. The buy option remains on the table and you avoid paying the taxes for now in case s better option does come up.
Thank you.
So the money factor is .00135 (not too bad) - and the extended lease option is actually month to month for 6 months, meaning I can sell or buy out anytime within that 6 months without penalty. The buy out value will be adjusted for the additional 6 months payments.
I can finance the buy out with a 2.25% rate.
I wish I had a crystal ball. I feel paralyzed.
If it were me I would sell it to Carmax or another car buying service for the $42k you were quoted. Leasing a car right now is not fun, but nor is it impossible to get a deal that would justify cashing out over $13,000 in equity. Have you tried looking in the marketplace here or contacting a lease broker?
If you buy the car or extend your lease and something happens like an accident, you are pretty much out of luck. While not very likely, it is still a risk.
I had two Honda’s back in June that had about 6 months left on the lease and ended up selling one to Shift for about $5000 positive equity and one to Carmax for about $8000 in positive equity. While we didn’t get a great lease, we leased a new 2022 Odyssey for about $50 more a month than we had previously with $2k down. Still came out ahead.
Back in June I leased a Kia K5 GT-Line and four months later just sold it for $4700 over the buyout. Used some of that to put $2000 down on a Camaro LT1 lease - both times going through @legendsauto broker here on Leasehackr.
In the end it is up to you but I would hate to lose out on positive equity like that near the end of a lease. Good luck! 
Thank you all for your varying perspectives. Does help!
Just looking for some options here. My lease is ending in January on my compass limited. Ended up scoring it for 215 a month a few years back… With how the market is looking I cant seem to find anything decent for under 500$ a month. My buyout is pretty low so i was thinking about just buying the jeep out and trying to wait out the “great car shortage” that all these dealers are hanging their hats on. Ideally id like to get into another jeep but none of the dealers i my area are playing ball.
Buy it out.
Yep, buy it out and be in position to cash in at any time.
If.you really want something new, check out a Mazda cx-30 Preferred. It will feel like a major upgrade once you drive it, and it should be high $300s with basic startups at sticker price. Not sure but you may want to look at one of the brokers here.
Hi all,
Wanting to get some advices from the expert panels.
My BMW X3 lease is ending in Feb 2022 (paying $380 a month) and I have about 4k equity if I sell it to Carmax today (24k RV and 29k Carmax offer, so after the remaining payments, roughly 4k equity)
Was looking into getting a new lease for a bigger sized SUV such as X5 or GLE.
Lease deals, as you know, are just ridiculous these days (I’m in socal). Assuming 4K DAS, leasing X5 or GLE were nearly 1k per month. Even X3 or GLC or Q5 were easily $700 per month as well.
So, I have 3 options as below.
Buy-out and wait for about a year or less until the market to be normalized. The car has only 12k miles on it, so I doubt I would have any repair issues next 12 months. My monthly payment would be roughly $450 per month with finances. With this option, I’m hoping I could collect at least the payments I made back when trade-in.
Getting a new lease now with putting 4k equity toward the lease. The deals I’ve got were just horrible (leasehackr score less than 6 yrs). I tried to negotiate to lower the payments, but the dealers were not willing to give any discounts off MSRP, which I understand given the market situation. Say, if I considered the 4k equity as a discount, then for $70K X5, it is going to be roughly 6% discount off MSRP…still not good. Hard to justify going to this option really except I get to drive a new, bigger car and enjoy it now. Wonder if little better deals would come out in December, but i’m doubtful.
Extending the lease (month to month?). I read previous posts here suggesting extending the lease, but I can’t seem to find if BMW allows it. The website says they allow up to 6 month extension if I am waiting for my custom order. Anybody has experience with this option?
Which option is more sounding to you guys?
Thanks in advance!
Bmw does not allow 3rd party sales anymore, so you will need to purchase it from bmw, pay sales tax on the purchase, and then sell it to carmax.
I would start your evaluation by determining what your equity actually is and how long it would take for you to be able to actually resell.
So why are you limiting yourself to these?