I picked up a $123k MSRP 2019 M5 Competition in November 2019 and from what I’ve been reading while getting my taxes together is that I probably should have bought a new SUV over 6,000 pounds for my business so I can take the accelerated depreciation on it. So, I’m tossing around idea of getting out of my current lease and getting a supercharged rover or waiting for the new X5M.
My lease terms are 15k miles, 36 months with 5k miles on the car currently and 32 months remaining. I put $0 down and didn’t use any MSDs because I wanted make sure I can offload the car more easily during the lease term. My monthly payment is $1,399.67 including 7.25% tax, and the car comes with the wheel/tire protection and routine maintenance package.
I’ve never transferred a lease, and would appreciate any recommendations or tips on going about this. Based on the above information, should I consider offering a cash incentive for someone to take over the lease or does it look pretty good as-is? I think I got a pretty decent deal on the car at the time with 13% off MSRP plus loyalty and lease support for basically 16.% off the car.
advertise it with the base payment to make your monthly look lower… also if it moves to a different state the taxes may change, don’t think incentive is needed, I would test the market first before I would put an incentive down. Take good pics, be descriptive and good luck!
Swapalease is a good option, once you pull the 7.25% off the payment will be attractive enough for someone to grab it in within a couple of weeks… If you want to know the exact payment that will be the base for the transfer call BMW Financial and ask, they are great with lease assumptions…
With that said, I am not a tax professional so I recommend you discuss accelerated depreciation with an accountant… I purchased my SUV and lease my 7 series for a reason, and it all revolves around lease vs. purchased asset tax deduction and depreciation options.
Agreed def speak to your accountant before selling it, if you would consider keeping it. The 6,000 lb thing is a section 179 deduction I believe. Lease payments can be fully deducted if used 100% for business. Your accountant will know better.
I spoke to my CPA late yesterday. Without going into a ton of details, she said I could do it, but her opinion based off my particular situation is taking the accelerated depreciation won’t be worth it. It’ll be a nice tax break in year 1, but then I’ll be stuck with a much higher car payment in subsequent years, and the overall tax benefit of leasing vs buying ends up being about the same overtime.
I decided I’m going to stay within the leasing world, and will hold on to the M5 for now. It’s a fun car, but I’m eyeing the new X5 M, RS Q8 and RS6 Avant.
Interesting car, but I don’t think it’s an apples to apples comparison - not a competition, has ceramic brakes which are insanely expensive to replace, and my payment allows for 50% more miles.
x5M will be way slower than the m5, unless you get bored or need a dd that can handle snow I wouldn’t go x5 M, side note it doesn’t handle like the m cars either, it handles like an M suv.
Rs Q8 probably pushes into 2k territory but I’m interested to see how it performs vs the amg, M and porsche turbo suv’s.
Rs6 avant is also intriguing, no comment on that one cause I haven’t read too much into it.
Once you drive an M5 the only thing that’s gonna satisfy you short of a supercar is maybe an m8 gc, e63 amg/new gt amg 63, panamera turbo. It’s very hard to beat the bang for buck on an m5 besides say a lucky $500-$600 hellcat which performs better in a lot of situations but lacks luxury features and tech.
Just my 2 cents, post a thread if you do end up switching, always interesting to see how people jump from one performance car to the next.
