Should I buy or turn in my BMW lease with only 11,000 miles on it?

Is loyalty included in this offer? Cos if you can get an additional $2k off, it might not be a bad deal to purchase it. However, as some have said, you might be better off leasing a new one.

True but since the car is 3 years old, hasn’t it already taken its greatest depreciating hit?

Loyalty on a buy out? I don’t think that is a thing. Of course you have loyalty, you are leasing the car.

There is another depreciation cliff for German cars after they are out of warranty… no one wants to deal with the high maintenance costs.

How do I approach the positive equity with the dealer? Will they just apply it as a down payment on a new lease or will I have to tell them?

I wouldn’t include the positive equity on a new lease deal. I would keep that completely separate. And never put money down on a lease.


I would check with BMW as the “customer purchase promotion” may require you to buy the car to be eligible, not a third party buyout by like Carvana or even a BMW dealer (they could have separate incentives that wouldn’t be passed to you.)

So what do I tell the dealer? It looks like the only way to use the equity is by rolling it into a new lease.

If your buyout is $32k, why not just sell it to Carvana or Vroom and pocket the profit? You can use that cash for either a new lease or new/used car purchase.

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Well if the equity could be directly applied to the new lease it could save me the tax from the sale to Carvana, so more of the equity would be applied vs having some of it go towards tax. Not to mention that I’d need to pay sales tax on the $32k buyout.

No, you don’t pay sales tax. Not if Carvana or Vroom or Shift is the third party who buys the car from you.

If YOU buyout and sell to a private individual within ten days in CA, you don’t pay tax.

It’s a no brainer.

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I thought I had to pay sales tax when if I were to buy the car from BMWFS. BUT it looks like if the new owner registers it within 10 days there’s no sales tax. So I would need to get the title within 10 days and then take that to sell it to Carvana.

That changes the math a lot since I can now buy it from BMWFS and turn around and sell it for a (tax free) profit to Carvana or similar. Though it would be easier and less hassle to just roll that equity into a new lease.

As everyone has stated multiple times, you don’t need to do all that if you are selling it to Carvana. You just have to make sure BMWFS will sell it to a 3rd party with that discount too though.


Ok, I need to call BMWFS and find out what the buyout price is for a third party. Then the new lease will be a separate deal/transaction and I can just pocket that profit or apply it to the new lease.

I’ve learned a lot since yesterday, thanks everyone.

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Wondering what you ended up doing. I’m in a similar situation with BMWFS and exploring my options- whether to buy it myself and sell within 10 days to avoid tax. Unfortunately, the payoff directly to Carvana is almost $6K higher so I’ll have to buy it and sell within 10 days.

I’d call someone like ALGo and ask them what the best way to handle is. Meaning can you work it in this order: get an offer from them, buy it from BMWFS, accept AlGo offer. The tricky part will be the 10 days and getting title in time but they might have some advice.

what ever came of this @nil

did Carvana buy with the customer purchase discount in there?

Just FYI, this is not nearly as easy as it would seem to be at first glance (at least in CA). IMO, it’s actually not possible to sell the car to Carvana/Vroom/etc. because of the requirements for the sales tax exemption. This thread is a good rundown of how it works. Third Party Lease Buyout

I thought in Ca as long as Carvana or similar just bought lease out from BMW you don’t have to pay the sales tax?

Yeah this is all CA specific