extend the lease for $398 for 6 months until a better deal comes up. Don’t worry about equity as that currently $1500 isn’t worth dropping $3000 for a much higher payment.
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I leased my x5 about 3 years ago with an agent from LH, the msrp is $80470, current i pay $867 monthly (and i had $6300 security deposit put down when I leased the car), the residual value is $45867.
The car has only about 10,000 miles, in perfect condition.
So my question is, does it make sense to return the car next month? Or should I just go ahead and buy it?
Thanks!
You need to have a plan for what you’re going to do if you take either option. If you buy it, how long do you plan to keep it, another year until the warranty is up, and then sell it? Keep it longer term and buy an extended warranty? You need to think about the costs of ownership after a lease - oil changes, brakes, tires, etc.
If you do turn it in, have you priced out newer cars relative to what you’re paying now to see if it’s worth it to you? Have you considered what you want for your next car?
[This isn’t a joke.]
Yesterday I picked up 120 pounds of cat litter at Petco.
… which reminded me that people with RWD cars in snowy areas will put heavy things in their trunk in the winter to get better traction.
Of course anything heavy will do, but cat litter is also reputedly helpful if you get stuck in snow/ice.
The lease on my 2019 SQ5 is coming to an end on February 23rd. I’ve only used 22000 of the 30000 miles and based on the buyout amount of $31,545.60 vs. what local dealers have SQ5’s listed on their lots (between $42,000 and $47,000) I potentially have up to $15,000 in equity.
We are looking to lease a new larger luxury SUV (X5, XC90, GLE etc.) to replace the SQ5. What is my best course of action to maximize the value of my current situation.
Off the top of my head I see 3 clear options:
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buyout lease and sell vehicle separate to my new lease
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negotiate discount off new vehicle msrp based on equity in current lease (this seems to be the most tax efficient option but also highest variability/difficulty)
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3rd party buyout from equityhackr, vroom, carvana etc. and lease separately.
Does anyone have any experience in a similar situation, what are some of my options to maximize value in this situation.
Thanks in advance.
Your equity is determined by how much you could sell the car for, not what retail asking prices are.
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Option 4 : Sell SQ5 to Audi / VW dealer or dealer group which has an Audi/VW in it, and take the check and deposit it and negotiate your next car as if you are buying fresh.
Not absolutely necessary.
What matters most is your tires. Granted, you are probably not going to replace them immediately on a leased vehicle or invest in winter tires.
Btw that’s a lot for an X3. Are you considering other brands?
Hi all,
It’s been a while but wanted to get some input. The lease on my 2019 Mercedes C300 is ending soon and I’m planning to either: (1) sell to a dealer/third-party to capture any equity, or (2) simply return the car and pay the $595 disposition fee. The car is in good shape - light wear and tear, approx. 20K out of 30K permitted miles, and I’ve completed 2 out of the 3 years of prepaid maintenance. Residual value identified in the Lease Agreement is approx. $26K.
I’ve poked around on the forum and have a basic understanding of the process for option (1) above, i.e., request a payoff quote from MBFS online, get quotes from local dealers and online sites (CarMax, Autonation, etc.), and then go with the highest bidder (assuming positive equity).
I do have a few specific questions however:
- Is it advisable or necessary to do a pre-inspection with AutoVIN?
- Is it advisable or necessary to take the car back to the dealer to complete the 3rd prepaid maintenance if I decide to sell to an online site like CarMax?
- I originally leased the car from a VA dealer. I since moved to GA (Atlanta). I am moving back to VA before lease end. Any advice on whether it is better to sell the C300 in VA or GA? I am flexible so either option is fine for me.
Appreciate all the great advice on this forum!
- Only if you plan to turn it in
- No, carmax doesnt care
- No idea but i dont think so for selling
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Yes. Even some small negative equity (from selling) might be preferable to disposition + charges from MBFS, if any. So you’ll need to know to figure out your best exit strategy.
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Your best bid might come from an MB dealer. So full service history or anything else that makes your car more appealing should help your bid.
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Is your car RWD? Then GA
Thanks, these are great points. The car is a 2019 C300 4MATIC, which I understand is Mercedes’ designation for AWD. How does this affect your suggestion for point #3?
One follow-up thought on point #2: Do you know whether prepaid maintenance can be done at any MB dealership (i.e., one in GA, which is where the car is currently located), or does it need to be done at the original MB dealership that leased me the car (in VA)? It’s unclear to me whether the prepaid maintenance is through MBFS or through the original dealer. I’m guessing the former – as the maintenance payment is baked in to the monthly lease payment amount.
Prepaid maintenance can be done at any dealer, just like any other service, repair, or warranty work.
Call the local dealer first, just to make sure it’s an MB plan and they can see your VIN has coverage in their system.
Probably not a huge difference but I’d try selling in Virginia
HI everyone. My lease is coming due April 13 on a 2019 BMW 530XI with MSRP $64545 and I’m wondering if I should buy out the lease. I leased it in 2020 as a loaner.
Residual value: $37810.25.
MIleage: 15800 miles (11000 in my 3 years)
Perfect condition.
Monthly payments: $432/mth though I put $3600 down in capitalized cost reduction and $3150 down in security deposits when I took out the lease.
Disposition fee: $350
State: Ohio
Dealer not interested in buying back for equity as they say it is trading around market value. I would consider buying and then getting something new in a few years if it would hold value. One concern is that even with low miles the car may require costly repairs in the coming years (maybe this is unfounded). The extended service plan I was quoted would be around $1600/yr for 2 years which seems like a lot. Appreciate any advice or thoughts if better deals on new BMW may come in the next few months.
If you decide to keep it, consider a third party warranty (this thread, start here)
You should definitely check other sources to see if there might be equity (probably not?)
Even at 0% interest, at 72 months, your payment goes up $100. If you like the car and are planning to write a check, maybe? Or if you aren’t at all payment conscious.
You didn’t mention state so not sure what the tax situation might be, but I’d work that out and look at financing/buyout numbers before making a decision.
Thanks for the suggestions and links. Forgot to add that state is Ohio. If I buy I’d probably write the check as financing options are not great at the moment though also have to deal with a 2nd lease coming due at the same time so not excited about the overall cost outlay.
Hi everyone. I have a 2019 Audi Q5 Premium Plus lease with $55k miles on it. Lease ends in February, the residual value on it is 24k. Would you keep the car or sell it? Trying to figure whether to purchase or lease another vehicle that isn’t as expensive. Any tips/advice is always greatly appreciated. I’m in California.