“Should I buy out my lease?” super-thread

[max_g]

@Leasing2023

Members on the forum mentioned that i4 has the 7500 lease credit and BMW dealers are discounting them an additional 3 %

Many other EVs have the $7,500 lease credit.

And 3% is nothing considering how overpriced the sticker is. Every other 2WD ~250 mile range EV is around $45k.

Also, have you considered the logistics of charging when you’re planning to drive north of 20k miles per year?

[mistrbee]

Yeah for someone that drives 20k per year I am surprised range isn’t a big priority. Personally I could care less about range as I have an ICE for road trips and I can charge at home - driving more than 50 miles a day is almost never going to happen for me.

Also if you know you are going to buy it out, then MF isn’t really as big of a concern. Maybe an id4 is an option OP?

[Leasing2023]

I drive close to 50 miles daily for work, My average daily would be 110 miles. So range is not a problem for me as I can charge overnight. As far as I know the only other vehicles that qualify for the 7500 credit and are below 50K are ID4, Q4 Etron, Volvo XC40 but the MF for all those those three vehicles is at 0.00387 which is way too high in my opinion compared to the 0.00225 for BMW. Also styling/ packaging of BMW is better than the other vehicles in the list.

[sev]

Hi,

Im coming up on the end of a 24mo/10k lease on my Nissan Leaf SL Plus. Overall I like the car and it’s fit my lifestyle well. I can go either way in terms of keeping it and being happy or possibly letting it go and getting into another EV that has a bit more space and range. The one problem for me is the inability to quick charge it and the older chademo standard, which kills the ability to road trip with this car.
I’m well under mileage on this thing. I’m at 14k miles at the lease is up in May. So about roughly 6k below…

That being said, the buy out is $26,465 and my current monthly is $292.32. I know the days of having that kind of payment are gone. If I keep it, wondering if I should throw a down with the buy out to keep the payment reasonable close to what it was during the lease. I can probably throw in like 5k or something and just keep the car.

With 5k down, the buyout + ca tax seems to put the payment around $410 a month assuming a 4.5% interest rate from a credit union of some sort.

On the other hand, for 410 a month, I’m wondering if I can get into another EV thats a bit more modern and has better charging. I’m considering the bolt EUV but the trunk space is way smaller than the leaf.

What do?

[steveinsac2]

Appreciate the input and sorry if these are stupid questions…

My situation: I’m at the last 3 months of my 2020 Q5 P+ lease. My RV is $30,200, and I have 3 payments left @$700/mo (including tax). Got a payoff quote from AudiFS for $32,200. Low mileage (17k). I’m in CA. I realize if I want to buy & keep, I have to pay sales tax - I’m in CA so that’s 10% - UGH.

Got a CarMax quote for $36,600. I realize I can get other quotes but just trying to understand the basics.

Question 1: can I drive to CarMax, hand them the keys, and walk away with a $4,400 check? Meaning, they pay me the difference between their $36.6k quote and my $32.2k payoff? I don’t have to “buy” the car from Audi and pay 10% sales tax and DMV fees before I “sell” to CarMax?

Question 2: assuming I agree to lease/buy another Audi (not a given by any means), and assuming I’m willing to do some negotiating (several dealers near me in NorCal)… would a dealer give me close to $36.6k on a “trade”? I know enough to negotiate the 2 deals separately, but the question is - will an Audi dealer essentially match CarMax?

Thanks in advance!

[anique]

@steveinsac2

Question 1: can I drive to CarMax, hand them the keys, and walk away with a $4,400 check? Meaning, they pay me the difference between their $36.6k quote and my $32.2k payoff? I don’t have to “buy” the car from Audi and pay 10% sales tax and DMV fees before I “sell” to CarMax?

Yes. Just make sure what Audi’s policy is on third-party buyouts. It seems they charge a different payouts to third party buyouts:

List of Lenders that Allow for Third-Party Buyouts

As used car prices soar, many lessees are finding that their vehicles are worth considerably more than their current payoff amount. Instead of simply returning the vehicle at lease end, you may be able to sell the vehicle to a third party (such as Carvana, Shift, Vroom, and CarMax) for a profit. However, some lenders are making it difficult for consumers to access this “lease equity” by charging a higher lease buyout price to third-party buyers than to consumers, or altogether prohibiting third…

and:

Audi Buyout Change effective 3/1/2022

As a heads up to those flipping or selling their leased Audi’s/cars through VW Financial. They have changed their buyout rules, even through authorized dealerships who are eligible to buy them. All dealer buyouts are subject to a disposition fee, buy fee, and segment fee. Disposition Fee: In most cases this is $495 - but your applicable dispo would be labeled on your contract. It is only waived if you go into another lease or buyout the car yourself. Buy Fee: Flat $100, applied to every Audi/…

@steveinsac2

Question 2: assuming I agree to lease/buy another Audi (not a given by any means), and assuming I’m willing to do some negotiating (several dealers near me in NorCal)… would a dealer give me close to $36.6k on a “trade”? I know enough to negotiate the 2 deals separately, but the question is - will an Audi dealer essentially match CarMax?

Maybe they would but in my experience, it is more likely to get better buyout deals going through the online buyers:

List of places to sell or value your car online

What have you been offered?

I would personally try my luck everywhere.

Good Luck.

[frted]

State: CT
I have 3 payments left on my lease(365/month)of 2020 Mazda Miata RF, mileage 17k. Lease residual is 19900. But I’m thinking of using it as a trade in for a few car.
If I buy out ct tax is 6.35% (1263) so total of 21163. Carmax offered me 25k so a new gain of about 3800.
Or can I use it as part of trade in for the new car and if so, how much should I demand from the dealer?

[j_e_f_f]

@steveinsac2

Question 1: can I drive to CarMax, hand them the keys, and walk away with a $4,400 check? Meaning, they pay me the difference between their $36.6k quote and my $32.2k payoff? I don’t have to “buy” the car from Audi and pay 10% sales tax and DMV fees before I “sell” to CarMax?

The process would be that simple IF Audi allowed 3rd party buyouts without adjusting the payoff amount.

Rather than the $32k payoff that you or an Audi dealer buy the car for, when CarMax requests the payoff it will come back at $38k so instead of $4k in equity you’re $2k underwater if you want to sell to CarMax. Just spitballing numbers here.

@steveinsac2

Question 2: assuming I agree to lease/buy another Audi (not a given by any means), and assuming I’m willing to do some negotiating (several dealers near me in NorCal)… would a dealer give me close to $36.6k on a “trade”? I know enough to negotiate the 2 deals separately, but the question is - will an Audi dealer essentially match CarMax?

As noted above you just need to get as many quotes as possible, no one can tell you for sure. Shop it at all the online buyers just to get a benchmark, then shop it at any local or online Audi dealers or anyone else for that matter.

All that said, in CA you don’t pay sales tax if you buy and then sell a car within 10 days. So it should be possible to buy it and then flip it quickly without paying sales tax.

California 10 day tax exempt For lease buyout

Anyone here who paid sales/use tax in CA during buyout from dealer/finance company (in my case, Hyundai) who has sued in Small Claims Court to recover?

[hdahman]

I am returning my BMW X5MC this December, I am planning to keep it, any suggestions on what are the best options to finance it?

[anique]

@frted

If I buy out ct tax is 6.35% (1263) so total of 21163. Carmax offered me 25k so a new gain of about 3800.

As you can see in the below link. Depending on where the car was leased from, Mazda Capital Services and Mazda Financial Services allow third-party buyouts. Which should save you the sales tax:

List of Lenders that Allow for Third-Party Buyouts

As used car prices soar, many lessees are finding that their vehicles are worth considerably more than their current payoff amount. Instead of simply returning the vehicle at lease end, you may be able to sell the vehicle to a third party (such as Carvana, Shift, Vroom, and CarMax) for a profit. However, some lenders are making it difficult for consumers to access this “lease equity” by charging a higher lease buyout price to third-party buyers than to consumers, or altogether prohibiting third…

You have plenty of equity in your car with low mileage, so I would try to get quotes from all of the online vendors and local dealers (Hopefully beat the Carmax numbers). You can cash in on the 5k+ equity. Then try to find a new deal. The trade-in value would not necessarily be higher than the equity cheque you will receive from a third-party buyout. So in many cases, it might be better to just cash in on the equity and negotiate the new lease separately.

[argotx]

OK I need help as I near the end of my first ever lease.

2021 Toyota Tundra with approx. 27k miles

Disposition date: October 13, 2023

Buyout: $34k (approx - need to recheck papers when I get back to Texas for precise figure)

Monthly payment: $410

GMTV, Carvana etc offer up to $43k.

Leased through US Bank.

I want to keep a truck, had the cash set aside to buy a new truck at the end of this lease, which was an interim stop gap until the new Tundras came out. Don’t like the look of the new Tundras, and prices have gone crazy, so I think I will buy out my current lease and just keep it forever.

When do I start the buyout? Is there any advantage to starting this early, or just wait until nearer the end of the lease? Is there any negotiating with US Bank on the buyout price these days?

Thanks.

[forbs]

• US Bank doesn’t negotiate at this time unless something is really wrong with the car, you have a Toyota, so dont expect it.
• I can’t remember, if US Bank buyouts needs the dealer who sold you the car.
• I believe in TX if you start / end it in Texas you don’t pay any extra sales tax so that’s good for you.

[j_e_f_f]

@hdahman

I am returning my BMW X5MC this December, I am planning to keep it, any suggestions on what are the best options to finance it

The Best Finance Rates & Hacks! Submit your CU recommendations!

I applied for the loan on 02/10, approved on 02/17, my account was applied for on 02/13, got my account number today 02/22. I think this was before they got crazy overloaded though, have you applied yet?

[jhchawk]

This is my first lease so new to this process. Given the info below my current plan is to buyout my lease and keep the car, since my buyout price is 40-50% less expensive than buying a comparable vehicle, but please advise.

2020 Honda Civic EX-L Hatchback, Gray, ~27k miles, good condition with a few exterior scuffs/curb marks on rims.

• Lease is with Honda Financial
• Residual value = $15051, disposition date = May 31 2023
• Current payoff = $15579
• No lease extension (yet)
• Equity- My lease was for 45k miles, so well under that on mileage. Seeing on the order of $20-22k from Carvana/GMTV so roughly $5-7k equity, although the Carmax/Ebay selling price is more like $26-28k.

[max_g]

1. Go through Honda directly instead of involving a dealer and adding unnecessary fees into the price.

2. If you’re not using cash, scroll up to the link to the best finance APR page

3. Honda-specific forums should have sponsors with good pricing on extended OEM warranty (I believe you would need to buy one before the 3/36 expires if you want one).

[atxleaser]

I’m in the same situation except I got my Tundra in 2020 thru US Bank. I was under the impression I could just send a check to US bank and buy it out from them at the end of the term. Hoping that is the case.

[max_g]

@argotx

When do I start the buyout? Is there any advantage to starting this early, or just wait until nearer the end of the lease? Is there any negotiating with US Bank on the buyout price these days?

Thanks.

I don’t see any compelling reason to start early.

[jeisensc]

Not if you are writing a check. Loan rates will likely be higher as the year progresses…

[Hs0119]

Hi all

I have 2020 MDX lease maturing in August. Buyout at lease end is 24,500 meaning my payments for march through July will mostly go into interest. Current buyout is $25,1xx. I want to buy out via cash payment but not sure on how the tax/registration works after the pay off? I’m in NC and would appreciate any helpful info. Carmax is offering me $29k but not sure I like anything in my price range in current market. Thanks in advance.

Lease is with Acura Financial.

[max_g]

@Hs0119

Buyout at lease end is 24,500 meaning my payments for march through July will mostly go into interest.

I’m not sure I follow. Your lease payments should have the same breakdown between depreciation, interest and tax every single month.