I want to trade in my MY19 C300 for a new Mercedes. My lease has matured on April 14 and I am in grace period until tomorrow, April 24. I live in Georgia and pay Ad Valorem Taxes. I have two questions:
Last fall the Enterprise Car Sales office near me was giving KBB Trade-In value (Good Condition) for the 3 vehicles I had them appraise. (With room to increase if you bought another vehicle from them.) They used the KBB website as their quote engine. I didn’t sell anything to them so not sure if they tried any shenanigans for those people who sold.
Jeep 2020 Cherokee 4WD, limited package, 2.0L Turbo
Lease Period: Nov 2019 - May 29, 2023
Mileage: 44,100 (allowed = 52000)
Residual value: 17528
Buyout Price: 17936 + 350 = 18286
Carvana offer: 22,500ish
PA sales tax: 6%
Lender: Satan (ie. US Bank)
Considering buying out myself and then selling on carvana or to another dealer. My dealer offered to ground the lease but won’t give me any additional money or trade-in credit.
Questions:
Do I pay sales tax on the residual value, the buyout price, or something else? Is the salestax set by my state (ie. Pennsylvania 6%)
I have a home-equity line of credit - thinking of just using that to buy it out and then immediately selling it so as not to accrue interest. Or do you recommend getting an auto-loan for some other reason?
If you were me, would you consider grounding the lease or do you think the dealer is taking me for a ride by not offering me anything for it? This is the most hassle-free option, but I’d be leaving money on the table, right?
If you were me, would you sell now, drop to 1 vehicle and wait til later this year for better deals? IE black friday? We can go without 2 cars for a while, but don’t want to put off buying if car prices are only going to get worse. I know this is subjective…
If I buy the lease out, then I am not obligated to fix any dings/dents/issues that turn up in the appraisal report, right? Since I am buying out the lease, then no one can force me to say put new tires on it as I would have to do if returning to the dealer, right?
Bonus: am considering dropping to a sedan, main concern being winter. Anyone have recommendations on a good winter sedan - SUVs are close to out of budget. Any links or starting info would help me a lot.
Thanks wizards!
Subaru Impreza + $800 on winter tires.
NJ but leased in PA.
Hi! its been a while since I have posted here but always value the insight and advice received. Ally lease end in July buy out is 32,000 (no judging) we leased for monthly payment. At lease end truck should be about 2k+ over in miles. Truck is in great shape. Maintained. Added running boards and remote start. Bed cover with very small crack. Not sure what to do. Keep and than try to sell? Walk into another lease ? (dont have $$ to put down) Any input advice would be greatly appreciated!
Go to Carvana, Carmax, Vroom and get some pricing of how much it’s worth.
Though a buyout of $32k is probably not going to even come close.
Remove the Running boards and sell them.
You are going to eat the remote start as that’s more difficult to remove.
If the offers are over (Say by at least 4k) then it’s worth it. Otherwise, pay the over miles and return it.
What’s the overage charge on 2k miles - $400? If all the steps @forbs suggested don’t bear fruit, then it’s not a tremendous amount of money.
I was ~10K over on my 2020 Tacoma lease (TFS) last August (would have been $1800 in overage) and was able to get out of it via trade-in where they gave me more than was owed (matched my best 3rd party offer from Enterprise Car Sales) + a tax savings to boot as I purchased a new truck.
Before you jump into another lease, consider whether this strategy is saving or costing you money.
Vs.
My guess is one strategy is costing you many thousands of dollars over the other, long term.
Hi, I am new to the forum and glad I found it.
Currently, I drive a 330 xDrive which I love. The lease is coming to maturity in July so I am starting to evaluate some options. I leased it for 643/mo including tire and rim insurance + 3-year Service program.
I am trying to cut down the monthly payment a little bit so I can also finance a small car for my teenage son. Hence I thought about purchasing my car at the end of the lease financing the purchase and keeping it for ~5 years or so. The car is only 20k miles (with a lease of 30k). I live in NY state and the payoff value of the car today 2 months in the lease still, is $33.2K.
My questions are: 1) If I want to finance the purchase at the end of the lease, can I do it through BMW Financial Services? 2) What would be the expected monthly payment for 60 or 72 months? 3) Do I need to consider any out-of-pocket costs? taxes? 3) Would you recommend that or go for a new lease (probably would need to be a much lower category)
Oh man
@HN308 had amazing lease options for 5 series just a week ago
He still has one remaining
But yeah you can buy out your lease (residual plus unpaid payments and taxes)
Do this. 5 series for less than your 3 series lease was.
Also, look around online for what similar mileage and year 3 series are going for. A quick search shows a few available listed cheaper than your buyout price.
There’s this about buying out your lease:
There’s this about financing options:
Do you have a good independent mechanic? Even if you drive relatively few miles, I would be hesitant to buyout a German car w/ the plan to drive it for another 5-6 yrs w/o that.
Do you have any positive equity in the car (I kind of doubt it, but…)?
Do you plan to keep the 3-series for that long?
Honestly, if you’re willing to spend that amount of money to buy out your car, I personally would rather sell your car and finance something for yourself that will likely retain more value over time and be cheaper to maintain (like an Accord, which should still drive nicely).
wrong person??
1010
Oh, could’ve sworn my post was a response to @Miguel_CG. Maybe something got disconnected when the thread was combined?
@max_g
Why was this moved?
Poster asked if he should get another lease
And I dropped a suggestion
Did that violate something ?
Pricing was really good in the summer of 2020, so this was pretty hard to read. Please please please do your due diligence next time before signing anything.
That’s going to depend on your credit and how much effort you put into finding the lowest APR you qualify for.
After that you can plug in all the variables into a calculator like the one on cars dot com or bankrate etc etc.
You’ll owe taxes either way. Up to you whether you want to pay upfront or pay interest on the taxes by rolling them into your loan (assuming the lender allows).
But based on your post one would infer you don’t have a ton of financial flexibility. So financing a BMW and therefore committing to owning it well past warranty expiration may not be the best fit for you.
There are other cars at the $32,500 price point or below that would have a way lower TCO.
All posts in the original thread were moved/merged.
I had the same immediate reaction but couldn’t remember what pricing was back then. And that is why I think recs for poster to get another BMW (or even to lease) is not a great idea…
Don’t think buying out the lease saves you much money on monthly payment. Financing your residual of $33k (assuming you pay taxes out of pocket) would probably be mid-600s for 60mo or mid-500s for 72mo. I personally wouldn’t take out a 72mo loan on a 3 year old car, do you still want to be making payments when it approaches 9 years old?
Question for those of you who had the pleasure of buying out your lease from US Bank recently. I’ve read the lease and called them and haven’t been able to get a clear answer. My lease ends in August. The person on the phone said to call right after the last August lease payment clears and initiate the buyout paperwork. If I wanted to go ahead and buy it out 3 months early, right after the May payment clears, will there be additional fees or costs? Aside from needing to pay the last 3 payments of course. Is it really better to wait until August? Thank you!