Have you looked into getting into another lease instead of buying out your car? There are still deals out there. Feel free to check out broker deals in the Marketplace to get an idea of what’s available.
I would have to agree.
1 Like
Appreciate the assistance and info. But it looks for similar monthly cost of around $415 ($460 w tax) its a model down 4 series to 3. But will keep looking. We can extend the lease for 2 months without a commitment so don’t have to rush into anything.
1 Like
Unfortunately, even a base 330i won’t be leasing in that price range in this market. You might have to look at other cars.
4 Likes
They offer convenience for, let’s be honest, a lot of lazy people.
Secure your own financing from the CU thread.
Find a BMW platinum extended warranty from one of the sponsors on the various BMW forums.
3 Likes
Double check this but from what I know, your spouse won’t pay sales tax if you buy the lease and sell it to her in 10 days.
Your warranty should also be active for another 12 months if this car was punched the day you leased it.
What is the upside to this?
Upside is they can “avoid” paying taxes if they want to finance it and keep the car. If they lease a new car they will be paying taxes on the monthly payment again.
1 Like
Personally I’d probably just buy out your 2020, even if it’s not swimming in equity. You could return it and then finance a new one, but how much more would that cost? Is a brand new 2023 worth $20k-$25k more to you?
Are there other cars you’d rather have?
As long as your buyout isn’t ridiculously high relatively to that market on these things (which doesn’t sound like it’s the case), it’s not a bad option if you like the car.
I think OP was looking at leasing a new BMW. Hence, buying out one’s lease vs financing a new one might not be the best comparison given the price difference.
This was my suggestion given OP’s budget requirements.
Getting a new vehicle with a warranty and maintenance included is far from free.
There are thousands of dollars of transaction costs alone every time you trade.
This doesn’t even factor the additional cost of a new car itself or how much more the finance charges will cost you on a higher cap cost / loan amount that what you have now.
So is it worth an extra $5,000 to you to have “someone else” provide “free” maintenance and repairs? $10,000? $50,000?
The money is always coming out of your pocket. So what’s your number? 
1 Like
OP will have to pay sales tax if he buys it. If he does not pay sales tax and tries to “sell” it to his wife, she will have to pay sales tax when she registers the car. The no tax due situation only works when the sale within 10 days is made to a car dealer/reseller. In those cases, the State gets their tax when the dealer/reseller sells the car.
1 Like
There is a post here how someone ‘convinced’ DMV that the sale to the wife is non taxable (TRUE) and they don’t need to pay Tax on the original transaction (GREY area).
So theoretically, a transfer to the wife before title change somehow doesn’t incur a tax charge.
I havent seen anything that suggests the 10 day resale clause in CA requires the vehicle to be sold to a dealer and can’t be private party.
1 Like
IANAL
4.035 Transactions Not Subject to Use Tax
Chapter 4 Use Tax
4.035 Transactions Not Subject to Use Tax
-
Family Transfers—Transfer of a vehicle/vessel between spouses and/or a natural or legally-adopted parent, grandparent, child, grandchild, or sibling (if the sale is between two minors related by blood or adoption). The application must include a REG 256 showing the relationship of the buyer to the seller (CR&TC §6285).
Domestic partner/family transfer exemptions cannot be claimed if the seller is engaged in the business of selling the type of property being transferred/registered.
I believe Michael here (LH Admin) confirmed that it can be sold to a 3rd party and that rule would work.
Of course if the 3rd party doesn’t register it in CA (to trigger the refund), well…
1 Like
Right but when it’s not even a particular good lease offer the next best alternative is to either finance it or look at a different vehicle. Hence finance is the more realistic comparison.
Good way to get audited by the state franchise tax board. If neither the purchaser of the vehicle nor the end registrant paid sales tax, they’ll uncover that eventually and likely bill with penalties. That’s be my guess.
I didn’t say this was right, I was confirming the suggestion someone else said that was refuted. I do expect them to get audited as the state is slow but does cover things like this.
I think we are saying the same thing. IMO, OP should finance a vehicle that has a better resale value compared to a 4 or 3 series.
I agree that the second sale can be to a private party . But if the sale is to a private party, the private party (in this case the wife) would pay sales tax so there would be no tax savings/avoidance for OP.