And what about quotes from all the usual online buyers, Carvana, CarMax, etc?
While you may not be able to sell your BMW to these you can still get quotes to get a better ballpark of how much or little equity you have.
If you’re underwater then it really becomes a personal decision of if you like the car and want to buy it for the $55k and keep it, or just turn it in and get something else.
This is the correct approach. Get quick quotes and evaluate them against what you owe on the vehicle, what you’d spend on the vehicle in the short term if you keep it (e.g., tires), and opportunity cost if you turn it in.
I’m in the same boat as you. My 840 GC lease is up at end of March. ~49k buyout in TX. Need to go get some quotes to see if there is any equity to justify holding on to it for another 6 months to a year. Got a great deal in 2020, and know I’d be paying significantly more for whatever replaced it - would need to be comparable or better.
likely underwater.
For your husband, do a one pay, it will show as paid in full and quickly ramp his credit.
I didn’t realize it showed as paid in full, thank you! Should also help with MF, but not sure about Nissan.
Yes it does reduce the MF as well.
2020 M340i coming to an end. $37.5k residual, Carvana says $39k. Drove only 17k miles of allowed 36k. One more month left but looking the current lease deals, thinking I may just buy and keep it for a couple years until hopefully the lease market improves.
Am I missing anything other than the ~7.5% tax in CA that I’d have to pay if I buy or anything I should know that can make it worth returning? Any reason to look into extending the lease?
Equity combined with lack of wear and tear related costs (e.g., tires) sounds like a buy to me.
Hi, hackrs
Should I keep my 2020 BMW X4 M40i? Currently the monthly payment is $658. Thanks in advance for your insights.
The residual value and disposition date (when are you supposed to turn it in?)
residual value $39,108, and the original disposition date is 02/22/2023
Current payoff — NOT the same as the residual unless you have made the last payment
$39,108 + texas tax
If you have extended your lease, where are you on that timeline?
Currently I have extended my lease for one month, BMW told me I can extend for another month, which would push disposition date to 04/22/2023
Do you have equity? What would the third parties would pay you to buy your lease today?
I think so? Carmax has offered $44k
Well half of the “should I keep my car” question revolves around what your other options are, without knowing that it’s hard to provide much advice.
thanks for the reply. I don’t think I have many options here, I think I can probably
any other options you would recommend? This car is my girlfriend’s and all she needs is a good and reliable SUV to commute.
I would double check that - I am pretty sure that even though the original TX sales tax is levied on the lessor (but passed through to you) upfront, if the right amount of tax was paid there is no further sales tax when the lessee buys out the lease from the lessor.
Check the Marketplace section. Deals aren’t necessarily as good as in 2020, but they’ve improved somewhat.
18-24m leases are now being offered from brands such as Nissan and Jeep, which may be appealing to those who expect deals on more luxurious cars to get better within that timeframe.
Have 24 month leases been an option for quite some time with Nissan, or are they offered sporadically? Just curious. I’ve only done a 24mo lease once (that I can recall) and that was with my ‘14 Q60S. The 18mo term definitely seems a bit unusual.
This is interesting.
Thanks for sharing.
So if one signs a lease with zero taxes, (Texas tax credits in play) and wants to purchase at the lease end, then one must pay taxes on the residual value?
Sub-36m leases have traditionally been prohibitively expensive, with just a few exceptions over the years.
That is what I had thought and is likely why they haven’t been discussed much over the years (even if they were available).
sorry I forgot to mention, this lease was signed with texas tax credits (I believe I only paid 1% tax upfront), so I would need to pay tax when buying out the lease.
this is exactly my case, BMW FS told me I need to pay tax.