X45e 3 months posession and then trade in/flip?

Location: NorCal

Dear forum, first time posting here. I have custom ordered a x5 45e (arriving soon in April) and a land rover discovery (Arriving in July), both about $68k MSRP. Original idea is to keep both but now decides to just keep one and probably the discovery since it’s larger for the family.

The question is, is it a good idea to still buy/lease the x5 45e first and then trade it in for discovery 3 months later?

BMW Dealer has given $2.5k discount on x5 and on top of that, I can enjoy $7500 tax credit in next tax season. So my assumption is that as long as I can trade in 3 months later (from April to July) for more than $68k-$2.5k-$7.5k = $58k at land rover dealership, i will still be better off plus got to drive the x5 for free for 3 months. I expect at most 2k in mileage at most. A quick scan on inventory shows the x5 45e is still in shortage in the local market here.

So in summary, my hack idea on this is that:

  1. I can enjoy the x5 for free and even have some equity when trade in for new discovery
  2. and who knows if the discovery will be further delayed (already delayed from April to July) due to shortages :rofl:
  3. when trade in, I dont have to pay for much additional tax since their MSRP is about the same.


take the x5 45e, $2500 off is a great deal now, you will definitely have equity

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That not how taxes work in CA.


Skip the Disco and just keep the X5.

If you can find someone to pay you to take over your Disco reservation, even better.

California does not have a trade in tax credit.

You also do not get a $7500 tax credit next tax season if you lease the BMW.

BMW also does not allow 3rd party buyouts on leases, so you wouldn’t be able to trade it in if you lease anyway.

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Dude I’ll take over your x5e reservation if you don’t want it. None of the dealers right now in norcal want to give a penny off reservations.

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you are right - California Vehicle Tax: Everything You Need to Know just checked and the trade in tax liability. Sale tax is based on original MSRP not based on actual payment for the car. thx @mllcb42 who pointed out the same

Then from tax perspective, this hack won’t work :frowning:

And i’m surprised to see many ppl here are in favor of x5 :grinning: even though it’s smaller than discovery (disclosure: we are expecting a 2nd baby so thought 3 row would work better)

Because a family of 4 can’t fit in 2 rows??


Mother in law is coming soon to cover nanny duties so a 2 row seems tight. We test drove a x5 already and the 2nd row seating seems stiff and legroom is limited (i think even worse than x3?)

Sales tax is based on the actual selling price of the car (before trade in credit), not necessarily the MSRP. Items such as document fees, administrative/markup fees, added accessories, added theft deterrent devices, and added surface protection products are also subject to sales tax.


Wait what? X3 is a much smaller vehicle than X5. I don’t see how the legroom is less than X3. Again, if you aren’t interested, happy to take it off your hands :slight_smile:

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According to the specs on BMW’s website, the X5 has 37.4 inches of rear legroom, and the X3 has 36.4 inches.

sorry i remember it wrong. I was comparing to some other cars.

Discovery is definitely not the solution.

You either need a wider vehicle able to accommodate the adult in between two child seats or a proper third row. Disco is neither.

Kia Telluride enters the chat

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I am more curious how you got 2500 off in the market

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The max people I’ve stuffed is 13 in a Suzuki Swift. One person walked away with permanent leg damage after that

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ryan reynolds hd GIF

was post a cricket match. Had to get the whole team home from the field/ground back to school. everyone broke af , we only had 1 vehicle between us