What is my car worth? Selling and need advice

[RickFLM4]

Originally Posted by doug_999

I think it is the same thing - to get out of a lease you need to buy the car out of the lease and that is expensive - then you are left with a car, that is normally worth about what it is worth at the end of the lease period. This has been the case with almost ever car I have had leased when I looked into getting out early (my M5 residual was say $60K, the car was worth that at trade AND I owed another $12K to get out of the lease). Some of this pain might have had something to do with how taxes used to work in IL (you paid taxes on the cap cost of the car, not the individual lease payments - even today, you pay tax up front on the sum of your lease payments - and you don't get that back.)

Of course the buyout before the end of the lease is more than the end of lease residual, but it is not the same thing as the residual + all remaining payments. If you prepare an amortization table using the money factor as the interest rate, cap cost as the beginning balance and residual value as the ending balance, you should be able to figure out the buyout amount (principal balance) at any point during the lease term.

You also do not need to buy the car. You can trade it in or sell it to CarMax like any other car owned outright or financed. The car is worth the same exact amount regardless of how you finance it.

[doug_999]

Originally Posted by RickFLM4

Of course the buyout before the end of the lease is more than the end of lease residual, but it is not the same thing as the residual + all remaining payments. If you prepare an amortization table using the money factor as the interest rate, cap cost as the beginning balance and residual value as the ending balance, you should be able to figure out the buyout amount (principal balance) at any point during the lease term.

You also do not need to buy the car. You can trade it in or sell it to CarMax like any other car owned outright or financed. The car is worth the same exact amount regardless of how you finance it.

re: "You do not need to buy the car"

Yes, you or someone has to - meaning BMW needs to be paid off - the car needs to be "purchased" because BMWFS (or your leasing company) actually owns it. You can of course "trade it in", but that is CarMax or whomever "buying" the car...from BMWFS....

And that buying the car formula, at least when it comes to getting it out of the lease, comes at a cost that is normally more than had you purchased it - simply because you have agreed to finance a portion of the value over X months while paying a guaranteed residual (and the interest on that residual).

and don't forget everyone - you got to pay an acquisition fee and you get to pay a disposition fee when you do this. Cha ching. Neither of which you pay if you buy the car*.

As I mentioned, I've gotten several "buy out" quotes from BMW over the years and I'm always blown away by how much they are (and rule of thumb, they have just about all worked out to the residual + remaining payments.). And yes, I'm sure the state of IL made that formula just work out perfectly with them overcharging sales tax on the lease.

*PS, don't get me wrong, I'm still a fan of leasing - just of the belief that getting out of one is more difficult than if you had bought the car and dats a fact jack!

[RickFLM4]

Completely different experience so we can agree to disagree.

[grendel88]

Originally Posted by doug_999

re: "You do not need to buy the car"

Yes, you or someone has to - meaning BMW needs to be paid off - the car needs to be "purchased" because BMWFS (or your leasing company) actually owns it. You can of course "trade it in", but that is CarMax or whomever "buying" the car...from BMWFS....

And that buying the car formula, at least when it comes to getting it out of the lease, comes at a cost that is normally more than had you purchased it - simply because you have agreed to finance a portion of the value over X months while paying a guaranteed residual (and the interest on that residual).

and don't forget everyone - you got to pay an acquisition fee and you get to pay a disposition fee when you do this. Cha ching. Neither of which you pay if you buy the car*.

As I mentioned, I've gotten several "buy out" quotes from BMW over the years and I'm always blown away by how much they are (and rule of thumb, they have just about all worked out to the residual + remaining payments.). And yes, I'm sure the state of IL made that formula just work out perfectly with them overcharging sales tax on the lease.

*PS, don't get me wrong, I'm still a fan of leasing - just of the belief that getting out of one is more difficult than if you had bought the car and dats a fact jack!

In CA, our sales tax is close to 10% so selling a leased car with minimal down is better than selling a financed car with the same down if done within the first 18 months or so. Either way, you will be upside down.

[dongerkim]

Not to steal this thread but, ~ Is the M3 market also this saturated?

I had a 2016 M3 6MT 14 months in with 20k miles and was able to walk away from the lease (sold it to a BMW dealership while i was in service lol). I basically put the minimum down (i think it was just first month + fees). I was actually surprised how easy the sale was and felt like i left money on the table...

To be more specific, this was BMW of seattle

My car was close to a stripper.
White/SO
6MT
19”
LEDs


I have a MY18 M3 in order atm and was hoping to do the same thing... am i delusional?

[BzsBimmer]

Originally Posted by dongerkim

Not to steal this thread but, ~ Is the M3 market also this saturated?

I had a 2016 M3 6MT 14 months in with 20k miles and was able to walk away from the lease (sold it to a BMW dealership while i was in service lol). I basically put the minimum down (i think it was just first month + fees). I was actually surprised how easy the sale was and felt like i left money on the table...

To be more specific, this was BMW of seattle

My car was close to a stripper.
White/SO
6MT
19”
LEDs


I have a MY18 M3 in order atm and was hoping to do the same thing... am i delusional?

I think the M3 market will yield slightly better results but not by much. I’d imagine the sale felt easy because they’re a dealer. They kind of do this for a living and I’m sure you left money on the table.

So you have a MY18 on order and plan on trading it in pre-lease termination? Any dealer will do the deal as long as it’s favorable for them and you’re willing to foot the difference (if any).

[doug_999]

Originally Posted by dongerkim

Not to steal this thread but, ~ Is the M3 market also this saturated?

I had a 2016 M3 6MT 14 months in with 20k miles and was able to walk away from the lease (sold it to a BMW dealership while i was in service lol). I basically put the minimum down (i think it was just first month + fees). I was actually surprised how easy the sale was and felt like i left money on the table...

To be more specific, this was BMW of seattle

My car was close to a stripper.
White/SO
6MT
19”
LEDs


I have a MY18 M3 in order atm and was hoping to do the same thing... am i delusional?

Couple of things at play here...
The more options your car has, the greater delta between the trade value and the buyout cost.

Meaning, options like Full Leather, rear window shade, wireless charging, car play, driving assistance, add basically nothing to your cars trade value.

But if you purchased (or leased) you are still paying for those at the 2 year mark.

So two things
1. A stripper car (or a car with fewer options) is normally easier to get rid of (unless you did something silly like got Yas Blue exterior and Red interior ). So as long as you get another stripper you have a better chance... except... the market was hotter in 2016 for the M3 than it is today and in two years, with the new M3 out, you might not have the same luck (happened to me with my X6 - they went from the hottest BMW to not really quick!)
2. Leasing is always better on a highly optioned car as you are only paying for 40% of those worthless trade options

and yes, I purchased my highly optioned M3... don't ask!

[ImGoingPlaces]

deff put it back to stock, and sell the parts individually here. Sell it privately and take your time finding the right guy

[M2PDX]

Originally Posted by ajeagle6921

Selling my 2016 F83 sadly. Just had baby and not going to be driving it as much. It was a weekend car and only has 12,900 miles. Trying to figure out what I should try to sell it for considering it is highly modded and basically in perfect condition. Spent close to $17,000 on mods. I know I won't get close to what I have in mods but figure it is worth something. Car has driver assist package, extended leather, LEDs. List of mods is:

20" Vortsteiner Wheels-$4000
KW HAS Spring Kit-$1,000
Wheel Spacers-$250
Carbon Brake Pads-$100
AWE Exhaust-$3300
Exhaust Tips-$100
AWE Midpipe-$400
JB4-$815
Charcoal Air Filter Delete-$0
Reflectors painted/Black M4 badges/Vents painted-$300
Carbon Fiber Front Splitter(M Performance)-$600
Front Spoiler Paint Match(M Performance)-$700
RKP Rear spoiler-$900
RKP Rear Diffuser-$1150
Side spoiler Match Paint(M Performance)-$950
Carbon fiber mirrors(M Performance)-$1040
Black Grill(M Performance)-$450
Tinted windows including front-$300
Stainless Steel Pedals(M Performance)-$200
Carbon Fiber Shifter(M Performance)-$260
Paint protection & Film(CQuartz & Xpel-1200

So what have you done? Has it sold? Inquiring minds want to know.

[dongerkim]

Originally Posted by doug_999

Couple of things at play here...
The more options your car has, the greater delta between the trade value and the buyout cost.

Meaning, options like Full Leather, rear window shade, wireless charging, car play, driving assistance, add basically nothing to your cars trade value.

But if you purchased (or leased) you are still paying for those at the 2 year mark.

So two things
1. A stripper car (or a car with fewer options) is normally easier to get rid of (unless you did something silly like got Yas Blue exterior and Red interior ). So as long as you get another stripper you have a better chance... except... the market was hotter in 2016 for the M3 than it is today and in two years, with the new M3 out, you might not have the same luck (happened to me with my X6 - they went from the hottest BMW to not really quick!)
2. Leasing is always better on a highly optioned car as you are only paying for 40% of those worthless trade options

and yes, I purchased my highly optioned M3... don't ask!

I was able to get out with a little negotiating. I was not motivated to sell, unless i walked away free and clear (My deal with min down but i was also strapped to MSDs) Rates were better then, residuals were better then, I think i also got 7% off MSRP doing ED and not the 5%.

This time around, well i checked a few more boxes than i would’ve liked. Basically all the things that i regretted not checking lol

f80 6MT
ZCP
ZEC
full leather


good thing i got rejected for individual paint lol


Roughly 10k more worth of options :/