Buy out lease for private sale?

[Viking123]

Originally Posted by jpics80

Your dealer should look at the option of using your car as a trade in as opposed to a lease turn in. I do that with every lease return and almost always save my clients money.

I think this is a really good idea as it avoids the hassle wrt a private sale. But I'm going to the dark side next (Merc) so it's not viable in my particular situation.

That said, the local BMW dealership really wanted my old car as a trade in and offered some good deals if I were willing to lease a new car before my 3 year term was over. They wouldn't have done that unless the car was worth more to them than the residual. This may be a good avenue for others out there.

[GrussGott]

Originally Posted by Viking123

I think this is a really good idea as it avoids the hassle wrt a private sale. But I'm going to the dark side next (Merc) so it's not viable in my particular situation.

going C63 or C63S? What drove your choice?

[RickFLM4]

Originally Posted by GrussGott

going C63 or C63S? What drove your choice?

... and are you leasing or buying? I've got in my head that MB leases are awful so wondering how they compare for you if you are leasing.

Come in with a question and get 4 or 5 back.

[GrussGott]

Originally Posted by RickFLM4

... and are you leasing or buying?

I second rick's question as I'm exploring this as well ....

[Viking123]

Originally Posted by RickFLM4

... and are you leasing or buying? I've got in my head that MB leases are awful so wondering how they compare for you if you are leasing.

Come in with a question and get 4 or 5 back.

Originally Posted by GrussGott

going C63 or C63S? What drove your choice?

It's a C63S coupe ;-). I had already decided to not get another manual transmission so I figured that I should look at other brands too. The C63 coupe sounds and looks great! It's more of an emotional choice than a rational choice because of lack of headroom, I prefer 4 doors due to kids, the MB lease rates suck, etc. The final straw was the BMW production halt which messed with my ability to custom order a new M3 for delivery in June.

For comparison, the MSRP for the C63 is about 10% higher than the M3 but the lease rate is about 30% higher.

[RickFLM4]

Originally Posted by Viking123

It's a C63S coupe ;-). I had already decided to not get another manual transmission so I figured that I should look at other brands too. The C63 coupe sounds and looks great! It's more of an emotional choice than a rational choice because of lack of headroom, I prefer 4 doors due to kids, the MB lease rates suck, etc. The final straw was the BMW production halt which messed with my ability to custom order a new M3 for delivery in June.

For comparison, the MSRP for the C63 is about 10% higher than the M3 but the lease rate is about 30% higher.

I love the car, but unfortunately don't like the math. I was thinking of buying something different next time to get around that math. Then my M4 got rear-ended this morning, as if to remind me of the benefits of leasing.

[GrussGott]

Originally Posted by RickFLM4

I love the car, but unfortunately don't like the math. I was thinking of buying something different next time to get around that math. Then my M4 got rear-ended this morning, as if to remind me of the benefits of leasing.

That's the thing, I love the C63 but the math is bad, if not I'd may jump

[jballs16]

Got a quote for a 17 C63S Coupe. 88k msrp. 1,500/month. lulz. 49% residual I believe

I love the car, but god damn Mercedes, have a little more faith in your resale value.

[RickFLM4]

Originally Posted by jballs16

Got a quote for a 17 C63S Coupe. 88k msrp. 1,500/month. lulz. 49% residual I believe

I love the car, but god damn Mercedes, have a little more faith in your resale value.

Sounds like Mercedes math is about the same, or worse (due to higher MSRP starting points), than Audi. I was quoted a 49% residual on an RS5 when shopping back in 2015. Seems like they will lease to you if you really want to lease but won't take any residual value risk. In this respect, BMW leases are far more compelling. I'd much rather lease from someone willing to accept residual value risk than pass it through to me.

Good for them if they can get it. I'm just not one of the people they will get it from.

[Xerxes480]

Originally Posted by GrussGott

That's the thing, I love the C63 but the math is bad, if not I'd may jump

In the same boat...seriously looking at C63 S sedan but the math is depressing. I have a feeling it might be better to buy rather than lease.

-X-

[mercedesc63]

Originally Posted by Viking123

I have a 2015 M3 lease which is due to be returned in 7 weeks. I probably have some equity in it as the residual value of the lease is about $41K. I'm not considering keeping the car as I already ordered a replacement. I could, however, buy it back and try to sell it in the private market for a profit? I'd only consider the extra hassle if the current value is meaningfully higher than $41k so that I can price it relatively low for a quick sale.

It's in great shape, it has 30k miles, 6mt, executive, adaptive, 19 inch wheels, harman stereo.

Thoughts on the current value? What are others planning to do with their lease returns?

Op any update? Have you gotten any offers yet?

[M4 GTS]

Originally Posted by Xerxes480

In the same boat...seriously looking at C63 S sedan but the math is depressing. I have a feeling it might be better to buy rather than lease.

-X-

Why? You are going to lose money either way. MB is the bad choice IMO

[skyline408]

Originally Posted by IB M

I'm not sure about Cali but in NC when selling to Carmax you have to pay sales tax because you are actually first buying the car from BMW Financial. That is where the tax liability is created. After u buy car out from BMW u then sell to Carmax. Carmax can not take title or paperwork direct from BMW. Said another way BMW will not sell direct to Carmax.

I've sold 2 cars in lease (right side up) to dealers, and didn't have to pay taxes. One benefit of CA.

As for the residual, I have seen very little F8X come under 45 that has a clean title. What's the payoff right now?

[AATA]

I read this post before buying out my friends lease, so I figured I would share what we did. It ended up working out great for both of us.

The local credit union offered to do the transaction, so we requested the buy out info from BMW and the CU was going to pay it off and sell it to me for $41k (his buy out price). Unfortunately the car was purchased under his company name and the CU couldn't handle a company to individual sale. Not sure why, but it worked out better in the long run.

So we went to the local BMW dealer to see if they would do it and and they agreed to let him turn the car in and sell it right back to me at the same price without any fees. The car needed new tires and had a very small dent, but since I was buying it, they waived any charges to my friend. They then agreed to certify it for $4,000. 7 year/100k warranty. So for $45k + tax I ended up with a CPO M4 and my friend signed a couple papers and was done. I haven't seen a similar car in SoCal for under $50k.

At first the dealer price to buy it back was more than the residual, so at first they said they couldn't do it. The manager got involved and made a couple calls and somehow figured it out with BMW Finance.

Thank you and thanks for all the info on this site. Had some rocks in the dust shield the second day I drove the car, but read about it here and just pushed on them and the rocks fell out. Otherwise I would have freaked!

[dkhm3]

Originally Posted by skyline408

I've sold 2 cars in lease (right side up) to dealers, and didn't have to pay taxes. One benefit of CA.

As for the residual, I have seen very little F8X come under 45 that has a clean title. What's the payoff right now?

Let me understand u, how exactly is there a benefit for tax in CA? No tax if i sell it to Carmax or another dealer?

My x5m lease is looking to have 4-5k equity at lease end, so this is interesting. the m3 is owned so doesn't matter.

[skyline408]

Originally Posted by dkhm3

Let me understand u, how exactly is there a benefit for tax in CA? No tax if i sell it to Carmax or another dealer?

My x5m lease is looking to have 4-5k equity at lease end, so this is interesting. the m3 is owned so doesn't matter.

We sold the car to a local buy center (very much like carmax) Since we were selling the car, and not buying it outright. We didn't have to pay taxes on the residual.

If you were to sell the car private party, you would have to buy it outright first (pay taxes on the residual)

[Mike991M4]

Originally Posted by Viking123

I think this is a really good idea as it avoids the hassle wrt a private sale. But I'm going to the dark side next (Merc) so it's not viable in my particular situation.

That said, the local BMW dealership really wanted my old car as a trade in and offered some good deals if I were willing to lease a new car before my 3 year term was over. They wouldn't have done that unless the car was worth more to them than the residual. This may be a good avenue for others out there.

its still available to you. I would at least see what the mercedes dealer would give you for it, if for nothing else the sales tax break. They can buy the lease out and pay it off on a trade just as easily as a bmw dealer. I once traded in a leased G35 at a Chrysler dealership and they actually gave me 1000 more than the buyout, plus I saved on the sales tax.

[Viking123]

Originally Posted by Mike991M4

its still available to you. I would at least see what the mercedes dealer would give you for it, if for nothing else the sales tax break. They can buy the lease out and pay it off on a trade just as easily as a bmw dealer. I once traded in a leased G35 at a Chrysler dealership and they actually gave me 1000 more than the buyout, plus I saved on the sales tax.

It's too late for me... but it's something that I may investigate next time. Thanks!

[bmrwrld]

For that year and Milage you could ask around 56K but you have to market it hard. I've seen a few around that range on dealer lots sitting for months and eventually they lower the price.

[mperfct]

Originally Posted by Viking123

It's too late for me... but it's something that I may investigate next time. Thanks!

Damn dude. That's nice!

[shakfu3]

I just traded in my M3 to lease a new Jaguar F-Pace (needed something bigger). The dealer's purchase price is the buyout pre-tax. The dealer gave me a check for the difference. The dealer bought my car for $49k and my buyout was $43k so I got a check back from the dealer for $6k.

The alternative was to return the car, pay the disposition fee, and I was over miles so pay the fees. Sure I could have held out for a higher buyout but I thought it was fair given what I'm seeing in the market.

[8_is_enough]

Originally Posted by ssuene93

I have sold a leased car to carmax before. What they did was to obtain a payoff quote from BMWFS. If the selling price they offered you greater than payoff, you gain. If there was a shortage, you were upside down and needed to come up the difference. If thats the case, I would just turn it in at lease end.

Yup - I sold my leased GTI to CarMax for more than the payoff quote and went home with a check for the difference.