Quote:
Originally Posted by Draper
Quote:
Originally Posted by paliknight
If you trade it in for another vehicle, they take it as if it was financed. So they'd pay off whatever the buyout is then cut you a check for the rest. Depending on their appraisal.
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In most states, you're not paying tax on the residual so there really isn't a tax incentive to trade in vs simple lease turn in.
If your trade in value is above the residual/buyout then you can capture some equity, but this doesn't happen very often with BMW since they tend to lease rather aggressively. |
That makes sense. I know in Texas it's the same for lease/finance/etc where the tax incentive is the difference in price basically.