Buying out my lease - how much?

[IK6SPEED]

Originally Posted by Alvinized52

Isnt the value based on mileage? What if the car only has 13k miles in 3yrs? Im in this same boat....but with super low mileage. My logic says that works against me. My residual is 48k. 49k buyout now.

Low mileage comes into play under 10k miles. (4 figure mileage as opposed to 5 figure mileage).

Upper Limits High Mileage subtract from the average.

In between is where most cars fall.

Originally Posted by M4 GTS

Yes super low mileage will effect the price for sure.

13k isn’t super low miles, especially for a car that many do not use as a primary car.

[IK6SPEED]

Originally Posted by M4 GTS

You have no idea my friend. I've done this before.

One offs are not the norm.

[M4 GTS]

Originally Posted by IK6SPEED

13k isn’t super low miles, especially for a car that many do not use as a primary car.

For 36 month lease 13 is low mileage.

[IK6SPEED]

Originally Posted by M4 GTS

For 36 month lease 13 is low mileage.

To you. And to a person trying to sell you a car. Certainly not to used car managers to adjust price. 4 digits is the magic number.

My almost 5 year old BMW has about 11,500. I know how bad the BMW Used Car Sales Manager wanted it when it had 8,800 miles on it after 36 months and he explained why in great detail.

Others have since confirmed under 10k is where they adjust for low miles.

[trendy26]

Originally Posted by IK6SPEED

You missed the point.

You need to pay the sales tax to BMWFS if you buy the car prior to selling to Carmax. The title must be in your name prior to Carmax buying it. Now if you purchased it through BMWFS and they are a lien holder only on the title, totally different. But that is a different subject.

BMWFS will not sell a car to Carmax. Only to the lease holder or a BMW Dealer (unless through an auction).

Once again, you're completely wrong....

If you sell your car to Carmax, AND it is a lease, the buyout to Carmax is less tax... So if your buyout today on BMWFinance.com is $50k with tax and $47K without tax, the payoff to Carmax if you sold it to them would be $47k. Not sure where your confusion is thinking that you would need to buyout the car first from BMW before selling it to Carmax.

(Obviously if you financed the car through BMW, you would have already paid the tax in that scenario)

[IK6SPEED]

Originally Posted by trendy26

Once again, you're completely wrong....

If you sell your car to Carmax, AND it is a lease, the buyout to Carmax is less tax... So if your buyout today on BMWFinance.com is $50k with tax and $47K without tax, the payoff to Carmax if you sold it to them would be $47k. Not sure where your confusion is thinking that you would need to buyout the car first from BMW before selling it to Carmax.

(Obviously if you financed the car through BMW, you would have already paid the tax in that scenario)

You have to pay sales tax to the state before they will issue you a title to transfer to Carmax.

[trendy26]

Originally Posted by IK6SPEED

You have to pay sales tax to the state before they will issue you a title to transfer to Carmax.

Ok this is my last response to you because you obviously just don't get it....

On a leased vehicle, there are two different payoffs on a car:

Customer Payoff - Which includes tax
Dealership Payoff - which excludes tax

Now Carmax is a dealer, therefore they buy the car directly from BMW for what the pure payoff is, which does not include tax. Doesn't matter if it is a BMW dealer, Lexus dealer, etc. The Dealer Payoff does not include tax....

Now if you still cannot understand nor comprehend that, I don't what to tell you. Guess you just can't fix stupid.... I'd focus your efforts on a different topic, because you're absolutely clueless on this one.

[IK6SPEED]

Originally Posted by trendy26

Ok this is my last response to you because you obviously just don't get it....

On a leased vehicle, there are two different payoffs on a car:

Customer Payoff - Which includes tax
Dealership Payoff - which excludes tax

Now Carmax is a dealer, therefore they buy the car directly from BMW for what the pure payoff is, which does not include tax. Doesn't matter if it is a BMW dealer, Lexus dealer, etc. The Dealer Payoff does not include tax....

Now if you still cannot understand nor comprehend that, I don't what to tell you. Guess you just can't fix stupid.... I'd focus your efforts on a different topic, because you're absolutely clueless on this one.

You continue to fail to grasp that BMWFS will NOT sell a leased car to Carmax, only the leasee or a BMW Dealer.

If you want to sell to Carmax, you must

1) Buy car from BMWFS and pay sales tax

2) You then can sell the car to Carmax

To quote you, “Now if you still cannot understand nor comprehend that, I don't what to tell you. Guess you just can't fix stupid.... I'd focus your efforts on a different topic, because you're absolutely clueless on this one.”

[Thescout13]

Originally Posted by IK6SPEED

You continue to fail to grasp that BMWFS will NOT sell a leased car to Carmax, only the leasee or a BMW Dealer.

If you want to sell to Carmax, you must

1) Buy car from BMWFS and pay sales tax

2) You then can sell the car to Carmax

To quote you, "Now if you still cannot understand nor comprehend that, I don't what to tell you. Guess you just can't fix stupid.... I'd focus your efforts on a different topic, because you're absolutely clueless on this one."

This is not true. Having sold two leased cars with BMWFS to carmax, you can absolutely sell a leased car with BMWFS to carmax. I never paid any fees or taxes and always got my positive equity in a check, which was the difference between the BMWFS payoff quote to me and the carmax value I was quoted. This was done in Florida and in NC.

Unless BMWFS has changed this in the last 3 years, then idk where this info is coming from. Maybe it's state specific?

[IK6SPEED]

Originally Posted by Thescout13

This is not true. Having sold two leased cars with BMWFS to carmax, you can absolutely sell a leased car with BMWFS to carmax.

Then BMWFS is lying to everyone and countless others posts confirm BMWFS would only sell their car to them or a BMW Dealer.

I have to believe the numerous other posts and yours was possibly before a policy change.

[Thescout13]

Originally Posted by IK6SPEED

Then BMWFS is lying to everyone and countless others posts confirm BMWFS would only sell their car as well to them or a BMW Dealer.

I have to believe the numerous other posts and yours was possibly before a policy change.

Yeah it must have been. I elaborated on my post above a little more.

[Aaaaaaaaa]

Will try to sell my leased car to Carmax tomorrow just to see who's right. Will report back.

[Thescout13]

Originally Posted by pheerIx

Will try to sell my leased car to Carmax tomorrow just to see who's right. Will report back.

:

[FriedPiston]

I believe people are confusing the two options:

1. Loan/Lease Payoff (usually higher)
>> This is the amount due if you were to purchase the vehicle before lease end.
>> This is the option Carmax would exercise to directly acquire leased vehicles.

2. Lease Residual Value (usually lower, not always)
>> This option is only available to the leasee and/or BMW dealer at the end of lease contract.
>> Sales tax applies to personal transactions (excluding states with no sales tax)

If you're at the end of the lease, and you're simply looking to sell to recoup costs, it is recommended to weigh both options to determine which one provides a better payout, if any.

Purchasing to resell based on Lease Residual value would make a lot of sense for leasees based in states with no applicale sales tax, such as, AK, DE, NH and OR.

[trendy26]

Originally Posted by nars3000

I believe people are confusing the two options:

1. Loan/Lease Payoff (usually higher)
>> This is the amount due if you were to purchase the vehicle before lease end.
>> This is the option Carmax would exercise to directly acquire leased vehicles.

2. Lease Residual Value (usually lower, not always)
>> This option is only available to the leasee and/or BMW dealer at the end of lease contract.
>> Sales tax applies to personal transactions (excluding states with no sales tax)

If you're at the end of the lease, and you're simply looking to sell to recoup costs, it is recommended to weigh both options to determine which one provides a better payout, if any.

Purchasing to resell based on Lease Residual value would make a lot of sense for leasees based in states with no applicale sales tax, such as, AK, DE, NH and OR.

Pretty sure it's understood the difference between Lease Payoff and Residual....

The disconnect is with the sales tax associated with the Lease Payoff. If Carmax or any other dealer for that matter is purchasing a car from someone before lease end, the payoff would not include sales tax.... Plain and simple.

If the individual was buying out their lease early, they would need to pay sales tax on the Payoff amount (which is already included in the Payoff Quote on BMWFinance.com

[FriedPiston]

Originally Posted by trendy26

Pretty sure it's understood the difference between Lease Payoff and Residual....

The disconnect is with the sales tax associated with the Lease Payoff. If Carmax or any other dealer for that matter is purchasing a car from someone before lease end, the payoff would not include sales tax.... Plain and simple.

If the individual was buying out their lease early, they would need to pay sales tax on the Payoff amount (which is already included in the Payoff Quote on BMWFinance.com

Attaching this here to set the record straight. Buyer is subject to sales tax addition unless noted in the Payoff Quote.

My payoff quote certainly does not include sales tax, and I am not a dealer...

[4everkidd]

Originally Posted by IK6SPEED

Then BMWFS is lying to everyone and countless others posts confirm BMWFS would only sell their car to them or a BMW Dealer.

I have to believe the numerous other posts and yours was possibly before a policy change.

Sorry man but I've sold a BMW to Mercedes as well as a Lexus to BMW. Both leases and both midterm without having to buyout the car first.

[IK6SPEED]

Originally Posted by 4everkidd

Sorry man but I've sold a BMW to Mercedes as well as a Lexus to BMW. Both leases and both midterm without having to buyout the car first.

Could car less about other brands.

Just know what BMWFS claims in United States.

Could they be lying and others posters who were denied incorrect?

Maybe.

I have no idea of leases not in USA as I have yet to read that. Going by your post, it’s possible in Canada.

[autocompanion]

Originally Posted by M4 GTS

Lets say your residual is 43k. Dealer will get you car from BMW at wholesale price around 34-35K, then they will recondition the car and probably CPO the car. Ask the dealer if he wants so split price between wholesale and residual and go for it. So if you can get your car for lets say 38k I would go for it. I've done this before and it works because dealer get some profits and the car doesn't sit on the lot. JMO

I second this! Done this quite a few times! I paid $500 over wholesale. To the dealer it was just quick paperwork.

[Ibiza]

Originally Posted by pheerIx

Will try to sell my leased car to Carmax tomorrow just to see who's right. Will report back.

Any update, it's been 3+ days since you were going to sell to car max.

[Ibiza]

Originally Posted by IK6SPEED

Low mileage comes into play under 10k miles. (4 figure mileage as opposed to 5 figure mileage).

Upper Limits High Mileage subtract from the average.

In between is where most cars fall.

13k isn't super low miles, especially for a car that many do not use as a primary car.

Why are people leasing M3/M4's if not their daily driver then? If you plan on staying at super low mileage, then finance for a weekend vehicle. Otherwise, max out the mileage of the lease terms.

[Aaaaaaaaa]

Originally Posted by Ibiza

Any update, it's been 3+ days since you were going to sell to car max.

They refused the car. They said no one is buying used F8X cause they don't like the engine sound. They'll pay over market for N55 M2s though.