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      10-09-2021, 05:10 PM   #1
secretsquirrel
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Purchase lease only to sell, then buy another car?

I had plans to sell my car to Carmax, but I heard that BMW no longer allows 3rd party finance companies to directly purchase a lease. This puts a wrench in my plan to extract money from the excess lease residual.

My current plan is to purchase my lease, then sell it to another dealership (or Carmax, etc). I will pay off the BMW loan with the proceeds, and apply to get another loan for the new car. My concern is that 2 auto loans within a month might make things difficult. The loans won't overlap, but the reporting of the loans might.

Has anyone done this before? I'll add that I'm a business owner and don't pay myself enough money to have two vehicles on my credit, though I have enough revenue to pay myself more, if needed.
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      10-09-2021, 11:02 PM   #2
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Quote:
Originally Posted by secretsquirrel View Post
I had plans to sell my car to Carmax, but I heard that BMW no longer allows 3rd party finance companies to directly purchase a lease. This puts a wrench in my plan to extract money from the excess lease residual.

My current plan is to purchase my lease, then sell it to another dealership (or Carmax, etc). I will pay off the BMW loan with the proceeds, and apply to get another loan for the new car. My concern is that 2 auto loans within a month might make things difficult. The loans won't overlap, but the reporting of the loans might.

Has anyone done this before? I'll add that I'm a business owner and don't pay myself enough money to have two vehicles on my credit, though I have enough revenue to pay myself more, if needed.
Can you just write a check to BMW for the lease and that way don't have to worry about a loan? You'll get the money back soon once you resell.

You'll have to pay sales tax if you buy the car. Will you get enough from carmax to cover the sales tax and make money?
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      10-09-2021, 11:54 PM   #3
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There are typically provisions to "buy out" the lease but I'm sure there is a penalty associated with it.
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      10-10-2021, 06:22 AM   #4
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Find a private purchaser then mqke qn appointment with the local BMW sales center. They can facilitate a third party lease buyout. It avoids double sales taxes. You pocket the equity.

fyi, unless you or the purchaser have an existing relationship with they dealership, expect there to be an extraction for their cooperation...sometimes they will want to finance the buyers.
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      10-10-2021, 07:56 AM   #5
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I'm not sure if you can execute that as planned, but I can definitely tell you, you CAN get 2 auto loans in a month. especially if you use your existing bank and not some other. I refinanced my 435i to a minescule payment 14 days before I traded it for my m4. The paperwork hadn't even made it from the 1st finance company to my bank yet for the refinancing, and they still accepted the trade and offered a loan to me for the m4. I did have to sign something saying that if the dealership didn't have the title in 30 days, that THEY could apply to get one I think.
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      10-10-2021, 01:02 PM   #6
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Quote:
Originally Posted by visi107 View Post
Can you just write a check to BMW for the lease and that way don't have to worry about a loan? You'll get the money back soon once you resell.

You'll have to pay sales tax if you buy the car. Will you get enough from carmax to cover the sales tax and make money?
Thanks, that is an option. I do have enough in saving to write a check, but it feels scary writing a check for that amount
The spread is large enough to make money after the tax. The tax in TX for cars is 6.25%, so i'll owe roughly 4k in taxes. The spread is about 13k. I'll consider this option. Thanks.

Quote:
Originally Posted by D_SheerDrivingPleasure View Post
Find a private purchaser then mqke qn appointment with the local BMW sales center. They can facilitate a third party lease buyout. It avoids double sales taxes. You pocket the equity.

fyi, unless you or the purchaser have an existing relationship with they dealership, expect there to be an extraction for their cooperation...sometimes they will want to finance the buyers.
I'll definitely consider this as an option. I love the idea of not paying double sales taxes. Thanks for the suggestion.

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Originally Posted by F82spaceship View Post
I'm not sure if you can execute that as planned, but I can definitely tell you, you CAN get 2 auto loans in a month. especially if you use your existing bank and not some other. I refinanced my 435i to a minescule payment 14 days before I traded it for my m4. The paperwork hadn't even made it from the 1st finance company to my bank yet for the refinancing, and they still accepted the trade and offered a loan to me for the m4. I did have to sign something saying that if the dealership didn't have the title in 30 days, that THEY could apply to get one I think.
Thanks for the confirmation. I'll reach out to my bank and look into this. I've had a relationship for a while, so it should be an option.
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      10-10-2021, 03:19 PM   #7
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Does BMW's ban apply to sales to private dealerships the same way it does to Carmax, vroom, etc? Find a local used car dealer that trades in luxury/high performance vehicles. I bet you could get a strong price.
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      10-12-2021, 06:56 AM   #8
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Quote:
Originally Posted by D_SheerDrivingPleasure View Post
Does BMW's ban apply to sales to private dealerships the same way it does to Carmax, vroom, etc? Find a local used car dealer that trades in luxury/high performance vehicles. I bet you could get a strong price.
I'm not sure how BMW is classifying potential purchasing companies. I'll report back here if I find some info.
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      10-16-2021, 03:10 PM   #9
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I'm confused. Do you want the car or not? If you are selling before the lease is up to recoup the equity you can absolutely do that. You can also purchase the car before the lease is up if you want to keep it. You may even be able to do an early pull ahead, trade that car in on another lease.
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