[rmorin1249]

With the high used car prices our X5 may well be worth more than the residual at lease end.

I have never leased before and do not trust the dealer to be straight with me. I have several questions and please do not flame me for my admitted ignorance.

1. If I buy the vehicle at lease end for the residual and keep it do I have to pay TTL just the same as buying a used car? It will be titled and registered in Maryland.
2. If I sell I buy it and then immediately sell it to a dealer like CarMax do I still have to pay sales tax? The tags will still have another year left so can I leave them on the vehicle until it is sold or they expire? It is currently registered in Maryland.
3. Is it correct that I cannot allow a dealer to pay off the lease early or buy it at the end of the lease? I have to buy it directly from BMWFS.

Thank you in advance for your input and feedback.

[akin67]

I was in the same situation a week ago with my Genesis. (I suspect you will be able to do the same with a BMW).

I believe the answer is Yes for 1 and 2. It definitely is with Genesis in NJ. There was no way for me to buyout my lease without them registering it in NJ and paying sales tax. You do have another option.

I had a 2018 Genesis G90 where the lease expired in February (that I had extended month to month until my BMW arrived). I went to the dealer last week and told them that my residual was $30k where the market value was $39. I told them I intended to buy the vehicle and sell it myself. I suggested maybe they can buy it for me, where I wouldn't have to pay the sales tax, and then they can resell it for a profit where we both make out. They agreed. I turned my vehicle in and authorized them to buy it and payoff the buyout payment and they paid me a net $3,000. I am sure it is less of a profit than I would have made had I went through buy and sell process, but it also saved me the hassle.

There is a real shortage of used cars and prices have gone up. You can definitely profit from this. So many people are unaware they can do this and just turn the vehicle in to the dealer and miss out. Good luck.

[darksilkx1]

Originally Posted by rmorin1249

With the high used car prices our X5 may well be worth more than the residual at lease end.

I have never leased before and do not trust the dealer to be straight with me. I have several questions and please do not flame me for my admitted ignorance.

1. If I buy the vehicle at lease end for the residual and keep it do I have to pay TTL just the same as buying a used car? It will be titled and registered in Maryland.

3. Is it correct that I cannot allow a dealer to pay off the lease early or buy it at the end of the lease? I have to buy it directly from BMWFS.

Thank you in advance for your input and feedback.

1. From recent memory its not a foregone conclusion that the dealer will sell you the vehicle for residual. They have the right to set any price. Remember the car is theirs at the end of the lease. In Florida yes you will pay TTL. Its a separate transaction from the lease.

3. Not really clear on this question but I dont see buying a car directly from BMWFS. They'll still direct you to a dealer since BMWFS is for all intents and purposes a bank. Now if it was a car loan and you paid early then yes they'll send you your title early and that's the end of that.

[akin67]

Originally Posted by darksilkx1

1. From recent memory its not a foregone conclusion that the dealer will sell you the vehicle for residual. They have the right to set any price. Remember the car is theirs at the end of the lease. In Florida yes you will pay TTL. Its a separate transaction from the lease.

3. Not really clear on this question but I dont see buying a car directly from BMWFS. They'll still direct you to a dealer since BMWFS is for all intents and purposes a bank. Now if it was a car loan and you paid early then yes they'll send you your title early and that's the end of that.

I don't think 1 is accurate. As far as I know, your buyout cost is in your lease contract and it is a set price. The dealer has no say on that. It is your option what you want to do.

[Tim2189]

Originally Posted by rmorin1249

With the high used car prices our X5 may well be worth more than the residual at lease end.

I have never leased before and do not trust the dealer to be straight with me. I have several questions and please do not flame me for my admitted ignorance.

1. If I buy the vehicle at lease end for the residual and keep it do I have to pay TTL just the same as buying a used car? It will be titled and registered in Maryland.
Yes you will be responsible for tax and plates

2. If I sell I buy it and then immediately sell it to a dealer like CarMax do I still have to pay sales tax? The tags will still have another year left so can I leave them on the vehicle until it is sold or they expire? It is currently registered in Maryland.
Yes, still have to pay TTL

3. Is it correct that I cannot allow a dealer to pay off the lease early or buy it at the end of the lease? I have to buy it directly from BMWFS.
I would call bmwfs to confirm, you might be able to have carmax purchase from bmwfs and cut you a check for the difference between what the buyout is and what carmax offered. This would prob be the only way you dont pay tax

Thank you in advance for your input and feedback.

If you want to flip your lease return, have a wholesaler buy it and agree on an amount you want from the wholesaler.

[TurtleBoy]

Also keep in mind that you can buy out your lease at anytime. It may save you money to do it now. I decided to wait until the LCI to get my next one so I bought my lease out last month. It was less expensive to do it early rather than wait given that assets I used.

[thereef510]

Originally Posted by TurtleBoy

Also keep in mind that you can buy out your lease at anytime. It may save you money to do it now. I decided to wait until the LCI to get my next one so I bought my lease out last month. It was less expensive to do it early rather than wait given that assets I used.

if your monthly payments and stuff are set, how do you save money by buying it out early? and by, 'buy out' do you mean purchase the car outright (Lease + residual)?

[TurtleBoy]

Originally Posted by thereef510

if your monthly payments and stuff are set, how do you save money by buying it out early? and by, 'buy out' do you mean purchase the car outright (Lease + residual)?

The buy out price of the lease is not the remaining lease payments plus the residual since each payment includes the rent charge (interest). Except for some rare instances, the buyout will be the residual plus the remaining depreciation charges. So you are saving the interest charges. Also keep in mind with a lease you are paying interest on the residual and depreciation amounts.

[parkstr8]

Our 2018 Q7 Prestige lease is up and just as I was about to buy it out (it only has 18k on it) - I discovered it is worth 10k more (cash offer from Carvana and Carmax) than I owe.

The payoff AFS gave us included the TTL, so 34.9k actual payoff and 4 places gave me within 250 of each other - 44k+.

So we might just take the cash and buy something else as, after 69 cars, this is the first time that much cash has come back on a leased used car. Thank goodness for shortages. lol

[hdahman]

Isn't what you asking the same as people appraise the car from carvana/carmax/etc... and get the delta cash if the car is priced more than residual without dealing with taxes. I watch some YouTube videos about , but not quite sure how it works.

[rmorin1249]

I called BMWFS. They said only the lessee can buy it for the residual. They said taxes are up to the state I live in. I'm going to take it to CarMax and see what they will offer. Thanks for the replies. My first lease so I'm learning a lot.

[TurtleBoy]

Originally Posted by rmorin1249

I called BMWFS. They said only the lessee can buy it for the residual. They said taxes are up to the state I live in. I'm going to take it to CarMax and see what they will offer. Thanks for the replies. My first lease so I'm learning a lot.

Yes, there is a different payoff amount for dealers. Just go online to your account and you will get your current payoff amount.

[Maximus2002]

Originally Posted by rmorin1249

I called BMWFS. They said only the lessee can buy it for the residual. They said taxes are up to the state I live in. I'm going to take it to CarMax and see what they will offer. Thanks for the replies. My first lease so I'm learning a lot.

My first lease as well. I am on the same boat as you, so please let us know about the offer from CarMax. I don't know if I should go with a Tesla MY, or stay with my X5 at the end of the lease.

[parkstr8]

Carmax and Carvana will do it all online. No need to drive.

Originally Posted by rmorin1249

I called BMWFS. They said only the lessee can buy it for the residual. They said taxes are up to the state I live in. I'm going to take it to CarMax and see what they will offer. Thanks for the replies. My first lease so I'm learning a lot.

[FCX5]

Originally Posted by hdahman

Isn't what you asking the same as people appraise the car from carvana/carmax/etc... and get the delta cash if the car is priced more than residual without dealing with taxes. I watch some YouTube videos about , but not quite sure how it works.

From what I know Carvana and others have the residual data and will basically match it. The less optioned your a car is the better I believe are you mr chances of making a profit - as they decline more than the rest of the car.

[Axxlrod]

This is a common thing now I guess due to high used car values and shortages.

I just sold my Acura NSX that had 1 month left on the lease. I sold it to a dealer, who paid off the amount owed to Acura, and gave me a check for the $20K delta when they picked up the car.

Everything done via email. Easiest transaction I've ever done.

[jphcbpa]

Are taxes paid to BMW NA with your payoff amount ? How and when are the taxes paid ?
I reside in TX.

[javapro]

The only way to avoid paying sales tax that I know of is to let Vroom, Carvana, Carmax, etc. (any other registered dealer) buy your car directly from BMW Financial Services. However, it only makes sense if their offer is higher than the lease buyout. That's what I did with my Lexus. Vroom offered me to buy it for a few grand higher than the lease payoff. Vroom purchased the car from Lexus Financial and gave me the exact difference between what Vroom's offer to me was and the lease payoff. I didn't have to pay any sales taxes, title, or registration fees. The only caveat might be the lease payoff. Carvana rep told me that some lease companies give a higher payoff amount to dealers as compared to the lessees which was not the case with Lexus Financial. So, if you are planning to have Vroom, Carvana, Carmax, etc. to pay off your lease, make sure to request a dealer payoff quote from your leasing company.

[TurtleBoy]

Originally Posted by jphcbpa

Are taxes paid to BMW NA with your payoff amount ? How and when are the taxes paid ?
I reside in TX.

Generally no but it can vary by state. Texas is very unfriendly to leases so it is always best to not lease there. BMW has a separate financing program, BMW Select, for Texas, and other states is much more tax friendly.

[beegee227]

Be aware that many OEMs no longer allow third party lease buyouts. The only options are now first party (the original lessee) or their network of franchised dealers (same brand as your car).

[thereef510]

Originally Posted by Maximus2002

My first lease as well. I am on the same boat as you, so please let us know about the offer from CarMax. I don't know if I should go with a Tesla MY, or stay with my X5 at the end of the lease.

First lease as well. If the MY24 does not bring back the options on my MY20, I'm probably gonna have to keep it.

[rmorin1249]

BMWFS told me that they will not accept payment from anyone except the lessee.