[Seanhamm]

I have a 21 X5M comp that the lease is up in a few months. This is my first BMW lease, what are all my options? Can I see if a BMW dealer would buy the X5 from me and see if I have any equity? I’m also wondering if I should just buy out the lease as the buyout is about $68,000 and I’m not sure what these days I can get for $68k specially, since I only have 9000 miles on it. Interest rates are a mess, does recent history show going with BMWFS or like a credit union yielding better rates. Thank you for any advice

[TurtleBoy]

I think the first question you need to answer is do you want it or something else?? If you do then buying would seem to be the way to go. You know its history, it has low mileage, etc. I would check around with various credit unions (if you qualify PenFed and NFCU often have good rates) and see what rate you can get. Then call BMWFS and see what their used rate is. For used cars they generally will give you the rate rather than making you go to a dealer.

[DevoBMW]

At lease end you just return the car vs them buying it back from you - you don't own it and have no "equity" in it. The one lease I have done - a Toyota Tacoma - I purchased it. I did get a better "buy-out" than what the payoff was. The dealership worked with me so they didn't have it on their lot. 👍

Not sure with BMW as we are waiting for our first BMW to deliver to the dealership - X5 50e. 👍😎

[TurtleBoy]

Originally Posted by DevoBMW

At lease end you just return the car vs them buying it back from you - you don't own it and have no "equity" in it. The one lease I have done - a Toyota Tacoma - I purchased it. I did get a better "buy-out" than what the payoff was. The dealership worked with me so they didn't have it on their lot. 👍

Not sure with BMW as we are waiting for our first BMW to deliver to the dealership - X5 50e. 👍😎

Some dealers will buy out the lease if there is money in it for them to do so. This is often done in conjunction with getting a new vehicle but some people shop their vehicle around to different dealers to see if they want to buy it. That said, you are correct in that there is no automatic equity in the vehicle.

[center001]

I'm not sure what options you have on your current vehicle, but I'm guessing with that low mileage you have some equity in there. I just turned in my 21 X5 xdrive 40i lease 2 months ago. I had a 15k/yr lease with a residual value of $38.5k and turned it in with 42500 miles.

My dealer offered me $44k for my X5 which resulted in about $5k equity that I put toward my new lease. They then listed it around $51k and appear to have sold it less than a month later...so I'm guessing if they can make at least $5k they would be interested in buying your car.

To the other posters' point usually there is no equity on a lease, but at this moment in time, there is and my dealer hinted that this is actually BMW's new strategy....have unusually low residual values so buyers have an equity position at lease end which allows BMW dealers to then dangle the equity as a means to retain customers. In my case the math worked out when considering my options and I also reasoned that used car prices are going down so (even with low BMW residuals) there is no guarantee I would have another chance to capitalize on this equity. That said I had much higher mileage and wanted a car with a fresh warranty which was a big selling point for me.

Had I bought my car, BMW used car rate at the time of my purchase was only a half percent higher than the new car rate so the BMW rates are very competitive.

At the end of the day I would recommend putting a new build together (whether you really plan to buy new or not) and shopping it around, provide VIN of your current X5 and ask what they would give you for it. This way they at least know you are serious and will give you an honest answer. I live in MN and contacted about 5 dealers in the midwest....most of them contacted me within 15 minutes of hitting send. Once I had this information it was a lot easier to figure out my options (keep vs sell).

[Ibiza]

OP is looking at around $85,000 value for his car via private sale.

[leasehackr]

Originally Posted by center001

I'm not sure what options you have on your current vehicle, but I'm guessing with that low mileage you have some equity in there. I just turned in my 21 X5 xdrive 40i lease 2 months ago. I had a 15k/yr lease with a residual value of $38.5k and turned it in with 42500 miles.

My dealer offered me $44k for my X5 which resulted in about $5k equity that I put toward my new lease. They then listed it around $51k and appear to have sold it less than a month later...so I'm guessing if they can make at least $5k they would be interested in buying your car.

To the other posters' point usually there is no equity on a lease, but at this moment in time, there is and my dealer hinted that this is actually BMW's new strategy....have unusually low residual values so buyers have an equity position at lease end which allows BMW dealers to then dangle the equity as a means to retain customers. In my case the math worked out when considering my options and I also reasoned that used car prices are going down so (even with low BMW residuals) there is no guarantee I would have another chance to capitalize on this equity. That said I had much higher mileage and wanted a car with a fresh warranty which was a big selling point for me.

Had I bought my car, BMW used car rate at the time of my purchase was only a half percent higher than the new car rate so the BMW rates are very competitive.

At the end of the day I would recommend putting a new build together (whether you really plan to buy new or not) and shopping it around, provide VIN of your current X5 and ask what they would give you for it. This way they at least know you are serious and will give you an honest answer. I live in MN and contacted about 5 dealers in the midwest....most of them contacted me within 15 minutes of hitting send. Once I had this information it was a lot easier to figure out my options (keep vs sell).

center001

This is exactly what I planned to do in the next two weeks—picking up 24 X5 currently in transit to dealer.

Turning in 21 X5 x40i with a residual of $40.2K and current 24250 miles. Since my X5 is low miles, do you think there is more +ve equity?

I also plan to order 530i - waiting on 4UR interaction bar and will do the same thing for 21 530i which has a residual of $37.2K current miles 24403.


Leasehackr has the similar thing and they can buy your lease and cut you a check. https://leasehackr.com/blog/equityhackr


This 5K equity - was that applied to Cap Cost Reduction?
What was the other discount he gave you?

Will PM you shortly.

[LDT]

Originally Posted by Seanhamm

I have a 21 X5M comp that the lease is up in a few months. This is my first BMW lease, what are all my options? Can I see if a BMW dealer would buy the X5 from me and see if I have any equity? I’m also wondering if I should just buy out the lease as the buyout is about $68,000 and I’m not sure what these days I can get for $68k specially, since I only have 9000 miles on it. Interest rates are a mess, does recent history show going with BMWFS or like a credit union yielding better rates. Thank you for any advice

NFCU likely has the best rates assuming you qualify. Second would be another credit union or if BMWFS has any promos??