Last post on Sep 01, 2010 at 2:14 PM
You are in the BMW 5-Series
What is this discussion about?
BMW 5 Series, Car Leasing, Sedan, Wagon
#1 of 8 My lease is up in August, should I turn it in or buy it?
Jun 02, 2010 (7:33 pm)
I have a 2 year lease on 528i, which is up in August. I am about 10,000 miles over milage. The residual value is $34119.75. Should I turn it in and lease a new one? If I lease a new one, what kind of incentive does BMW have now? Any help is greatly appreciated.
#2 of 8 Re: My lease is up in August, should I turn it in or buy it? [1003008gl]
Jun 03, 2010 (2:02 am)
I turned in my 535i in Feb after a 2 year lease. I was a bit below my mileage allowance (22K out of 24K miles). I was a bit surprised to learn from the lease end consultant that I can negotiate on the residual value if I wanted to buy it out. My residual was $43K. they offered $36K which was $7K off my residual. The lease end consultant says that BMW Financial allowed the dealer to purchase the car at $34K and the dealer added $2K on top for BMW CPO certification and profit. Although the discount was pretty good off the residual (which is inflated anyway) and my total car cost would have been cheaper than if I had bought the car in the first place (amazing for a lease to buy), I still turned it down because the local region auction value of the car was about $28-30K (that was the most I was willing to pay for the car), the engine broke down twice (big reason for not keeping the car), and I was intrigued by the 2011 535i.
Also, they had a customer loyalty lease to lease rebate at the time. Maybe they still do and that can help with paying for your overmileage if you lease a new BMW.
#3 of 8 Re: My lease is up in August, should I turn it in or buy it? [bruiseraex]
Jun 03, 2010 (3:26 pm)
Thanks for your reply. Just curious, what kind of deal were you able to get on the new 2011 535i? I talked to the fleet manager today and he is working on giving me a quote if I want to buy my existing car or trade in for the new 535i. Thanks
#4 of 8 Re: My lease is up in August, should I turn it in or buy it? [1003008gl]
Jun 04, 2010 (1:11 am)
I haven't gotten a new car yet and I am also curious to find out what kind of deals are available if any on the 2011.
#5 of 8 Re: My lease is up in August, should I turn it in or buy it? [bruiseraex]
Jul 13, 2010 (12:42 pm)
Just curious. If you decide to buy your car after lease do you have to pay sales tax on the purchase? I leased mine in MD, and it's one of the states where you pay sales tax on full cap price of the vehicle, not the leased part. Now if I decide to purchase it after lease, do they collect tax again? If so, isn't it a double tax practice?
#6 of 8 Re: My lease is up in August, should I turn it in or buy it? [leon_0905]
Jul 13, 2010 (1:29 pm)
I cannot speak for Maryland, however, I used to live in Illinois (another state that nails you on sales tax for the full CAP cost of the car on a lease), and they don't (or at least didn't) hit you again for the sales tax. My bet is that they don't.
#7 of 8 Re: My lease is up in August, should I turn it in or buy it? [leon_0905]
Jul 28, 2010 (5:27 pm)
You only paid tax on the total of your lease payments not on the whole price (cap cost) of the car. If you bought it, you'd also pay tax on the residual amount paid for your car.
#8 of 8 Re: My lease is up in August, should I turn it in or buy it? [carnaught]
Sep 01, 2010 (2:14 pm)
Not really, I did pay 6% tax on full selling price of the car, not on the leased part (which was around $3200 for $54000 cap). MD is one of the 6 states that has this law which makes expensive luxury car leasing quite unattractive. Even if I get car in NY or NJ I still pay 6% sales tax according to MD law for full price.