Turn in car to dealership vs. sell privately? (lease end gettin into new lease) - Bimmerfest - BMW Forums



Go Back   Bimmerfest - BMW Forums > BMW Buyers Guide - Dealers, resources, pricing, tips and trick > Ask-A-BMW-Dealer

Ask-A-BMW-Dealer
Talk to our team of BMW Client Advisors from supporting BMW dealerships. Get all of your BMW pricing, ordering, buying, financing, and leasing questions answered here!

Reply
 
Thread Tools Display Modes
  #1  
Old 04-29-2013, 04:52 PM
aceman626 aceman626 is offline
Registered User
Location: SF
 
Join Date: May 2011
Posts: 47
Mein Auto: BMW
Turn in car to dealership vs. sell privately? (lease end gettin into new lease)

Hi all, so I am near the end of my lease and about to get into a new lease. I found a dealership that I want to get the new car at.

For my current lease, I realize that I should have some equity in the car since it is very VERY low mileage and excellent condition. I basically rarely drove the car in 2 years I've had it, I live in downtown San Francisco and do not use it to commute. It's just for fun on the weekends. The current car is a 2011 328i sedan, no options, pay off at 25,770. Mileage uber low.

Basically edmunds and kbb says I should have 1-2K equity above the payoff price. And because of the low mileage, I might be able to fetch even higher.

Now I am wondering if I should turn the car into the dealership that I am getting the new lease at, or if I should sell it privately.

The dealership is offering me 750 loyalty credit, 500 turn key credit, and 300 low mileage credit, for the new lease. Will I be able to get all these credits on the new lease, if I do not turn in the current car to them?

Thanks!

Last edited by aceman626; 04-29-2013 at 04:54 PM.
Reply With Quote
Sponsored Links
Advertisement
 
  #2  
Old 04-29-2013, 06:25 PM
mclaren's Avatar
mclaren mclaren is offline
Chairman of the Bored
Location: Central Florida
 
Join Date: Jan 2005
Posts: 3,284
Mein Auto: 2014 M5
Yes, the incentives are independent of any lease turn in. I would definitely sell the car yourself.
Reply With Quote
  #3  
Old 04-29-2013, 06:47 PM
[email protected] Justin@NCBMW is offline
Past Sponsor
Location: SoCal
 
Join Date: Jun 2012
Posts: 972
Mein Auto: MY13 X5 50i
Turn in car to dealership vs. sell privately? (lease end gettin into new lease)

Quote:
Originally Posted by mclaren View Post
Yes, the incentives are independent of any lease turn in. I would definitely sell the car yourself.
No, you will only qualify for the loyalty credit if you do not turn in a car.

Not to disappoint you but almost 26k buyout for a base model E90 is not a gold mine. Want to feel out the market... Take it to a local Carnax...that's real world not KBB or edmunds.


Sent from BimmerApp mobile app

Last edited by [email protected]; 04-29-2013 at 07:26 PM.
Reply With Quote
Sponsored Links
Advertisement
 
  #4  
Old 04-29-2013, 06:56 PM
aceman626 aceman626 is offline
Registered User
Location: SF
 
Join Date: May 2011
Posts: 47
Mein Auto: BMW
Quote:
Originally Posted by [email protected] View Post
No, you will only qualify for the loyality credit if you do not turn in a car.

Not to disappoint you but almost 26k buyout for a base model E90 is not a gold mine. Want to feel out the market... Take it to a local Carnax...that's real world not KBB or edmunds.


Sent from BimmerApp mobile app
Not sure what you mean? The 750 credit is already offered to me with the understanding that I will turn my car in.

As for Carmax, I have thought about it, but the nearest carmax is like 2+ hours away from me, so like an entire day trip. I would hate to go there and come away empty handed, if I don't make a profit.
Reply With Quote
  #5  
Old 04-29-2013, 07:03 PM
[email protected] Justin@NCBMW is offline
Past Sponsor
Location: SoCal
 
Join Date: Jun 2012
Posts: 972
Mein Auto: MY13 X5 50i
Turn in car to dealership vs. sell privately? (lease end gettin into new lease)

With the loyalty credit you only need to show you owned a BMW... ie with your current automobile insurance or registration.

Turning one in is not a must.


Sent from BimmerApp mobile app
Reply With Quote
  #6  
Old 04-29-2013, 07:12 PM
aceman626 aceman626 is offline
Registered User
Location: SF
 
Join Date: May 2011
Posts: 47
Mein Auto: BMW
Quote:
Originally Posted by [email protected] View Post
With the loyalty credit you only need to show you owned a BMW... ie with your current automobile insurance or registration.

Turning one in is not a must.


Sent from BimmerApp mobile app
Ok cool. tks.
Reply With Quote
  #7  
Old 04-29-2013, 07:25 PM
[email protected] Justin@NCBMW is offline
Past Sponsor
Location: SoCal
 
Join Date: Jun 2012
Posts: 972
Mein Auto: MY13 X5 50i
Turn in car to dealership vs. sell privately? (lease end gettin into new lease)

Quote:
Originally Posted by [email protected] View Post
No, you will only qualify for the loyalty credit if you do not turn in a car.

Not to disappoint you but almost 26k buyout for a base model E90 is not a gold mine. Want to feel out the market... Take it to a local Carnax...that's real world not KBB or edmunds.


Sent from BimmerApp mobile app



Sent from BimmerApp mobile app
Reply With Quote
  #8  
Old 05-03-2013, 11:37 AM
xofruitcake xofruitcake is offline
Day dreamer
Location: California
 
Join Date: Jul 2010
Posts: 134
Mein Auto: DSB 13 535 DSB 14 Z4 35is
Quote:
Originally Posted by aceman626 View Post
Not sure what you mean? The 750 credit is already offered to me with the understanding that I will turn my car in.

As for Carmax, I have thought about it, but the nearest carmax is like 2+ hours away from me, so like an entire day trip. I would hate to go there and come away empty handed, if I don't make a profit.
getting the best value out of your cars takes a lot of work. If you want to sell it to a private parties, you have to figure out the process with BMW (may be one of the CA on the board can help out). For transfer lease, BMW has to approve the new owner's credit. To sell the car to a private party, I think you have to get your pay off value from BMW and then figure out how to send them the money and transfer the ownership paper etc. etc on top of advertising and doing the test drive with potential buyers.

And I am with Justin here that don't have your expectation too high. The KBB number are basically useless if you try to sell your car to dealer (any dealer). We did sold a few cars that we leased before (mostly to get out of the lease earlier). You can subtract about $3 to 4k from the asking price of a similar used car in a dealer lot your area as a starting point for their offer (and it will get worse from there). You need to take it to multiple dealers to get the best price. My wife did the negotiation for the few leased cars that we sold to dealers and the widest difference between high and low offer is about $2K. And luck sometimes will determine the price your get. If the used car manager already get a bunch of similar model from auction, they are less incline to give you a good offer. On the flip side, if your model sell well and they cannot get enough from the auction, you probably can get a pretty decent price. But either way, it is a lot of work. Good luck.
Reply With Quote
  #9  
Old 05-04-2013, 08:15 AM
Bimmerlearner Bimmerlearner is offline
Registered User
Location: USA
 
Join Date: Jan 2009
Posts: 81
Mein Auto: Nothing
Quote:
Originally Posted by aceman626 View Post
Hi all, so I am near the end of my lease and about to get into a new lease. I found a dealership that I want to get the new car at.

For my current lease, I realize that I should have some equity in the car since it is very VERY low mileage and excellent condition. I basically rarely drove the car in 2 years I've had it, I live in downtown San Francisco and do not use it to commute. It's just for fun on the weekends. The current car is a 2011 328i sedan, no options, pay off at 25,770. Mileage uber low.

Basically edmunds and kbb says I should have 1-2K equity above the payoff price. And because of the low mileage, I might be able to fetch even higher.

Now I am wondering if I should turn the car into the dealership that I am getting the new lease at, or if I should sell it privately.

The dealership is offering me 750 loyalty credit, 500 turn key credit, and 300 low mileage credit, for the new lease. Will I be able to get all these credits on the new lease, if I do not turn in the current car to them?

Thanks!
I think you also save the disposition fee selling?
Reply With Quote
  #10  
Old 05-04-2013, 08:46 AM
m3m3m3 m3m3m3 is offline
Officially Welcomed to the 'Fest
Location: CA
 
Join Date: Feb 2006
Posts: 120
Mein Auto: M3
Anyone know if he would have to pay sales tax when he buys out the car from BMW and then sells the car to a private party? He is in CA with sales tax near 9% and I'm curious because if he had to pay sales tax when buying out the car (in order to sell it), the tax alone would make it not worthwhile.
Reply With Quote
  #11  
Old 05-04-2013, 08:59 AM
NASA43's Avatar
NASA43 NASA43 is offline
Make Their Ass Quit!
Location: Alabama
 
Join Date: Jul 2003
Posts: 1,281
Mein Auto: 2008 M3
Quote:
Originally Posted by Bimmerlearner View Post
I think you also save the disposition fee selling?
Disposition fee is waived if you lease another BMW.
__________________
2008 M3 Sedan, Silverstone II, Fox Red Extended, 6MT
Reply With Quote
  #12  
Old 05-04-2013, 09:44 AM
ard ard is offline
Resident Curmudgeon
Location: Sierra foothills, California USA
 
Join Date: Jul 2009
Posts: 21,639
Mein Auto: '12 X5 35d/E39M5/996TTX50
Quote:
Originally Posted by m3m3m3 View Post
Anyone know if he would have to pay sales tax when he buys out the car from BMW and then sells the car to a private party? He is in CA with sales tax near 9% and I'm curious because if he had to pay sales tax when buying out the car (in order to sell it), the tax alone would make it not worthwhile.
No. CA law explicitly allows the leasee to buy and sell the car without paying tax.
__________________
Alignment here: The Definitive Alignment Thread

OE is Original Equipment aka 'BMW Original Parts' aka 'What you buy at the BMW dealer with a BMW label'

OEM is Original Equipment Manufacturer... EITHER the company that made the OE part or.... A part this is identical to the OE part, but is sold by the OEM under their own label


OEM is not what BMW sells


http://www.bimmerzone.com/category/T...ricks_OEM.html

https://www.turnermotorsport.com/t-OEvsOEM
Reply With Quote
  #13  
Old 05-06-2013, 08:27 AM
dtc100 dtc100 is offline
Officially Welcomed to the 'Fest
Location: Norcal
 
Join Date: Jan 2011
Posts: 4,694
Mein Auto: 2011 328i
Quote:
Originally Posted by ard View Post
No. CA law explicitly allows the leasee to buy and sell the car without paying tax.
How is this achieved in a private sale, filling out a DMV form?
Reply With Quote
  #14  
Old 05-06-2013, 08:32 AM
chrischeung chrischeung is offline
Officially Welcomed to the 'Fest
Location: Dallas, TX
 
Join Date: Sep 2002
Posts: 8,180
Mein Auto: '20 M4 CS, '20 Volvo S60
An example from 10 years ago - http://www.edmunds.com/car-leasing/l...ut-beware.html

I've never read of anyone being able to sell their leased car seamlessly to avoid double taxation without hassle and not involving a dealership. Similarly to how banks like to work with other banks on formal monetary transactions (banks vet their own clients), the DMV likes to work with dealers (DMV vets dealers) and not individuals. Dealers are more likely to be in compliance with laws than individuals, and are more easily held accountable. You'd have to be extremely lucky to find a DMV employee who understands all the regs, and is willing to waive taxation - best to collect first, and have the individual claim it back from the FTB.
__________________
2020 M4 CS CCB
2020 Volvo S60 T5
2019 M2 Comp (ED) - traded

3/12 ED 7 - thread ID 610350
1/11 ED 6 - thread ID 5767556&postcount=175
4/10 ED 5 - thread ID 453501
5/08 ED 4 - thread ID 290679
3/07 ED 3 - thread ID 201013
3/06 ED 2 - thread ID 136454

Last edited by chrischeung; 05-06-2013 at 09:49 AM.
Reply With Quote
  #15  
Old 05-06-2013, 12:10 PM
Number1 Number1 is offline
Banned
Location: United States
 
Join Date: Jan 2013
Posts: 85
Mein Auto:
In summary, GIVE IT BACK TO FS AND AVOID YOURSELF THE HEADACHE!

FYI im a dealer and I wouldnt buy your stripped car for $25k. I can go to the auction and buy a loaded car, same year, similar miles for that amount or likely even less.
Reply With Quote
  #16  
Old 05-06-2013, 12:13 PM
aceman626 aceman626 is offline
Registered User
Location: SF
 
Join Date: May 2011
Posts: 47
Mein Auto: BMW
Quote:
Originally Posted by Number1 View Post
In summary, GIVE IT BACK TO FS AND AVOID YOURSELF THE HEADACHE!

FYI im a dealer and I wouldnt buy your stripped car for $25k. I can go to the auction and buy a loaded car, same year, similar miles for that amount or likely even less.
Can you explain how or where you are going to find a used car with 3K miles on it?
Reply With Quote
  #17  
Old 05-06-2013, 12:55 PM
Number1 Number1 is offline
Banned
Location: United States
 
Join Date: Jan 2013
Posts: 85
Mein Auto:
I can show you used cars with less than 1,000 miles on them.

im not trying to offend you, im giving you more info on a subject i probably know more about than you do. I have nothing vested in your deal, and I can care less what you do.

The market and how we buy cars is not based on edmunds or KBB. Ill refer to a line dealers use all the time with people who come in with a printout of KBB or any of those other websites. "can you sell your car to KBB?" "Will KBB buy your car?" the answer is always no. They put up inflated numbers to draw more visitors to their page for marketing purposes so they can drive up prices on their ads. Because lets face it, no one will take a printout of the lowest value of their car to a dealer and say pay me this.

Anyway, on top of which you will lose turn key and mileage loyalty so youre already starting out $800 behind just turning the car in to the dealer.
Reply With Quote
  #18  
Old 05-06-2013, 01:14 PM
aceman626 aceman626 is offline
Registered User
Location: SF
 
Join Date: May 2011
Posts: 47
Mein Auto: BMW
I'm not offended, just wondering where you'd find multi-year used cars with less than 3K miles on it. I have never seen it, neither has any of the 8 dealers I spoke with, a couple of friends who are dealers, or the 3 guys from BMWFS that I talked to. Searched online on various websites and craigslist, none. I am literally curious where you'd find them.
Reply With Quote
  #19  
Old 05-06-2013, 03:41 PM
Number1 Number1 is offline
Banned
Location: United States
 
Join Date: Jan 2013
Posts: 85
Mein Auto:
Mostly people who dont want the car anymore and barely use it, however one can also find them at dealer auctions. I have a 2012 right now with 1500 miles on it, this is norm for me. Someone bought it, drove it, decided now they want something else so we bought that car back and sold him the convertible version of the same car.
Reply With Quote
  #20  
Old 05-07-2013, 09:37 AM
ard ard is offline
Resident Curmudgeon
Location: Sierra foothills, California USA
 
Join Date: Jul 2009
Posts: 21,639
Mein Auto: '12 X5 35d/E39M5/996TTX50
Quote:
Originally Posted by chrischeung View Post
An example from 10 years ago - http://www.edmunds.com/car-leasing/l...ut-beware.html

I've never read of anyone being able to sell their leased car seamlessly to avoid double taxation without hassle and not involving a dealership. .
And how many private sales have you heard about IN CALIFORNIA where people were double taxed?

Or is it fear of double tax that causes most folks to give up?




Its actually pretty simple- buy it from BMW, dont let them collect use tax, then sell it to a private party. When the private party goes to reigister it, THEY pay THEIR use tax.

Dealing with BMWFS, I cannot say....
__________________
Alignment here: The Definitive Alignment Thread

OE is Original Equipment aka 'BMW Original Parts' aka 'What you buy at the BMW dealer with a BMW label'

OEM is Original Equipment Manufacturer... EITHER the company that made the OE part or.... A part this is identical to the OE part, but is sold by the OEM under their own label


OEM is not what BMW sells


http://www.bimmerzone.com/category/T...ricks_OEM.html

https://www.turnermotorsport.com/t-OEvsOEM
Reply With Quote
  #21  
Old 05-07-2013, 11:02 AM
chrischeung chrischeung is offline
Officially Welcomed to the 'Fest
Location: Dallas, TX
 
Join Date: Sep 2002
Posts: 8,180
Mein Auto: '20 M4 CS, '20 Volvo S60
Quote:
Originally Posted by ard View Post
And how many private sales have you heard about IN CALIFORNIA where people were double taxed?
All. Every time I've heard of someone buying a used car, they had to pay tax where the original car sold as new was taxed.

I would call BMWFS and ask the requirements for release of title. Here is a post from Sarafil on titling from a lease buyout - https://www.bimmerfest.com/forums/sho...90&postcount=8

Naturally, there's nothing to fear if you don't mind the worst case scenario - paying the tax twice. I actually had that scenario once. The buyer agreed to basically split the difference in case there was a situation of double taxation. I would pay him back my part in case he was charged tax. This wasn't in California, and there were hassles. At one point I was thinking I'd be paying my share.

Here's a recommendation - http://www.edmunds.com/car-leasing/3...into-cash.html

'Sell your leased car to a neighbor, friend or family member. This method requires a bit of trust, so it helps to sell your car to someone you know."..."A way to prevent this, according to the Auto Club of Southern California, is to pay the sales tax and DMV fees as soon as possible and then return to conclude the deal with the title in hand. This transaction is called a "lease buyout transfer." Contact your state's DMV for more details."

But this is me - I wouldn't recommend wholesale to another 'Fester to try and sell their lease with a buyout. I've done a lot of lease transfers in the past. That's always been with a car already ordered and paid for. So I did take a risk that I would be losing money potentially if I didn't sell my lease in a timely manner. So each individual should consider their own tolerance to risk.

It's like bungee jumping - you have all the right equipment, you've set it up according to all the instructions - but do you really want to be that first person to jump off a new bridge if you aren't an expert? Best to do it with an experienced outfit (in this case the dealer).
__________________
2020 M4 CS CCB
2020 Volvo S60 T5
2019 M2 Comp (ED) - traded

3/12 ED 7 - thread ID 610350
1/11 ED 6 - thread ID 5767556&postcount=175
4/10 ED 5 - thread ID 453501
5/08 ED 4 - thread ID 290679
3/07 ED 3 - thread ID 201013
3/06 ED 2 - thread ID 136454

Last edited by chrischeung; 05-07-2013 at 11:46 AM.
Reply With Quote
  #22  
Old 05-07-2013, 11:14 AM
Robert A Robert A is offline
Officially Welcomed to the 'Fest
Location: Los Angeles
 
Join Date: May 2003
Posts: 5,241
Mein Auto: BMW 535d
I think BMWFS now collects the sales tax on lease buyouts (at least that's how they handled it for me).

If you resell it within 10 days, you can claim an exemption. Otherwise taxes are due 2x.

Quote:
Originally Posted by ard View Post
And how many private sales have you heard about IN CALIFORNIA where people were double taxed?

Or is it fear of double tax that causes most folks to give up?




Its actually pretty simple- buy it from BMW, dont let them collect use tax, then sell it to a private party. When the private party goes to reigister it, THEY pay THEIR use tax.

Dealing with BMWFS, I cannot say....
__________________
Robert A
BMWCCA Member


Current
2014 535d, M Sport, Space Gray/Mocha Nappa

Prior
2007 530i, White/Black, 6MT
2001 530i, Orient Blue/Beige, 5MT
1994 325is, White/Black 5MT
1984 325e, White/Black 5MT
1983 318i, Delphin/Beige 4MT

Last edited by Robert A; 05-07-2013 at 11:16 AM.
Reply With Quote
Reply

See More Related BMW Stories


Forum Navigation
Go Back   Bimmerfest - BMW Forums > BMW Buyers Guide - Dealers, resources, pricing, tips and trick > Ask-A-BMW-Dealer
Today's Posts Search
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On



Forum Jump


All times are GMT -7. The time now is 11:47 PM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
© 2001- VerticalScope Inc. All rights reserved.