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I'm seeing the NADA guide pricing for my car (09 CC Lux package with 30K miles) is currently between $22-24K. Carmax is listing it for around $23500.
Does it make sense to buy the car now for $20,800 (including taxes), as there is still 4 months or 5000 miles on the warranty, then try to flip it to a private seller to make a profit?
I know Carmax buys leased cars. When they call VW Credit to get a payoff, I'm assuming that payoff amount will not include sales tax for them. Does this mean their payoff would be the residual plus remaining payments plus any fees? If so, that would give me more equity by avoiding the taxe? Does VW Credit even do this?
Now, could you buy it and sell it for a profit? Maybe. But are you willing to take the risk? Selling something so expensive private party is very tough because the buyer either has to arrange their own financing (which often carries a higher rate when buying private party) or pay cash. If I could get it from Carmax for $23,500, then I'd most likely be able to get it from a normal dealer for $22k. So I'd be looking to pay no more than $21k private party. That's a whopping $200 for you after all of your hard work.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
So at lease end your car would be $17,895 to a dealer (assuming no lease end fees). You need to get a current quote without taxes to compare to see the buyout for a dealer now then decide if you want to hang in and try to sell it later, now, or just turn it in. With some warranty left now and none at lease end, you might be better off to try to sell it now. You will also save the taxes and interest on any remaining payments. Get the buy out, clean up the car and get some quotes to buy it and see where you stand.
You can also trade it in toward any other car you want, assuming the dealer allows you enough for it to cover the current buy out. Anything over that is discounted on your new car.
Sounds like the best thing to do is to sell through a dealer or just let the lease run out and return the car.
Do you know the the NADA pricing on the internet is a good indication of what kind of pricing a dealer would offer for the car?
Also, it sounds like it is better to just "sell" the car to a dealer as a leased car instead of purchasing it by paying off the lease and residual.
Post over in "Real World Trade-In Values" and we can give you an idea of actual market value.
Dealers generally use Black Book or Galves.
They show 4 2009 C lux cars in inventory with 40k or less miles ranging from $23,599 to $23,998 so I would expect around $20k or maybe a little more.
Carmax is really set up well to do this and can be a quick and painless way to move a car you now longer want. Most other dealers do not seem as interested or as easy to deal with to sell a car. You can also try the new(er) service autotrader has to solicit offers from local dealers for your car, but I would start with Carmax if there is one around.
Basically, if it's a car that they can retail and would otherwise buy for inventory, they will pay market value for it (IE about what they'd pay for it at auction) however, if it's a car that they won't retail they will take it in at a number where they can wholesale it at a profit.
A clean CC without Paintwork and a clean carfax with good miles is probably a retail car for them.
Also, I leased it in TX so I did pay the sales tax upfront. If I buy the car, do I have to pay tax again?
The price that VW Credit gave the dealer was about $10K more then this highest wholesale price. The wholesale price was also close to KBB trade in value. It is also about 7K more then my customer buyout price. The car has 76,000 miles on it.
Any idea why VW Credit whould have such a crazy dealer price? This just kills any trade-in deal since no dealer will pay $10K above wholesale or FMV. Makes no logical sense....
Thanks
Did you have a VW dealer call or another brand / independent ? VW might allow a VW dealer to buy it at that price but may block others.
In most states sales tax is due when you by your car off of lease, even if this is the case where you live buying + tax may net you a profit when you trade / sell the car. Most states have a tax break for trading in an OWNED car (lease cars do not apply) so you could recoup your tax money plus profit if you BUY a replacement.
Say your buy out is $10,000 and you live here in high tax land (7%), it would cost you $10,700 to buy the car. Then you trade it in on a new (purchased) replacement and get get say $17,000 for it. You would then save $1,190 in sales tax on the new ride. So your net profit is $7,490 for flipping the car (assuming no property or tag fees).
They took a chance on future value and if were worth less than residual and you turned it in they would be out that money. The fact that it is worth more means a windfall or profit for them, if you are dumb enough to just return the car and leave thousands on the table...
Thanks
If you don't want the car, your best bet, of course, is to try to sell it yourself. You could probably get the $18k you owe for it.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Does $18k include taxes or not? Often they quote buyout with tax to you, your base amount is the residual from the lease contract.
qbrozen's suggestion to sell it yourself will not work in most states - title can only pass to you (for your buyout price) or to a dealer (for a higher price you said). It also has to be through a dealer and it is hard to find one to do a buy and bye these days. If you get a tax credit for reselling then you can buy and sell it private.
Otherwise you may have to just pay the over mile fees or roll the negative equity into the next deal.
The ideal thing is to not lease if you are a high mile driver or to build those into the lease. Failing that, then save the extra mile fees every month so you will have the money socked away at lease end.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Exactly. It is the path of lowest cost.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
I would recommend you make payments to your savings account equal to your monthly mileage x the overage rate. Then it won't be a scramble on the tail end.
You can also try to sell it now to a dealer (like Carmax) if it is worth close to buyout value on the lease. It might cost you to get out of it but that may be cheaper than keeping on driving it and paying the penalty. High mile drivers should not do leases, in general
So in my scenario I am two months before the end of my lease, my 2008 GMC Acadia is worth about a $1000 more than the ballon payment (per Kelly Blue Book) but I am over mileage to the tune of $5000, if I trade my car towards the purchase of another car other than GMC and they give me what is owed on the car then would I still have to pay that mileage?
I am just trying to figure out what ways other than purchasing the vehicle to get away from paying the mileage?
The residual is set in stone as it should be.
You can probably finance it through a local bank. If you have the dealer do this for you, you will be charged a fee. Just do this yourself!
If I can sell it privately and NOT pay tax, I would be close to what I owe, so the thought of eating $1700 is tough to swallow - although I understand I would have swalloed that had I purchased the car originally. Thanks for any help!
The KBB value is well over the residual & it feels like they'd rather get the car back & resale & make the profit. Any idea who to apply for a loan with for this situation? Our score is approx 630. We live in CA. Let me know if you have additional questions.
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The Sandman :sick: :shades:
2023 Hyundai Kona Limited AWD (wife) / 2015 Golf TSI (me) / 2019 Chevrolet Cruze Premier RS (daughter #1) / 2020 Hyundai Accent SE (daughter #2) / 2023 Subaru Impreza Base (son)
I am in VA and have a leased 2011 Camry LE coming up in July. I have a friend who wants to buy the car - ideally he would just buy the car from us through Toyota at the residual + taxes (~14.5k i believe) but I'm not sure what the best process is to accomplish this.
In addition - do I have to wait until the lease is over or could I just finish out my last payment and do it before then?
Doing it through a dealer avoids the double taxes and double fees. However, dealers won't necessarily do this, at least not with some fee involved, and rightly so because it puts them on the hook for the car. They are responsible if something goes wrong and, of course, it costs them time and money to do the paperwork. They are obviously much more willing to if you are buying a car from them and your request is part of the necessary details to get the deal done.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
Many of us prefer not to spend the limited time we have driving an eight year old Mazda with 100K miles or a seven year old Civic when we can afford more. For us, getting there with some style while enjoying the drive is important. We only live once so why settle for less?
Different strokes for different folks.
Anyone can encounter financial difficulties which ding the credit score. Those difficulties do not mean a person is dumb.
I had a Toyota once and the lease required I complete the buy-out at a Toyota dealer. I think they charged me $500 to process the paperwork.....but that's a little bit different since it was my lease and I was the one buying it out.
However what do you mean by some dealers not necessarily wanting to do this - why wouldn't it be in their best interest to turn around and sell the car when I turn it in?
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
When we turn these in next year what fees might we encounter? We're thinking of possibly purchasing one of them and turning in the other. We have never had a late payment on either vehicle and they were financed through Ally Financial. Thank you.
The tax rate here in GA is 6.5% of what a valuation that DMV suggests (which happens to be 50 bucks below the residual so no harm done). I got 2 days left to decide so any info is much appreciated. Thanks!
Seriously, (there was no beer, just two Valium and9% some round pill I found on the bathroom floor)...
According to Bankrate.com, Bank of America has a 48-month Used Car Loan available at only 2.09% interest. If that is correct and you qualify for that rate, buying the CPO at 0.9% will cost about $1750 more when all is said and done. That includes an assumed $350 Lease Disposition Fee if you buy it at the Residual Value...if that's not the case, then it could be more like $2100 more overall.
I am leery of BMWs out-of-warranty, so even though is normally not a move I would recommend on most regular makes, this could be worth it. But the question that we don't really have much inforamation to answer is how reliable and durable will that BMW TurboDiesell be over the next 3yrs and 55k miles? Most diesels would just be getting broken in at 100k...but BMWs can be, how do I put this, delicate...fragile even....my best friend's 2005 330i started leaking oil and the transmission started acting up within 4 weeks of the warranty expiring....
I'm curious- what color is your 335d and what options and/or Packages does it have?
The reason i ask is because I did some searching for CPO 2011 335d models located in the Southeast and the CPO price they're quoting you seems a bit high.
The first one has me ready to drive up to Winston-Salem NC tomorrow and buy it myself! (BTW, I'm located on northern edge of metro Atlanta area)
This one would have stickered for $54,710 when new.
2011 BMW 335d, CPO, 48,200mi- $32,449
Space Gray Met w/ Black Dakota Leather
CONVENIENCE PKG
COLD WEATHER PKG
PREMIUM PKG
NAVIGATION System
Heated Steering Wheel
Harmon Kardon Surround Sound Audio
SIRIUS sat radio w/ 1yr subscrip
@ Flow BMW in Winston Salem NC
2011 BMW 335d, CPO, 19,380mi - $33,488
Alpine White w/ Beige Dakota Leather
PREMIUM PKG
SIRIUS Sat radio w/ 1-year subscrip
iPod & USB Adapter
@ BMW of South Atlanta
2011 BMW 335d, CPO, 36,979mi - $32,307
Black Sapphire Metallic w/ Gray Dakota Leather
COLD WEATHER PKG
PREMIUM PKG
Heated Steering Wheel
SIRIUS sat radio w/ 1yr subscrip
iPod & USB Adapter
@ Bluegrass BMW in Paducah KY
This one causes me ‘visual nausea’ (I just coined that meaningless phrase)!
It’s a 2011 BMW 335d but the color combination is, um, eww .
I can’t fathom going to the BMW dealer and thinking, I really want to pay $50k for THAT one .this had to be a customer-order from the factory, right? I pray this poor soul has been introduced to a wonderful thing called a Color Wheel and it shows the range of colors that will ‘go’ with others
Tasman Green Metallic with Chesnut Brown Leather (and the Chestnut Brown has an orange-like glow
http://www.bmwofsouthatlanta.com/certified/BMW/2011-BMW-335d-a02c807a0a0a0065000- - b5cd85ca64ca3.htm
1. Buy the car at residual $32396, with BOA financing for 48months @ 2.04%.
2. Give the car up to my dealer and pay no lease disposition fee of $350. The dealer certifies the car and makes it a CPO with 6Yr 100,000 Mile warranty and sell it back to me for $34650 AND give me 0.9% financing.
So the net difference between the two scenarios at the end of the loan term was $1721, which was a reasonable price to pay for CPO I thought.
So....a little bit info on my car.
The MSRP on this was $57850
It has Lemans blue exterior and Sandle brown interior leather.
M Sport, Premium Pkg, Cold Weather Pkg, Convenience Pkg, HK upgraded sterior, Navigation, Ipod integration, Smart phone integration, ....The only option I didnt get was SAT radio, because I personally hate sat. This car was ordered by me so I pretty much over loaded it with options and picked it off at SC (good memories!!:::))))
I also did some research to find any M Sports but there arnt any. The closest sport package CPO was 35-37k and it was not even close to my M sport (looks wise). Since I had owned this car from 0 miles on it I know the history and the way I've maintained it so there's a premium I was willing to pay for that I guess. Also the emotional attachment cost a few bucks too I'm pretty anal when it comes to maintaining my car. I dont eat, drink, smoke inside the car and my wife hates me for that I know every small scratch on it inside and out and I pretty much lick the car clean every week my self. So ya I doubt that i'd be able to find a car that was babied like mine, or will never know at least.
Here's a link for some pictures of the car
http://sdrv.ms/1a7NrcY
I think I made the correct choice. Thanks for letting me vent.
PS: Here's a M sport thats on sale on cars.com
http://www.cars.com/go/search/detail.jsp?tab=photos&listingId=123096552&recnum=&- - listingId=123096552&paId=531153872&listingRecNum=1&criteria=fuelTypeId%3d31766%2- - 6sf1Dir%3dDESC%26mkId%3d20005%26stkTyp%3dU%26mdId%3d20445%26rd%3d100000%26crSrtF- - lds%3dstkTypId-feedSegId-mkId-mdId-yrId-fuelTypeId%26zc%3d30024%26rn%3d0%26PMmt%- - 3d1-1-0%26stkTypId%3d28881%26sf2Dir%3dASC%26sf1Nm%3dprice%26yrId%3d34923%26sf2Nm- - %3dmiles%26isDealerGrouping%3dfalse%26rpp%3d50%26feedSegId%3d28705&tracktype=use- - dcc&pageNumber=&numResultsPerPage=&largeNumResultsPerPage=0&sortorder=descending- - &sortfield=PRICE&certifiedOnly=false&&aff=national
The difference is that its not a CPO, doesnt have conveniance pkg, and white color (which is 500 bucks less than a premium paint).
Here's another one, thats more close to my car priced at 34880 with No CPO.
http://www.cars.com/go/search/detail.jsp?tracktype=usedcc&csDlId=&csDgId=&listin- gId=122059286&listingRecNum=23&criteria=fuelTypeId%3D31766%26sf1Dir%3DASC%26mkId- %3D20005%26stkTyp%3DU%26mdId%3D20445%26kwm%3DANY%26rd%3D100000%26crSrtFlds%3Dstk- TypId-feedSegId-mkId-mdId-yrId-fuelTypeId%26zc%3D30024%26rn%3D0%26PMmt%3D1-1-0%2- 6stkTypId%3D28881%26sf2Dir%3DASC%26sf1Nm%3Dprice%26yrId%3D34923%26requestorTrack- ingInfo%3DRTB_SEARCH%26kw%3Dm+sport%26sf2Nm%3Dmiles%26isDealerGrouping%3Dfalse%2- 6rpp%3D50%26feedSegId%3D28705&aff=national&listType=1
Choosing an exterior color is usually the most difficult part of the buying process for me. I actually love the color blue, but rarely does an automaker offer a shade of blue that looks so amazing! Acura offers a color on the TSX called Vortex Blue Pearl that was my favorite blue until I saw LeMans Blue....Vortex Blue can't hold a candle to it!
I also think the Saddle Brown interior is beautiful. It looks great with the LeMans Blue. If I had ordered it, I would've played it safe with Black interior. But the Saddle Brown really stands out and it's a stunning color combo. I'm far too conservative when it comes to colors, and I wish I was a little more adventurous. I actually have a rare type of color blindness and it sucks because I play it safe when it comes to choosing car color combinations, clothes (khakis go with everything, right?) and even paint color for my walls. I'm almost 39 and I still run color choices by my mom to make sure they actually appear the way I'm seeing them or if they clash and look horrible. On the upside, soldiers with the same type of color blindness that I have were part of a special group in the South Pacific during WW2. Apparently, people with this condition were able to detect the camo worn by the Japanese, even if they were hiden in thick island rain forests....
The two white ones you posted the links for also look amazing! I love white cars if they are a pure, clean white and BMW's Alpine White is a perfect example of one. I don't get the appeal of Pearl White, but it's far more common than regular white on new cars!
A lot of people dislike Jet Black and Alpine White models since they are the only two 'base' colors available at no charge instead of paying $550 for one of the Metallics. Whenever I used to see a White or Red previous-genereation 325i (esp. with the standard wheels) it makes me think "wannabe". I have a friendd who recently sold a 2008 Lexus IS250 without a single option. It didn't even have heated seats.
But the M Sport Package in Alpine White- WOW!
So back on the topic of your purcahse....
I definitely think you made the best decision because you clearly love this car and I suspect you'll hang onto it for quite a while. So the CPO additional warranty coverage is well worth the peace of mind it affords you!
Had I known that you spec'd this car down to the last detail and tookd delivery at the factory, I wouldn't have even mentioned any of the slightly lower priced examples of the 335D. Given the color combo and the number of options and options packages on your car, it might even ben one of a king....that would be very cool!
What did you think of the delivery experience at the SC facility? There was a lot of debate about whether Americans would even accept the 3-series being built at as US factory. Then they were concerned about whether to offer the factory delivery option but I'm glad they did because everyone I know who has experienced it had a great experience!
Back in 1998, my ex-wife and I used the Volvo Overseas Delivery program whe she ordered a new Volvo S70 T5 to replace her aging 1993 Volvo 850. We had an amazing day touring the Volvo facilities and got to spend an hour wth the guys in the safety center!
I learned two VERY important lessons on or as a result of that trip-
1- Don't try to drive in countries with road signs in a language you don't understand.
2- The Swedes are some of the kindest and most friendly folks I've ever met. Everything in Gothenberg was in so clean and neat. We were tryign to drive to Oslo, Norway but ended up about 120 miles off course and too sleepy to drive. We had no cell receptioin (we were in the middle of nowhere, with one house and chimney smoke on one side and a cliff looking down over a fjord on the other. We went to the housee with the smoke and the familly insisted that we stay the night with them! It was one of the most touching acts of kindness and I still keep in touch with the couple to this day!!!
Buddy, I am very happy for you! You just need to plan on keeping your 335d forever because it will be just as amazing in 20 years as it is now!
Peace out.