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My lease is up in August, should I turn it in or buy it?
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.
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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.
If your car is actually worth more, wholesale, than the residual, then a dealer may purchase the vehicle from you, allowing you to realize some equity. This isn't a usual situation, though... Many people confuse retail asking prices with the worth of the vehicle they are trading in.
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kyfdx@Edmunds the dealer was telling me how people usually just turn in their car and walk away instead of trading it in. I guess I am just confused as to how I can "trade in" a car when it isn't mine to begin with. Also, if I decide to not buy from this dealer, can I still "trade in" the leased car?
All leased vehicles have a "payoff". If you wanted to buy your car out of the lease, you could do it at any time, subject to the contract. That payoff drops over the term of the lease (down to the final residual). You can also sell that car (or trade-in) to a dealer. The bank might have different rules for an Audi dealer vs. another make dealer (meaning: different payoff price), but the process is the same. The dealer pays off the bank, and credits you with any equity.
Just keep in mind, that having equity in a lease doesn't happen all that often. You really need to know the wholesale value of the car, so if you do have that equity, the dealer you are trading it into, doesn't try to take advantage and keep some of it (just like trading in any other car).
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kyfdx@Edmunds what is the best way of finding out the wholesale value? I was thinking about going to CarMax and getting an appraisal from them to see if there is a difference. I just know CarMax low balls it too.
CarMax is a good place to go, because you are getting an actual offer to buy the car, regardless of purchase at their dealership.
You can also post a full description, here:
http://forums.edmunds.com/discussion/1212/general/x/real-world-trade-in-values#latest
One of our other members can check auction values for you..
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