01-26-2017, 03:24 PM | #1 |
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Lease End & Buying Sibling's 2er
I was hoping to get some information from the board regarding how to best go about purchasing my brother's car at the end of his lease.
- 228i M-Sport, 20k miles, couple dings that BMW would charge him - Lease ends March 28, 2017 - Residual is approximately $24,500 My questions/concerns: 1. I've called BMW FS. They are unwilling to let me assume the lease since there's less than 6 months remaining. I can arrange financing and have the check sent to BMW FS. They would only be willing to send my brother the title. Then he'd transfer ownership to me. 2. I'm concerned about being taxed twice by my state. Once when my brother receives the title and then on the transfer to me. I would be fine with being gifted the car for $1, but there's probably tax implications when I'd want to sell the car. 3. Could we arrange for me to purchase the car from a dealership at a pre-negotiated price? Residual or lower? This would raise my tax basis in the car, but I'm wanting to avoid damage fees / lease terminations fee. Any advice would be greatly appreciated! |
01-26-2017, 03:43 PM | #2 |
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The easiest way to do this BY FAR is to get your dealer to work on this with you. They buy car from BMWFS then sell to you. Only extra thing is you'll have to give them $100 or so to do an inspection on the car since they will t cynically own it and then sell it to you. If something major is wrong that they don't catch you could come after them.
That said it's basically a pass through deal and they help you out and eliminate all of the bullshit with BMWFS, title, taxes, everything. Need to have a dealer willing to help though. I just did this when selling my 235 coupe to a third party to get my convertible. Was super easy. If you do within 120 days of lease end dealer may be able to get car at less than buyout. Feel free to PM me if you have questions.
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01-26-2017, 04:59 PM | #3 | |
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01-26-2017, 06:13 PM | #4 |
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No. you can buy lease out for buyout literally whenever you want. If you wait until 120 days out dealer can negotiate a better price. Again not all dealers will work w you on this so need to find someone who is cool. Easier if your bro is getting another car with them most times.
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01-26-2017, 06:26 PM | #5 | |
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01-26-2017, 07:11 PM | #6 | ||
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01-27-2017, 06:25 PM | #7 | |
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If you trust your brother why not just title in his name and you could call it a loan. Transfer.the title when it is worth much less. There would.be federal gift tax implications for your brother if he gives it to you. Any dealer bmw, Ford , Joe's used cars can buy car whenever from bmwfs for the buyout that month. You may find someone who will pass it through there books for 500 - 1000 bucks. Last edited by Pparana; 01-27-2017 at 06:32 PM.. |
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01-27-2017, 07:07 PM | #8 | ||
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For all involved it's best if you do the pass through deal using the dealer and put the car in your name. Highly likely that they will do it for no fee beyond inspection if brother is getting another car.
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01-27-2017, 07:40 PM | #9 |
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Thanks for the information, guys. I went to the dealership today to make sure my sales guy was good with everything. He was, and the buyout offer is less than the residual. He then went on to offer that since my brother is eligible for the Pull Ahead Program, we could do the deal before the end of the month. This would save 2 months of lease payments.
My question: is the buyout offer likely to fall as I get closer to the lease end or is this something I should go ahead and accept? I plan on negotiating the offer some as it is. |
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01-27-2017, 08:30 PM | #10 | |
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01-28-2017, 02:07 PM | #11 |
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Sorry, I should have included it. It's a 2014. We're actually switching cars. We like both too much to get rid of them.
Yeah, my gut says it'll fall but not by $400x2. He got a steal of a deal on the lease initially. |
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01-28-2017, 09:38 PM | #12 |
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Used car wholesale values are high at this time.of year (tax season). My calcs were on a 15, 14 is below.
I added m sport not sure what other options on car. That is national, dealer price is prob close to.wholesale depending on condition 2014 BMW 2-Series 228i 2D Coupe State: Miles: 20000 Click to Change Mileage Add/Deducts: M Sport Package +$2,200 Technology w/Nav +$950 w/o Auto Trans -$800 w/o Moonroof -$700 Refresh with New Criteria 2014 BMW 2-Series 228i 2D Coupe Show Vehicle Photo Show Vehicle Colors VIN: WBA1F5C5E UVC: 2014100178 VIN + UVC: WBA1F5C5E178 MSRP: $32,100 Finance Advance: $23,925 Model#: 142A Price Incl: AT AC ES Mileage Cat: G Weight: 3,300 Wheelbase: 105.9 Base HP: 240 @ 6500 Taxable HP: 17.4 Tire Size: 205/50R17 Drive Train: RWD Transmission: A Fuel Type: Gas Cylinders: 4 Black Book Retail as of 01/30/2017 Extra Clean Clean Average Rough Base $25,025 $23,625 $21,200 $18,525 Options $2,200 $2,200 $2,200 $2,200 Mileage $1,450 $1,900 $2,350 $2,375 Total $28,675 $27,725 $25,750 $23,100 Black Book Trade-In as of 01/30/2017 Clean Average Rough Base $19,760 $18,000 $14,090 Options $2,200 $2,200 $2,200 Mileage $1,900 $2,350 $2,375 Total $23,860 $22,550 $18,665 |
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02-11-2017, 06:18 PM | #13 |
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So we're about ready to pull the trigger on the deal, but the dealer is stating my brother's minimum security deposit refund will be reduced by the two remaining lease payments. Does this sound right? He isn't buying a new car from them.
For reference, the residual was $25,162. We negotiated a purchase price of $21,217. |
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