Decision on End of Lease - BMW X1 - Buyout or walk away?
Hi,
Last year I leased a BMW X1 with a somewhat hefty down payment (around $8.5k) for 24 months.
I did not have a credit history in Canada before, therefore the down payment. It helped to have much lower monthly payments, so don't cry for me.
It's been a year and we're standing at 6.000 km on the clock. I hardly think it's going to be more than 15.000 km at the end of lease (compared to 40k allowance).
The car will still be in pristine condition, and still under warranty for two more years after it becomes mine.
However, I personally did not like the space in the car/trunk, and should have been looking for a larger crossover / SUV (maybe a Santa Fe?).
Also the tech in the car (safety kit etc.) is not the latest. But it's also not the end of the world.
The thing that bothers me is what to do at the end of lease.
The buyout price is $28k (excluding taxes).
There's one other important element in the equation, and it's the QST exemption.
Even though I'm new to the country, I think I'm exempt from the Quebec Sales Tax (I mean I'm eligible for reimbursement).
So, in short:
Do you think there's benefit in buying out the X1 and re-selling it, considering the QST exemption?
Or should I just walk away, and use the money to finance, buy or even lease something larger (not a BMW though)? Considering I'm not really happy with the car, and don't think of keeping it with me for long.
Last year I leased a BMW X1 with a somewhat hefty down payment (around $8.5k) for 24 months.
I did not have a credit history in Canada before, therefore the down payment. It helped to have much lower monthly payments, so don't cry for me.
It's been a year and we're standing at 6.000 km on the clock. I hardly think it's going to be more than 15.000 km at the end of lease (compared to 40k allowance).
The car will still be in pristine condition, and still under warranty for two more years after it becomes mine.
However, I personally did not like the space in the car/trunk, and should have been looking for a larger crossover / SUV (maybe a Santa Fe?).
Also the tech in the car (safety kit etc.) is not the latest. But it's also not the end of the world.
The thing that bothers me is what to do at the end of lease.
The buyout price is $28k (excluding taxes).
There's one other important element in the equation, and it's the QST exemption.
Even though I'm new to the country, I think I'm exempt from the Quebec Sales Tax (I mean I'm eligible for reimbursement).
So, in short:
- I leased a BMW X1 for 2 years, but it's expensive
- It's rather small for me
- It's going to be pristine and under warranty at the end of lease
- Buyout rate is $28k
- $28k is still a big lump of money, and I could look for other options to buy / finance using this amount
- I'm exempt from the QST
Do you think there's benefit in buying out the X1 and re-selling it, considering the QST exemption?
Or should I just walk away, and use the money to finance, buy or even lease something larger (not a BMW though)? Considering I'm not really happy with the car, and don't think of keeping it with me for long.
