[donsbabybeamer]

I am in the process of doing a buy back or trade assist as BMW is calling it. I have an X1 for 14 months which I purchased for $41K. The Trade assist terms are as follows, the dealership is giving me $30k (kelley Blue Book list the value at $32k) and BMW is giving me $7K for a total of $37K. They are also allowing me to go from owning to leasing. Does this sound like a fair buyback amount, or should I be getting more back for my current X1? Also living in New York I am being told that the Tax I paid on my original purchase is basically a loss to me. Does anyone know if this is correct?

PS: BMW is doing this because the X1 has been out of service for more than 30 days in a year and they admittedly can not resolve the problems. Interestingly enough the manager I'm working with mentioned he is working on 3 Trade Assist deals currently.

[f30er]

So down 4K and no longer owner? At the end of the lease, they get the car back and you walk away with nothing for the payments you had been making. I don't see this as fair but maybe someone else will chime in with better reasoning...

[donsbabybeamer]

You have to keep in mind that I have used the X1 for 14 months, even if I calculate the tax paid that I'm loosing it is as if I leased the X1 for $607 a month and now that I'm going into a lease I won't have any of the ownership worries.

[CLittle]

What are the terms of the lease?

[utenigma]

Don't switch to a lease - you can apply the 37K to the purchase price of the new car and only pay tax on the difference you're paying. If you switch to a lease, you throw that tax benefit away.

[rking117]

Originally Posted by utenigma

Don't switch to a lease - you can apply the 37K to the purchase price of the new car and only pay tax on the difference you're paying. If you switch to a lease, you throw that tax benefit away.

may not get same deal though

[SouthernBoy]

Originally Posted by donsbabybeamer

I am in the process of doing a buy back or trade assist as BMW is calling it. I have an X1 for 14 months which I purchased for $41K. The Trade assist terms are as follows, the dealership is giving me $30k (kelley Blue Book list the value at $32k) and BMW is giving me $7K for a total of $37K. They are also allowing me to go from owning to leasing. Does this sound like a fair buyback amount, or should I be getting more back for my current X1? Also living in New York I am being told that the Tax I paid on my original purchase is basically a loss to me. Does anyone know if this is correct?

PS: BMW is doing this because the X1 has been out of service for more than 30 days in a year and they admittedly can not resolve the problems. Interestingly enough the manager I'm working with mentioned he is working on 3 Trade Assist deals currently.

Look for your state's "reasonable offset for use" calculation. They should go by that. My state is purchase price times mileage of first recurring problem divided by 120,000.