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      11-11-2013, 06:58 PM   #1
shellbmb
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Lease or purchase

About to pull the trigger on a 2014 M5 and trying to decide between leasing or purchasing. My negotiated price is roughly 100k. And I have about 28k in equity in my trade-in. The lease quote is for 12k miles per year for 3 years. Residual is 57% and the mf is .00125. Payment is roughtly 1370/month. And I'd get a check for the 28k and invest it elsewhere.

Or I could put that equity as a down payment and finance at 1.99%. Monthly payments are 1250ish.

I don't keep cars usually longer than 3-4 years. And my fear is there will be a boatload of M5's on the used market about that time. Is the residual of 57% pretty strong for leasing?

I'm a newbie to leasing. Only leased once and wanted to get out of the car after 1.5 years. Granted it was an M roadster and found out we were expecting about a month after we got it. Oops.

They told me leases with BMW are easy to get out of. Is that true? Not sure what getting out of a lease requires. If it requires making all the payments, then that's a little misleading. I haven't seen a lease contract yet so I don't know all the details.

Thanks.
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      11-11-2013, 07:01 PM   #2
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if your going to put less than 12-15k miles per year and you get new cars every 3 years then leasing is a better deal with todays residual. I only purchased because the reds was much worse when ordered my ED.
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      11-11-2013, 07:14 PM   #3
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Quote:
Originally Posted by shellbmb View Post
About to pull the trigger on a 2014 M5 and trying to decide between leasing or purchasing. My negotiated price is roughly 100k. And I have about 28k in equity in my trade-in. The lease quote is for 12k miles per year for 3 years. Residual is 57% and the mf is .00125. Payment is roughtly 1370/month. And I'd get a check for the 28k and invest it elsewhere.

Or I could put that equity as a down payment and finance at 1.99%. Monthly payments are 1250ish.

I don't keep cars usually longer than 3-4 years. And my fear is there will be a boatload of M5's on the used market about that time. Is the residual of 57% pretty strong for leasing?

I'm a newbie to leasing. Only leased once and wanted to get out of the car after 1.5 years. Granted it was an M roadster and found out we were expecting about a month after we got it. Oops.

They told me leases with BMW are easy to get out of. Is that true? Not sure what getting out of a lease requires. If it requires making all the payments, then that's a little misleading. I haven't seen a lease contract yet so I don't know all the details.

Thanks.
whats the MSRP of the car? 1370/month doens't make sense at all (is tax included?). It should be in the $1100 range before tax.
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      11-11-2013, 07:19 PM   #4
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Lease if you keep for 3 years.
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      11-11-2013, 08:38 PM   #5
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Lease. You only keep cars for 3 years and the residual is very strong at the moment. 12,000 mile residual this time last year was 49-50%. Use the $28,000 elsewhere.
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      11-11-2013, 08:59 PM   #6
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Quote:
Originally Posted by derekana View Post
whats the MSRP of the car? 1370/month doens't make sense at all (is tax included?). It should be in the $1100 range before tax.
MSRP is 110k. In Texas, you have to pay tax up front. All the lease calculators I tried were in that ballpark.
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      11-11-2013, 09:24 PM   #7
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Cars are just an interest and depreciation cost. Lease agreements hedge the bottom end risk, and give you a call option.

RE: getting out of your lease. You get out by buying the car. If current market value is >your lease payoff, then yes easy to get out of. If you get a good price on ED, you can usually be in a place to swap without filing for Chapter 11.
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      11-11-2013, 10:56 PM   #8
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If lease how much drive off for that price? What is the selling price?
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      11-12-2013, 01:58 AM   #9
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Quote:
Originally Posted by shellbmb View Post
MSRP is 110k. In Texas, you have to pay tax up front. All the lease calculators I tried were in that ballpark.
MRSP 110k
Selling price 100k
$2000 incentives ($1000 HC + $1000 Loyalty)
MF 0.00125
36 months
RV 57%
sales tax i put at 8.75%

monthly payment is $1284.81 tax included. Unless you're using $0 drive off, even that you're looking at $1320 range, won't get to $1370.
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      11-12-2013, 08:05 AM   #10
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Do a one pay 24 month lease that is the best deal around.

Where in Texas are you?
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      11-12-2013, 01:40 PM   #11
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Quote:
Originally Posted by M3NNIS View Post
Do a one pay 24 month lease that is the best deal around.

Where in Texas are you?
In Austin. Is that also known as an owner's choice?
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      11-12-2013, 09:01 PM   #12
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Quote:
Originally Posted by shellbmb
Quote:
Originally Posted by M3NNIS View Post
Do a one pay 24 month lease that is the best deal around.

Where in Texas are you?
In Austin. Is that also known as an owner's choice?
No owners choice is different.
One pay means you pay the whole 24 months up front. There's no tax and it would be somewhere around $24-30k. For two year. Depending on miles and such.
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      11-13-2013, 11:08 PM   #13
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i work at the BMW dealer in Lubbock Tx.
My name is Zach Bailey
Give me a call/txt and ill see what i can do and beat their price
210-508-6019
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      11-14-2013, 12:29 AM   #14
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price aside I always like the lease then buy out if I really still like the car.
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      11-14-2013, 03:06 AM   #15
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The next generation of M5 will most likely offer all wheel drive, so lease the F10 M5 and purchase the next generation.
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