11-11-2013, 06:58 PM | #1 |
Lieutenant
197
Rep 572
Posts |
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. |
11-11-2013, 07:01 PM | #2 |
Lieutenant Colonel
124
Rep 1,840
Posts
Drives: '14 M5 CP Dinan Stage 2
Join Date: Jun 2013
Location: Houston, Tx
|
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.
|
Appreciate
0
|
11-11-2013, 07:14 PM | #3 | |
Private First Class
61
Rep 124
Posts |
Quote:
|
|
Appreciate
0
|
11-11-2013, 07:19 PM | #4 |
Knight Commander
558
Rep 5,948
Posts
Drives: 2014 911 Turbo S
Join Date: Aug 2010
Location: Buckhead
iTrader: (0)
Garage List 2014 Porsche 911 Tu ... [10.00]
2015 Mercedes-Benz ... [0.00] 2015 Jaguar F Type R [0.00] 2014 BMW M5 [0.00] |
Lease if you keep for 3 years.
__________________
2022 Mercedes-Benz EQS 580
2020 Mercedes-Benz GLE 450 Ordered: EQS580, BMW IX, Lucid Air Touring, Corvette Stingray |
Appreciate
0
|
11-11-2013, 08:38 PM | #5 |
Lieutenant
19
Rep 505
Posts |
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.
|
Appreciate
0
|
11-11-2013, 08:59 PM | #6 |
Lieutenant
197
Rep 572
Posts |
|
Appreciate
0
|
11-11-2013, 09:24 PM | #7 |
Lieutenant
40
Rep 444
Posts |
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.
__________________
2007 550i
2012 BMW - M5 European Delivery 2014 911 C2S- Agate, MT, PDCC, SC, SE 2015 S63AMG Sedan |
Appreciate
0
|
11-12-2013, 01:58 AM | #9 | |
Private First Class
61
Rep 124
Posts |
Quote:
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. |
|
Appreciate
0
|
11-12-2013, 01:40 PM | #11 |
Lieutenant
197
Rep 572
Posts |
|
Appreciate
0
|
11-12-2013, 09:01 PM | #12 | |
Colonel
289
Rep 2,496
Posts |
Quote:
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.
__________________
|
|
Appreciate
0
|
11-13-2013, 11:08 PM | #13 |
Private First Class
12
Rep 186
Posts |
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 |
Appreciate
0
|
11-14-2013, 12:29 AM | #14 |
First Lieutenant
34
Rep 380
Posts
Drives: 2014 BMW M6 & 2012 AMG CLS63
Join Date: May 2013
Location: Planet Earth
|
price aside I always like the lease then buy out if I really still like the car.
__________________
2008 M3 Sedan + catless + Tune 2012 CLS63 AMG 2014 M6 Coupe + catless + KW V3 2015 Porsche GT3 , 2015 M3, all stock, 1/1 Space Grey |
Appreciate
0
|
Post Reply |
Bookmarks |
Thread Tools | Search this Thread |
|
|