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      08-31-2012, 11:17 AM   #1
LTDPB
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Lease vs. financing - please advise

Dear All,
Congrats to the new owners and upcoming owners. I am new to the forum but there seems to be a lot of experienced people when it comes to leasing and financing and what the amounts should be estimated about for the monthly payments.
My car will arrive next week at my Florida dealer and I'm still debating whether to lease it or finance it. The sticker price is 104K (including GG tax).
Any idea of an estimate as to what i should pay on a 36 months lease with 12K miles per year? and the same question if i was to finance it over 5 years?
Thank you all in advance for any help or input. Just want to make sure my dealership does not screw me.
All the best.
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      08-31-2012, 11:48 AM   #2
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Assuming you're paying sticker, your lease payment is $1,670.64 + tax (.00145 MF; 3 yrs / 12k miles). A 5-year financing payment would be $1,899.48 (3.79% rate).
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      08-31-2012, 03:49 PM   #3
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Wow M5 residual is so bad. The lease payment is almost the same as the financing.
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      08-31-2012, 04:50 PM   #4
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they also have BMW select which is a nice way to finance with a baloon at the end, typically around what the car will be worth if you dont burn alot of miles and/or get in an accident. done it a few times, works well when you need it. I would say payment would be $1400 or so
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      09-02-2012, 12:01 PM   #5
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Does anyone know the residual for 10k, 12k and 15k? TIA.
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      09-02-2012, 12:04 PM   #6
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Originally Posted by ///Machine View Post
Does anyone know the residual for 10k, 12k and 15k? TIA.
I was told 51% for 10k. Pretty shitty
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      09-02-2012, 06:34 PM   #7
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I was told 51% for 10k. Pretty shitty
Oh boy. That is not a great residual. I guess we gotta pay to play. Thanks for the info.
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      09-03-2012, 07:40 AM   #8
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Originally Posted by ///Machine View Post
Oh boy. That is not a great residual. I guess we gotta pay to play. Thanks for the info.
If you haven't alreay, you should read through this thread:
http://f10.m5post.com/forums/showthread.php?t=734047
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      09-03-2012, 05:29 PM   #9
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Quote:
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If you haven't alreay, you should read through this thread:
http://f10.m5post.com/forums/showthread.php?t=734047
Interesting discussion. Thanks for the link. I understand not everyone sees leasing as favorable, but I find it definitely favorable to me.

I also like to entertain balloon-types of financing products because it combines the lower payment (not as low as leasing) with the optionality to pre-pay the balloon. It's not a straight forward put option as in leasing, but if you want to own for a long time but depend on lumpy cash flows (own business, year end bonus, etc.), it's a good alternative to outright financing.

Do you have opinion on those?
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      09-03-2012, 06:30 PM   #10
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Dear All,

I just want to start off by thanking everyone on the forum for your explanations tips and figures you have provided.

I've decided to lease my new car. My experience unfortunately with my dealer has not been pleasant on this transaction.
I've purchased cars from the same dealer since i was 16 years old! and 15 years later the dealership still tries to screw me! Surprising, as i've just leased an X6 for my wife and purchased cash my X5M.
Last week surprisingly, the figures given to me by my dealership on a lease and 5 year financing, both over 2K per month!
I took AGS's figures (which he posted on this thread) to the dealer, told them that if they did not come up with a lower proposal then suggested by AGS I would walk away from the deal and take my business elsewhere for good. It took them two seconds to comply to the request.
They proceeded to tell me that "it was an error and they would have never allowed for me to pay such figures once I walked into the dealership to pick up my car".
In summary, if all goes well, I will take delivery of my new car in the next few days, at a fair price without getting screwed. I will still be taking my business elsewhere after that
Thank you again for the help.
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      09-03-2012, 07:36 PM   #11
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Quote:
Originally Posted by Louis1981 View Post
Dear All,

I just want to start off by thanking everyone on the forum for your explanations tips and figures you have provided.

I've decided to lease my new car. My experience unfortunately with my dealer has not been pleasant on this transaction.
I've purchased cars from the same dealer since i was 16 years old! and 15 years later the dealership still tries to screw me! Surprising, as i've just leased an X6 for my wife and purchased cash my X5M.
Last week surprisingly, the figures given to me by my dealership on a lease and 5 year financing, both over 2K per month!
I took AGS's figures (which he posted on this thread) to the dealer, told them that if they did not come up with a lower proposal then suggested by AGS I would walk away from the deal and take my business elsewhere for good. It took them two seconds to comply to the request.
They proceeded to tell me that "it was an error and they would have never allowed for me to pay such figures once I walked into the dealership to pick up my car".
In summary, if all goes well, I will take delivery of my new car in the next few days, at a fair price without getting screwed. I will still be taking my business elsewhere after that
Thank you again for the help.
If I was you I would walk away from that dealer very fast. I just leased mine for about half what you were quoted. (48%/36Mo/15k) I could recommend you a dealer that can get you a great deal.
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      09-03-2012, 07:47 PM   #12
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I'm happy to hear we were able to help you "straighten out " your dealer and get a better deal.

Quote:
Originally Posted by Louis1981 View Post
They proceeded to tell me that "it was an error and they would have never allowed for me to pay such figures once I walked into the dealership to pick up my car".
In summary, if all goes well, I will take delivery of my new car in the next few days, at a fair price without getting screwed. I will still be taking my business elsewhere after that
Thank you again for the help.
I know you realize this statement was complete crap and they were just back filling the hole they dug themselves into. As the previous post suggests, the dealer you're working with is less than honest and it may be time to find a new dealer who doesn't try to screw you unless you happen to catch it.
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      09-03-2012, 08:07 PM   #13
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Absolutely, I immediately called them out on their statement.
After telling my dealer and his manager to go f... themselves repeatedly and screaming at the top of my lungs, I hope they got the point.
Again thank you for your help!
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      09-03-2012, 08:17 PM   #14
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Quote:
Originally Posted by Louis1981 View Post
Absolutely, I immediately called them out on their statement.
After telling my dealer and his manager to go f... themselves repeatedly and screaming at the top of my lungs, I hope they got the point.
Again thank you for your help!
No problem, happy to help. Enjoy your new ride, and please post some pictures once you take delivery.
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      09-04-2012, 08:53 AM   #15
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Quote:
Originally Posted by Louis1981 View Post
Absolutely, I immediately called them out on their statement.
After telling my dealer and his manager to go f... themselves repeatedly and screaming at the top of my lungs, I hope they got the point.
Again thank you for your help!
no good buying process concludes without some screaming. it's all part of the journey.......
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      09-04-2012, 01:56 PM   #16
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No problem, happy to help. Enjoy your new ride, and please post some pictures once you take delivery.
What is the acquisition fee for the M5? Any other fees I should be aware of when making my final decision?
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      09-04-2012, 02:26 PM   #17
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Quote:
Originally Posted by AGS View Post
If you haven't alreay, you should read through this thread:
http://f10.m5post.com/forums/showthread.php?t=734047
I ran the numbers on the lease vs. buy issue for my car and at the end of 36mo I would have $500 more in my pocket leasing vs. buying. I ran the scenario doing 7MSDs and buy rate etc for the lease (10k mi/year) and an equivalent down payment on the purchase of roughly $8500.

The assumptions were: 2.49 APR for 60 months on the purchase (this is what my bank offers).
Residual of 51% after 36mo

The purchase payment was almost $300 more per month, but the equity at the end offset the difference somewhat.

Any increase in actual resale value at the end of 36mo will shift the advantage towards the purchase. 51% seems low. I recently sold my 2008 M3 after 42months of ownership for 60.7% of original MSRP. Can people here comment on actual M5 resale vale after 36mo?

Is $500 worth the flexibility afforded by purchasing? I would say definitely not unless I am missing something.
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      09-04-2012, 07:44 PM   #18
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Quote:
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What is the acquisition fee for the M5? Any other fees I should be aware of when making my final decision?
The bank fee is $725. You may also have to pay docs and registration fee. In NJ we also have NJ luxury tax.
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      09-04-2012, 08:03 PM   #19
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Quote:
Originally Posted by mwlmd View Post
I ran the numbers on the lease vs. buy issue for my car and at the end of 36mo I would have $500 more in my pocket leasing vs. buying. I ran the scenario doing 7MSDs and buy rate etc for the lease (10k mi/year) and an equivalent down payment on the purchase of roughly $8500.

The assumptions were: 2.49 APR for 60 months on the purchase (this is what my bank offers).
Residual of 51% after 36mo

The purchase payment was almost $300 more per month, but the equity at the end offset the difference somewhat.

Any increase in actual resale value at the end of 36mo will shift the advantage towards the purchase. 51% seems low. I recently sold my 2008 M3 after 42months of ownership for 60.7% of original MSRP. Can people here comment on actual M5 resale vale after 36mo?

Is $500 worth the flexibility afforded by purchasing? I would say definitely not unless I am missing something.
I'm sorry, but I'm having a hard time following the analysis you did. Take a look at the example file I posted in response 9 in the other thread. You need to look at the break even selling price relative to the residual value to assess the risk/reward trade-off versus leasing because the selling price is unknown at this point.
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      09-06-2012, 10:06 AM   #20
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I originally wanted to buy it cash due to it making sense financially. But I ended up leasing again. Yes the residual sucks but to dish out over $100k after taxes was a bit much for me. I do get bored of cars after 3 years and dealing with buyers, paypal etc when trying to sell privately down the road is such a turn off. Most likely the worst case scenario would be the actual residuals end up being $8k-$10k higher than BMW's expected if my car is pristine. That scenario would basically eliminate the discounts off MSRP which I worked out with the dealer not that I got that much off . But the possibility of getting into an accident and having it show up on car fax and not feeling comfortable owning a car after one definitely gave leasing and advantage to me. Again that's a big if. A hit and run in a parking lot left me being happy I leased my previous car. I have bad luck so I'm gonna lease again. This way, I'll be forced to use the car and enjoy it instead of trying to protect it. Word to the wise. Don't buy any black 2013 6MT certified pre owned M5's in NY 3 years from now cause it could be mine. I'm gonna try to reach BMW's expected residuals when I'm done with it lol.

Last edited by s4awd; 09-06-2012 at 10:20 AM.
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