Quote:
Originally Posted by DenverF10M5
I'm not so sure I would put anything down on a lease. Sure it will bring down your monthly payment, but there are more downsides to putting a down payment on a lease. Instead, I would look into putting that money towards the MSD's and bring down the money factor. Then when you put the car on Swapalease you could potentially negotiate with the buyer to give you part or all of the MSD money at the time of transfer, since he/she will get that money back when they turn in the lease.
On a side note, it's too bad the residuals on the 2016 M5 are so low right now. Residuals were up around 65% a few months ago. I believe they're at 55% right now with a .00134 MF.
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I 100% agree with you if you do not have plans to exit the lease early.
If you do though, I disagree, and here's why:
1) The new person leasing the vehicle must qualify -- it is easier to qualify when the payment with BMWFS is lower.
2) A small chunk of money down can make a sizable difference in the monthly payment -- enough to make your lease deal more competitive. It's still a risk if you total the car, but that's one I'm (and most) are willing to take.
3) MSD's make the lease nearly impossible to exit. Been there done that, never again. That's a great way to guarantee you're permanently stuck until the lease is over.