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      09-04-2012, 09:03 PM   #19
AGS's Avatar

Drives: 2016 F10 M5
Join Date: May 2012
Location: NJ

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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.
Current: 2016 Silverstone M5, 2014 Anvil WW Jeep Wrangler
Ordered: 2019 Donnington M5 Competition - Week 30 Build
Previous: 2013 Monte Carlo Blue M5 (ED on 9/1/12), 2009 Carbon Black M5, 2006 Silverstone M5, 2003 Sterling Grey M5, 2000 Anthracite 540i6, 1998 Jeep Grand Cherokee 5.9Ltd, 1990 Eagle Talon TSi AWD, 1978 Mazda RX-7