06-13-2012, 08:15 AM | #1 |
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ED Lease: When does the term begin?
When taking ED under a lease, when does the actual term of the lease begin...at delivery in Munich or at your local BMW dealer once delivered in the US???
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06-13-2012, 08:19 AM | #2 |
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At delivery in Munich. That's when you "take ownership" and thus avoid the excise tax (hence the better ED pricing). In exchange, BMW FS waives the second lease payment for you since the car is "on the boat". However, don't go thinking BMW FS is being generous. The ED money factor is bumped .0003 to compensate for this waived payment, so in effect they are taking the second payment and spreading it over the remaining payments.
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06-13-2012, 04:03 PM | #4 |
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Not exactly true. The lease paperwork all needs to be signed before you pick up in Germany, and the lease term starts as of the date on the paperwork.
There was a time when dealers were asking for the paperwork to be signed 30 days before ED. Most reputable, experienced ED dealers now ask for paperwork to be signed about a week before ED. In my case, I signed my paperwork 2 weeks before ED, but my dealer post-dated the documents so that the term started a few days before ED.
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06-13-2012, 08:13 PM | #5 | |
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06-13-2012, 09:52 PM | #6 | |
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06-14-2012, 07:20 AM | #7 |
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Those of you leasing, how many are doing the max security deposits?
I looks like a pretty damn good investment when you look at the Cap cost of this automobile. |
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06-14-2012, 07:23 AM | #8 | |
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06-14-2012, 07:49 AM | #9 | |
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Just my own opinion, but the residual should not influence your decision on finance vs. lease if you intend to buy the car at the end of the lease anyway. The deciding factor should be the difference in rate between lease and financing. However, I would argure that it is better to lease even if it's at a marginally higher rate given the put option the lease gives you. If it turns out the first model year of the F10 has a ton of bugs/mechanical issues, or if your car turns out to be the lemon of the bunch, the put option could be very valuable. |
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06-14-2012, 07:54 AM | #10 | |
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06-14-2012, 08:30 AM | #11 |
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06-14-2012, 10:26 AM | #12 |
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It's interesting how so many prospective M5 buyers see the value of MSDs vs. M3 buyers. I did 7 MSDs on my M3 and trying to swap out of my lease (on the forum) was painful as 99% of the responses I received were about how stupid I was to do MSDs in the first place. If I decide to lease my M5, I will surely put the max MSDs down again.
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06-14-2012, 10:39 AM | #14 | |
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06-14-2012, 10:44 AM | #15 | |
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Yes, my assumption was just completed by BMW FS and I'm just waiting on a check from the transferee for the MSDs and then I will release the car to him.
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06-14-2012, 11:47 AM | #16 | ||
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06-14-2012, 02:06 PM | #17 |
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ED and 7 MSDs made the monthly payment on my $83,000 M3 within $25 of my previous $44,000 328xi.
Well, the really aggressive residual and MF rates that BMW offered last Spring helped too! The guaranteed rate of return on MSDs makes it a no-brainer.
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06-14-2012, 02:37 PM | #18 |
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The "really aggressive residual and MF rates" are spoiling us! I'm scared of the day when we start paying real interest rates (MFs) on these high-end cars again. We just picked up a 740i for my wife for under $870/month on a 36/36 lease, and this was non-ED.
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07-14-2012, 09:37 AM | #19 | |
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Here in Canada we can put up to 9 MSD's which would work out to be almost $20K. In doing the rate falls from 5.9 to 5 saving $63/mo or $756 per year on $20k "investment". That's around 3.8% after tax or just under 7% before tax. Am I missing something? |
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07-14-2012, 02:08 PM | #20 | |
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In the US we're capped at 7 MSD's. So I'm putting down $9,800 to save about $77 a month, or $924 a year. That's a 9.4% return. It's a little lower than my earlier post given the change in residual value.
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07-14-2012, 03:29 PM | #21 | |
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M5 with Executive Package is $111k. Payment on 36 months with 15Kmiles/yr and $45K buyback puts a monthly at $1850 plus tax (with $11K down and $4500 on delivery). It's all ugly. |
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