[IEDEI]

Originally Posted by Powaup

I just threw 50% out there because I thought it was an average number. But 60% is even better. Eventually I plan on having 2 cars just like you one leased and one paid off, I think it's a great combo.

Another thing that has me hesitant about leasing is the down payment insurance if my car gets totaled or stolen
[url/]http://www.realcartips.com/leasing/0...ar-lease.shtml[/url]

the best leases are the ones where you ONLY pay taxes and fees upfront with the first payment. It's not advisable to put a big down payment down because, as you said, that money is likely to be lost if something happens.

[Powaup]

Originally Posted by IEDEI

the best leases are the ones where you ONLY pay taxes and fees upfront with the first payment. It's not advisable to put a big down payment down because, as you said, that money is likely to be lost if something happens.

Yea and that's kind of a problem because down payment on a car is my graduation gift. Being able to drop a big down payment and making very low monthly payments would be ideal for me...

[Powaup]

Originally Posted by regular_joe

Leasing is a terrible idea if you cannot write off the monthly expenses from your taxes. Leasing makes it so that your car does not become part of your assets and therefore it is non-taxable. The way I see it, is that leasing is only there for people to take advantage of the tax write offs.(otherwise you are throwing away hard earned money) Financing is for people who want to keep that car long term but would rather pay for it slowly rather than lump sum if they don't have the cash.

I would suggest that if you ultimately want a M brand in 2-3 years. To buy a car that will only run for the next 2-3 years into the ground. By that time you will have saved up enough to finance or buy your dream car. Meanwhile not wasting your $$$ by paying interest to the dealership for no reason. Save those monthly payments and interest and fully load that M car.

Might be able to write off the lease if I categorize it as a company car for my dad's business... Or lease an M4 and then buy it out at lease end? I hear you on the "buy a car that will run for 2-3 years" but I've already been doing that for almost 2 years and now have a cash budget of roughly $20K to put towards a car so I wanna make this happen. Won't make a decision until February

[regular_joe]

Originally Posted by Powaup

Might be able to write off the lease if I categorize it as a company car for my dad's business... Or lease an M4 and then buy it out at lease end? I hear you on the "buy a car that will run for 2-3 years" but I've already been doing that for almost 2 years and now have a cash budget of roughly $20K to put towards a car so I wanna make this happen. Won't make a decision until February

You have quite a few options, depends on what you are able to do / live with. While reading on keep in mind that by february the residual rates will have gone down and at that point you are going to be looking at high monthly payments as a consequence.

1) If you can in fact write the lease payments off for your dad business then 100% lease. Now don't lease a brand new car at this point because of residual rates. Take over someone else's lease on a bmw that that is active for the next year. During which time you can wait for the 2015 availability and then jump at the release dates which will yield high residuals (60%+) and low money factor/APR %.

2) if you cannot write off the payments, then your next option is to finance. pretty straight forward. however, I would wait until the interest rates go back down in spring to 0.9% and not at the current 2.9%. Beater car it until then.

3) (personal biased option) When financing, lets say a brand new $50,000 at 2%, you will have paid an extra $10,000 ($50,000*2%) for this car for no reason at all. (there are more factors but lets keep it simple for arguments sake) Pure profit for the dealership and corporate bmw. I would wait and find a year old M4 and purchase that one after it has depreciated. This way keeping its value longer based on what you paid for it and not the purchase price of brand new. Secondly, you will have not paid anything extra interest wise to dealership.

If i made any mistakes feel free to correct them guys.

[Powaup]

Originally Posted by regular_joe

You have quite a few options, depends on what you are able to do / live with. While reading on keep in mind that by february the residual rates will have gone down and at that point you are going to be looking at high monthly payments as a consequence.

1) If you can in fact write the lease payments off for your dad business then 100% lease. Now don't lease a brand new car at this point because of residual rates. Take over someone else's lease on a bmw that that is active for the next year. During which time you can wait for the 2015 availability and then jump at the release dates which will yield high residuals (60%+) and low money factor/APR %.

2) if you cannot write off the payments, then your next option is to finance. pretty straight forward. however, I would wait until the interest rates go back down in spring to 0.9% and not at the current 2.9%. Beater car it until then.

3) (personal biased option) When financing, lets say a brand new $50,000 at 2%, you will have paid an extra $10,000 ($50,000*2%) for this car for no reason at all. (there are more factors but lets keep it simple for arguments sake) Pure profit for the dealership and corporate bmw. I would wait and find a year old M4 and purchase that one after it has depreciated. This way keeping its value longer based on what you paid for it and not the purchase price of brand new. Secondly, you will have not paid anything extra interest wise to dealership.

If i made any mistakes feel free to correct them guys.

1) This option is feasible, although i'm not too trilled about leasing 60% residual sounds nice

2)Yea I would probably look for a 2011 e92 M3 and get some extended warranty (which will cost me about an extra $3K I think), thanks to the college grad incentive I get the 0.9% APR if I get a car from a BMW dealer prior to September 2014

3) Your math is wrong, 2% of $50,000 is actually $1,000 which isn't too bad. And I plan on getting a New M4 via ED so I will save some bucks there

It really all depends on pricing of the M235i, price of the M4, will ED for either cars come out of Dealers allocation, will the price of e92 M3s drop abit once M235 and M4 are launched or will dealers be willing to negotiate on pricing (Tried getting a CPO M3 last July for $56K and the dealer would not even budge $1K even after the car had been on their lot for almost 3 months)


Thanks

[regular_joe]

Originally Posted by Powaup

1) This option is feasible, although i'm not too trilled about leasing 60% residual sounds nice

2)Yea I would probably look for a 2011 e92 M3 and get some extended warranty (which will cost me about an extra $3K I think), thanks to the college grad incentive I get the 0.9% APR if I get a car from a BMW dealer prior to September 2014

3) Your math is wrong, 2% of $50,000 is actually $1,000 which isn't too bad. And I plan on getting a New M4 via ED so I will save some bucks there

It really all depends on pricing of the M235i, price of the M4, will ED for either cars come out of Dealers allocation, will the price of e92 M3s drop abit once M235 and M4 are launched or will dealers be willing to negotiate on pricing (Tried getting a CPO M3 last July for $56K and the dealer would not even budge $1K even after the car had been on their lot for almost 3 months)


Thanks

Math was definitely wrong, it was quite late it isn't bad if you pay extra 1k. But knowing me, I would not want to pay that if I could avoid it.

It really all depends on the dealers position and how much they are ultimately willing to budge.

Not familiar the process of ED but I plan on doing some investigating and seeing how that works. I have family all over Europe so I could visit them one by one

[Biorin]

I've done calculations on my leases before, and considering I'm not the type to keep a car for a decade or more, leasing was the best option for me. I would have had to put more money down per month to buy it, and by the time I wanted a new car (say 6 years or so... if that), the car would have depreciated to the point where I'd only have a 1-2k advantage over the money I saved leasing, and I'd have to deal with finding a buyer etc. You also have to consider the time value of money and whether you could invest the funds you would have put towards a purchase and gotten any kind of meaningful gain.

[Powaup]

Videos like this make me not want to lease a car

[tiltmode43]

Another thing to consider, though not likely:

If a leased vehicle is in an accident this does not effect the buy-back value.

If a purchased vehicle is in an accident, the private party resale will depreciate appx 10-15% below market value (due to informed buyers + services such as carfax = accident history).

To me, it is a real comparison of short term Vs long term. The most basic way of putting it is when leasing a car, you are essentially paying the depreciation value + a bit more for the time you are the registered owner. In some situations, it will certainly make sense; in others, not so much.

[Sedan_Clan]

Originally Posted by Powaup

Wow so in most cases I would get nothing after putting $25K into the M235i? Thats tough...

What would you expect to get? A refund?

[Powaup]

Originally Posted by Sedan_Clan

What would you expect to get? A refund?

The difference between market value and book value if market value is higher than book value. Thought it would be from 500 to ~2000 bucks

[Sedan_Clan]

Originally Posted by Powaup

The difference between market value and book value if market value is higher than book value. Thought it would be from 500 to ~2000 bucks

Unfortunately no. BMW takes the gamble on these subsidized leases. If that car is worth less than their projected residual, they eat that (..and you walk away without any liability). You beat the house! If the vehicle is worth more than their projected residual, the house wins (..assuming that you don't sell it private party for a profit).

[Ezio]

Originally Posted by Powaup

Videos like this make me not want to lease a car

you can always buy your lease out at end.

i love leasing. have a new car for 2-3 years, and if i like it i can buy it. if i don't i can get another car. another you gotta have money to be playing around with that idea.

[Powaup]

Originally Posted by Ezio

you can always buy your lease out at end.

i love leasing. have a new car for 2-3 years, and if i like it i can buy it. if i don't i can get another car. another you gotta have money to be playing around with that idea.

Do you DD your M3? if so how do you deal with the mileage cap? I'm really considering doing a lease takeover on an M3 or eating tuna and rice for some months and leasing an M4 lol

[Ezio]

Originally Posted by Powaup

Do you DD your M3? if so how do you deal with the mileage cap? I'm really considering doing a lease takeover on an M3 or eating tuna and rice for some months and leasing an M4 lol

yes i DD my M. you can get 12k miles a year. which inst that bad. as long as you are not driving all over hell. you are expected to go over your miles BTW.

they charge like .18 cents a mile over. lets say you do like 3k miles over your lease. you pay them like 600 bucks. which isnt the end of the world. plus dealerships can work with you little and give you leeway.

not to mention if you lease another car they wont even dream of charging you!

[Powaup]

Originally Posted by Ezio

yes i DD my M. you can get 12k miles a year. which inst that bad. as long as you are not driving all over hell. you are expected to go over your miles BTW.

they charge like .18 cents a mile over. lets say you do like 3k miles over your lease. you pay them like 600 bucks. which isnt the end of the world. plus dealerships can work with you little and give you leeway.

not to mention if you lease another car they wont even dream of charging you!

good to know, I have another question for you: If I lease an M4 with the intentions of buying it out when lease is over would it make sense to get the least number of miles for the lease that way I'll pay less and I won't have to worry about mileage being an issue since i'm going to buy that car anyway?

[Ezio]

Originally Posted by Powaup

good to know, I have another question for you: If I lease an M4 with the intentions of buying it out when lease is over would it make sense to get the least number of miles for the lease that way I'll pay less and I won't have to worry about mileage being an issue since i'm going to buy that car anyway?

you can do that. payments would be cheaper for sure. but your buy out price at the end would be more money. as you have the less of the car payed off. if that makes sense. the buyout price also can change or be negotiated

i also not sure what the least amount of miles are. i know you go get 10k miles a year.

[Powaup]

Originally Posted by Ezio

you can do that. payments would be cheaper for sure. but your buy out price at the end would be more money. as you have the less of the car payed off. if that makes sense. the buyout price also can change or be negotiated

i also not sure what the least amount of miles are. i know you go get 10k miles a year.

Great, yea looks like 55$ less a month or $2k less over the 36 month period which is good (using an e93 to get rough estimates of the price an M4 after ED discount)

[Powaup]

Originally Posted by IEDEI

the best leases are the ones where you ONLY pay taxes and fees upfront with the first payment. It's not advisable to put a big down payment down because, as you said, that money is likely to be lost if something happens.

Apparently if something happens the down payment won't be lost according to the ED person at my local dealer this is what he had to say:

"The down payment is never covered but BMW includes the Gap insurance on leases and purchases, so in the event of a total loss, they will pay out the difference of what the insurer pays and the payoff amount."

[///ADMAN]

Just remember, you're not going to get an M4 for $50K
I expect when the cabrio comes out, it will be $80K

[Powaup]

Originally Posted by ///ADMAN

Just remember, you're not going to get an M4 for $50K
I expect when the cabrio comes out, it will be $80K

I'm expecting an M4 for $68k after ED Discount. I want hard top too. Not interested in Convertible