View Poll Results: Do You Lease or Buy Your BMW?
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Poll: Do You Lease or Buy Your BMW?
#2
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Join Date: Jul 2005
Location: Helsinki, Finland
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My Ride: My ex-ride: EU '08 LCI 520dA. Space Grey, Sport Seats in Black Leather/Fabric Anthracite, Sport Steering Wheel, A/C with Extended Features, Hi-Fi Speakers, Cup Holders, Cruise with Braking function, Folding Rear Seats, Xenons, Park Distance Control.
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? cash!
Lots of study and work done!
Lots of study and work done!
#3
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Join Date: Jun 2005
Location: Newcastle Upon Tyne, UK
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My Ride: Current - 330 Sport Topaz Blue, Grey Leather, HK HIFI...lost interest!!
Waiting for - 535d Sport, Silver Grey, Foldy Mirrors, 172 19",Logic7,Pro Radio,Through load,Heated Front Seats,High Gloss shadowline,Black Maple,Headlight wash,Sun Protection Glass.
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then buy them at the end of the term....
#4
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Join Date: Nov 2005
Location: Chicago, IL
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My Ride: 2008 Sapphire Black on Black M5 - loaded sans soft close doors
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As a business owner, I always used to lease. But interestingly enough, I had the accountants accross the hall run lease vs. buy numbers on both a 330 and a 550 for me. In both scenarios, I was putting down $40K and financing the remainder ($10K/$30K). They took into account the value of the lost money (2% interest assumed) as well as the tax benefits (cars don't have very good depreciation schedules). Last but not least, remember I'm in IL where you pay tax on the full amount of the car whether you lease it or buy it.
Interestingly enough, it came out cheaper to buy both cars over 36 months. The 330 was about $2K cheaper and the 550 was about $6K cheaper. However, both of these amounts assume that I will get the same residual on the car by selling it vs. leasing it. My accountants doubted that I would get 59% on the 550 and 64% on the 330 after 36 months - whereas if I were to lease it, those numbers were golden. So to them, their official word was that it was a wash financially - they did however recommend that I purchase the car.
PS - I agree with them about the residuals because I was heavily optioning up the car - I do not believe that options such as Comfort Seats, Active Steering, Fold Down Rears, and Sirius hold their values.
Interestingly enough, it came out cheaper to buy both cars over 36 months. The 330 was about $2K cheaper and the 550 was about $6K cheaper. However, both of these amounts assume that I will get the same residual on the car by selling it vs. leasing it. My accountants doubted that I would get 59% on the 550 and 64% on the 330 after 36 months - whereas if I were to lease it, those numbers were golden. So to them, their official word was that it was a wash financially - they did however recommend that I purchase the car.
PS - I agree with them about the residuals because I was heavily optioning up the car - I do not believe that options such as Comfort Seats, Active Steering, Fold Down Rears, and Sirius hold their values.
#6
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My Ride: My ex-ride: EU '08 LCI 520dA. Space Grey, Sport Seats in Black Leather/Fabric Anthracite, Sport Steering Wheel, A/C with Extended Features, Hi-Fi Speakers, Cup Holders, Cruise with Braking function, Folding Rear Seats, Xenons, Park Distance Control.
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Good economics need to be calculated as a wholeness.
A car (E60) is not a investment.
It is a pleasure, and everyday!
A car (E60) is not a investment.
It is a pleasure, and everyday!
#7
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Join Date: Feb 2005
Location: Stourbridge, UK
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My Ride: 535D Sport Auto
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Originally Posted by ipse dixit' post='212151' date='Dec 16 2005, 02:20 PM
I stole mine.
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#9
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Join Date: Aug 2005
Location: Austin TX
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My Ride: 2014 X5 xDrive 5.0 M Package Carbon Black Metallic/2008 M Roadster Imola Red
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Originally Posted by doug_999' post='212147' date='Dec 16 2005, 02:17 PM
As a business owner, I always used to lease. But interestingly enough, I had the accountants accross the hall run lease vs. buy numbers on both a 330 and a 550 for me. In both scenarios, I was putting down $40K and financing the remainder ($10K/$30K). They took into account the value of the lost money (2% interest assumed) as well as the tax benefits (cars don't have very good depreciation schedules). Last but not least, remember I'm in IL where you pay tax on the full amount of the car whether you lease it or buy it.
Interestingly enough, it came out cheaper to buy both cars over 36 months. The 330 was about $2K cheaper and the 550 was about $6K cheaper. However, both of these amounts assume that I will get the same residual on the car by selling it vs. leasing it. My accountants doubted that I would get 59% on the 550 and 64% on the 330 after 36 months - whereas if I were to lease it, those numbers were golden. So to them, their official word was that it was a wash financially - they did however recommend that I purchase the car.
PS - I agree with them about the residuals because I was heavily optioning up the car - I do not believe that options such as Comfort Seats, Active Steering, Fold Down Rears, and Sirius hold their values.
Interestingly enough, it came out cheaper to buy both cars over 36 months. The 330 was about $2K cheaper and the 550 was about $6K cheaper. However, both of these amounts assume that I will get the same residual on the car by selling it vs. leasing it. My accountants doubted that I would get 59% on the 550 and 64% on the 330 after 36 months - whereas if I were to lease it, those numbers were golden. So to them, their official word was that it was a wash financially - they did however recommend that I purchase the car.
PS - I agree with them about the residuals because I was heavily optioning up the car - I do not believe that options such as Comfort Seats, Active Steering, Fold Down Rears, and Sirius hold their values.
And, note that it is better to put nothing down on a lease unless a compensating money factor is obtained. There are several reason for this conclusion. First, one ought to be able to earn, on average and net of tax, enough to cover the effects of depreciation and sale-tax savings occassioned by a downpayment. But, most important, the compensating money factor would have to be very good before I would make a lease downpayment because one usually is uninsured on the amount of the downpayment in the event of a total loss on the car.
#10
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Join Date: Dec 2005
Location: La Jolla, CA USA
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My Ride: 2005 545i Sapphire Black, Tiptronic, Sport, NAV, Cold Weather, Logic 7,
2004 Porsche GT3
2000 Porsche GT3 RSR
2001 Jeep Grand Cherokee Limited
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I always buy, pay cash, but never new. I look for a low miles car that is just a few months old. I also tend to buy in the mid-west where resale values are lower. In California (where I live) prices for all luxury items are higher. This year I bought a loaded 2005 545i for my wife at under $50,000. My business partner was able to get a new M5 out of Texas with less than 500 miles for almost $5,000 BELOW sticker when dealers out here want premiums of $10,000 to $20,000 above sticker. Bought a few Porshes in the last couple of years this way as well. Takes effort to do this but saves some money. I love geographic arbitrage, buy a great car in a weaker market, drive for a year, break even on the sale in California.