Russ1974

The other option is to pay $60,000 over 3 years, and at the end of it, have a car worth $30,000 to show for it. No difference really when you think about it... !!

cader

Looks pretty accurate, I came up with $800.11 after tax - i used 6% state tax (correct?), 62% residual = 12,000 miles, and your MF .0018...see attached 08_535_Lease.pdf

Nice car!

amigo525

This what the dealer wants to do with me:

528i, sport, nav, cold weather, and xenon.
$0 down,
first month payment only
$690 monthly (including tax)
24 month: (I do not like long lease)
Is that too much for a 528i? I wanted the xi same option but they wanted a lot more.

I searched around in NY and most wanted too much for down payment and about the same monthly payment.

monacobmw

At the end of three years, the lessor does not have to sell the car and bear the risk that the residual value will be low.

Leasing is just a gamble on residual values.

If you know that the car will only be worth $10,000 after three years (selling price $58k, and $31k out of pocket), would you buy the car? No.

If the actual residual value will be greater than the stated residual value, you would want to keep the car (and you can under the lease terms).

With interest rates so low, many people do better keeping their money in other investments (I guess you can do the same if you buy as well with finance).

Leasing makes great sense to a person like me who likes a new car every three years (always staying within the factory warranty period), and is willing to pay the wear on the three year new car over and over.

If you can tell me how much more of an "owner" you feel actually owning the car, I would like to know. No one treats me as any less of an owner of the car just because I lease.

525d MSport

+1

MiamiPhill

I see your point 'Russ' it's the same one that people who lease use on me all the time, but here is the thing....
1) In 3 yrs I'll HAVE A CAR & the title to it in my back pocket.
2) What my car is worth only matters if I plan to trade/sell.
3) That car you rightly say will be worth $30,000, will be on the dealer's CPO lot for $42,000.00+tax, tag, dealer prep etc.
4) I can drive as much as I want, (Here in S. Florida nothing is ever close to you.) with no worries.
5) I don't need to new car every 2-3 yrs.
6) In 6 yrs the leaser will be out $63,392.00 total, & STILL no car to show for it.
7) Oh, & make sure when you turn in the leased car it is pristean.

Phill

MiamiPhill

'Monaco' Good to see another South Floridian on here,

1) With all due respect though brother, what $58,000 car is worth only $10,000 after 3yrs.
2) $31,000.00 every 3yrs. just to be able to drive a warranty covered car....
3) Owning is not a feeling dude, it's real. Lets say you & I have were to have a financial catastrophe (God forbid) 4 yrs in, you'll have a new lease contract & a $700-$800 monthly commitment, while I can sell my car & buy Civic cash, to drive to my new Home Depot or Publix job.

monacobmw

Equally good to see another S. Fl resident here. Great driving in the area!!!

Just some responses. In 6 years, the lessor will have driven the first three years of two new cars. Someone who keeps a car for 6 years will have driven the 4th, 5th, and 6th years of an E60. Of course you will have paid less than the lessor, as the 4th-6th year of a car is not as expensive as the first three.

As I stated above, the lessor is only paying for the depreciation on the car (sorry, my $10k example was only intended as an "example") plus the finance charge of borrowing the value of the car from the bank.

Finally, the lessor has the option to purchase. Thus, if the car is really worth much more at the time that the lease ends, the lessor can acquire the car.

If it feels better to have personal title to the car, then that is a personal choice. If you are a high mileage driver, a lease is also not a good thing. If, on the other hand, you drive less than 10k miles a year, a lease can be a very good thing (as the finance companies lower the residual).

A lease is just another way of financing a car, but you agree with the finance company to set a fixed amount (residual value) for turning the car in.

Some also like to keep their money in their mattresses because the tangible feeling of having the money means a lot more than receiving a "paper" statement from a bank stating that they are holding your money for you. I am ok with just receiving the paper statement.

cader

What is the MSRP of this car?
What is the net cap cost of this car? (Negotiated Purchase Price/Lease Price = how much over invoice / under MSRP)
How many miles?

jrsamps

If you pay the car off in 5 years..most people opt for a 5 year loan, especially on a 60K car. and all that out of pocket..ouch
Could be in the market working for you. I will never buy a car - I'll pay for depreciation and dump it on the dealer after the lease.