azatty

For what it's worth, I do not think you are crazy at all. I am actually in a similar situation. I have an E60 M5 that has given me a number of problems, so BMW is looking at buying it back. In the meantime, they have given me a 750iL to drive, which at first, I loved, probably because it was so different from my M5. Now, however, I am contemplating a 550 (not an M5, don't want to deal with the reliability issues). They are just two different cars and, if you need the room, the 750 is the way to go. I, however, miss the sport of the 550. Just my take.

JSpira

I must disagree with this statement. It is foolhardy to put down money on a lease. If something happens (the car is totalled, stolen, or you need to trade it for something else) that money is gone. Lowering your monthly payment by means of a downpayment creates ,,great`` lease terms which are illusory at best.

On the other hand, multiple security deposits serve a similar purpose but you get the money back at the end.

Regarding your dilemma, if you like the car, keep it. Worrying about being a driver for your partners... well, let them drive themselves.

LowOrbit

My understanding is that in the case of theft/trade etc., the leasee is liable for all future payments so the upfront payment reduces your liability. Upfront $ is best when the MF is high or when considering buying a new house as a car lease counts against one's borrowing limits.

Also - tell your partners to eat less or exercise!

Rudy

Doesn't the fact that BMW has your money for three years instead of you investing that money for the same three years factor into this as well? Isn't it always smarter to simply invest the money you would otherwise use for a down payment and live with the higher payments? To me, that issue alone is enough to cause me to not pay any money upfront -- the reasons that JSpira and LowOrbit bring up only make it more of a sound decision...

JSpira

Uh, no. In case of theft, the insurance company pays off BMW FS and the leasee is off the hook.

Further, if the car were in an accident and totalled, and you made an upfront payment, you would be out the money. With no downpayment, the insurance company would pay off BMW FS and that would be it.

EM_5

New 7 series is coming out within a year. Waiting such a short period may be a good choice. And have you considered (flame suit on) a S550? Very lawyer like, status symbol and its the latest and greatest uber-cruiser.

LowOrbit

Thanks for the info - I did not realize that. I had a car totalled and the insurance company just wrote me a check.

I know some people do "up-front" leases on some cars with high MFs where they try to pay as much as possible. If an M5's MF is 0.0032 (7.7% after-tax), it would seem to be worth putting a lot down given there are not many guaranteed 11%+ pre-tax returns investments available. Given JSpira's points, this now makes less sense.