[julienjj]

Originally Posted by DocWeatherington

Don't lease for 4 years, 36/12 let alone 36/7.5 should be cheaper with better residual.

How much in Canada do they charge per km over lease contract?

about 18 cents per km, nothing crazy.

Problem is the luxury tax is paid on the purchase price. It will erase any gain of a shorter lease.

Fun stuff tho, looks like they pulled the lease calculator on the M5 on the canadian website.

[DocWeatherington]

Originally Posted by julienjj

about 18 cents per km, nothing crazy.

Problem is the luxury tax is paid on the purchase price. It will erase any gain of a shorter lease.

Fun stuff tho, looks like they pulled the lease calculator on the M5 on the canadian website.

Got to love taxes lol

[StitChES37]

Dealer is quoting the following lease terms for the G90:

Lease: 10k / 36 months
MF: .00275
Residual: 57%

That MF seems high to me... what are you guys/gals seeing?

[sm16]

The residual is right but MF is marked up based on what my CA quoted. He told me the current rate is .00225. My car doesn’t get delivered till mid/late Jan, so it might be different at that point.

[Oswiff]

Originally Posted by StitChES37

Dealer is quoting the following lease terms for the G90:

Lease: 10k / 36 months
MF: .00275
Residual: 57%

That MF seems high to me... what are you guys/gals seeing?

Buy Rate is .00225 or 5.4%

[ctelimad]

Originally Posted by Oswiff

Buy Rate is .00225 or 5.4%

That ia right Mf is 0.00225

[Crazy1323]

Originally Posted by StitChES37

Dealer is quoting the following lease terms for the G90:

Lease: 10k / 36 months
MF: .00275
Residual: 57%

That MF seems high to me... what are you guys/gals seeing?

Assuming tier 1 credit, It looks like your MF is marked up by .00050, I was thinking the most BMW financial would let dealers mark up MF was .0004, but it could have increased.

Personally, I’m not a big fan of markup on the money factor, but run the numbers with a MF of .00225 and see how much of a difference it makes monthly, then you can figure out how much of your time it is worth.

[EUPremier]

Originally Posted by subterFUSE

No sales tax on cars where I live. It's not an issue.


If you can sell the car yourself as a private party, you should be able to get a better value than a dealer will trade. But it takes work and possibly some patience, and don't forget some added risk. I have heard horror stories of private party car sales going bad. Checks that bounce, wires that get rejected by the bank, etc... If I needed to sell a high end car I think I would use a broker of some kind. Someone to be an escrow agent for the deal.

When I leased my F90, I ended up just selling my old car to Carmax. They actually gave me a fairly reasonable offer right off the bat, and the process took minutes. Check in hand, out the door in less than an hour. I recommend at least going to them and getting an appraisal. It gives you a baseline before going to your dealer, if nothing else.

You are correct, that trading in a car for a lease is effectively like prepaying your lease. If you get in a wreck you will lose that money. So from that perspective it's usually better disposing of the old car outside of your lease deal.

I don’t get how one’s lease payments are lost if the car gets wrecked?
Isn’t that what motor insurance is for?
Maybe purchase gap-cover?
If the car is wrecked, the insurer writes a cheque to you, gap-cover kicks in and you end up with the full MSRP of the vehicle.
You can clear the outstanding balance on the agreement which should equate to CAP minus Deposit + Payments, right?

[EUPremier]

Originally Posted by ctelimad

It is crazy that everything doubled since 3 years
My wife x5 was 660 a month now paying 1160 a month
I was paying 1200 for my previous m8 convertible now paying 2200 for new m5
Not talking about insurances that also doubled

Quantitative easing.

This is what happens money when the Govs of the World pay everyone to stay at home.

[subterFUSE]

[Crazy1323]

Originally Posted by EUPremier

I don’t get how one’s lease payments are lost if the car gets wrecked?
Isn’t that what motor insurance is for?
Maybe purchase gap-cover?
If the car is wrecked, the insurer writes a cheque to you, gap-cover kicks in and you end up with the full MSRP of the vehicle.
You can clear the outstanding balance on the agreement which should equate to CAP minus Deposit + Payments, right?

It depends on the leasing company, but if you prepay a lease and total the car I don’t think BMW is required to refund you those prepayments.

[StitChES37]

Thanks everyone for the info! I’ll shoot for the .00225.

FWIW, I did a simple sensitivity analysis and found that for every .00005 increase, monthly payments go up by ~$10.

Also - has anyone had luck with the $7500 EV/PHEV instant tax credit? Effectively, if leasing a vehicle, all the restrictions on income / MSRP / mfg origin etc are eliminated, and the dealer puts it as an instant lease rebate.

I test drove a couple PHEVs yesterday (E53 AMG and the PHEV Range Rover) and both of them offered it after I asked.

[DocWeatherington]

Originally Posted by EUPremier

I don’t get how one’s lease payments are lost if the car gets wrecked?
Isn’t that what motor insurance is for?
Maybe purchase gap-cover?
If the car is wrecked, the insurer writes a cheque to you, gap-cover kicks in and you end up with the full MSRP of the vehicle.
You can clear the outstanding balance on the agreement which should equate to CAP minus Deposit + Payments, right?

No, so BMW FS owns the car as you are renting it. The check from your insurance goes directly to BMW FS. For vechile registration purposes the lien lies with BMW FS and your a rider.



It is BMW FS option, not requirement to give you any of the equity. BMW FS , your insurance and then a third party negotiate the actual value which is agreed upon by all three parties - you have zero say in any of this. Your insurance pays any remaining balance absent your deductibles for cash value. However, your insurance will likely reimbursement your for sale tax paid.

Thus you pay 50k in a 3 year lease ...12 months in the car is total... they determined the 130k msrp car actually cash value is 100k... bmw gives actual pay off 80k as that's what remains on the loan... your insurance pays bmw fs directly 80k to close the lease out. Bmw has 20k which you paid.

Flip to that insurance pays cash value. That 20k as per the contract you signed BMW FS isnt required to give that back or even all of it and or in order to get any of it may require you to get another bmw.

Gap insurance on leases is included and provided by BMW, there won't be a gap as you've already given a state-of-the-art bridge to cover the gap. Thus any negative equity is eaten by BMW FS.

To also note your still required to make payments even if the car is a total loss until the contract is closed during that negotiation period.

[DocWeatherington]

Originally Posted by StitChES37

Thanks everyone for the info! I’ll shoot for the .00225.

FWIW, I did a simple sensitivity analysis and found that for every .00005 increase, monthly payments go up by ~$10.

Also - has anyone had luck with the $7500 EV/PHEV instant tax credit? Effectively, if leasing a vehicle, all the restrictions on income / MSRP / mfg origin etc are eliminated, and the dealer puts it as an instant lease rebate.

I test drove a couple PHEVs yesterday (E53 AMG and the PHEV Range Rover) and both of them offered it after I asked.

Bmw is not offering that on the M5. Those are credits from the manufacturer and not the government. Similar to how BMW is doing the credit on all EVs, those are not federal tax credits and are a manufacturer rebates to keep product moving.

The true EV tax credit isn't on very many cars anyway as every year it's simmered down as restrictions by law have increased. It was a different story in 23 and 22.


https://fueleconomy.gov/feg/tax2023.shtml

[ctelimad]

Originally Posted by DocWeatherington

Bmw is not offering that on the M5. Those are credits from the manufacturer and not the government. Similar to how BMW is doing the credit on all EVs, those are not federal tax credits and are a manufacturer rebate to keep product moving.

The true EV tax credit isn't on very many cars anyway.


https://www.consumerreports.org/cars...s-a7820795671/

Thats right
I am hoping bmw give at least loyalty starting december

[DocWeatherington]

Originally Posted by ctelimad

Thats right
I am hoping bmw give at least loyalty starting december

I would think in time they will be given loyalty, lease credits and military discounts.

If your a CCA member that still exists

[StitChES37]

Originally Posted by DocWeatherington

Bmw is not offering that on the M5. Those are credits from the manufacturer and not the government. Similar to how BMW is doing the credit on all EVs, those are not federal tax credits and are a manufacturer rebates to keep product moving.

The true EV tax credit isn't on very many cars anyway as every year it's simmered down as restrictions by law have increased. It was a different story in 23 and 22.


https://fueleconomy.gov/feg/tax2023.shtml

I’ve found different information: basically saying companies do get the 7500 credit, and it’s up to them as to whether to pass it along. I’ll be expecting it to be passed along.

[sm16]

I’ve read and heard the same. On a lease, BMW will most likely get the credit but it’s up to them if they want to offer it to the consumer.

[Crazy1323]

Originally Posted by sm16

I’ve read and heard the same. On a lease, BMW will most likely get the credit but it’s up to them if they want to offer it to the consumer.

I am a tax attorney and handle EV credits at a very large company. This is 100% correct. BMW financial will receive a $7,500 federal tax credit when they lease this vehicle to you, but it’s up to BMW if they want to pass that on in the form of a rebate.

[DocWeatherington]

Originally Posted by StitChES37

I’ve found different information: basically saying companies do get the 7500 credit, and it’s up to them as to whether to pass it along. I’ll be expecting it to be passed along.

Attachment 3609941

Let me know how that works out.

[Moewron]

It was explicitly stated to me when I leased my X5 45e in 2020 that it would not be passed along in a lease, only in a purchase. I do believe that any such credits are likely reflected in lease terms, if anywhere.

[ctelimad]

Basically it is up to bmw if she wants to pass you the credit as incentives or they can just keep the cash
They may do so or at least partially later on along with loyalty
It is just matter of time and how sales are going