[mjr24]

Originally Posted by Greer

I think at these rates the G90 M5's will be sitting on dealer lots with people waiting for the deals to drop.

Absolutely…..and that says something considering the 57 percent is pretty damn good for a 36 month residual. I don’t know of any BMW’s that over 54.

[WWM3]

Useful info in this thread. Thank you to those who have shared preliminary lease quotes. My experience has been that MF's rise or fall along with other auto lending rates. These are not directly tied to the Fed's actions, which affect short term rates. For example, longer term rates have actually moved up after the 50 bps cut....But either way, 57% is a great residual. Anyone know if the $7,500 EV rebate can be applied?

[M6-Coupe]

Originally Posted by StitChES37

This is the first time I'm considering a lease. Would folks agree the starting residual is going to be quite low, (36 mo, 10k/yr.... 54%?)

Let's say your actual mileage is less than that... typically 7k/yr.. so a 3yo 21k mile car should trade in for... ~60%.

If that's the case, then you can buy the lease out and sell it (to them or others) to recoup that ~6%. In which case, you wouldn't care if the residual was in the low to mid-50's%, right? Assuming actual trade-in value is ~60%, then as long as you buy the lease out at the end you'd recoup the delta.

Is this logic flawed?

Some BMWs like M2/M3/M4 hold their values nicely so at the end of the lease you make some equities since residual is lower than market price.
Bigger cars like M5/M6/M8 are not like that. Most likely at the end of the lease market price is lower or close to residual.
My F80 M3 did worth more than 57% residual so I made money.
My F82 M8 had residual much higher than market place at the end of the lease so I had no choice but returning her.

On the other hand higher residual means lower monthly payment because you have to pay the depreciation.
So if the residual is low, your monthly goes high and you might make some money at the end of end. If the residual is high, your monthly payment drops but you need to pay the bigger residual at the end of the lease if you want to buy it off.

Usually the first year lease of new body is good because the residual is high but after a while the residual drops.

[M6-Coupe]

Originally Posted by mjr24

Absolutely…..and that says something considering the 57 percent is pretty damn good for a 36 month residual. I don’t know of any BMW’s that over 54.

This month (October ) M2 residual is 58% ,M3 is 58% and M4 is 56% . All for 36 month / 7500 miles per year. 10000 mile is 1% lower.

[M6-Coupe]

Originally Posted by Greer

I think at these rates the G90 M5's will be sitting on dealer lots with people waiting for the deals to drop.

Not for G90 this year.
Monthly payment of a well equipped M3/M4 @ 90-95k price point is around $ 1700.

[subterFUSE]

I had nearly $20k in equity at the end of my F90 lease. But I started that lease just at the beginning of COVID when BMW couldn't give cars away. I also was about 9000 miles under budget.

[jm490]

What’s everyone’s take on mileage for a lease. I usually drive around 15-17k miles a year so I never really lease but I don’t want to purchase a first model year car so I’m like 99% going to lease this. Does it make sense to lease at 12k and then pay the difference when I bring it back or buy it if I life it? Or do I lease at 15k and hope to stay around that number? Also if I end up getting another BMW which I very well could see myself doing in 3 years they may give some incentive with the extra mileage write off? Has anyone had that happen?

[Salespunk]

Originally Posted by jm490

What’s everyone’s take on mileage for a lease. I usually drive around 15-17k miles a year so I never really lease but I don’t want to purchase a first model year car so I’m like 99% going to lease this. Does it make sense to lease at 12k and then pay the difference when I bring it back or buy it if I life it? Or do I lease at 15k and hope to stay around that number? Also if I end up getting another BMW which I very well could see myself doing in 3 years they may give some incentive with the extra mileage write off? Has anyone had that happen?

You can purchase additional miles for $0.20/mi until 6 months prior to the lease ending. Price per mile may be higher now so check with your finance department. Just add that into you price calculations.

[jm490]

Originally Posted by Salespunk

You can purchase additional miles for $0.20/mi until 6 months prior to the lease ending. Price per mile may be higher now so check with your finance department. Just add that into you price calculations.

That seems pretty cheap then. Okay thank you I’ll double check if that’s still the cost and run some numbers cause if that’s the case then yeah buying a bunch of miles makes more sense.

Thank you!

[subterFUSE]

Originally Posted by M6-Coupe

Bigger cars like M5/M6/M8 are not like that. Most likely at the end of the lease market price is lower or close to residual.

I had almost $20k in equity on my F90 lease at expiration.

But that was a very unusual timing because I started the lease right when Covid lockdowns began and the used car market went a little crazy for a while.

[M6-Coupe]

Originally Posted by jm490

What’s everyone’s take on mileage for a lease. I usually drive around 15-17k miles a year so I never really lease but I don’t want to purchase a first model year car so I’m like 99% going to lease this. Does it make sense to lease at 12k and then pay the difference when I bring it back or buy it if I life it? Or do I lease at 15k and hope to stay around that number? Also if I end up getting another BMW which I very well could see myself doing in 3 years they may give some incentive with the extra mileage write off? Has anyone had that happen?

You should go with 12K and rely on mile purchase at the end of lease especially with today's high MF.
Who knows maybe you want to return the car sooner and trade for another BMW and then they will wash out your over mileage.

[subterFUSE]

I have always done 3/36 lease terms and I always end up under budget. But, I would never lease a car unless I also have another car I own to offset mileage if necessary.

Keep in mind, if you over budget your miles and don't use them, BMW is not going to pay you back for them. Your only option to recoup would be to purchase the car at lease end and sell it private sale. You might recover some of the equity that way. But it's a hassle and a cash requirement, so keep that in mind. i.e. you might need to fork over $70k cash to buy out the lease and then it might not be an easy sell, so your cash would be tied up while you deal with the sales process.

If you budget fewer miles you can pay the difference at the stated rate, or you can budget your miles as you near lease-end. But at least you won't have paid for miles you did not use, and you won't feel so bad about handing the keys over to BMW and missing out on some equity (if any).

[Crazy1323]

On leases I have always been able to get the equity out without having to come out of pocket, but I have never leased a BMW.

When I have had a lease with equity I essentially trade in the car to the dealer. If the buyout on the lease is $45k, but the trade-in is $50k I have either gotten a check from the dealer for $5k or reduced the cap cost on the next vehicle by $5k. I have done this with Porsche, Audi, Jaguar, and Land Rover.

The dealer has always handled all the paperwork, but what I think happens is the lease gets transferred to the dealer. For this transfer the dealer compensates you the difference ($5k in my example). Then the dealer buys out the lease so they now own the vehicle and can sell it themselves, either wholesale or on their own lot.

On the Porsche I turned in the lease and was buying a Range Rover from a totally separate dealer in another city. The Porsche dealer still wrote me a check when I turned in the lease for the difference in the trade-in value versus the buyout.

Originally Posted by subterFUSE

I have always done 3/36 lease terms and I always end up under budget. But, I would never lease a car unless I also have another car I own to offset mileage if necessary.

Keep in mind, if you over budget your miles and don't use them, BMW is not going to pay you back for them. Your only option to recoup would be to purchase the car at lease end and sell it private sale. You might recover some of the equity that way. But it's a hassle and a cash requirement, so keep that in mind. i.e. you might need to fork over $70k cash to buy out the lease and then it might not be an easy sell, so your cash would be tied up while you deal with the sales process.

If you budget fewer miles you can pay the difference at the stated rate, or you can budget your miles as you near lease-end. But at least you won't have paid for miles you did not use, and you won't feel so bad about handing the keys over to BMW and missing out on some equity (if any).

[subterFUSE]

Originally Posted by Crazy1323

On leases I have always been able to get the equity out without having to come out of pocket, but I have never leased a BMW.

When I have had a lease with equity I essentially trade in the car to the dealer. If the buyout on the lease is $45k, but the trade-in is $50k I have either gotten a check from the dealer for $5k or reduced the cap cost on the next vehicle by $5k. I have done this with Porsche, Audi, Jaguar, and Land Rover.

The dealer has always handled all the paperwork, but what I think happens is the lease gets transferred to the dealer. For this transfer the dealer compensates you the difference ($5k in my example). Then the dealer buys out the lease so they now own the vehicle and can sell it themselves, either wholesale or on their own lot.

On the Porsche I turned in the lease and was buying a Range Rover from a totally separate dealer in another city. The Porsche dealer still wrote me a check when I turned in the lease for the difference in the trade-in value versus the buyout.

BMW does not do that. They won't allow you to trade the car, and certainly won't allow it to be traded to another brand of dealership. i.e. you can't take your leased car to Porsche and trade it in. BMW requires you to buy the car first. They will not transfer title to another brand of car company.

[Crazy1323]

Originally Posted by subterFUSE

BMW does not do that. They won't allow you to trade the car, and certainly won't allow it to be traded to another brand of dealership. i.e. you can't take your leased car to Porsche and trade it in. BMW requires you to buy the car first. They will not transfer title to another brand of car company.

In my example, I traded in the Porsche at a Porsche dealership. I just wasn’t applying the equity to another Porsche.

That makes it difficult to get the equity out. You could always finance the lease payoff and then payoff the loan with the trade in proceeds.

[trev230]

Originally Posted by subterFUSE

BMW does not do that. They won't allow you to trade the car, and certainly won't allow it to be traded to another brand of dealership. i.e. you can't take your leased car to Porsche and trade it in. BMW requires you to buy the car first. They will not transfer title to another brand of car company.

Maybe I’m misunderstanding what you are saying but I personally traded my leased 2019 M5 in on my 2022 M5 and they wrote me a 10K+ check for the 2019 due to the market value being much higher than my lease buyout. This was a BMW dealer and my 2019 lease had 4 months left on it. I do believe the newer leases such as the one for my 2022 state you cannot trade the car during the lease at another dealer without paying it off yourself.

[mitch65]

Originally Posted by subterFUSE

BMW does not do that. They won't allow you to trade the car, and certainly won't allow it to be traded to another brand of dealership. i.e. you can't take your leased car to Porsche and trade it in. BMW requires you to buy the car first. They will not transfer title to another brand of car company.

This is incorrect. Prior to the covid used car shortage BMW allowed you to sell your leased car to any dealer, and keep the equity if any. I did this on my 2014 M5 lease. During the covid used car shortage along with many OEM's they made a change that you could sell your leased BMW only to a BMW dealer. When I sold my 2019 M5 Base model in Summer 2022, I shopped it with the used car managers at 3 BMW dealers to get the best price and grab that equity. I didn't want to sell it to the dealer where I was leasing my new 2023 M5 from because of not wanting to grind them on the trade while getting a great deal at the time on a new 2023 M5.
Some OEM's give their dealers a different payoff amount to trade in a lease than they give you as the lessee, it can ruin the deal, BMW does not do that.

[DocWeatherington]

Originally Posted by subterFUSE

BMW does not do that. They won't allow you to trade the car, and certainly won't allow it to be traded to another brand of dealership. i.e. you can't take your leased car to Porsche and trade it in. BMW requires you to buy the car first. They will not transfer title to another brand of car company.

Actually they do it has to be a bmw dealership network or a company that leases Bmws.

[mjr24]

Originally Posted by DocWeatherington

Actually they do it has to be a bmw dealership network or a company that leases Bmws.

Agreed, we sold our leased 2021 X7 to the dealer we bought our 2025 X7 from. I had to cut them a check for the difference between the payoff and what they were giving us for the 2021....and it was a totally separate transaction versus the 2025 lease (meaning they didn't apply any positive or negative equity from the 2021 sale to the 2025 lease).

[Crazy1323]

Originally Posted by mjr24

Agreed, we sold our leased 2021 X7 to the dealer we bought our 2025 X7 from. I had to cut them a check for the difference between the payoff and what they were giving us for the 2021....and it was a totally separate transaction versus the 2025 lease (meaning they didn't apply any positive or negative equity from the 2021 sale to the 2025 lease).

Wait, you had a lease where the residual was higher than the trade-in value and you had to cut them a check? I have never had that happen. If trade in is lower than residual I have just turned the car in and moved on.

[Moewron]

Originally Posted by Crazy1323

Wait, you had a lease where the residual was higher than the trade-in value and you had to cut them a check? I have never had that happen. If trade in is lower than residual I have just turned the car in and moved on.

I'd guess the only time that could happen is if you wanted to trade it in early ( Which it doesn't sound like they did)

[mjr24]

Originally Posted by Crazy1323

Wait, you had a lease where the residual was higher than the trade-in value and you had to cut them a check? I have never had that happen. If trade in is lower than residual I have just turned the car in and moved on.

We were 40,000 miles over our allotted mileage, LOL.

So it was either cut a check for the excess miles or pay the difference to the dealer (which gave us a good deal….it saved us $1500 from just paying for the miles).