[masd79]

Originally Posted by M6-Coupe

57% residual for 10k miles is great. It's the same as M2/M3 and 2% higher than M4.
I guess they offered you 2k rebate correct?

No rebate nothing

[Hammer110!]

Originally Posted by M6-Coupe

Todays they don't calculate MF based on exact finance rate.
So basically 5.4% finance rate should be MF =0.00225 but I believe they can add 0.00040 and they do.

Correct. The dealer has the option to add UP TO 40 basis points on BMWFS base MF. The .00225 is base and I’ve seen people here being quoted the .00265 which includes the dealer bump. Personally I’d be negotiating for the base rate it’s a 100-200/mo difference in payment.

[M6-Coupe]

Originally Posted by Hammer110!

Correct. The dealer has the option to add UP TO 40 basis points on BMWFS base MF. The .00225 is base and I’ve seen people here being quoted the .00265 which includes the dealer bump. Personally I’d be negotiating for the base rate it’s a 100-200/mo difference in payment.

Yes. For this particular car with above numbers MF 0.00225 can reduce the monthly payment by almost $90

[ROMIL]

Originally Posted by M6-Coupe

Todays they don't calculate MF based on exact finance rate.
So basically 5.4% finance rate should be MF =0.00225 but I believe they can add 0.00040 and they do.

When dealer's mark up the MF, that's a sign to move on to a different dealer

[jm490]

Originally Posted by ROMIL

When dealer's mark up the MF, that's a sign to move on to a different dealer

Where can you see or know the base rate for the MF at the time of leasing? Is every state or dealership different? This is good info thank you

[Oswiff]

Originally Posted by jm490

Where can you see or know the base rate for the MF at the time of leasing? Is every state or dealership different? This is good info thank you

BMW FS sets the rate but dealers can increase the rate by a set amount that BMW FS caps.
To find out the rate when you are ready to sign the docs, the easiest option is to utilize the spreadsheet that Next Level Auto Broker has on leasehackers and he shows the MF as well as residual (which can’t be adjusted). He updates the sheet every month as MF and residual can change each month.

[ctelimad]

Originally Posted by M6-Coupe

Yes. For this particular car with above numbers MF 0.00225 can reduce the monthly payment by almost $90

Yes it is 3k for 36 month
For the my sedan i am not paying anything above base rates for that month
The car is not that hot to deserve a markup on MF

[Rupnok]

When I use the bmwusa payment calculator it seems that to lease the Touring it is almost $1200 more to lease than to purchase. Is that just likely a glitch at this point? For the sedan the lease is cheaper.

[ctelimad]

Originally Posted by Rupnok

When I use the bmwusa payment calculator it seems that to lease the Touring it is almost $1200 more to lease than to purchase. Is that just likely a glitch at this point? For the sedan the lease is cheaper.

Yes they did not update the lease terms
Wait few weeks and this will change

[Moewron]

Originally Posted by Rupnok

When I use the bmwusa payment calculator it seems that to lease the Touring it is almost $1200 more to lease than to purchase. Is that just likely a glitch at this point? For the sedan the lease is cheaper.

Same thing happened with the G90 when it first went up.

[masd79]

The lease looks a terrible option for this car. I think anyone financing or leasing this m5 shouldn’t get one imo. I’m thinking pay cash, and if it fails like the xm and looses $30-40k I the first three years, you basically owned this car for $1100 a month

[Moewron]

Originally Posted by masd79

The lease looks a terrible option for this car. I think anyone financing or leasing this m5 shouldn’t get one imo. I’m thinking pay cash, and if it fails like the xm and looses $30-40k I the first three years, you basically owned this car for $1100 a month

It looks like you posted this without reading even the three most recent posts.

[M6-Coupe]

Originally Posted by masd79

The lease looks a terrible option for this car. I think anyone financing or leasing this m5 shouldn’t get one imo. I’m thinking pay cash, and if it fails like the xm and looses $30-40k I the first three years, you basically owned this car for $1100 a month

Why?
The residual is good and the MF is not too bad.
What do you expect as lease payment for this 130k car?

[Salespunk]

Originally Posted by masd79

The lease looks a terrible option for this car. I think anyone financing or leasing this m5 shouldn’t get one imo. I’m thinking pay cash, and if it fails like the xm and looses $30-40k I the first three years, you basically owned this car for $1100 a month

You are not counting opportunity cost on your $150K. Assume 8% return and that comes out to $36K (not counting compounding) ~$1000/mo. Then stack your depreciation of 40% (conservative estimate) so ~$60K. You are now at $96K in total ownership for 3 years total or $2.66K/mo.

I am not saying you shouldn't pay cash, just to make sure you are counting the total cost when making comparisons. With leasing you hand the downside risk to the bank. This could be higher than expected depreciation, accidents, etc. With purchasing the downside risk is on you. With either you own the upside surprises.

One last note, early purchasers of the XM are not losing 30-40% over three years. They have lost that in the first six to twelve months. Likely to face 60% or more over three years.

[masd79]

Originally Posted by Salespunk

You are not counting opportunity cost on your $150K. Assume 8% return and that comes out to $36K (not counting compounding) ~$1000/mo. Then stack your depreciation of 40% (conservative estimate) so ~$60K. You are now at $96K in total ownership for 3 years total or $2.66K/mo.

I am not saying you shouldn't pay cash, just to make sure you are counting the total cost when making comparisons. With leasing you hand the downside risk to the bank. This could be higher than expected depreciation, accidents, etc. With purchasing the downside risk is on you. With either you own the upside surprises.

One last note, early purchasers of the XM are not losing 30-40% over three years. They have lost that in the first six to twelve months. Likely to face 60% or more over three years.

Good point about accident depreciation risk, that’s the only thing that convinces me to leasing this car vs buying.

[subterFUSE]

Yep, one of the reasons I like leasing is it can be a hedge against higher than expected depreciation. I don't want to own these cars more than 3 years to begin with, since I prefer not to pay for repairs. But if I paid cash and the car depreciates more than expected, then it's likely to be a struggle to sell the car private party. That can further eat into the recovered total. On a lease, if the car is worth less than the residual you just hand over the keys. If it's worth more than the residual, you can buy and flip it and get some cash back. My F90 lease ended up being about $15k in positive equity after 36 months.

[Salespunk]

One other thing about leasing that I forgot to mention is the sales tax advantage in some states. As an example in California we only pay sales tax monthly on the payment. So on a 3 year lease at a 57% residual and assuming a $130K price you would save $6100 in sales tax over the three years.

All that being said, I buy some cars and lease others depending on the math and my personal plans for the vehicle. For my Ram 2500 I bought it because I planned to keep it beyond 3 years. Have currently owned it for 6 years and it is still rock solid. My iX and my wife's EQS I leased because depreciation was not set on EV's yet and we are not eligible for the $7500 incentive. Plus we lemon law'd two other EV's due to significant SW issues and I didn't want to take on any risk.

Everyone's situation is different as are their desires. Some people just want to own a car without thinking about payments. Others stretch to own the car of their dreams as early as possible and focus on payment rather than cost. None of them are right or wrong, just different goals.

[ctelimad]

Originally Posted by Salespunk

One other thing about leasing that I forgot to mention is the sales tax advantage in some states. As an example in California we only pay sales tax monthly on the payment. So on a 3 year lease at a 57% residual and assuming a $130K price you would save $6100 in sales tax over the three years.

All that being said, I buy some cars and lease others depending on the math and my personal plans for the vehicle. For my Ram 2500 I bought it because I planned to keep it beyond 3 years. Have currently owned it for 6 years and it is still rock solid. My iX and my wife's EQS I leased because depreciation was not set on EV's yet and we are not eligible for the $7500 incentive. Plus we lemon law'd two other EV's due to significant SW issues and I didn't want to take on any risk.

Everyone's situation is different as are their desires. Some people just want to own a car without thinking about payments. Others stretch to own the car of their dreams as early as possible and focus on payment rather than cost. None of them are right or wrong, just different goals.

Thats 100% right
Every situation is different
No right or wrong do what makes sense to you
I am leasing mine as long as the residual is 57%

[Crazy1323]

I’ll probably do a single pay lease on mine. Too much uncertainty about future value.

[Hammer110!]

Originally Posted by Salespunk

One other thing about leasing that I forgot to mention is the sales tax advantage in some states. As an example in California we only pay sales tax monthly on the payment. So on a 3 year lease at a 57% residual and assuming a $130K price you would save $6100 in sales tax over the three years.

All that being said, I buy some cars and lease others depending on the math and my personal plans for the vehicle. For my Ram 2500 I bought it because I planned to keep it beyond 3 years. Have currently owned it for 6 years and it is still rock solid. My iX and my wife's EQS I leased because depreciation was not set on EV's yet and we are not eligible for the $7500 incentive. Plus we lemon law'd two other EV's due to significant SW issues and I didn't want to take on any risk.

Everyone's situation is different as are their desires. Some people just want to own a car without thinking about payments. Others stretch to own the car of their dreams as early as possible and focus on payment rather than cost. None of them are right or wrong, just different goals.

You make a lot of great salient points. For those that are self employed perhaps the biggest advantage is the tax advantage when running the vehicle through the business. Fully 100% of business use of the vehicle is deductible. I currently write about 75-80% of my lease costs off as a business expense.

[masd79]

Originally Posted by Salespunk

One other thing about leasing that I forgot to mention is the sales tax advantage in some states. As an example in California we only pay sales tax monthly on the payment. So on a 3 year lease at a 57% residual and assuming a $130K price you would save $6100 in sales tax over the three years.

All that being said, I buy some cars and lease others depending on the math and my personal plans for the vehicle. For my Ram 2500 I bought it because I planned to keep it beyond 3 years. Have currently owned it for 6 years and it is still rock solid. My iX and my wife's EQS I leased because depreciation was not set on EV's yet and we are not eligible for the $7500 incentive. Plus we lemon law'd two other EV's due to significant SW issues and I didn't want to take on any risk.

Everyone's situation is different as are their desires. Some people just want to own a car without thinking about payments. Others stretch to own the car of their dreams as early as possible and focus on payment rather than cost. None of them are right or wrong, just different goals.

I think a lower total cost of ownership for a depreciating toy is always something to care about. Are there any other tools to reduce the overall tco? I was hoping a m5 would hold as good as a 911 or close

[Alan l.]

Unless BMW starts whoring out the allocations I do not expect the M5 sedan and especially the Touring to drop in value faster than prior generation M5's. Considering it seems like BMW dialed back the X5M and X6M builds as of late this further indicates they won't just flood the market with these cars.