Quote:
Originally Posted by wassy
What’s an awesome deal? I’m currently getting 6% off or invoice. With a $127,500 competition, selling price $119,300, first payment only 36/10 comes to $2041 with 6% tax. Straight deal. No bs fees and no rate markup. Think bmwfs needs to add another 10% to residual. Lol. My issue currently is not so much whether I can get a better discount but whether I want to commit for 36 months at a stupid payment on a $125k car roughly. Hard to justify and purchasing makes no sense. These drop like rocks and either way, going to have to hold for a while and that’s a problem for me. I like to change often. 8-14 months depending. That’s just me.
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I switch out about every year as well; I used to lease, but realized I'd rather be the guy who bought the cars I was turning in. So now I look for 1-year old cars with very low miles...there are lots of them, especially with higher end cars like the M5. I take care to make sure I'm not buying an abused car, but that's a step that takes very little time and just a couple hundred bucks for an independent inspection.
Using that strategy has advantages:
I get payments usually below what a lease would have been for new
Easier to avoid first-year car issues, and let those play out with someone else
I have at least some equity in the car
I lose way less $ on the car when I eventually turn it in since the steepest depreciation drop happens in the first year
The downside is that I have zero patience to wait for the used market to populate, but I'm getting better about that as I get older.
If you can...wait a year (or maybe less), let the first year depreciation hit (at least 20% if not more), then jump on one. Put another way, be the person who is usually buying your lease cars when you turn them in after a year.