opinion on lease or buy

Mklock · 03-26-2018, 02:35 PM

Featured on BIMMERPOST.com

2018 M5
MSRP 115,295
NY Tax rate 8.75 %

LEASE : ( BMW reduction $1000 )
$6027 upfront ( Taxes plus dealer fee plus 1st month payment )
$1659.30 monthly for 35 months
$69,177.00 Residual

BUY: ( BMW reduction $4500 plus 0% finance for 60 months )
$10,088.31 NYS Tax ( 8.75 % )
$145.00 Doc, License fee
$2017.14 monthly for 60 months no prepayment penalty

Opinions welcome !

Stash21 · 03-26-2018, 02:53 PM

Quote:

Originally Posted by Mklock

2018 M5
MSRP 115,295
NY Tax rate 8.75 %

LEASE : ( BMW reduction $1000 )
$6027 upfront ( Taxes plus dealer fee plus 1st month payment )
$1659.30 monthly for 35 months
$69,177.00 Residual

BUY: ( BMW reduction $4500 plus 0% finance for 60 months )
$10,088.31 NYS Tax ( 8.75 % )
$145.00 Doc, License fee
$2017.14 monthly for 60 months no prepayment penalty

Opinions welcome !

Buy. TCO over 3yrs is 72k leaving 48k outstanding. I suspect it will be worth more than that.

Leasing is costing 64k with nothing left.

So buying is better if the value after 3 years is 56k or greater.

neohh · 03-26-2018, 03:04 PM

Buy. Unless you can deduct lease payments for tax purposes.

$4500 off plus 0% Financing is a good deal. In Canada the financing rate is around 5%.

swanson · 03-26-2018, 03:05 PM

What a ripoff on the lease.

NaciernoF10 · 03-26-2018, 03:07 PM

Quote:

Originally Posted by Mklock

2018 M5
MSRP 115,295
NY Tax rate 8.75 %

LEASE : ( BMW reduction $1000 )
$6027 upfront ( Taxes plus dealer fee plus 1st month payment )
$1659.30 monthly for 35 months
$69,177.00 Residual

BUY: ( BMW reduction $4500 plus 0% finance for 60 months )
$10,088.31 NYS Tax ( 8.75 % )
$145.00 Doc, License fee
$2017.14 monthly for 60 months no prepayment penalty

Opinions welcome !

Wow that crazy on lease! I was quoted on same MSRP
$1349/mo including 7% tax
36 months
10k miles
5k down

Msrp was $115,295

Mklock · 03-26-2018, 03:11 PM

The lease seems consistent with what I have seen others posting ? Car is MSRP. The 0% and $4500 reduction are making me think twice about the lease, just not sure how the value of the car will be in 3 years ( I will still owe $48 K ). I think it will be $55-60 but as a trade in, it might be closer to $50-55

Mklock · 03-26-2018, 03:12 PM

This is a 36 month 12K miles lease

Spara · 03-26-2018, 04:40 PM

Who is financing at 0%?

NaciernoF10 · 03-26-2018, 04:43 PM

Quote:

Originally Posted by Mklock

This is a 36 month 12K miles lease

Mine was 10k miles but still the lease quote is way over priced!

TheRealOrosie · 03-26-2018, 04:47 PM

Quote:

Originally Posted by NaciernoF10

Wow that crazy on lease! I was quoted on same MSRP
$1349/mo including 7% tax
36 months
10k miles
5k down

Msrp was $115,295

So you had a sub 3% money factor on that lease quote???

Even with a .00125 Money factor, and NO TAX, the payment comes out to $1482 a month. (36 month, 10k miles per year, 61% residual).

Even with 5k down, it still does not make sense, unless you got an insane money factor.

Mklock · 03-26-2018, 05:01 PM

Quote:

Originally Posted by NaciernoF10

Mine was 10k miles but still the lease quote is way over priced!

12K miles per year and higher tax rate ( 8.75% ) contribute to the difference

Mklock · 03-26-2018, 05:03 PM

Quote:

Originally Posted by Spara

Who is financing at 0%?

I believe it was a promo BMW was running on 5 series cars

Spara · 03-26-2018, 05:05 PM

Are you sure that applies to the M5?

Mklock · 03-26-2018, 05:06 PM

Quote:

Originally Posted by swanson

What a ripoff on the lease.

What numbers are you seeing ?

Mklock · 03-26-2018, 05:08 PM

Quote:

Originally Posted by Spara

Are you sure that applies to the M5?

Application was filed in Jan / Feb, I have to end of this month for 0%

swanson · 03-26-2018, 06:19 PM

Quote:

Originally Posted by Mklock

What numbers are you seeing ?

I just ran those numbers and got $1539 w/ $6387 down which includes taxes, first payment. You still have an acquisition fee and the lovely BS DOC fee. They are jacking up your money factor and/or adding in some other BS fees.

Mklock · 03-26-2018, 07:27 PM

The 0% finance is sounding like it’s the way to go.

SFT33 · 03-27-2018, 05:11 AM

0% is free money. Take it.

Mklock · 03-27-2018, 05:36 AM

Quote:

Originally Posted by Stash21

Buy. TCO over 3yrs is 72k leaving 48k outstanding. I suspect it will be worth more than that.

Leasing is costing 64k with nothing left.

So buying is better if the value after 3 years is 56k or greater.

Thank you for your reply. I agree that buying may be better in my case. I don’t understand where you arrived at 56 K as the buying is better figure ( after 3 years ). Wouldn’t that value be anything above 48K ?

uniqueMR · 03-27-2018, 11:07 PM

Buy.
Lease: if have a business and tax purposes (write-off).

Stash21 · 03-28-2018, 11:58 AM

Quote:

Originally Posted by Mklock

Quote:

Originally Posted by Stash21

Buy. TCO over 3yrs is 72k leaving 48k outstanding. I suspect it will be worth more than that.

Leasing is costing 64k with nothing left.

So buying is better if the value after 3 years is 56k or greater.

Thank you for your reply. I agree that buying may be better in my case. I donÂ’t understand where you arrived at 56 K as the buying is better figure ( after 3 years ). WouldnÂ’t that value be anything above 48K ?

Yes it would in terms of relative to the amount outstanding which is 48k.

I arrived at 56k as the buying option over the first 4years is 8k more than leasing (72k versus 64k).

supershaft · 03-28-2018, 01:01 PM

things to consider:

used for business? Lease

not used for business but how long do you intent on keeping the car? If you want to get a new M5 after 4-5 years keep in mind the first year models will depreciate the worst.

I'd only ever "buy" right after the LCI refresh. Otherwise lease all the way.

03-26-2018, 02:35 PM	#1
Mklock New Member 27 Rep 15 Posts Drives: 2018 M5 Join Date: Mar 2018 Location: NY iTrader: (0)	opinion on lease or buy Featured on BIMMERPOST.com 2018 M5 MSRP 115,295 NY Tax rate 8.75 % LEASE : ( BMW reduction $1000 ) $6027 upfront ( Taxes plus dealer fee plus 1st month payment ) $1659.30 monthly for 35 months $69,177.00 Residual BUY: ( BMW reduction $4500 plus 0% finance for 60 months ) $10,088.31 NYS Tax ( 8.75 % ) $145.00 Doc, License fee $2017.14 monthly for 60 months no prepayment penalty Opinions welcome !
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03-26-2018, 03:04 PM	#3
neohh Lieutenant 168 Rep 454 Posts Drives: F90 M5 Join Date: Feb 2018 Location: Toronto iTrader: (0)	Buy. Unless you can deduct lease payments for tax purposes. $4500 off plus 0% Financing is a good deal. In Canada the financing rate is around 5%.
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03-26-2018, 03:05 PM	#4
swanson Convicted Felon 733 Rep 2,180 Posts Drives: chariot Join Date: Dec 2009 Location: NY iTrader: (0)	What a ripoff on the lease.
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03-26-2018, 03:11 PM	#6
Mklock New Member 27 Rep 15 Posts Drives: 2018 M5 Join Date: Mar 2018 Location: NY iTrader: (0)	The lease seems consistent with what I have seen others posting ? Car is MSRP. The 0% and $4500 reduction are making me think twice about the lease, just not sure how the value of the car will be in 3 years ( I will still owe $48 K ). I think it will be $55-60 but as a trade in, it might be closer to $50-55
	Appreciate 1 diddytop3.00 Quote

03-26-2018, 03:12 PM	#7
Mklock New Member 27 Rep 15 Posts Drives: 2018 M5 Join Date: Mar 2018 Location: NY iTrader: (0)	This is a 36 month 12K miles lease
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03-26-2018, 04:40 PM	#8
Spara Private 49 Rep 51 Posts Drives: 2018 M5 Join Date: Mar 2015 Location: Novato, CA iTrader: (0)	Who is financing at 0%?
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03-26-2018, 05:05 PM	#13
Spara Private 49 Rep 51 Posts Drives: 2018 M5 Join Date: Mar 2015 Location: Novato, CA iTrader: (0)	Are you sure that applies to the M5?
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03-26-2018, 07:27 PM	#17
Mklock New Member 27 Rep 15 Posts Drives: 2018 M5 Join Date: Mar 2018 Location: NY iTrader: (0)	The 0% finance is sounding like it’s the way to go.
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03-27-2018, 05:11 AM	#18
SFT33 Lieutenant 275 Rep 410 Posts Drives: E28, E34, E60 & F10 M5s Join Date: Nov 2015 Location: Annapolis, MD iTrader: (0)	Buy 0% is free money. Take it. __________________ 22 BMW F90 M5, 21 MERCEDES E63S WAGON, 18 BMW R9T RACER,16 BMW F10 M5, 09 BMW HP2 SPORT, 06 BMW E60 M5, 91 BMW E34 M5, 88 BMW E28 M5
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03-27-2018, 11:07 PM	#20
uniqueMR Colonel 1881 Rep 2,923 Posts Drives: ... Join Date: Dec 2017 Location: USA iTrader: (0)	Buy. Lease: if have a business and tax purposes (write-off). __________________ Currently: '24 Mercedes G63 \| '24 Porsche GT3 RS \| '24 Volkswagen GTI Previous BMWs: 340i, 740i, 745Li, M3, M4 Previous Others: Audi, Ducati, Honda, Infiniti, Land Rover, Mercedes-Benz, MINI, Mitsubishi, Porsche, Toyota, Volkswagen
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03-28-2018, 01:01 PM	#22
supershaft Lieutenant 786 Rep 555 Posts Drives: 992 GT3, Cayenne Turbo Join Date: Mar 2013 Location: nj iTrader: (0)	things to consider: used for business? Lease not used for business but how long do you intent on keeping the car? If you want to get a new M5 after 4-5 years keep in mind the first year models will depreciate the worst. I'd only ever "buy" right after the LCI refresh. Otherwise lease all the way.
	Appreciate 0 Quote