BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BMW M5 F90 (2018+) General Forums F90 M5 Pricing, Ordering, Tracking, and European Delivery    Dealer pushing prepay lease

Post Reply
 
Thread Tools Search this Thread
      10-04-2018, 06:27 PM   #1
M5 dude now
Private
47
Rep
67
Posts

Drives: M5 competition
Join Date: Aug 2018
Location: Corpus Christi

iTrader: (0)

Garage List
Dealer pushing prepay lease

Most of the time, I have not leased my cars and have had quite a few BMWs over the course of time. I usually pay my cars off after 2 years and then have no payments for another 2 years or so. My M5 is on order for later this year and my client advisor is pushing me to do a prepay lease. I did some research on it but was curious if any of you have had experience with a prepay lease. The prepay lease deal is CP M5 price $114,000 - trade M3 = one time payment $21,600 for 3 years/12K miles.
Appreciate 0
      10-04-2018, 07:12 PM   #2
momos750
Captain
momos750's Avatar
143
Rep
715
Posts

Drives: 2015 M5, 2011 750Li
Join Date: Jul 2015
Location: CA

iTrader: (0)

I would not trade your M3, sell it privately.

Prepay leases are a great deal for BMW, not necessarily for you. If you have the cash to pre-pay, put it in a fund and collect the growth/dividend as you make your payments. What is the incentive/discount to pre-pay?
__________________
2015 M5 - Singapore Grey Metallic - Silverstone Full Merino Interior - Executive Pack - Drivers Assist Pack -Comp Pack -
Appreciate 0
      10-04-2018, 08:08 PM   #3
dardeca
Major
dardeca's Avatar
United_States
499
Rep
1,313
Posts

Drives: 2019 M5 Competition
Join Date: Jul 2010
Location: Dallas

iTrader: (2)

Quote:
Originally Posted by momos750 View Post
I would not trade your M3, sell it privately.

Prepay leases are a great deal for BMW, not necessarily for you. If you have the cash to pre-pay, put it in a fund and collect the growth/dividend as you make your payments. What is the incentive/discount to pre-pay?
I believe when you do a prepay lease, BMW waives the sales tax on the car (i.e., they pay it on your behalf). In Texas, that can be a substantial discount as sales tax is 6.25% on the full price of the car (not just the leased/depreciated value over the lease).
__________________
E92 M3 Supplemental manual p.38: "The laws of physics cannot be repealed, even with DSC."
Appreciate 0
      10-04-2018, 08:22 PM   #4
basque76
Not a BMW Genius
basque76's Avatar
United_States
48
Rep
118
Posts

Drives: 12' BMW 535i (dec.), 19' M5
Join Date: Jan 2018
Location: Houston, TX

iTrader: (0)

Quote:
Originally Posted by dardeca View Post
I believe when you do a prepay lease, BMW waives the sales tax on the car (i.e., they pay it on your behalf). In Texas, that can be a substantial discount as sales tax is 6.25% on the full price of the car (not just the leased/depreciated value over the lease).
Are you sure about having to pay full sales tax on a lease? I didn’t think that was the case. Thought you only pay sales tax on depreciation amount.
Appreciate 0
      10-04-2018, 08:40 PM   #5
DenverF10M5
Lieutenant
121
Rep
411
Posts

Drives: 2014 F10 M5 CP
Join Date: Sep 2016
Location: Denver

iTrader: (0)

Quote:
Originally Posted by basque76 View Post
Are you sure about having to pay full sales tax on a lease? I didn’t think that was the case. Thought you only pay sales tax on depreciation amount.
I wish this was the case, but every state is different. In Colorado I only paid tax on the monthly payment. Texas instead charges tax on the overall price of the car, even though it's only a 36 month lease. I leased a 2017 Acura NSX with an MSRP of $206k. Texas was going to charge me about $13,000 in taxes spread out over 36 months. I decided to register the car in Colorado. The savings were astronomical.
Appreciate 0
      10-04-2018, 08:47 PM   #6
XLR8_24/7
Enlisted Member
XLR8_24/7's Avatar
7
Rep
45
Posts

Drives: 2007 BMW M5
Join Date: Dec 2010
Location: Austin, Texas

iTrader: (0)

If you lease in Texas, you pay tax on the agreed purchase price for the lease. On a $100,000 car, the sales tax = $6,250. If you do a 1 pay lease, you can avoid the sales tax amount. What happens to the amount of money paid up front if you total the car in the first month of leasing? I would think you would recover a good amount of the prepaid lease, but not sure.
Appreciate 0
      10-04-2018, 09:58 PM   #7
BwoodBMW
Colonel
BwoodBMW's Avatar
1861
Rep
2,536
Posts

Drives: EFFEIGHTY
Join Date: Apr 2010
Location: LA LA land

iTrader: (0)

Quote:
Originally Posted by crazyclinician View Post
Most of the time, I have not leased my cars and have had quite a few BMWs over the course of time. I usually pay my cars off after 2 years and then have no payments for another 2 years or so. My M5 is on order for later this year and my client advisor is pushing me to do a prepay lease. I did some research on it but was curious if any of you have had experience with a prepay lease. The prepay lease deal is CP M5 price $114,000 - trade M3 = one time payment $21,600 for 3 years/12K miles.
If that's the actual deal sign tomorrow morning! Something tells me it's not.
That averages down to $600/month all in.
Anybody saying to put that money in a separate account and collect the interest or dividends on it instead of THAT deal has no idea what they are talking about.
Appreciate 0
      10-04-2018, 10:03 PM   #8
Oswiff
First Lieutenant
Oswiff's Avatar
United_States
162
Rep
329
Posts

Drives: 2021 m5 comp
Join Date: May 2018
Location: New Jersey

iTrader: (1)

Quote:
Originally Posted by BwoodBMW View Post
Quote:
Originally Posted by crazyclinician View Post
Most of the time, I have not leased my cars and have had quite a few BMWs over the course of time. I usually pay my cars off after 2 years and then have no payments for another 2 years or so. My M5 is on order for later this year and my client advisor is pushing me to do a prepay lease. I did some research on it but was curious if any of you have had experience with a prepay lease. The prepay lease deal is CP M5 price $114,000 - trade M3 = one time payment $21,600 for 3 years/12K miles.
If that's the actual deal sign tomorrow morning! Something tells me it's not.
That averages down to $600/month all in.
Anybody saying to put that money in a separate account and collect the interest or dividends on it instead of THAT deal has no idea what they are talking about.
He's putting in a huge down payment in the form of his paid off m3. That's why it's such a low lease amount.

Anyone can get that lease if they put 50k down.
Appreciate 0
      10-05-2018, 01:50 AM   #9
BwoodBMW
Colonel
BwoodBMW's Avatar
1861
Rep
2,536
Posts

Drives: EFFEIGHTY
Join Date: Apr 2010
Location: LA LA land

iTrader: (0)

Quote:
Originally Posted by Oswiff View Post
Quote:
Originally Posted by BwoodBMW View Post
Quote:
Originally Posted by crazyclinician View Post
Most of the time, I have not leased my cars and have had quite a few BMWs over the course of time. I usually pay my cars off after 2 years and then have no payments for another 2 years or so. My M5 is on order for later this year and my client advisor is pushing me to do a prepay lease. I did some research on it but was curious if any of you have had experience with a prepay lease. The prepay lease deal is CP M5 price $114,000 - trade M3 = one time payment $21,600 for 3 years/12K miles.
If that's the actual deal sign tomorrow morning! Something tells me it's not.
That averages down to $600/month all in.
Anybody saying to put that money in a separate account and collect the interest or dividends on it instead of THAT deal has no idea what they are talking about.
He's putting in a huge down payment in the form of his paid off m3. That's why it's such a low lease amount.

Anyone can get that lease if they put 50k down.
Lol... not sure how I skipped over that little detail. Makes much more sense now.
Appreciate 0
      10-05-2018, 03:53 AM   #10
Neptune7
Major
1416
Rep
1,356
Posts

Drives: M5 CS
Join Date: May 2018
Location: N/A

iTrader: (0)

Quote:
Originally Posted by BwoodBMW View Post
Quote:
Originally Posted by Oswiff View Post
Quote:
Originally Posted by BwoodBMW View Post
Quote:
Originally Posted by crazyclinician View Post
Most of the time, I have not leased my cars and have had quite a few BMWs over the course of time. I usually pay my cars off after 2 years and then have no payments for another 2 years or so. My M5 is on order for later this year and my client advisor is pushing me to do a prepay lease. I did some research on it but was curious if any of you have had experience with a prepay lease. The prepay lease deal is CP M5 price $114,000 - trade M3 = one time payment $21,600 for 3 years/12K miles.
If that's the actual deal sign tomorrow morning! Something tells me it's not.
That averages down to $600/month all in.
Anybody saying to put that money in a separate account and collect the interest or dividends on it instead of THAT deal has no idea what they are talking about.
He's putting in a huge down payment in the form of his paid off m3. That's why it's such a low lease amount.

Anyone can get that lease if they put 50k down.
Lol... not sure how I skipped over that little detail. Makes much more sense now.
Good info here.

https://www.leaseguide.com/articles/prepaid-lease/
Appreciate 0
      10-05-2018, 04:11 PM   #11
M5 dude now
Private
47
Rep
67
Posts

Drives: M5 competition
Join Date: Aug 2018
Location: Corpus Christi

iTrader: (0)

Garage List
I actually printed out that exact article. Good material and i used it for the dealer. Had to talk to the finance dude.
Appreciate 0
      10-05-2018, 04:30 PM   #12
EDDYFIG
Lieutenant
EDDYFIG's Avatar
304
Rep
515
Posts

Drives: F90 M5
Join Date: May 2012
Location: Brickell

iTrader: (0)

NEVER do a prepay lease, NEVER
__________________
EDDY_FIG ON INSTAGRAM
Appreciate 0
      10-07-2018, 07:05 PM   #13
TrevorM3
Banned
3318
Rep
8,083
Posts

Drives: 6.3 AMG
Join Date: Apr 2013
Location: Florida

iTrader: (0)

Quote:
Originally Posted by EDDYFIG View Post
NEVER do a prepay lease, NEVER


this was my thought, if car gets totaled, you're out some cash...
Appreciate 0
      10-08-2018, 08:28 AM   #14
EDDYFIG
Lieutenant
EDDYFIG's Avatar
304
Rep
515
Posts

Drives: F90 M5
Join Date: May 2012
Location: Brickell

iTrader: (0)

Quote:
Originally Posted by TrevorM3 View Post
Quote:
Originally Posted by EDDYFIG View Post
NEVER do a prepay lease, NEVER


this was my thought, if car gets totaled, you're out some cash...
Exactly!!!!! You pay the depreciation up front.
__________________
EDDY_FIG ON INSTAGRAM
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 03:40 AM.




m5post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST