Thread: X6M pricing
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      10-21-2012, 09:48 AM   #23
doug_999
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Quote:
Originally Posted by doug_999 View Post
In short, you don't get it. You can't compare a 5 year loan with any lease.
I got to thinking about this comment this morning and decided, yes, you can compare. So I did.

The total payments on my M5 were $50,400 over 3 years. The market value for the car at the time of lease end was about $45K. I'm guessing a dealer would have given me closer to $40K, but let's use $45K.

The selling price of my M5 with sales tax, minus lease inception fee was $95,475. If you were to have financed that back in 2008, BMW would have offered you 2.9% financing. Your monthly payment would have been $1,711 per month.

In the first 36 months you would have paid $61,596 out of pocket. Your loan balance would be $41,468 at this point. Now you get rid of the car and pocket $45,000. After paying off your loan you have $3,532 in cash. Take the $61,596 in payments, subtract the $3,532 and you have $58,064 that you have paid to own the M5 for 36 months. In this case, with REAL numbers, you are $7,664 worse off since you did NOT lease.

Once again
1. Leasing can make sense. It depends on a lot of factors. Many of which you won't know at time of lease inception (I personally have no clue what my X6 will be worth in 20 months - but BMW FS has taken a guess at it).
2. Only lease if you drive a set number of miles and do not plan on keeping the car. In my example above, re-purchasing the M5 would have been disastrous financially.
3. Smart Money (your lady Suze), would never purchase or lease a BMW or other high end car. She would buy a used 2 year old car with a great track record.
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