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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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      10-21-2012, 10:53 AM   #24
jspdr
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Originally Posted by 5seriesHB View Post
THIS THREAD ROCKS
ITS REALLY INFORMATIONAL!
ALOT OF GREAT STUFF SAID

THERE IS A FAIR AMOUNT OF FOLKS THAT GET IN THESE VEHICLES AND CANT THEORETICALLY AFFORD THEM!

UPSIDE DOWN CITY
AND WE ALL KNOW THAT IS A CRAPPY PLACE TO LAND

GOOD LUCK IF U DECIDE ON THE X6M
Totally agreed 100%
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      10-21-2012, 11:14 AM   #25
jspdr
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Quote:
Originally Posted by doug_999 View Post
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.
http://www.moneyunder30.com/better-t...-lease-new-car

Agreed with the way how you compared the two. But, still missing your total lease payments. Had you purchased your M5, and at the end of 3 years, who knows you could sold it for $55,000 instead of $45,000.

Funny, she is not "my lady" just watch her sometimes to see people goes on her show and want her to make decision for them, or magically make their problems disappear.
You absolutely got that right, she would never buy or lease a new car. Perhaps, you've watched her more than i have.

Last edited by jspdr; 10-21-2012 at 11:20 AM.
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