Quote:
Originally Posted by Salespunk
Quote:
Originally Posted by TheVazha
Reading your posts, I will admit you guys are way smarter than I am.
What does the math look like on a lease vs finance vs purchase cash and sell three years later?
Obviously each has its own positives and negatives, but what's the smart money move?
Does your answer basically carry over to any car purchase? I've purchased all my cars cash and sometimes I recoup a good amount of my initial acquisition price, sometimes not. In most cases it's less than the cost of a lease but add the maintenance and it's probably an even wash.
Thoughts?
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If you time it right, BMW leases tend to be very advantageous. Another thing is that the leases are transferrable so it is easy to get out of them. Unfortunately the X5M has never leased well since it is a low production vehicle.
The advantage of a lease is that the exit price is known at the end and you can choose to buy it out and sell it if resale prices are strong or just hand over the keys if they are weak or the car has been damaged.
Another advantage is that in some states like California you only pay tax on the monthly payment. This means with a 60% residual you only end up paying tax on 40% of the purchase price. This can be significant on a $125K truck.
I always do the math on lease vs purchase and decide that way. My Ram 2500 diesel was a purchase, but my M5 was a lease. |
Awesome thank you for the great advice.
I went to look at a 2020 E63S and I got quoted a lease that would cost me $100K over three years, with a residual of about $70k. I don't know how to negotiate car leases or purchases for that matter so I did the rough math and I realized I should probably leave the dealership. Which I did. Of course I got the obligatory call an hour later from the manager telling me they can drop the price by $6K to $119K. It still seemed like they were preparing for insertion and no indication of courtesy reach around.
I can't do it, I need to stick to buying lease returns at 55% of sticker price. 😢