Quote:
Originally Posted by jc.bmw
Oversimplified math (no interest / fees / etc):
45% of 75k = $33,750 (3y cost of depreciation) = $937.50 / month
With $7500 tax credit = $26,250 (3y cost of depreciation) = $729 / month
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There are (at least) two problems with lease/buy math. One is the assumption that you can trade in a car for the same amount that BMW FS use as residual value. I have never seen that, at least not on a trade, maybe on a private sale (but then you lose sales tax benefit of a trade). I rather suspect that would wipe out the tax credit.
The second is the lost opportunity value of all the money you have tied up in a depreciating asset. That $40K cash down could be invested somewhere.
If I was looking at a $35K car then yes, I would buy. But for a $70K+ I think leasing makes more sense (unless you plan to keep for 6+years).