[FloatingBob]

Is there any reason why I can't switch my as-yet undelivered custom build X5 40i from a lease to a finance deal?

I ordered it a few months ago and it will be delivered in the next couple of weeks. When I initially placed the order it was with the understanding that it would be a 3 year lease but for various reasons it now might more sense for me to finance it. Will my SA be pissed (and should I even care) that I'm thinking about making the switch? Or might he even prefer that?

Not made the decision one way or the other but would be interested to know the opinions of the hive mind here.

Many thanks

[cgukevin]

No, it shouldn't matter to the dealership whether you lease, finance, or cash. There might be difference of incentives at the time of delivery though.

[lonzwinery]

If you can get 3.99% via financing, I would go that route, since the money factor (i.e., interest rate) on a lease will be higher than 3.99%. You should ask what the money factor is on the lease to confirm the actual rate you'd be paying on a lease. You'll have to pay the lease acquisition fee, too :-(.

I know each have their opinions on financing versus lease. There are pros and cons to each. For me, it all comes down to how much money I'm paying overall. If I can get a bigger rebate via the lease route (needs to be big enough to cover the lease acquisition fee, too), I usually lease, and then simply buy out the lease within 30 days. I did that twice with Kia Stingers a few years ago when they had $12,000 lease rebates. Yep, you read that right, $12,000! Crazy! Drove them both for a while and sold them private party for slightly more than what I paid for them! LOL!

Hope this helps!

Thanks!

[TurtleBoy]

As mentioned, it should not matter to them. In fact I recommend not even mentioning whether you are buying or leasing when you are negotiating. They likely will try to mark up the APR but try and pressure them to stick to the base 3.99%. Loyalty is still $500 for this month so make sure you get that.

[cgukevin]

BMW used to be good to lease, but not anymore.

I leased an '18 X5 40e for less than 1% of MSRP monthly with 0 down and only tax paid upfront 6 years ago. Now the payment is almost 2% of MSRP for an 50e. With higher MF and lower residual, there is not much difference in monthly payment between leasing and financing. Plus the limitation on mileage, it doesn't make sense to lease any more either financially or practically in my opinion.

[TurtleBoy]

Originally Posted by cgukevin

BMW used to be good to lease, but not anymore.

I leased an '18 X5 40e for less than 1% of MSRP monthly with 0 down and only tax paid upfront 6 years ago. Now the payment is almost 2% of MSRP for an 50e. With higher MF and lower residual, there is not much difference in monthly payment between leasing and financing. Plus the limitation on mileage, it doesn't make sense to lease any more either financially or practically in my opinion.

It really depends on your wants/needs. There are numerous advantages to leasing however, absence of a large amount of lease cash, being less expensive is not one of them. Many folks get bored with vehicles after a few years, always want one in warranty, trying a new brand or vehicle type, like to have the latest, etc. For those folks it is best to lease.

[cgukevin]

Originally Posted by TurtleBoy

It really depends on your wants/needs. There are numerous advantages to leasing however, absence of a large amount of lease cash, being less expensive is not one of them. Many folks get bored with vehicles after a few years, always want one in warranty, trying a new brand or vehicle type, like to have the latest, etc. For those folks it is best to lease.

I was going to say the only benefit left of leasing is no need to worry about getting rid of the car after a few years. But it is so much easier to sell the car nowadays like selling to CarMax/Carvana. And given the low residual of leasing, I doubt one would sell less than that.

[TurtleBoy]

Originally Posted by cgukevin

I was going to say the only benefit left of leasing is no need to worry about getting rid of the car after a few years. But it is so much easier to sell the car nowadays like selling to CarMax/Carvana. And given the low residual of leasing, I doubt one would sell less than that.

The residual really doesn't come into play when looking at the two in that regard. You also are then taking on the risk when with leasing you have none.

Sale tax implications also have to be considered since in most states you are only paying tax on the lease payments. When purchasing the increased sales tax cost need to be considered.

[cgukevin]

Originally Posted by TurtleBoy

The residual really doesn't come into play when looking at the two in that regard. You also are then taking on the risk when with leasing you have none.

Sale tax implications also have to be considered since in most states you are only paying tax on the lease payments. When purchasing the increased sales tax cost need to be considered.

Those are all true.

In fact, I was going to lease the 50e initially mainly because the battery technologies 3 yrs later would probably make the current ones look obsolete. However, after knowing the payments are similar leasing v.s. financing, I immediately eliminated lease as an option. To me it's a no brainer to own the car if I'm going to pay similarly. Even if I'm to sell it a few years later, I could probably payoff most of the loan if not all with the selling money.

If one is absolutely sure he/she is not going to keep the car and only drive certain mileage per year, then leasing still makes sense. Otherwise, not so much given the currently situation.

[bandwagn]

Does the $7500 Fed EV rebate also come into play? If MSRP is over $80k, then you wouldn’t get it if you finance, but the corp loophole would allow BMW to receive it for a lease

[TurtleBoy]

Originally Posted by bandwagn

Does the $7500 Fed EV rebate also come into play? If MSRP is over $80k, then you wouldn’t get it if you finance, but the corp loophole would allow BMW to receive it for a lease

No, BMW doesn't pass the credit along for the 50e. The 50e isn't eligible for the consumer EV tax credit so MSRP doesn't matter.

[FloatingBob]

Thanks for the above. Will prob end up financing it and am happy that it won't cause consternation for my SA, who's been super helpful during the ordering process.