01-13-2017, 04:50 PM | #1 |
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Lease Help - About to Walk
MSRP
36 months 15k miles per year 46% residual .00174 MF This seems terrible on residual and MF . . . right? I am about to walk a M2 over a BAD lease deal. Am I crazy? Any suggestions other than BUY IT. This is a work lease, but since I own the business I would still like it to be a decent deal. Thanks. |
01-13-2017, 04:58 PM | #2 | |
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01-13-2017, 07:08 PM | #3 |
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The residual is set by BMW, not the dealer. You're getting 15k miles which is the lowest residual for 36 months.
The MF is being marked up to the max allowed by BMW. You should negotiate that to be the buy rate of .00134. |
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01-13-2017, 10:53 PM | #4 | |
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01-14-2017, 06:46 AM | #5 |
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Thanks for the help guys/gals. I will do the following: 1) negotiate MF down while also 2) consulting with our firm accountant on lease v. buy prference.
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01-14-2017, 09:36 AM | #6 | ||
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On the other hand, if you intend to buy out your own car, then yes, there is in theory an equity build up - but again, that's a crapshoot too. What if you've had a fender bender, etc- do you really want to own that car after lease end?
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01-14-2017, 09:41 AM | #7 | ||
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01-14-2017, 11:06 AM | #8 | |
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So if you were to lease the M2, you would end up paying off about $30K in depreciation (plus the finance charges on the remaining $25K) and at a higher interest rate than buying. The car will be worth more than $25K at the end of 3 years (crystal ball on this one says so ) and so you just spent a bunch more money than you needed to - plus you are locked in for the lease period with very little flexibility. It simply is not a good financial move, no matter what. The opposite of course is true with a high dollar, highly optioned, and good residual car. Take a M3 where leasing makes a lot more sense - especially at 14% points higher residual or on my 650xi....that worked out very well in terms of a lease as well
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01-14-2017, 01:08 PM | #10 |
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If you do decide to buy, you can get better rates from a credit union. They'll cut you a check that you can take to the dealer and see if they can beat the CU rate. Give yourself a few days to arrange it prior to picking up the car. My dealer couldn't beat the CU rates (and I have perfect credit), so I ended up using the CU check/financing. The ballon option didn't make sense either as payment was the same as the lease at their rate.
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01-14-2017, 01:15 PM | #11 | |
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01-14-2017, 01:26 PM | #12 | |
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And leasing is a no no on the M2, rates still suck and probably will keep sucking. If you wanna lease, get M3/M4. |
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01-14-2017, 01:56 PM | #13 |
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OP, the tax credit is MUCH better on a buy vs a lease. When buying, almost the entire sale price of the car gets deducted off your taxes. I do it every year and it helps A LOT! As far as financing, look into penfed. They are currently offering 2.9% for 84 months! Then tell your dealership to match that rate otherwise they lose on financing.
Also, if you are worried about not liking the car, you STILL have better value buying it because look at the resale value of the M2. It is a limited car that is hard to find so I believe resale values will continue to stay high. Leasing is a big no no on the M2. |
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01-14-2017, 03:17 PM | #14 |
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Lease terms on the M2 suck because BMW doesn't want to take depreciation risk to move these cars, fact is they don't have to take any risks to move them. There is a lot of discussion in the industry about captive lenders taking on depreciation risk given the flood of lease returns that they are expecting in the coming years. For the last few years the manufactures have been wiling to bet on higher residuals to make leasing more attractive but leasing has grown so much that they are now worried that when these cars come back there will be more cars than buyers resulting in a bit of a fire sale. BMW is one of those that has talked about reexamining their lease terms so it seems the M2 is one of those cases. I can't say I blame them, they can move these cars easily through regular sales and not take any risk at all plus its a low volume niche car so its not going to make or break them.
I was thinking I would lease if terms were similar to that of the M3 but as soon as I saw the residual they were offering I was out on a lease and just bought it. I agree with those above to suggest Penfed, they have a couple of desirable low interest options that are worth considering and have excellent customer service. |
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01-14-2017, 03:54 PM | #15 | |
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I did BMW select with the balloon and it was 2.99. Maybe they are trying to screw you the same way they screwed with the MF. I personally wouldn't do business with a dealer that plays with those numbers on me. Yes the lease residuals are horrible, but that's through BMW. Trying to get more money out of you through those means would anger me and it's probably amazing the amount of people they get who don't know what the number should be and just sign.... Look for available allocations in the pricing thread. And post up the name of this dealer. For me the practice of playing with those numbers is worse than a dealer markup because they aren't hiding it on you. At least they are honest about trying to screw you hahaha Good luck with the car. It sure is worth it. From what I've read on here look into PenFed for a slightly better balloon type of rate as well. |
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01-14-2017, 06:10 PM | #16 | |
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If you are on this forum .. How you even got to the negotiating table and didn't know this in advance, I have no idea .. There has been a lease thread with this advice in it for over a year on here. This is an enthusiast car and it is not meant to be sold to corporate entities and treated like it's a 550 sedan. BMW doesn't want people leasing this car and trashing it and turning it back in 36 months later like a program car for them to try and sell off for you. Therefore the residual and money factors are set so that it's incredibly unattractive to lease. If all you are wanting is a lease car then F%#k off and lease an M3/M4. Do not lease the M2, give up the allocation to someone who wants to own and cherish it and is willing to pay their own hard earned money for it. |
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01-15-2017, 07:34 AM | #17 | ||
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You come off incredibly self-righteous. This is a $50k Bmw we are talking about. Try to keep that in perspective.
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01-15-2017, 09:12 AM | #18 |
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The M2 would be my 9th BMW and I am 44 years old (should have never sold my 2001 M Coupe in 2006, the only one I regret letting go - my favorite of all time). I am a BMWCCA and PCA member and I track my cars OFTEN. Sorry that I OWN a GT4 and Viper ACR-E that actually do what they were intended to do, and yes, an M2 inbound plus an i3, 535d, and VW GTI and others that I want for whatever reason. This is America - god bless it.
I will buy or lease whatever I want and I love the M2 if I go ahead on it as I passed on 2 other M2s at this dealer already do to how they were equipped; I have driven it at the dealer twice. Passed on an offered M4GTS at this dealer because just didn't fall in love with it and wanted someone else to have it - now some collector probably has it rotting for speculation or going to cars & coffee . . . . which is his or her right although it does hurt. You might also note my avatar, a 1976 R90/6 that is my baby and 5th BMW vintage motorcycle - I have had that one 12 years. So general, that may not be enough street cred for you as you may be the "great BMW decider" or I may not qualify as an ENTHUSIAST in your mind, but I don't care. I was just asking the helpful M2 owners on this thread about the best approach for the business I own to lease or purchase me a car. My plan was to lease and then purchase at lease end. I needed the advice to help clear my head on the best way to acquire the vehicle - the above discussion has really helped. My gratitude to all for your time and advice. If we met in person, I would like to think we would be friends. This is my first negative experience on BIMMERPOST in the 7+ years I have been on board. So I will chalk it up to a bad day. M3 Adjuster, I hope tomorrow is a better day for you, truly. Hopefully we get to meet in person at a track and I can shake your hand. Right now the Viper is seeing the bulk of that duty, it is big, loud, white with a black and red stripe and the number 87 on the side of it. Please come say hello and I will buy you a beer after the event! |
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01-15-2017, 10:09 AM | #19 |
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01-15-2017, 10:43 AM | #20 | |
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I would try to get at least 3k off Msrp. The resale value should be pretty solid if you decide to sell in the next 2 years.
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01-15-2017, 10:49 AM | #21 | |
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Walk on an M2 over a business deal? I would absolutely do so .. but only Right after you finish mixing business with pleasure and buy an M2 because you *want the car * After you pick up the M2 come give me a call and I'll give you your "enthusiast card " back .. it's been temporarily revoked !! |
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01-15-2017, 02:11 PM | #22 | |
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