10-15-2015, 02:21 PM | #1 |
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Lease or buy if unsure about keeping the car a year?
I'm planning to do ED of an M2 this spring so we can experience that before settling down. I'm not sure if the M2 is the car to keep after that. (Maybe need an SUV later? Or maybe a p car would be more fun? anyway...)
If I decide to get out of the car within the first year, what's the easiest/lowest cost way to do it? Lease transfer or sale? I'm thinking it's easier to find someone who can afford $700-800/month with a couple thousand up front than someone who has $40-50k cash. But maybe the market for these things consists of people who do have $50k cash lying around? There might be a chance the car turns out to be the perfect mix of fun, safety, and practicality that I would keep the car long term so I'm also hesitant to do a lease with ED, which bumps up the money factor. |
10-15-2015, 02:34 PM | #2 |
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The ED money factor adder is a rough replacement for the month that your car is on the boat that BMW FS pays the payment for you. In the end it is a wash.
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10-15-2015, 11:09 PM | #3 |
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I wouldn't consider any car that I wasn't sure I was going to keep for at least three years. Sure the M2 may be a car that has some demand to protect you from depreciation but it is car that will be built for 4 years of production, they will build them at higher volume than the 1M and this is not a mainstream car. If you were to go into this with the intention of getting rid of it potentially in a year I think buying it would probably be best. The market for those who want to take over a lease is smaller than those who want to own a car. Most people don't have 50k laying around and most that do won't put 50k cash into a car, they take a loan out so I don't think that is an issue really. It is important to note that you will lose the cost of fees and taxes anytime you do a transaction like this so it is tough to spread that across a year and have it make sense. I think a lot of guys think this will be another 1M, a car that holds its value and actually appreciates in the first couple of years, I don't think there is any chance of that so I would only go into this if your in for a few years. Otherwise it will probably be an expensive experiment.
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