[rich8566]

Originally Posted by doug_999

It is more expensive to lease the M2 than to purchase. The current residual is below 50% right now (46% for 15K/3 years) with the 240 being 9% higher in terms of residuals.

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

You missed the point of my comment. My point was, if the intention is to buy out the car at the end of the lease, there really isn't much difference.

[MRCUR]

Originally Posted by rich8566

You missed the point of my comment. My point was, if he intention is to buy out the car at the end of the lease, there really isn't much difference.

If you lease for 36 months and then buy out at the end in cash, there definitely isn't a huge cost difference. But if you lease for 36 months and then finance the residual buyout amount, I can't imagine a scenario where you haven't just spent more in interest ("bank fee" for the lease potion) than you would've just financing the whole thing up front.

[M3 Adjuster]

Originally Posted by Vintage

Thanks - it IS the right color at least - AW!!! And let's all remember that there are significant income/tax advantages to having my company lease it for me; I was just trying to have it all. . . . .

Yes. We know. You're deliberating over how to make your hand scribble that a signature on that corporate check While all the while there are REAL people in line with 100 percent of their OWN MONEY, standing in line waiting behind you and praying that they get an allocation... perhaps so they can buy their FIRST EVER M car .. .

Here's an M2 lease tax tip... go big ..

http://f15.bimmerpost.com/forums/sho....php?t=1333243

[STK]

Speak to your accountant. I think there are depreciation limits for a new car that will be less than the lease deduction over the life of the 3-year lease. And I think you might be able to depreciate the used car once you buy it in three years on top of the already claimed lease deductions. Depending on the type of corporate structure there may be ways for the company to buy the car and then lease it to an employee. I'm sure the accountant can make a spreadsheet where you can change the interest rates, discount the future costs, blah, blah, blah. It's the frickin' tax code. I'm about 4 months behind you in this process. Let us know what you decide.

[Vintage]

M3 Adjuster - it is all my money. My company, my investment, my risk, my liability on all debt and lease obligations as well as payroll and taxes, etc. Hell of a way to live - the upside: a small pile of scratch and a tax advantage or two on things like cars.

Maybe we have met - at COTA often?

This will be my 2nd M, and I am excited (1st was the M Coupe)! Generally, I like them small, nimble and fast. So the Ms have not done much for me in a while. When I buy it, please come instruct me in the M2 as I need all the experienced help I can get!

Thanks STK and others, I should have gone straight to the office manager and our accountant. The numbers probably say buy based on your input.

[ashburyn54]

Originally Posted by Vintage

M3 Adjuster - it is all my money. My company, my investment, my risk, my liability on all debt and lease obligations as well as payroll and taxes, etc. Hell of a way to live - the upside: a small pile of scratch and a tax advantage or two on things like cars.

Maybe we have met - at COTA often?

This will be my 2nd M, and I am excited (1st was the M Coupe)! Generally, I like them small, nimble and fast. So the Ms have not done much for me in a while. When I buy it, please come instruct me in the M2 as I need all the experienced help I can get!

Thanks STK and others, I should have gone straight to the office manager and our accountant. The numbers probably say buy based on your input.

It's nice to see there are still folks like you who refuse to stoop to the recurring "passive aggressive battles of nothing".

Even when baited!

Best of luck with any purchase and hopefully a new car!

[rich8566]

Originally Posted by MRCUR

If you lease for 36 months and then buy out at the end in cash, there definitely isn't a huge cost difference. But if you lease for 36 months and then finance the residual buyout amount, I can't imagine a scenario where you haven't just spent more in interest ("bank fee" for the lease potion) than you would've just financing the whole thing up front.

I agree on the extra cost associated with the bank fee. But, I look at that as an"option" cost. Meaning, if the car is underwater at lease end, you can walk away and not take the hit. On the other hand, if the buyout amount is under the market value, you can buy out the car and pocket the "gain".

[M3 Adjuster]

Originally Posted by Vintage

M3 Adjuster - it is all my money. My company, my investment, my risk, my liability on all debt and lease obligations as well as payroll and taxes, etc. Hell of a way to live - the upside: a small pile of scratch and a tax advantage or two on things like cars.

Maybe we have met - at COTA often?

This will be my 2nd M, and I am excited (1st was the M Coupe)! Generally, I like them small, nimble and fast. So the Ms have not done much for me in a while. When I buy it, please come instruct me in the M2 as I need all the experienced help I can get!

Thanks STK and others, I should have gone straight to the office manager and our accountant. The numbers probably say buy based on your input.

As I said earlier BMW has tilted the playing field to buy on this vehicle.
It doesn't matter whose money. If you were only looking at buying this as an individual you would have pushed the buy button immediately.


So buy it ( with whatever money!)and Let's drive!

[Vintage]

Originally Posted by M3 Adjuster

As I said earlier BMW has tilted the playing field to buy on this vehicle.
It doesn't matter whose money. If you were only looking at buying this as an individual you would have pushed the buy button immediately.


So buy it ( with whatever money!)and Let's drive!

I agree with you! Then some Dinan? Nah, doesn't need it.

And seriously, I am "Advanced" in driving category but I prefer good instructors ride along - let me know next time your instructing at COTA or TWS or the like and let's see if we can make it happen.