05-04-2016, 08:47 PM | #67 | |
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The thing is, I really don't want to deal with selling a car privately. Especially an M3. It's just something that I don't have time for. Leasing is a lot like buying with a pre-arranged agreement to sell the car. Fiscally speaking, you pay a penalty in the form of a higher finance fee, but (in many states), you only pay sales tax on the payments, so there's an offset there. It still ends up costing a little more, but for me, it's worth it if it fits with my plan for the car.
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05-04-2016, 08:49 PM | #68 |
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What's the connection between that and M2 lease rates?
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05-04-2016, 08:51 PM | #69 |
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All the speculation in here about why the lease residuals are high is pretty funny. Financing companies aren't the primary source of residual values; they rely on ratings agencies for this information. It's like a risk rating on a security. You don't trust the brokers to rate the securities. That'd be a recipe for disaster.
Residuals on first-run models are always worse than later revisions, because the model has no track record from which the lease rating agency can establish a baseline. Their models discount the residual to account for this risk. Lease residual models are a bit like insurance premium models. They're built to model risk. A new model brings additional risk. |
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05-04-2016, 08:53 PM | #70 | |
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He is telling himself sssome stories !
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05-04-2016, 09:08 PM | #71 |
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Looks like BMW is running "Audi Sales Event"
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05-04-2016, 09:15 PM | #72 |
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Nothing surprising here, pretty much expected numbers close to that for lease. MB does this with many AMG models as well.
The bad thing is, I just don't think after the e9x series there are going to be any long term "own-able" BMWs. All the tech and shit loaded into the most average models gets outdated quickly and has issues with only high dollar fixes i.e. Idrive issues, etc.... Any bimmer guy knows you can't own one off warranty. Sucks but that's where it's going. |
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05-04-2016, 09:23 PM | #73 | |
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It's surprising how many people don't like leases without even knowing much about them. I was talking to a guy the other day who was shocked that you can trade in a lease or call up and get a payoff amount like any other finance. |
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05-04-2016, 09:24 PM | #74 | |
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05-04-2016, 09:35 PM | #75 | ||
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AAn unfavorable lease rate makes it unreasonable for someone to come pick up an M2 and sell it cheaply, dispose of it easily. That's what you do with " car as appliance ", not with specialty, halo or niche cars. M4 GTS Lease ? Hell no. M2 lease ? sure if you really want to M235/M4/M3 all day |
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05-04-2016, 09:37 PM | #76 |
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Still waiting for the value of the 1M to drop "once the M2 comes out".
I laugh every time I read that.
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05-04-2016, 09:45 PM | #77 | |
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05-04-2016, 10:14 PM | #78 |
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These payments are almost as much as my i8s payment
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05-04-2016, 10:22 PM | #79 | |
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1) It is extremely rare to see a lease interest rate that is lower than a financing rate, unless you're financing for a longer term. 2) The amount you pay over the term of the lease is the depreciation. The depreciation is cap cost (final purchase price) minus the residual. The key is that the residual is calculated from the MSRP. Whether or not you're paying down the principle faster than traditional financing depends on the residual and the term used for traditional financing. It's very uncommon for the effective pay down rate to exceed traditional financing. That's the entire reason lease payments are typically lower. In a lease transaction, the finance company is guaranteeing the residual, which represents risk. This is why interest rates on leases are higher. In a traditional financing scenario, the only risk being taken by the finance company is whether or not you'll make the payments. More risk = higher rates.
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05-04-2016, 10:42 PM | #80 | ||
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05-04-2016, 10:52 PM | #81 |
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At 52k, I will be more then happy to get one for 26k since that is all the car will be worth in 3 years... It's bmw knowing they have you cornered... An almost 2 year old m3/m4 is still selling 55k or over.. I have searching for something used and they just aren't dropping... Bmw will let you lease and payoff to 50% of value and the. Sell the car for a big profit when real residuals is still high 60s
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05-04-2016, 10:56 PM | #82 | |
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05-04-2016, 11:01 PM | #83 | |
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I'm going to the track in 10 days.
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05-04-2016, 11:09 PM | #84 | |
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If they purchase the car at the end of the 3 year lease, they still get to take the usual depreciation amounts allowed for a business car purchase. Also if it's realistic, they can sell it for more than the residual amount and make a small profit on the sale, which will offset their already deducted lease payments. The current MF and residual is the Perfect Storm from a business owners point of view. |
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05-04-2016, 11:15 PM | #85 | |
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05-04-2016, 11:42 PM | #86 | ||
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In that case, you would be drawing down principle each month to cover the finance payment, in which case the investment wouldn't pay too much, even at 5%. |
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05-05-2016, 12:06 AM | #87 | |
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05-05-2016, 12:42 AM | #88 |
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Love how every lease topic turns into a lease vs finance topic lol.
One of the bigger advantages of leasing is the peace of mind that if you get in an accident, which will effect the value of a car like this, you can turn the keys into the dealer no problem at all. BMW isn't setting these rates super low because they think the car will depreciate 50% in 3 years. They just want more of your money within that 3 year span lol. Sure you can buy the car out then flip it to recoop some of the excess depreciation paid to BMW but money now> money later Geez those rates suck. By any chance does anyone remember the x5 rates when that first came out? I think it was close to this Conclusion: just buy the damn car ! ...or lease an M235i or M3
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