[Msmall143]

Originally Posted by LuvMyE92

Welcome to the club.


They probably won't do it, since it won't benefit them. And if they did, it will kill you. There won't be any break on the interest rate, and you'll likely have to pay sales tax on the transaction (since you'll be buying it from the leasing company).

BTW, I like your idea, but it's never worked for me, personally (leasing in hopes that I'll keep the car longer).

the way the taxes would be handled very from state to state.

[CTSean]

Originally Posted by trey100

Interior design changed in '18

'18 also added the moonroof as an option and I believe the backup camera became standard due to regulations.

[babaikram]

Originally Posted by Msmall143

you can buy or sell a leased car at any time. you arent anymore obligated to hold onto a lease than you are a car you bought. Lease is basically just a form of financing

In the UK it is not. Lease is simply renting a car and you are not registered as the owner but the lease company. You can't sell or terminate early as the car officially does not belong to you.

What Americans referred to as lease is called PCP in the UK (Personal Contract Purchase) where you have legally bought the car with finance but you have the option of returning the car or paying off the residual to keep the car at the end of finance term. You can sell and settle the finance early but majority of the time you would be in negative equity if selling early. Although legally you could voluntary terminate: when you return the car to the finance company without any other obligations as far as you have paid off 50% of the total credit (capital + interest + other charges)

[LuvMyE92]

Originally Posted by babaikram

In the UK it is not. Lease is simply renting a car and you are not registered as the owner but the lease company. You can't sell or terminate early as the car officially does not belong to you.

What Americans referred to as lease is called PCP in the UK (Personal Contract Purchase) where you have legally bought the car with finance but you have the option of returning the car or paying off the residual to keep the car at the end of finance term.

That's actually not accurate. I know, we're going OT here, but it is confusing and a lot of people don't know it. And laws are different between countries, natch.

In the USA, the leasing company actually buys the car and owns it. You, the lessee, are responsible for paying property tax on it (if applicable to where you live) and maintaining insurance. The lease is structured like a loan with a balloon payment, where that balloon is the residual amount, and yes you can buy it if you want at the end of the term for that amount, but you aren't actually "keeping it" since you don't own it. You are buying it, which means paying sales tax (if applicable) and getting a new title, and all that. You can terminate the lease at any time, but you will have to pay the balance of that loan if you want to buy the car, or the difference between what you owe and what the car is actually worth.

[LuvMyE92]

Originally Posted by Msmall143

the way the taxes would be handled very from state to state.

I was going to give you crap for misspelling "vary" but since you ride a very cool Beemer, I'm going to let you slide on it.

[LuvMyE92]

I don't know what "misguided advice" Doug has dispensed in the past, but I don't think he's off the mark in this thread. I remember years ago, my accountant referred to leasing as "poor man's financing". Natch he looked at nearly everything from the tax perspective, but when you consider the often hidden money factor, high fees, leasing only works to your benefit if you have a business that can write off the expense, or (as BMW has done on some hard-to-move cars) if there's a promotion with huge subsidies.

To be fair, a lot of people only look at the monthly cost of a car, not their true costs of ownership. And 98% of automotive buyers are ignorant of terms like residual, mileage allowance, etc.

[babaikram]

Originally Posted by LuvMyE92

That's actually not accurate. I know, we're going OT here, but it is confusing and a lot of people don't know it. And laws are different between countries, natch.

In the USA, the leasing company actually buys the car and owns it. You, the lessee, are responsible for paying property tax on it (if applicable to where you live) and maintaining insurance. The lease is structured like a loan with a balloon payment, where that balloon is the residual amount, and yes you can buy it if you want at the end of the term for that amount, but you aren't actually "keeping it" since you don't own it. You are buying it, which means paying sales tax (if applicable) and getting a new title, and all that. You can terminate the lease at any time, but you will have to pay the balance of that loan if you want to buy the car, or the difference between what you owe and what the car is actually worth.

You don't have the option of 'buying the car' if you are leasing in the UK

[othercar]

Thanks for the info on the differences with the 16, 18 etc

Today I’m going to be looking at a 2018 non CPO with 7k miles on it at a BMW dealer. Is there anything I should be looking for specifically?

What would be a good ball park deal for a low Mileage 2018 non CPO (with exec package).

Cheers
Jonathan

[trey100]

Originally Posted by LuvMyE92

I don't know what "misguided advice" Doug has dispensed in the past, but I don't think he's off the mark in this thread. I remember years ago, my accountant referred to leasing as "poor man's financing". Natch he looked at nearly everything from the tax perspective, but when you consider the often hidden money factor, high fees, leasing only works to your benefit if you have a business that can write off the expense, or (as BMW has done on some hard-to-move cars) if there's a promotion with huge subsidies.

To be fair, a lot of people only look at the monthly cost of a car, not their true costs of ownership. And 98% of automotive buyers are ignorant of terms like residual, mileage allowance, etc.

You need a better accountant.

If you understand how a lease is constructed, besides a typical $1k or so that bmw charges as a fee, the rest is no different than financing, albeit with a separate money factor (interest rate). In many cases the money factor is less than a finance rate.

Now if you are comparing leasing to driving a car into the ground by keeping it for 15 years, we'll then yes, you may come out ahead. But I assume you are comparing apples to apples by looking at swapping cars often.

Leasing also has other benefits. For instance, if I get into an accident with my car, and of course get it repaired under insurance, my lease terms don't change. I just return it at then end and walk away. If you have an accident on your carfax, you will have a harder time selling it and its value will drop.

And lastly, leasing allows you to keep your money invested elsewhere.

Obviously you need to do the math in every case, but any accountant that just says something so general without looking at the terms of a specific car deal, probably isn't well versed on the topic.

Edit: I should add, I lease some cars and buy others. Most BMW's get leased because of the typically higher residuals and incentives. In the case of the M2 and M2C, that is not the case. It's a "buy" car for sure (or low mileage, newer, used car).

[TheAMackAttack]

Originally Posted by othercar

Thanks for the info on the differences with the 16, 18 etc

Today I’m going to be looking at a 2018 non CPO with 7k miles on it at a BMW dealer. Is there anything I should be looking for specifically?

What would be a good ball park deal for a low Mileage 2018 non CPO (with exec package).

Cheers
Jonathan

@othercar My gut feel without looking at NADA or Blue Book would be that high 40s (48,000-49,999) would be a good price on a '18 with 7k miles (note that is sort of high mileage for a car that's less than a year old).

[aWanderlustSeoul]

Originally Posted by othercar

Thanks for the info on the differences with the 16, 18 etc

Today I’m going to be looking at a 2018 non CPO with 7k miles on it at a BMW dealer. Is there anything I should be looking for specifically?

What would be a good ball park deal for a low Mileage 2018 non CPO (with exec package).

Cheers
Jonathan

Have you looked at any of the car apps/sites like AutoTrader, Edmunds, Cars.com, CarGuru?

If you search for used or certified 2018 M2s, there are around 60 in the US. Some with higher and low mileage. But if the prices they are advertising are legit, some of the best deals are between 49K to 55K.

Also since it's getting close to the end of the month/quarter and holidays, I'm sure if you wait after Dec 25 and closer to Dec 31, I'm willing to bet most dealers would be willing to negotiate further discounts to get them off their lots.

Depending on your comfort level of purchasing from out of state with a car unseen and if you are willing to pay a transport fee or fly out and drive the car back home, it may be worth it.

I was looking for a new new 2018 M2 LCI but only contacted dealers in CA and I was trying to get them down to 54-55K (without sales tax and license/registration) and I did not consider out of state at the time. Definitely do some more research.

Since i could not get the discount I wanted, I ended up looking for an M2C and found one out of state with a 5% discount and bought a few days ago. It's going to be transported/delivered to me sometime in Jan.

[othercar]

Originally Posted by TheAMackAttack

@othercar My gut feel without looking at NADA or Blue Book would be that high 40s (48,000-49,999) would be a good price on a '18 with 7k miles (note that is sort of high mileage for a car that's less than a year old).

It actually had 2899 miles when I got there, with perf exhaust and cf tips, window tint and clear bra. Was able to get it for just over 50 which I was happy with and transfer the maintenance etc. Basically a new car... it's a monster, I can't stop smiling 😂

[shredandburn]

Originally Posted by othercar

It actually had 2899 miles when I got there, with perf exhaust and cf tips, window tint and clear bra. Was able to get it for just over 50 which I was happy with and transfer the maintenance etc. Basically a new car... it's a monster, I can't stop smiling 😂

Congrats!

[M Fifty]

Should read to the end of the thread...

[farcus]

what do you guys think about getting a 2018 CPO m2 for 49-50k? If I'm buying CPO there is really nothing for me to inspect right? since its pretty much top of the line in the best condition as possible.

[doug_999]

Originally Posted by farcus

what do you guys think about getting a 2018 CPO m2 for 49-50k? If I'm buying CPO there is really nothing for me to inspect right? since its pretty much top of the line in the best condition as possible.

CPO simply means it has an extended warranty, has not been in a major accident and it is up to snuff (tires have enough tread, windshield is not cracked, etc.)

Unfortunately it does not mean it is in the best shape and does not mean it has not been in an accident. So do check out the car carefully - even if it is certified.

[LuvMyE92]

Originally Posted by farcus

If I'm buying CPO there is really nothing for me to inspect right?

As Doug wrote, no, that doesn't mean that. It is simply an extended warranty backed by BMW. It is not a guarantee of condition; rather it means that they inspected it, did any deferred maintenance, probably put on new tires and washed it.