BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BMW M2 Forum > BMW M2 CS Model > Has anyone else considered Leasing?

Post Reply
 
Thread Tools Search this Thread
      09-18-2020, 12:48 PM   #1
jhall1957
Lieutenant
438
Rep
548
Posts

Drives: SE 46
Join Date: Feb 2009
Location: WS,NC

iTrader: (2)

Has anyone else considered Leasing?

BIMMERPOST
     Featured on BIMMERPOST.com
I'm a big advocate of leasing new cars. I like the fact that if the car gets wrecked and has substantial damage you have the third option which is turning it back in to the dealership. So unlike buying it out right where you can either keep it forever or sell it and take the beating on the damage you have that third option.

Pretty much every scenario I've seen comparing leasing to buying comes out very close in the long run. And if the car holds it it's value or appreciates in value, it's even a better deal!

I have the funds to buy the car out right for cash, but like I said I like reserving that third option to dispose of the car if it either suffers substantial damage or ends up being a dog!
__________________
Garage; 2020 Raptor, 2011 1M, 2017 M2 PE, 2006 Z4 MC, 2007 Z4 MC, 2001 Spec E46, 2007 GT3
Appreciate 0
      09-18-2020, 01:27 PM   #2
medphysdave
Lieutenant Colonel
United_States
1501
Rep
1,856
Posts

Drives: M2 CS waiting list
Join Date: Apr 2015
Location: Charlotte, NC

iTrader: (0)

Quote:
Originally Posted by jhall1957 View Post
I'm a big advocate of leasing new cars. I like the fact that if the car gets wrecked and has substantial damage you have the third option which is turning it back in to the dealership. So unlike buying it out right where you can either keep it forever or sell it and take the beating on the damage you have that third option.

Pretty much every scenario I've seen comparing leasing to buying comes out very close in the long run. And if the car holds it it's value or appreciates in value, it's even a better deal!

I have the funds to buy the car out right for cash, but like I said I like reserving that third option to dispose of the car if it either suffers substantial damage or ends up being a dog!
My thoughts. The m2 has been a historically poor lease candidate. I'm a fan of leasing. I think it is normally the way to go for luxury cars. Off the cuff rule of thumb for a great lease is monthly payment @ or less than 1% of MSRP with no money down other than 1st month payment, doc fees, etc.

Finance rates right now put you in a better position. The 0.9% may push over to the CS for 60mo. If not 1.9% is easy to get at credit unions. A 72mo loan puts you on par with a lease when using a residual that approximates the other CS models. Be mindful that BMW uses a residual value that is about 10% higher than what the actual will be at the end of the lease.

No way in hell I'd pay for a car in cash with fiance rates as low as they are. Do not do it!

If anyone questions my lease Fu. My last lease had a 138k MSRP and my payment was $840/mo 33/10. Leasing is way cheaper than buying if you aren't picky about what you drive. I don't care if you own a car for 10yrs, I'll still lease 3 cars for the same cost or less and take into account any value you may still have in the car. Now,if you want to buy a 4yo car and then keep if for 10yrs you might win on cost, but not on tech, safety updates, and driving a newer car.

On a rare car like this you'll have to fight for diminished value, and it isn't easy. Leasing is great in this area because you don't have to care how an accident impacts value.

Edit: I'm buying this one.
Appreciate 0
      09-18-2020, 02:06 PM   #3
sdhotwn
Mmmm... Bavarian
sdhotwn's Avatar
United_States
376
Rep
676
Posts

Drives: F30 335i, F25 X3, E36 M3
Join Date: Apr 2014
Location: Wisconsin, USA

iTrader: (0)

How does BMW treat leasing with track time? I never even considered it in the least because of my intent to track the car.

I'm a little goofy with how I do the financing usually. I typically eat the slightly higher interest rate (in this case 1.9 at 72) to drive the payment down for flexibility (I'm nervous/conservative about the number for no good reason) and then pay at a much higher rate - usually pay the car off in 5 years or less. Which drives the effective interest rate etc down. Now you have me half thinking about if I should toy with the idea of a lease on this one or not as I've never leased.
__________________
2014 EBII MSport 335i -Delivered 7/12/14
1998 Hellrot M3/4/5
2011 X3
M2 CS (In Production)
Appreciate 0
      09-18-2020, 02:13 PM   #4
medphysdave
Lieutenant Colonel
United_States
1501
Rep
1,856
Posts

Drives: M2 CS waiting list
Join Date: Apr 2015
Location: Charlotte, NC

iTrader: (0)

Quote:
Originally Posted by sdhotwn View Post
How does BMW treat leasing with track time? I never even considered it in the least because of my intent to track the car.

I'm a little goofy with how I do the financing usually. I typically eat the slightly higher interest rate (in this case 1.9 at 72) to drive the payment down for flexibility (I'm nervous/conservative about the number for no good reason) and then pay at a much higher rate - usually pay the car off in 5 years or less. Which drives the effective interest rate etc down. Now you have me half thinking about if I should toy with the idea of a lease on this one or not as I've never leased.
Yes, and that's spot on how I would do a 72mo finance. Pay the minimum for roughly the first 33-36mo. Decide if I was going to keep it because you should be about neutral as far as value and what is owed (lease). Sell or pay off early to minimize the cost of the borrowed cash.

Edit: Not sure how they treat track time. I would make sure I had track insurance. I don't think they would know if you tracked it. Wear items like brake pads and tires are still on the leasee. You just have to return any modifications to stock before turn in. I personally would not tune a leased car, but some do.
Appreciate 0
      09-18-2020, 02:40 PM   #5
CarJunkie
Lieutenant Colonel
United_States
593
Rep
1,599
Posts

Drives: e82 1M, e30 325e, f15 X5 40e
Join Date: Nov 2011
Location: Tri-Cities, Washington

iTrader: (1)

Garage List
Quote:
Originally Posted by medphysdave View Post
I personally would not tune a leased car, but some do.
Slightly divergent topic, but a friend of mine assumed a lease of an M6 that had a JB4 installed. Thing was a monster. He removed it before returning the car. He really didn't care if they found out while he had it since he wasn't the original lessee, and could claim ignorance.
__________________
1M track toy mods: BMS chargepipe, BMW OCC, ADE FMIC, ADE motor mounts, MadDad/Lightweight Ti exhaust, ADE custom oil thermostat/cooler, custom MHD tune, F10 550i clutch, Ohlins R+T, Vorschlag camber plates, M3 'vert FSB with Turner endlinks, Stoptech Trophy BBK.
Appreciate 0
      09-18-2020, 03:03 PM   #6
sdhotwn
Mmmm... Bavarian
sdhotwn's Avatar
United_States
376
Rep
676
Posts

Drives: F30 335i, F25 X3, E36 M3
Join Date: Apr 2014
Location: Wisconsin, USA

iTrader: (0)

Quote:
Originally Posted by medphysdave View Post
Edit: Not sure how they treat track time. I would make sure I had track insurance. I don't think they would know if you tracked it. Wear items like brake pads and tires are still on the leasee. You just have to return any modifications to stock before turn in. I personally would not tune a leased car, but some do.
The CS is not a car I plan to mod for various (and I think to you, obvious) reasons. However, I'm pretty suspicious these days of the ability for them to pull enough data from the ECU's to confirm track data etc. Additionally, they like to often note "excessive wear" for brakes/tires on the service notes for things and that could be a factor.

That's always a major annoyance for me overall that it's even an issue for a car like this (if it's an issue I guess). You build it, market it, and have everything about it be for a track mentality/dual use, but if someone dares do as such you then say "sorry, that's not okay". Had issues with that with Mazda on some things and it was always frustrating. I think Mazda is in a way different class than BMW, so that is one thing. I've also not tracked any of my new BMW's, just older out of warranty ones so they couldn't care less with those!
__________________
2014 EBII MSport 335i -Delivered 7/12/14
1998 Hellrot M3/4/5
2011 X3
M2 CS (In Production)
Appreciate 1
jhall1957437.50

      09-18-2020, 03:11 PM   #7
CarJunkie
Lieutenant Colonel
United_States
593
Rep
1,599
Posts

Drives: e82 1M, e30 325e, f15 X5 40e
Join Date: Nov 2011
Location: Tri-Cities, Washington

iTrader: (1)

Garage List
Quote:
Originally Posted by sdhotwn View Post
Quote:
Originally Posted by medphysdave View Post
Edit: Not sure how they treat track time. I would make sure I had track insurance. I don't think they would know if you tracked it. Wear items like brake pads and tires are still on the leasee. You just have to return any modifications to stock before turn in. I personally would not tune a leased car, but some do.
The CS is not a car I plan to mod for various (and I think to you, obvious) reasons. However, I'm pretty suspicious these days of the ability for them to pull enough data from the ECU's to confirm track data etc. Additionally, they like to often note "excessive wear" for brakes/tires on the service notes for things and that could be a factor.

That's always a major annoyance for me overall that it's even an issue for a car like this (if it's an issue I guess). You build it, market it, and have everything about it be for a track mentality/dual use, but if someone dares do as such you then say "sorry, that's not okay". Had issues with that with Mazda on some things and it was always frustrating. I think Mazda is in a way different class than BMW, so that is one thing. I've also not tracked any of my new BMW's, just older out of warranty ones so they couldn't care less with those!
I started tracking my 1M while it was still under warranty, and had all service included back in the glory days when brakes fell into the covered category. I got a new set of pads and rotors all around after my second track day. My SA knew I was tracking the car.

After my warranty was up, I started modding, and was still able to get extended warranty coverage on the N54 injectors when they failed.

I know brakes are no longer covered on the routine maintenance program, but I don't know what else they have done to restrict coverage on track use.
__________________
1M track toy mods: BMS chargepipe, BMW OCC, ADE FMIC, ADE motor mounts, MadDad/Lightweight Ti exhaust, ADE custom oil thermostat/cooler, custom MHD tune, F10 550i clutch, Ohlins R+T, Vorschlag camber plates, M3 'vert FSB with Turner endlinks, Stoptech Trophy BBK.
Appreciate 0
      09-18-2020, 04:07 PM   #8
jhall1957
Lieutenant
438
Rep
548
Posts

Drives: SE 46
Join Date: Feb 2009
Location: WS,NC

iTrader: (2)

Quote:
Originally Posted by medphysdave View Post
Quote:
Originally Posted by jhall1957 View Post
I'm a big advocate of leasing new cars. I like the fact that if the car gets wrecked and has substantial damage you have the third option which is turning it back in to the dealership. So unlike buying it out right where you can either keep it forever or sell it and take the beating on the damage you have that third option.

Pretty much every scenario I've seen comparing leasing to buying comes out very close in the long run. And if the car holds it it's value or appreciates in value, it's even a better deal!

I have the funds to buy the car out right for cash, but like I said I like reserving that third option to dispose of the car if it either suffers substantial damage or ends up being a dog!
My thoughts. The m2 has been a historically poor lease candidate. I'm a fan of leasing. I think it is normally the way to go for luxury cars. Off the cuff rule of thumb for a great lease is monthly payment @ or less than 1% of MSRP with no money down other than 1st month payment, doc fees, etc.

Finance rates right now put you in a better position. The 0.9% may push over to the CS for 60mo. If not 1.9% is easy to get at credit unions. A 72mo loan puts you on par with a lease when using a residual that approximates the other CS models. Be mindful that BMW uses a residual value that is about 10% higher than what the actual will be at the end of the lease.

No way in hell I'd pay for a car in cash with fiance rates as low as they are. Do not do it!

If anyone questions my lease Fu. My last lease had a 138k MSRP and my payment was $840/mo 33/10. Leasing is way cheaper than buying if you aren't picky about what you drive. I don't care if you own a car for 10yrs, I'll still lease 3 cars for the same cost or less and take into account any value you may still have in the car. Now,if you want to buy a 4yo car and then keep if for 10yrs you might win on cost, but not on tech, safety updates, and driving a newer car.

On a rare car like this you'll have to fight for diminished value, and it isn't easy. Leasing is great in this area because you don't have to care how an accident impacts value.

Edit: I'm buying this one.
Good point on interest rates being so low. I just hate having the debt. Plus, no way to beat the idea of "just handing it back in" to the dealership.

I'll have to get closer to the delivery and then see what is available from BMWFS and a credit union locally.
__________________
Garage; 2020 Raptor, 2011 1M, 2017 M2 PE, 2006 Z4 MC, 2007 Z4 MC, 2001 Spec E46, 2007 GT3
Appreciate 0
      09-18-2020, 04:12 PM   #9
jhall1957
Lieutenant
438
Rep
548
Posts

Drives: SE 46
Join Date: Feb 2009
Location: WS,NC

iTrader: (2)

Quote:
Originally Posted by sdhotwn View Post
How does BMW treat leasing with track time? I never even considered it in the least because of my intent to track the car.

I'm a little goofy with how I do the financing usually. I typically eat the slightly higher interest rate (in this case 1.9 at 72) to drive the payment down for flexibility (I'm nervous/conservative about the number for no good reason) and then pay at a much higher rate - usually pay the car off in 5 years or less. Which drives the effective interest rate etc down. Now you have me half thinking about if I should toy with the idea of a lease on this one or not as I've never leased.
I've leased many cars and always for the same reason. Just go buy a $80k vehicle and have someone pull out in front of you. $25,000 of damage to the front end. It's not enough to total it but now it's got a Carfax and a front end as loose as a old tractor. Then go try and sell it! Can't even get a offer from Carmax!

Leasing is a good "risk management" practice!
__________________
Garage; 2020 Raptor, 2011 1M, 2017 M2 PE, 2006 Z4 MC, 2007 Z4 MC, 2001 Spec E46, 2007 GT3
Appreciate 1
cncmastr666.50

      09-18-2020, 06:56 PM   #10
medphysdave
Lieutenant Colonel
United_States
1501
Rep
1,856
Posts

Drives: M2 CS waiting list
Join Date: Apr 2015
Location: Charlotte, NC

iTrader: (0)

Quote:
Originally Posted by jhall1957 View Post
I've leased many cars and always for the same reason. Just go buy a $80k vehicle and have someone pull out in front of you. $25,000 of damage to the front end. It's not enough to total it but now it's got a Carfax and a front end as loose as a old tractor. Then go try and sell it! Can't even get a offer from Carmax!

Leasing is a good "risk management" practice!
Agree 100%
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 08:39 AM.




m2
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2020, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST