[Jagudelo12]

I think I'll want car forever but nervous another car might steal my heart.
I've never leased before, so was wondering thoughts on that compared to owning and depreciation.
If I put very few miles will it actually save me money or time is what depreciates the car inevitably?

[detroitm2]

Can't speak for the M2C, but if its anything like the original M2, the lease rates SUCKED on it.

[msdss]

Just keep in mind that everything you put down on a lease is only to reduce payments. It doesn't go towards the price of the car after the lease is up. You are essentially pissing away whatever you put down.

That being said, here are the only reasons I can think of to lease a car...
1) you can easily afford the car w/o a down payment on the lease
2) you have no intention of modding the car
3) you aren't planning on keeping the car after the lease is up

if any of those things don't work for you, then don't lease.

[F87_LCI]

Originally Posted by detroitm2

Can't speak for the M2C, but if its anything like the original M2, the lease rates SUCKED on it.

Maybe in the US. I got 56% residual on mine (LCI). Lease rate was basically the same as finance rate.
You can still mod a leased car, you just have to put it back to stock if you don't buy it out.
Car depreciates no matter whether you lease or buy. I.e. Market value of the car is the same at any given point in time, regardless of l v. b. Difference is, what you have paid up to that point with a lease will likely be far less than if financed, but you will have little to no equity in the car when leasing, unless you put down a large down payment, but not much sense in doing that.
In some cases you can write off the cost of a leased vehicle against business income, but rules and regs on that one vary from country to country.

There is no "correct" answer on l v. b because everyone's circumstances are different. You have to look at your particular situation and decide accordingly.

[msdss]

Originally Posted by F87_LCI

Maybe in the US. I got 56% residual on mine (LCI). Lease rate was basically the same as finance rate.
You can still mod a leased car, you just have to put it back to stock if you don't buy it out.
Car depreciates no matter whether you lease or buy. I.e. Market value of the car is the same at any given point in time, regardless of l v. b. Difference is, what you have paid up to that point with a lease will likely be far less than if financed, but you will have little to no equity in the car when leasing, unless you put down a large down payment, but not much sense in doing that.
In some cases you can write off the cost of a leased vehicle against business income, but rules and regs on that one vary from country to country.

There is no "correct" answer on l v. b because everyone's circumstances are different. You have to look at your particular situation and decide accordingly.

Modding a leased car is just asking for a headache. But to each his own I suppose.

[Davil]

Just buy it cash. Bonus is that insurance is cheaper too.

[ZeroFx]

Personally i avoid new car depreciation by getting mine 6 months old with 2k miles on clock. If you lease a brand new one then those payments are much higher due to that new car depreciation

I bought my 430d cash and its up for sale for 50% of what i paid for it with 65k miles 3.5 years ago. That could be seriously cheap motoring!

This time i have PCP the 6 month old M2c because the residual value is pretty good for 20k miles a year. I have 7k of interest payments though which means that i have put 30k cash into investments paying abour 5.5-6% dividends which will offset any interest.

So the true cost is about 450 a month instead of 600 which is far less than the 750 a month for a brand new car! All it cost me is 6 months warranty and 2k miles on the car but at least the running in service is paid for!

[Dav3]

Originally Posted by msdss

Modding a leased car is just asking for a headache. But to each his own I suppose.

Only if you start tinkering with the engine or do something you can't revert back to

[Thescout13]

Originally Posted by Davil

Just buy it cash. Bonus is that insurance is cheaper too.

You want to talk pissing away money, buy it cash. If you invest your money, in no way is buying a car cash better financially than leasing or financing unless the interest rate is 5/6% plus or the residual is in the 40s, mathematically.

But I definitely appreciate and see the draw of being debt free.

[MMMBRAP]

Originally Posted by msdss

Just keep in mind that everything you put down on a lease is only to reduce payments. It doesn't go towards the price of the car after the lease is up. You are essentially pissing away whatever you put down.

That being said, here are the only reasons I can think of to lease a car...
1) you can easily afford the car w/o a down payment on the lease
2) you have no intention of modding the car
3) you aren't planning on keeping the car after the lease is up

if any of those things don't work for you, then don't lease.

I'm in this camp.

For me, buying makes more sense because you can sell it private party on your own later and potentially gain more in the sale than you ever would on a lease. A lease to me was always the same to me as renting an apartment. You have zero ownership and no collateral at the end.

[M2Cmtl]

If you have a business leasing can make LOTS of sense. That being said, leases are a case per case issue. Because of residuals, some cars don't lease well and this can change through time. The OG M2 was a horrible lease deal until the statr of 2019 in Canada. Now the residuals on the M2C are actually very good in Canada. You can also do a single payment lease if the lease rate is higher.

[ZeroFx]

Originally Posted by MMMBRAP

I'm in this camp.

For me, buying makes more sense because you can sell it private party on your own later and potentially gain more in the sale than you ever would on a lease. A lease to me was always the same to me as renting an apartment. You have zero ownership and no collateral at the end.

In the UK we have a Personal Contract Purchase.

We basically only pay the depreciation plus interested based on a guaranteed final value.

the interest is higher because you loan against the full value less deposit but the payments are closer to a lease. We can pay off the balloon payment at the end or we can give the car back. If there is equity we can trade in or sell it private. We can also terminate without charge 36/48 month payment without penalty.

Other than the higher interest it works out OK as long as you know how many miles you will be driving.

[msdss]

Originally Posted by Dav3

Only if you start tinkering with the engine or do something you can't revert back to

Yeah, but that is assuming nothing goes wrong. If a fault does occur, even if it isn't related to the mods, they can try and fuck you.

[TemjinX2]

the rv on the m2c is ok compared to the og m2. the mf is what sucks on the m2c..if your dealership will let you do mutiple security deposits to buy down the rate then i think leasing is fine.

if you can get 3.5% or below interest rate then financing would be cheaper.

leasing gives you the option of returning the car without any negative equity if some idiot in a suv hits your $61k car and now you just lost resale value because it has a accident on the carfax.

with the lease, you can just give it back to BMW and not worry about the diminshed value of the car.

[Dav3]

Originally Posted by msdss

Yeah, but that is assuming nothing goes wrong. If a fault does occur, even if it isn't related to the mods, they can try and fuck you.

You can revert everything back to stock without leaving a trace except with the ecu

Even then, if you don't track your car you're really on the safe side with stage 1 mods

[Jagudelo12]

They are saying on a 2020 m2c manual brand new, lease is 1,000 a month 3 years = about 30k. Never leased before don't know if that's accurate? Anybody know?
To buy it's 57,760 msrp with the discount I got.
I want to lease but will car depreciate 30k in 3 years like that?
If I bought I would baby the car too much, that's why considering lease.

Car lands at dealer next week. Thanks

[DanG]

Originally Posted by Jagudelo12

They are saying on a 2020 m2c manual brand new, lease is 1,000 a month 3 years = about 30k. Never leased before don't know if that's accurate? Anybody know?
To buy it's 57,760 msrp with the discount I got.
I want to lease but will car depreciate 30k in 3 years like that?
If I bought I would baby the car too much, that's why considering lease.

Car lands at dealer next week. Thanks

2016 M2s are selling in the low $40,000s. I doubt you will see $30K of depreciation.

[waldrops]

Originally Posted by DanG

2016 M2s are selling in the low $40,000s. I doubt you will see $30K of depreciation.

Theoretically, if the dealer mis-estimates the residual value(aka 30k) at the end of the lease, but the car is worth 40k, you can have someone buy the car and you pocket the 10k

It's rare, but some people do it. I leased mine, but quite frankly they lease terrible. I was just intimidated by buying my first German luxury. Good chance I buy it out at the end

[waldrops]

oh yeah, and check out this forum. The people on there are awesome!
https://forum.leasehackr.com/

[Sellotape]

Originally Posted by waldrops

Theoretically, if the dealer mis-estimates the residual value(aka 30k) at the end of the lease, but the car is worth 40k, you can have someone buy the car and you pocket the 10k

It's rare, but some people do it. I leased mine, but quite frankly they lease terrible. I was just intimidated by buying my first German luxury. Good chance I buy it out at the end

It is rare, but it happens. My e92 M3 lease was like this and I sold it like you described.

[KevinM]

Originally Posted by Jagudelo12

They are saying on a 2020 m2c manual brand new, lease is 1,000 a month 3 years = about 30k. Never leased before don't know if that's accurate? Anybody know?
To buy it's 57,760 msrp with the discount I got.
I want to lease but will car depreciate 30k in 3 years like that?
If I bought I would baby the car too much, that's why considering lease.

Car lands at dealer next week. Thanks

Sounds about right but we need details. Specifically, don't make any down payment on a lease. I mean $0. That is money down the drain. As mentioned above there are some advantages to a lease if you own a business, if you plan to keep the car for only three years (to avoid the hassle of selling it), or if you are worried about getting a lemon or being in an accident that lowers the value of a car.

On the other hand, think about this: with a modest down payment a similar payment will allow you to own the car in 5 years, assuming you have excellent credit and belong to a credit union that will give you a reasonable loan (< 3% interest).

Sometimes BMW makes leases so cheap (e.g., F8X M3/4 and CS) that if you aren't planning on keeping the car past three years, it doesn't make sense NOT to lease. That is not the case with the M2C as the lease deals are meh.

GL!

[skier219]

I normally pay cash, but am considering financing half of my M2C if the finance rate stays low (2.99% here). I can do at least that good keeping the other half of my money invested earning interest.

For folks with business experience, how does lease versus finance versus cash work out in your experience?

I am planning to make the M2C a business vehicle. Normally when paying cash I would just take depreciation deductions (up to $18,000 in Year 1, $16,000 for Year 2, $9,600 for Year 3, $5,760 thereafter). I'd also deduct for mileage, fuel, and other operating expenses. The effective net dollar benefit to me would be those amounts multiplied by my tax rate.

My understanding with partial financing is that it works the same as above, depreciating the total cost (downpayment plus loan amount) and with some additional deductions for interest. Theoretically this might be better than cash, as I would be depreciating the vehicle even though I haven't fully paid for it yet.

I haven't ever done a business vehicle with a lease but I know in that case the vehicle can't be depreciated. Lease payments are deducted, plus fuel/mileage/etc.

I imagine the trick is to do some math and figure out what results in the biggest deduction. Just eyeballing the standard lease deal on BMW's website, lease payment deductions over 3 years won't come close to the depreciation amounts on a cash/finance deal. Maybe I am missing something.