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Old 01-25-2012, 09:34 PM
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brkf brkf is offline
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Originally Posted by wcinvest View Post
For people who live in high sales tax states and who only pay sales tax on the car depreciation, leasing a BMW probably makes a lot of financial sense for many individuals. From my ballpark estimates, if you plan to keep the car for around 5 years/75000 miles in those high sales tax states, you are probably better off leasing if you can negotiate a decent deal and learn the intricacies of leasing.

And leasing gives you the valuable option in a state like California of getting out of the deal quickly without taking a bath on taxes/fees. For example, with a 3 year lease on a typically configured 2012 328i in a state such as California, you are saving roughly $2000 worth of taxes/fees compared to what you would pay in lease acquisition costs($725), arguably increased interest costs in many cases and sales taxes on the depreciation.

In addition, within the first year of a decent lease, you can probably get out of it with only a "non BMW" $2000 financial hit if you decide for whatever reason you need to get out of your lease. A year from now, a properly negotiated 3 series lease and $1200 incentive on lease trader/craigslist and the loss of the $725 acquisition fee. I would call that around a $2000 financial hit since those are payments not going to pay BMW for use of the car. I am not including the sales tax during that first year since you actually only paid sales tax on the months you used the car.
With swapalease I ditched my 2006 330i for the cost of the advertisement in 2007. I had it less than a year. People loved the $480 a month payment I had negotiated already (without MSDs...lame dealership refused to do them).