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  #76  
Old 06-17-2006, 06:27 PM
JonathanIT's Avatar
JonathanIT JonathanIT is offline
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Quote:
Originally Posted by sdbrandon
Dimished value comes into to play when you go to sell. How much less was she quoted for trading in/selling out right? $27k seems like a lot of damage, close to totalled. On an accident involving a rear end, and that much damage, I would have sought legal assistance regardless if I bought or leased.
An owner can feel "diminished value" even if she didn't plan to sell... this car was her baby, she was going to take excellent care of it and keep it as a strictly "weekend" cruiser for going out (she has a Miata as a daily driver). After the accident, she had no desire for it at all. Whether it was "close" to totalled doesn't matter... the insurance company looks at a simple formula: is it cheaper to replace, or fix? The car was virtually new (extremely low miles), in showroom condition, and less than a year old. Replacement would be very near a brand new car, so over $35K.

Also, the truck that hit her had no insurance, it was a city owned vehicle (Pasadena) and they act as a "bonded" agency, sort of like their own insurance company. And they're real A$$holes. She had some medical costs also that she was trying to recoup (she wasn't even going after "pain and suffering"), plus the replacement for the car. But they've been fighting her every step of the way; she finally had to hire a lawyer and file a lawsuit. I hope she takes them to the cleaners and gets punitive damages after the way she's been treated! It's still pending.

--J.
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  #77  
Old 06-18-2006, 11:26 PM
epoints epoints is offline
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Quote:
Originally Posted by BayAreaBMWFan
Chris:

In my calculations I assumed that someone was paying cash. The opportunity cost I used was a CD (4.8%) which got taxed at the marginal income tax rate of (44.3% in CA). Even in this scenario the lease was ahead even though the net post tax rate of return on the cash used for purchase is 2.67%.

If you are financing you are paying interest at post tax income and at the same rate, the lease was $2600 less.

Of course if you can get a better return on investment, leasing becomes better. So if you put the money towards a house the return depends on the appreciation. If instead of putting $32K cash to buy the car, you put it as a 10% downpayment on a $320K home, any appreciation of the home is leveraged. So if the home goes up 15% in three years, your ROI is almost 50% pa! But then the home can go down too. A better comparison would be intermediate bond funds; relatively safer.

However, the strategy of investing in an appreciating asset (like a home) and borrowing for a depreciating asset (a car) is pretty much bullet proof with BMWs even with low return instruments like CDs!

I did a massive speadsheet calculation using the following factors and assumptions:

1. lease costs $18,100 for 24 months and 28208 for 36 months (ED)
lease costs of 22623for 24 monhts and 32607 for 36 months (US DEL)
2. adjusted monthly cost (with 22.5 months and 34.5 months, respectively)
3. CD investment of 5.3% (countrywide)
4. tax rate (fed+CA) of 44%
5. inflation of 3%
6. depreciation of $22455 after 2year and $27,455 after 3 year (Edmunds)

And I arrived the following conclusions:

1. 2 year cost after investment is $16, 647 and 3 year cost 23,943 (ED)
2 year cost after investment is 21170 and 3 year for 28,342 (US DEL)
2. If you are leasing without ED, do a 24 months lease and invest the 50k into CD to offset costs; otherwise, it's cheaper to buy (not take into consideration of accident,..., etc)
3. with ED lease and investment, you will be 5800 and 3500 ahead in 2 year and 3 year lease, respectively.

4. ED lease without investment, 2 year lease put you ahead 4355 but in 3 year lease, you will be paying 750 than if purchase.

I think my number is probably a bit off but the conclusion will be the same. leaseing without ED does not show great advantage (unless you can write it off) and purchase has advantage over leasing after 3 year.

I have decided to go with 2 year lease to reap the benefit of residual and MF. Besides, new 5-series will be out in 2-3 year, then it would be time for a new lease.
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  #78  
Old 06-19-2006, 08:04 AM
BayAreaBMWFan BayAreaBMWFan is offline
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epoints:
You have to factor in that if sell the car yourself, you might not get the residual value which BMWFS will give you. Also I do not think you have accounted for the 8-9% sales tax you will pay on a purchase. In your case, you seem to be planning to buy the car instead of financing. For high tax people, buying with cash is often better than financing since the return on zero-risk investments are taxable while the cost of financing is not tax-deductible.

Join the BMW CCA ASAP.
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  #79  
Old 06-19-2006, 09:22 AM
chrischeung chrischeung is offline
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Buy vs Lease - what difference did it make?

I just had a thought, how much difference did the Buy vs Lease deal make to me? I leased a 2000 323ci, which was then replaced by my 2003 325i which I purchased, which has since been replaced by my leased 2006 530i. From the leased 2000 to the bought 2003, I don't recall missing the additional money from the lease (in fact I had more since my personal financial situation improved), and didn't recall any sacrifice over that time.

But, what were my thoughts and behavioural differences between leasing and buying?

For my leased 2000 323ci: I was always more concerned about damage to the car that I would have to pay for on lease turn in. Initially I was particular about washing the car myself (it was black), observing the break in period, and concerned about going over the mileage allowance on the car. Since I was returning it, I tended to drive it much harder, though I never tried anything extraordinary like dropping the clutch above 2K rpm.

For my purchased 2003 325i: I was concerend about damage to the car that I would cause, and after getting fixed, would have to live with, and then when sold, have diminished value. Since I was honestly considering keeping the car out of warranty, I again avoided extraordinary actions like braking, revving the car up to 3K, then releasing the brake. I was even more careful about choosing that clear parking spot, avoiding curb rash, and chastising the Misses more for bad driving habits. My wife and I felt more "attached" the the car, since it was our first new owned BMW, and we were perplexed with the private sale vs dealer sale option.

Overall, I expect I will drive leased cars harder, be less concerned about wear and tear, and be more relaxed about how and where I use the car. Perhaps I can even off-road it? No - I'll reserve that for rentals.
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Last edited by chrischeung; 06-19-2006 at 09:50 AM.
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  #80  
Old 06-19-2006, 11:15 AM
BayAreaBMWFan BayAreaBMWFan is offline
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That is very true chris.

You will never develop a strong emotional attachement with a car you plan to turn in another year. However you will enjoy it more and push it harder. So if you want a nice ride you can have fun with, with the option of a new model every few years, lease.

However if you want to settle into a long term relationship, which might be expensive after warranty expires, you should buy.

Kind of reminds me of another important fact of life ...
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  #81  
Old 06-19-2006, 12:14 PM
epoints epoints is offline
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Quote:
Originally Posted by BayAreaBMWFan
epoints:
You have to factor in that if sell the car yourself, you might not get the residual value which BMWFS will give you. Also I do not think you have accounted for the 8-9% sales tax you will pay on a purchase. In your case, you seem to be planning to buy the car instead of financing. For high tax people, buying with cash is often better than financing since the return on zero-risk investments are taxable while the cost of financing is not tax-deductible.

Join the BMW CCA ASAP.
I accounted additional 10% for tax + gov. fees, and the selling prices for each year were based on Edmund's depreciation value which I don't know if this is a good number to use.

I went through this calculation in helping determine where is the break even point between leasing and buying. I was surprise to see the financial benefits of leasing is not as great as I initially anticipated especially when I cannot write the lease payment off. On the other hands, other benefits of leasing (like Chris and others' posts) are the tipping factors.

As for CCA, I thought you would have to join for at least 1 year to qualify for the rebate?
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- '07 550i, Silver Gray/BLK/Maple, SMG :: , Sports PKG, Active Steering, Comfort Access, Rear Shade, Rear AirBag, HD Radio; ED - 9/25/06; USD - 11/22/06;

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  #82  
Old 06-19-2006, 12:42 PM
BayAreaBMWFan BayAreaBMWFan is offline
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epoints:

If you are paying cash for the car when buying and the expected post tax rate of return on the cash is low (due to high tax, conservative investments), then leasing is not all that better. This is because you are paying a higher finance charge on the lease which comes from post-tax income. Even them the lease is no worse due to sales tax savings. The low risk of course is a great upside.

However if you are able to invest wisely (bought a rental house in 2001 with the cash you paid for the car), leasing becomes a no-brainer. Similarly if you were financing the car, the lease is a better deal.

It is all a function of your expected post tax rate of return on investment, and the finance charge you are paying (whether leasing or purchasing via a loan). In general, for a reasonably risk tolerant person it is better to put money into appreciating assets and let other people finance depreciating assets.

Yup you need one year for the CCA rebate but you never know when you would need the next bimmer (cars do get stolen, totalled or you can get bored). So why take a chance; it is just $40/year and you get a great magazine with lot of discounts on bimmer related stuff.
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2005 330Ci SparkGraphite/Gray Retired ZHP, Step, Nav, Xenon, Heated Seats, PDC
2007 X3 3.0si AlpiWhite/Tobacco ED Retired Step, ZSP, ZPP, ZCW, PDC, Nav, Xenon, Privacy Glass, Servotronic, Cargo Net
2002 745Li Slate Green Metallic/Beige Retired; Perfect baby-hauler
2006 525 TiAg/Black Retired
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  #83  
Old 06-22-2006, 06:47 AM
DoctorBimmer DoctorBimmer is offline
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2yrs or 3 ?

This has been a very timely thread for me. I always purchased, leases always seemed like a rip off to me, until recently. I've read all the posts and have a few comments/questions. First, I keep reading how great the deal is to take European Delivery (ED), but yet no one seems to calculate that you have to get there and have the time to do it. For those of you who have done it, how much did it cost you do it? I'm talking about the people who went over to take delivery, spend minimal time and return, not the "we were going on vacation anyway, so we took the kids and spent 2 weeks there.

While at the dealer this week for the first time in 2 yrs picking up a brochure and looking at the 530 / 550 the salesman said a couple of things that have not been mentioned here. He told me that a "great option" would be to prepay your 2 yrs lease up front and they would even make me a better deal. Has anyone done this? What advantages / disadvantages are there? Also, wouldn't there be a better lease deal on a existing car on the lot vs ordering? Or do I have that backwards?

I'm starting to think I am a leaser. I can barely make it 3 yrs, tops, before the new car bug bites. Sometimes it is 2yrs, which is the case now. I have had 5 new cars since 1995 and 3 used (not including my wifes cars). I keep immaculate care of them and 90% of the time I sell them privately (PITA - hate it). I swear each time that "this is it, this is a keeper" and my wife bets me something, last time a 1 carat diamond that I could not last 3 yrs as I boasted and proceeded to lose.

Oh yeah, one last comment that the salesman made, and I believe it was in conjunction with the "pay all at once" statement........that I would not have to pay any sales tax if I paid all up front (entire lease payment). Did I misunderstand? I'm in Austin, TX.

I'm leaning towards a 24 month lease on a 530i. I looked up all of my last car purchases and have a low of 10K miles a year to 14K per yr (current car). I have ~ $13K that I can put into my pocket after the sale of my LS430. Although I am a car nut, keep great care of them, I think I can live with having a lot of fun with a lease car and move onto the next whim with ease.
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  #84  
Old 06-22-2006, 08:36 AM
epoints epoints is offline
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Quote:
Originally Posted by DoctorBimmer
This has been a very timely thread for me. I always purchased, leases always seemed like a rip off to me, until recently. I've read all the posts and have a few comments/questions. First, I keep reading how great the deal is to take European Delivery (ED), but yet no one seems to calculate that you have to get there and have the time to do it. For those of you who have done it, how much did it cost you do it? I'm talking about the people who went over to take delivery, spend minimal time and return, not the "we were going on vacation anyway, so we took the kids and spent 2 weeks there.

While at the dealer this week for the first time in 2 yrs picking up a brochure and looking at the 530 / 550 the salesman said a couple of things that have not been mentioned here. He told me that a "great option" would be to prepay your 2 yrs lease up front and they would even make me a better deal. Has anyone done this? What advantages / disadvantages are there? Also, wouldn't there be a better lease deal on a existing car on the lot vs ordering? Or do I have that backwards?

I'm starting to think I am a leaser. I can barely make it 3 yrs, tops, before the new car bug bites. Sometimes it is 2yrs, which is the case now. I have had 5 new cars since 1995 and 3 used (not including my wifes cars). I keep immaculate care of them and 90% of the time I sell them privately (PITA - hate it). I swear each time that "this is it, this is a keeper" and my wife bets me something, last time a 1 carat diamond that I could not last 3 yrs as I boasted and proceeded to lose.

Oh yeah, one last comment that the salesman made, and I believe it was in conjunction with the "pay all at once" statement........that I would not have to pay any sales tax if I paid all up front (entire lease payment). Did I misunderstand? I'm in Austin, TX.

I'm leaning towards a 24 month lease on a 530i. I looked up all of my last car purchases and have a low of 10K miles a year to 14K per yr (current car). I have ~ $13K that I can put into my pocket after the sale of my LS430. Although I am a car nut, keep great care of them, I think I can live with having a lot of fun with a lease car and move onto the next whim with ease.
First, I am not an expert on leasing and this will be my first lease. Having spent some times on this forum and receiving helps from great members, I have concluded that lease is the way to go especially when you want to drive a new car every 2-3 years.

In my case, I want SMG which is not readily available in local dealerships ( I think there are only 3 in US dealerships) and do not have options that I want. So, ED!

I did bunch of calculations (see above postings) with various scenarios (with investment, 1.5 months shipping gap, income tax rate, ...etc.) and derived the conclusion of leasing at 2 years would save me $4500. It would be better to purchase if you intend to lease longer than 3 years, IMO, but definitely no longer than 4 years because of warranty.

In CA, I would only pay for sales tax on lease payments.

The intention of ED is stimulate tourism in Europe and hoping to get you to spend more money than you save. So you have to look at this saving as vacation subsidy, but if you just want to fly and come back, my guess is you would save ($4500-$1000 airfare - $500 misc expenses) = $3000.

Based on my calculation, my 2 year lease payment would be $17750 or $740 a month.

My $.02,
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- '07 550i, Silver Gray/BLK/Maple, SMG :: , Sports PKG, Active Steering, Comfort Access, Rear Shade, Rear AirBag, HD Radio; ED - 9/25/06; USD - 11/22/06;

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  #85  
Old 06-22-2006, 09:03 AM
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chuck92103 chuck92103 is offline
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Quote:
Originally Posted by epoints
First, I am not an expert on leasing and this will be my first lease. Having spent some times on this forum and receiving helps from great members, I have concluded that lease is the way to go especially when you want to drive a new car every 2-3 years.

In my case, I want SMG which is not readily available in local dealerships ( I think there are only 3 in US dealerships) and do not have options that I want. So, ED!

I did bunch of calculations (see above postings) with various scenarios (with investment, 1.5 months shipping gap, income tax rate, ...etc.) and derived the conclusion of leasing at 2 years would save me $4500. It would be better to purchase if you intend to lease longer than 3 years, IMO, but definitely no longer than 4 years because of warranty.

In CA, I would only pay for sales tax on lease payments.

The intention of ED is stimulate tourism in Europe and hoping to get you to spend more money than you save. So you have to look at this saving as vacation subsidy, but if you just want to fly and come back, my guess is you would save ($4500-$1000 airfare - $500 misc expenses) = $3000.

Based on my calculation, my 2 year lease payment would be $17750 or $740 a month.

My $.02,
You are correct. Just remember at the and of two years, you need another car and need to shell out $2-3k again. You still come out ahead, but just make sure you look at all the numbers.

You are best to compare 2 3-year leases (or 3 2-year leases) to one 6 year car purchase.

Last edited by chuck92103; 06-22-2006 at 09:07 AM.
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  #86  
Old 06-22-2006, 09:18 AM
BayAreaBMWFan BayAreaBMWFan is offline
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You need to watch out for sales tax treatment when it comes to leases. Taxes are different in Texas so the savings may not be all that great compared to CA.

You can easily do a Euro Delivery in 36 hours. Fly out on Sunday afternoon. Get to Munich on Monday morning, take delivery, tool around the Autobahn, drop off and fly back on Monday evening. This is assuming you have direct flights. In the off-peak winter season, you can fly to Europe for $700 or much less.

I would personally fly out on Saturday, spend the night in Munich on Sunday and then fly out on Monday evening to ensure that any flight issue does not disrupt the trip. You can do the trip on the President's Day Weekend and not have to take the Monday off too.

chuck: BMW CCA gives you a $1000 rebate on the 5 series, which kind of makes up for the trip cost. So when you are looking at 24 month vs 36 months, the trip costs should not be a factor. In general you would to go with one with the lowest net lease payment after accounting for the one and half months you pay extra for. I would consider the following:
> Is there a chance that you are going to go out of warranty if you take a 36 month lease?
> Is flying to Europe a pain for you?
> If you are going to be driving enough to need new tires, then you may want to factor that in.

To me it is clear that with BMWs free maintenance/warranty programs and their high residual leases it is a no brainer to do leases instead of buying for 5-6 years, especially if you drive 15K miles/year. You most probably will come out ahead doing two leases and driving two new cars financially instead of keeping one car for six years with out of warranty repair and uncovered maintenance expenses.
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2005 330Ci SparkGraphite/Gray Retired ZHP, Step, Nav, Xenon, Heated Seats, PDC
2007 X3 3.0si AlpiWhite/Tobacco ED Retired Step, ZSP, ZPP, ZCW, PDC, Nav, Xenon, Privacy Glass, Servotronic, Cargo Net
2002 745Li Slate Green Metallic/Beige Retired; Perfect baby-hauler
2006 525 TiAg/Black Retired
2004 3.0 Z4 Black/Black/Black SMG Retired
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  #87  
Old 06-22-2006, 09:28 AM
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chuck92103 chuck92103 is offline
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Quote:
Originally Posted by BayAreaBMWFan
You need to watch out for sales tax treatment when it comes to leases. Taxes are different in Texas so the savings may not be all that great compared to CA.

You can easily do a Euro Delivery in 36 hours. Fly out on Sunday afternoon. Get to Munich on Monday morning, take delivery, tool around the Autobahn, drop off and fly back on Monday evening. This is assuming you have direct flights. In the off-peak winter season, you can fly to Europe for $700 or much less.

I would personally fly out on Saturday, spend the night in Munich on Sunday and then fly out on Monday evening to ensure that any flight issue does not disrupt the trip. You can do the trip on the President's Day Weekend and not have to take the Monday off too.

chuck: BMW CCA gives you a $1000 rebate on the 5 series, which kind of makes up for the trip cost. So when you are looking at 24 month vs 36 months, the trip costs should not be a factor. In general you would to go with one with the lowest net lease payment after accounting for the one and half months you pay extra for. I would consider the following:
> Is there a chance that you are going to go out of warranty if you take a 36 month lease?
> Is flying to Europe a pain for you?
> If you are going to be driving enough to need new tires, then you may want to factor that in.

To me it is clear that with BMWs free maintenance/warranty programs and their high residual leases it is a no brainer to do leases instead of buying for 5-6 years, especially if you drive 15K miles/year. You most probably will come out ahead doing two leases and driving two new cars financially instead of keeping one car for six years with out of warranty repair and uncovered maintenance expenses.
Can you go out of warranty on a 36 month lease? That is almost 17k miles per year. I thought 15k was the limit. Can you buy miles above 15K?
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  #88  
Old 06-22-2006, 09:31 AM
BayAreaBMWFan BayAreaBMWFan is offline
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chuck: I am tempted to say use search or see a doctor for memory loss issues (you have been there on so many lease discussions!!) but here it goes.

You can buy miles at the start of the lease over 15K @15c/mile. BMW will compensate you at the end if you do not use them. However, you pay finance charge on these.
You can buy miles at 16c/mile up to six months before the lease expires. Again if you buy more than 15K/year and do not use them you get a refund at the end.
The end of lease cost of mile is 20c/mile.
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2007 X3 3.0si AlpiWhite/Tobacco ED Retired Step, ZSP, ZPP, ZCW, PDC, Nav, Xenon, Privacy Glass, Servotronic, Cargo Net
2002 745Li Slate Green Metallic/Beige Retired; Perfect baby-hauler
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  #89  
Old 06-22-2006, 09:40 AM
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chuck92103 chuck92103 is offline
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Quote:
Originally Posted by BayAreaBMWFan
chuck: I am tempted to say use search or see a doctor for memory loss issues (you have been there on so many lease discussions!!)
Fair enough. After awhile these threads become one big blur and sometimes I even forget what I was discussing.
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  #90  
Old 06-22-2006, 12:18 PM
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schley schley is offline
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Quote:
Originally Posted by BayAreaBMWFan
chuck: I am tempted to say use search or see a doctor for memory loss issues (you have been there on so many lease discussions!!) but here it goes.

You can buy miles at the start of the lease over 15K @15c/mile. BMW will compensate you at the end if you do not use them. However, you pay finance charge on these.
You can buy miles at 16c/mile up to six months before the lease expires. Again if you buy more than 15K/year and do not use them you get a refund at the end.
The end of lease cost of mile is 20c/mile.

Chuck you are knowledgable about leases I second the memory loss hypothesis.
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  #91  
Old 06-22-2006, 05:36 PM
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mclaren mclaren is offline
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Join the BMWCCA, don't make the mistake I made. I had been a member of BMWCCA previously but let it expire a number of years ago when I went to rice. When I leased my 2005 BMW in late 2004 for 3 years I figured I would wait a year then join so when my lease was up I'd have been a member for more than a year which is what I did. But then I leased the Z4 this month and have only been a member for 6 months so I lost the $500. Dumb huh.
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  #92  
Old 06-22-2006, 05:45 PM
BayAreaBMWFan BayAreaBMWFan is offline
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chuck, another risk you avoid when you do not have to sell your car.
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  #93  
Old 06-22-2006, 05:55 PM
epoints epoints is offline
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550i - 740 a month
A brand new car - every 2 yearS


Not having sell you old car, PRICELESS:
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  #94  
Old 06-22-2006, 08:47 PM
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schley schley is offline
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Quote:
Originally Posted by epoints
550i - 740 a month
A brand new car - every 2 yearS


Not having sell you old car, PRICELESS:

Priceless is right, well said.
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2006 Z4 3.0si -pickup 9/23/06- turned in 8/2/08, titanium silver, black leather, aluminum, step, premium, sport, heated seats
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BMWCCA # 350430
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  #95  
Old 07-16-2006, 03:29 PM
shellbmb shellbmb is offline
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If I am considering a lease and have a trade-in which I expect to get some money back on, should I include that as a down payment into the lease? Or expect a check from the dealer? And should I expect to get more for my trade-in if I do put it back into the lease? I am trying to sell on my own, but that isn't going so well.

I am looking to buy/lease a Z4M roadster. I have heard anywhere from sticker to a couple thousand below MSRP. Dealer invoice (according to specs on this website) is 53,400 with options and MSRP is 58,270. This is including destination charge and gas guzzler tax. What is a realistic number to shoot for?

Also the July lease specs show a .00315 MF for that car on a 36mo/15k lease. Is it realistic to get a MF of .00254 by negotiating and adding 7 security deposits? .00254 is equivalent to the best APR I can get on a 60mo note (6.1%).
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  #96  
Old 08-02-2006, 11:24 AM
radgator1 radgator1 is offline
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If possible can someone help me out here with some real life numbers on lease vs buy. I will get a e90 335i sedan later this year by ED and will have to decide to pay cash vs lease. My situation is if I lease I would put lets say 40k toward a equitiy line of credit that I am paying around 7% on, however that is all deductable at the highest tax bracket in both federal and state income tax (California). I can deduct a portion of one leased vehicle however I already have a leased 2007 Lexus RX 350 with approximately a 640 monthly payment. I will likely keep the 335i 4 years if I purchase and 3 years if I lease. I tend to go over the 12k a year mileage on recent leases. Is there any rule of thumb to determine which would be better, a lower LOC payment plus a lease payment vs no car payment on the Bimmer but a higher LOC payment?

Thanks, Kevin
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  #97  
Old 08-02-2006, 12:53 PM
adgrant adgrant is offline
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Quote:
Originally Posted by radgator1
If possible can someone help me out here with some real life numbers on lease vs buy. I will get a e90 335i sedan later this year by ED and will have to decide to pay cash vs lease. My situation is if I lease I would put lets say 40k toward a equitiy line of credit that I am paying around 7% on, however that is all deductable at the highest tax bracket in both federal and state income tax (California). I can deduct a portion of one leased vehicle however I already have a leased 2007 Lexus RX 350 with approximately a 640 monthly payment. I will likely keep the 335i 4 years if I purchase and 3 years if I lease. I tend to go over the 12k a year mileage on recent leases. Is there any rule of thumb to determine which would be better, a lower LOC payment plus a lease payment vs no car payment on the Bimmer but a higher LOC payment?

Thanks, Kevin
Is the rate on the LOC floating? What is your combined top tax rate (State and Federal).
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  #98  
Old 08-02-2006, 01:52 PM
radgator1 radgator1 is offline
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Quote:
Originally Posted by adgrant
Is the rate on the LOC floating? What is your combined top tax rate (State and Federal).
Around 46% percent ignoring AMT. The LOC is with Wells Fargo. I think they call it a smart loan or something like that where it is fixed for 3 years (I've had it for around 4 months) then if you pay it down then re-draw on it that money goes into a variable rate which is prime minus .5 I think. It is an interst only payment.

Thanks again, Kevin
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  #99  
Old 08-02-2006, 02:55 PM
adgrant adgrant is offline
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Quote:
Originally Posted by radgator1
Around 46% percent ignoring AMT. The LOC is with Wells Fargo. I think they call it a smart loan or something like that where it is fixed for 3 years (I've had it for around 4 months) then if you pay it down then re-draw on it that money goes into a variable rate which is prime minus .5 I think. It is an interst only payment.

Thanks again, Kevin
Your interest costs will probably be lower buying than leasing (a really low MF is unlikely). However, you can't really crunch the numbers until you have BMW's lease numbers.

BTW leasing does come with some benefits over owning; Gap insurance, a call option on the car and protection from diminished value.
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  #100  
Old 08-02-2006, 03:13 PM
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Ågent99 Ågent99 is offline
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Quote:
Originally Posted by adgrant
BTW leasing does come with some benefits over owning; Gap insurance, a call option on the car and protection from diminished value.
...and the MSD program....

It has been shown that one can save even more dollars by doing a two year lease then purchasing extra miles at 16 cents/mile vs. doing a 3 year lease.

You gotta crunch the numbers...everyone's situation is unique.
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