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akashme 02-03-2020 08:22 PM

BMW X7 Lease vs Buy - Help

My heart is set on a X7 and I currently own a X5 35d which I absolutely still love.

I was reaching out to seek help on buy vs lease decision. I feel this is a bad time to buy an expensive car like an x7.

While I understand the benefits of buy (I have never ever leased a car), one of the big cons as I see on buying is that I will be stuck with the car for atleast 5+ years. The car technology is changing so quickly that in 2-3 years BMW will have an answer to electric and autopilot + more innovation.

I feel if I lease, I will be in a much better position to upgrade in 3 years to something more advanced and innovative vs try to sell the X7 at a pretty bad price - considering there will be much advanced options available and the car would have devalued significantly owing to that.

Appreciate any guidance - am I thinking this right.

Also on my most recent X7 3yr/36k lease I am getting a MF of .0177 and a residual of 54%.

The MF seems high. Any idea what's the prevailing MF on 2020 X7 leases.


x4guy 02-14-2020 08:57 AM

I agree that the tech landscape is shifting seismically right now, so I think a lease is a decent idea - especially with a mega-vehicle like the X7 which may depreciate like a rock if oil ever spikes again.

Advice: unless you are a good negotiator and savvy about lease structures, I'd use a car concierge like "BostonCarConcierge" (no relation) over at LeaseHackr. He gets deals that are better than I've been able to, and I actually know a decent amount about leasing.

abscate 07-03-2020 03:54 AM

Leasing is a vacuum cleaner of money from one party , depositing it into the wealthy bank accounts.

Buy a good CPO, drive it for 2-3 and let the landscape settle for a bit.

Mitigate the capital loss with a transferable warranty do you can sell the x7 anytime

Autoputzer 07-03-2020 07:13 AM

The more expensive BMW's tend to have higher deprecation rates than less expensive BMW's. Sedans are deprecation at faster rates than SUV's.

Lease vs. buy depends on how long you feel comfortable owning a BMW and your annual mileage. For the typical 12k miles/year, the crossover point between leasing and buying a new BMW is somewhere around five to seven years. Higher annual mileage reduces that crossover point. If you're driving 20k miles/year, it's probably down to within the lease window of 30 to 42 months, and leasing becomes a no-brainer. If you're only driving 5k miles/year, owning is the way to go.

The cost of gasoline is a trivial part of the total cost of owning and driving a car, especially a car that costs somewhere close to $90k. People who can afford new X7's could afford $4/gallon gasoline.

Yeah, technology advances. But, its a slow process unless you're mesmerized by the latest bells and whistles. When you crunch the numbers, you'll often find that having the latest version of iDrive costs you $25k.

Part of staying in love with a car is maintaining it, both mechanically and cosmetically.

My 2014 535i is heavily optioned and had an MSRP of $73k. Floriduh's 6% sales tax and buying a spare tire and jack wiped out most of my discount, so my total cost was near MSRP. My deprecation, maintenance costs, and capital costs for the first six years and 66k miles was about $867/month. That's probably what two three-year leases would have been. But, my projected costs over the next three or four years (to 100k miles) will be less than $400/month, and that's including a pessimistic $0.20/mile for maintenance and repairs.

When I look and my clean, shiny, fully functional 535i at $400/month and a new, leased 5 Series at over $900/month, I'm not even thinking about replacing my 535i any time soon.

With the lockdown-smackdown this year, I've only driven my 535i 2800 miles this calendar year. That will extend the time that I own the car, further lowering my average monthly ownership costs. With a lease, my costs would be fixed.

Doug Huffman 07-03-2020 08:34 AM


Originally Posted by akashme (Post 13240447)
Hi, ...I was reaching out to seek help on buy vs lease decision. I feel this is a bad time to buy an expensive car like an x7.

The entire premise of your argument is in the word expensive. Expense is relative to what you can comfortably or properly afford. Don’t buy an expensive cost / benefit ratio.

Maybe another way to put it; if you can’t afford to buy outright, “for cash”, then don’t - whether you use cash or not. I could replace my BMW instantly, it would certainly hurt but could be done.

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