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Munchen bound
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1,205 Posts
Discussion Starter #1 (Edited)
Model: 750i (no X)

Selling Price: 109,750

Residual: 71,671

Term: 36

Money Factor .00138

Capped Fees: $1,262

Taxes: $6,859

Invoice Price: $117,861

Amt. Due: $1,544

Monthly Pmt: $1,544

Is July better than June? Any observations or comments?
:)
 

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8,892 Posts
Selling Price: 109,750

Residual: 71,671

Term: 36

Money Factor .00138

Capped Fees: $1,262

Taxes: $6,859

Adjusted Cap Cost: $117,861

Amt. Due: $1,544

Monthly Pmt: $1,544

Is July better than June? Any observations or comments?
:)
The make / model of the car would be helpful, as would MSRP and the invoice you calculated (you did calculate the invoice on a car this expensive, right?) :thumbup:
 

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Freedom isn't free!!
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19,791 Posts
Have you run the numbers through a lease calculator? You might want to consider paying the fees and taxes up front rather than rolling them in and paying interest on them. The July base MF is .00137, which equates to a 3.288% interest rate.
 

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Munchen bound
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1,205 Posts
Discussion Starter #4
Have you run the numbers through a lease calculator? You might want to consider paying the fees and taxes up front rather than rolling them in and paying interest on them. The July base MF is .00137, which equates to a 3.288% interest rate.
I can look back and capture June, when I ordered.

Will do calculator.

Will pay taxes up front as it will help the payment.

Anything else.
 

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Munchen bound
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1,205 Posts
Discussion Starter #5
The make / model of the car would be helpful, as would MSRP and the invoice you calculated (you did calculate the invoice on a car this expensive, right?) :thumbup:
Yes, I have run the number and have agreed to a price on the car, as shown.

Leases can get tricky, so thought I'd run the numbers by you guys before either shooting it altogether and buying, against my accountant's advice, if things got messy.

I have since edited the original post, to include the model, the invoice price was there, just under capital cost.
 

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Freedom isn't free!!
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19,791 Posts
I can look back and capture June, when I ordered.

Will do calculator.

Will pay taxes up front as it will help the payment.

Anything else.
Have you considered doing multiple security deposits? Do you understand them? They lower the money factor and generally the amount they lower your payment in comparison to the total amount of the deposits they yield an ROI between 7% - 12%, that can vary.
 

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Munchen bound
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1,205 Posts
Discussion Starter #7
I'm looking at MSD's now. Not sure it makes much sense, but will run it by my accountant. As for rolling taxes in or out, at 3%-ish, I'm not sure I want to pay anything. If we were in a high interest rate environment where I was paying 8-10%, then any reduction in the Capitalized Cost would make cents. I'm into ROI, so will consider the MSD. Again, an accountant thing. Personally, I hate leasing anything--I like to buy outright, but that is a personal feeling, not a business decision--if you know what I mean.
 

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To OP, what is RV% of this 750i? In general my preference usually is cash deal, but if the BMWFS sales support lease rate and RV are favorable(e.g. 3%, 65% for 15k/yr 36 months) then lease is a viable alternative.

How was your experience on the 2009 750i, e.g. is the resale good, and is there any repair beyond warranty? If the model is typically unreliable with accumulated miles, and/or the resale drops significantly, then leasing can be good.

As far as ROI of MSD, do note that MSD by definition can be forfeited, so the ROI analysis assumes sufficient cash buffer such that the forfeiting is a non-event. :)
 

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Freedom isn't free!!
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19,791 Posts
I'm looking at MSD's now. Not sure it makes much sense, but will run it by my accountant. As for rolling taxes in or out, at 3%-ish, I'm not sure I want to pay anything. If we were in a high interest rate environment where I was paying 8-10%, then any reduction in the Capitalized Cost would make cents. I'm into ROI, so will consider the MSD. Again, an accountant thing. Personally, I hate leasing anything--I like to buy outright, but that is a personal feeling, not a business decision--if you know what I mean.
I did a little math. Given the numbers in your original post doing 7 MSDs totaling $10,500 ($1,500 x 7) would save about $93/month on the payment. 0.00137 x 2,400 = 3.288% v 0.00088 x 2,400 = 2.112%. With an initial "investment" of $10,500 that saving equates to a 10.6% annual ROI.
 

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Freedom isn't free!!
Joined
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19,791 Posts
To OP, what is RV% of this 750i? In general my preference usually is cash deal, but if the BMWFS sales support lease rate and RV are favorable(e.g. 3%, 65% for 15k/yr 36 months) then lease is a viable alternative.

How was your experience on the 2009 750i, e.g. is the resale good, and is there any repair beyond warranty? If the model is typically unreliable with accumulated miles, and/or the resale drops significantly, then leasing can be good.

As far as ROI of MSD, do note that MSD by definition can be forfeited, so the ROI analysis assumes sufficient cash buffer such that the forfeiting is a non-event. :)
I'm pretty sure he's leasing because he can write off the expense as a business expense.

The only way MSDs could be forfeited (short of BMWFS going belly-up) would be if the car was returned in horrible shape or he decided to stop making his lease payments.
 

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Munchen bound
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1,205 Posts
Discussion Starter #11
To OP, what is RV% of this 750i? In general my preference usually is cash deal, but if the BMWFS sales support lease rate and RV are favorable(e.g. 3%, 65% for 15k/yr 36 months) then lease is a viable alternative.

How was your experience on the 2009 750i, e.g. is the resale good, and is there any repair beyond warranty? If the model is typically unreliable with accumulated miles, and/or the resale drops significantly, then leasing can be good.

As far as ROI of MSD, do note that MSD by definition can be forfeited, so the ROI analysis assumes sufficient cash buffer such that the forfeiting is a non-event. :)
I paid cash for the 09, against my accountant's advice. I didn't care until he showed me what a difference it would make in my taxes--that got my attention. My 09 was very reliable, and I sold her for cash, as accountant requested. Good point on forfeiture. When interest rates are this low, using my cash for depreciating assets is a poor idea, however; I hate debt. I'm learning to play the tax game, I suppose, reluctantly.
 

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Munchen bound
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1,205 Posts
Discussion Starter #12
I did a little math. Given the numbers in your original post doing 7 MSDs totaling $10,500 ($1,500 x 7) would save about $93/month on the payment. 0.00137 x 2,400 = 3.288% v 0.00088 x 2,400 = 2.112%. With an initial "investment" of $10,500 that saving equates to a 10.6% annual ROI.
EMAIL SENT!

Great point. Your input is greatly appreciated. Thank you.
 
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