I just bought a 08 X5 4., am new to board, and looked closely at the lease vs buy siutation. I got a $65220 for $59300, just a little below inv incl destination. Tech, running boards, IPOD, Nav.... I took the lease over the purchase. (tax on lease 9%, Purchase 6% where i live..I know its crazy).got 36 mos 15k miles BUT MF of .00175 (NOT .002) and 55% residual.I put down 7x security deposits and got monthly to $840.25. I also paid $189 in tag fees and $795 acq fees as upfronts. I am not a former BWMFS client and this is my first BMW. I believe the MF was bought down by the dealership possibly.

For a purchase at .9% on a car over 60 months worth more than $60k+taxes, assuming upfronts paid in advance alsi, then It would be $1050 x 60 months.

Ok, I said is there enough equity generated per month at a rate of approximatly $200/mo, $7200 at 3 yrs and $14,000 at 72 months MINUS whatever the extended warranty would cost for bumper to bumper coverage past 4 yrs ($3k?), MINUS the cost of noncovered maintenencs includigin the 60K service? I figure that would be $14k-3k-2k or $9,000 in equity left over. Is doubtful that the car would be worth more than 14k at the end of 7yrs =residual of 21% in a world where hybrid SUVs wil rule in 2014.

It was then clear that you should NOT pay the extra $200/month as you would put an extra $14k down for aSUV worth far less in 6 yrs. The same holds true at 3 yrs as its is doubtful that the X5 will be worth 55% of MSRP with the hybrids and BMW diesels coming next year

So in end I leased it. Saved $200 month vs buying and will be ready in 3 yrs for a more fuel effecient new SUV.

Brandon