Local dealer sells X5M for +$6k Adjusted Market Value

[Rboosted717]

Originally Posted by B-Line

AGAIN, if you put that much mileage on your car, the car is going to have the same value at the end of three years regardless if you lease it or buy it.
- You pay for what you drive, EITHER WAY.

And you must factor other variables like, actually being able to sell the car at private party value. Most people sell their cars for $2000-$25000 "back of blue book".. Which means wholesale. And even if you get above wholesale, you'll still be at the same price, dollar to dollar, after lease residual.

Your car will not be worth MORE cause you owned it rather than leased it. Matter of fact, it will be worth less cause the value of your car will be determined by the deals BMW is giving to move the X5M's in 3 years.

Do you know what the current value of a 2008 M5 is? Dealers still have em brand new on lots.. YOu know what that does to a used car residual?

At least with a lease your protected from the swings..

And if you factor in the tax value, even at 8.25%, you're still talking about a $4k swing.

No offense, and the only difference in interest rate is 1% between money factor and finance charges..

Again, you are going to assume those costs either way... So, here is how you fix it.

1) Don't option the car to the gills. There is $10k worth of garbage.
2) Don't buy now, wait till you can get a nice discount and buy the car in the high $80k range.

You won't get any.. and I mean ANY value for those options you are going to buy instead of lease.. Your pissing money away. ANd your residual will actually be lower if you finance than if you buy... Cause no one will pay for your options.

I think we're trying to make the same point.
I understand that options, etc... will not be repaid. My original point was the high money factor. Its high no matter how you look at it and I bet they will lower it pending market and sales/demand conditions.

As you stated, BMW has a mess on their hands with the M5 as does MB with the AMG cars, hence why residuals are much different now then before.

I think we all agree that the wait and see approach is the best bet right now. Yet who knows, I'm pretty confident my dealer will get creative once my order is built and delivered. If not, they can enjoy having a 100k X5M on the showroom floor.