Need Advice

[somewhereinla]

Just talk to my BMW dealer (bought 2 cars from him) about an X5 4.4
Since the new model is coming out next year he recomended me to lease the car, he also told me that they had bmw had specials right now bla,bla,bla... Here is what he is offering :
4.4 loaded (sticker is 63.535) for S5000 down and $647 a month including taxes, registration etc... for 39 month.

I have never leased, and I am not sure about it (as you probably know if you have read some of the post on leasing vs buying) but I don't want to pass up a good deals if indeed it is one... He is also saying that the residulal value on more expensive luxury cars with bigger engines is ususally not as good as six cylender engine luxury cars. I would like to make a decision by saturday morning.

I have my own company, how would it work as far as taxes?

[ML320]

Here is a simple way I look at it.
5000+647x39=30233 after 3 years. You are 30K out from your pocket. or 10k/ year to drive the brand new UDM.
Now if you buy it out right. Let's say 60k for your cost. At the end of 3 years, how much will you get if you decide to sell it? I would think you can at least sell it for 30k PLUS or even 40k for a 3 year old sav.
The thing is BMW hold better value than most others. Now, if it's a ML, I would lease cause if drop it's value so fast.

[diogenes!]

Originally Posted by somewhereinla

I have my own company, how would it work as far as taxes?

I generally don't like leases, but your situation is the one instance where it prob'ly makes sense to lease. Check with your tax advisor, but if you lease the car as a business vehicle, I'm pretty sure that you can expense the entire cost of the lease vs. having to depreciate it if you buy.

If you do go that route(using the car as a business expense), check with your insurance agent to be sure that you won't have any problems with exclusions for "commercial" vehicles.

Patrick

[Thunder22]

That's a GREAT lease deal assuming you're not putting ANYTHING down, no trade in, no cap cost reduction etc. If you're trading anything in or giving them any cash you're getting ripped off. What's the money factor (i.e. financing %?) and how many miles a year?

[somewhereinla]

it's 12 k miles/year and the $5000 include 1st month, registration deposit etc... I am also looking at 2004 cpo (4.4) with sport/premium/19 wheels/premium sound for $48k asking price. (no nav/no blue tooth, so that would have to be my 1st mod).
I just lost unexpectedly a very big contract(client not doing well), so I want to avoid buying new as I won't bringing in money for a while. I'll be trading my Z4.

[Thunder22]

Originally Posted by somewhereinla

it's 12 k miles/year and the $5000 include 1st month, registration deposit etc... I am also looking at 2004 cpo (4.4) with sport/premium/19 wheels/premium sound for $48k asking price. (no nav/no blue tooth, so that would have to be my 1st mod).
I just lost unexpectedly a very big contract(client not doing well), so I want to avoid buying new as I won't bringing in money for a while. I'll be trading my Z4.

I'm not trying to be harsh here, but that's a shitty lease if you're trading in your Z AND giving them $5000. The monthly lease on my '04 4.4i (everything but premium sound and nav 10k miles/year) before tax is $680 and i put nothing down, not even the tax (rolled that in, which brought the payments to like $718 month). I would walk away from that lease.

Do you want to take over the lease on my X? I'm putting it on swapalease this weekend, pm me if you want the details. (and no, my opinions on your deal have nothing to do with my car )

[bozo]

Originally Posted by ML320

Here is a simple way I look at it.
5000+647x39=30233 after 3 years. You are 30K out from your pocket. or 10k/ year to drive the brand new UDM.
Now if you buy it out right. Let's say 60k for your cost. At the end of 3 years, how much will you get if you decide to sell it? I would think you can at least sell it for 30k PLUS or even 40k for a 3 year old sav.
The thing is BMW hold better value than most others. Now, if it's a ML, I would lease cause if drop it's value so fast.

Amen to ALL of that! Im not sure how leases work, but if you sell within 2 years, and you know how to advertise, The loot goes right back in your pocket..Ive never sold a BMW (2 E46's and now the X), within 2 years and not made a PROFIT on my cars..Not broke even, PROFIT. Take care of them, keep 'em clean and you make out. No probs. People dont like dealing with dealers...

As mentioned in my other posts, Ive had my X for a year, bought for 37,450. I put it on the market yesterday for 42,500 and have had 2 offers for 42 even. I told them both to go to hell. Ive got time, and the Zaino keeps 'em comin. Now Ill buy my E90 next month for 31,000 and sell it next spring for 34 even. Just make sure you think about it before you jump in...

X5 = second highest resale PERIOD behind the Sequoia baby!!

[somewhereinla]

I agree which is why i have never leased before, but i thought I would asked you guys for suggestions before I made up my ming. It didn't sound like a very good deal but I wanted to make sure. Thanks.

[bozo]

Im sure there is SOME good out of it, but Im not familiar with the "binding" rules of a lease...One of the more knowledgeable dudes on this board will hook you up Im sure...

[Thunder22]

Originally Posted by bozo5521

Im sure there is SOME good out of it, but Im not familiar with the "binding" rules of a lease...One of the more knowledgeable dudes on this board will hook you up Im sure...

The major downside to a lease is that if you want to get out of it, you're responsible for the total of the monthly payments for the length of the lease. If you want to convert the lease to a purchase you're responsible for the total of the remaining monthly payment PLUS the residual.

That being said, you can transfer/assign the lease to someone else if they want it for a $450 transfer fee and they ahve to be approved by BMWFS Credit and you walk away.