leasing not good value ?

320 · #1 10-27-2007, 01:18 PM

see if you can find error in my calculations as i usually lease but now looking to buy as lease seems "expensive". the lease money factor on X5 equates to 6.5% for 2008 and i can obtain loan for for 6.5% also.

lease is $750 bank fee and $350 turn in fee (if you don't re-lease). buy has no fee.

in 3 years residual on lease is 60% and if you buy and "sell" car in 3 years trade in value is around 60%.

lease payments are basically same as taking out a 7.5 year loan so in 3 years even with no down payment on either you are basically at the same residual or loan balance and monthly payments would be same.

the only lease advantage i see if that you are certain in 3 years you can walk away relatively pain free - whereas if you buy you may need to negociate on trade in value or sell it yourself.

leasing was good when money factor was low but now it seems buying is a better value and gives more options....comments ?

Monty04 · #2 10-27-2007, 01:33 PM

My CA said that the new body style and the shortage of new vehicles are making the 2008 X5 very hot. For that reason, BMW Financial Services is keeping the MF artifically high.

320, what were you quoted for a MF? I was quoted .00295 wich is outrageous. It looks like you got a residual value percentage of 60%. My CA quoted 58%.

TROPICSX5 · #3 10-27-2007, 01:43 PM

You are at the beggining of the model year and X5's are in demand. Current leasing rates run till Oct. 31. Then will we see what is offered next 2 months. If you can wait till January you will probaly get better MF . I leased my Z4 in Jan 07 and got .00125 mf. Just my opinion and no quarantee. For entertainment purpose only what is posted on the internet

Pick you CA's brains. Everybody ordering X5's , CA is order takers and no need to sell.

320 · #4 10-27-2007, 03:48 PM

MF .0027 and residual of 60%

320 · #5 10-27-2007, 03:49 PM

so unless you get a great money factor that is significantly less than financing it seems that even a long term loan would be a better option. also sales were down 12% for X3/X5's in september versus 2006 so unless the X3 is really off last year it would seem the new model is in sophomore blues.