Xoutpost.com - Question about 08 3.0 & premium package discount?

Quote:

Originally Posted by bchan

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

Well I would disagree on that it will only be worth $14K after 7 years on what was a $65K BMW no matter what economy. My '01 e53 3.0 I bought new for $48K is 7.5 years old now and could sell for $14K easy. Also, the 60K mile service won't be $2K (if I'm reading your math right). And Hybrids are more expensive than gas models and diesel is more expensive than gas in most parts of the country so gas models will still rule the majority I would say even in 2014. You forgot to also factor in after 3 years you will then have another payment on another vehicle whereas on the 5 year purchase you will have $12K in payment savings on that 6th year of your 2nd leased car (36 month lease each). But, everybody has their own reasons to purchase vs. lease.