It seems that most of the BMW ED owner to be are for leases - correct me if I am wrong. I am going for purchasing. Is it better to lease than purchase? I am begining to wonder if I am doing the right thing. I intend to puchase MY2007 ED 525i + some options and keep it for at least 4-5 years. I appreciate your constructive comments. :  |
| Reply » Lease or Not to Lease |
Quote: | It seems that most of the BMW ED owner to be are for leases - correct me if I am wrong. I am going for purchasing. Is it better to lease than purchase? I am begining to wonder if I am doing the right thing. I intend to puchase MY2007 ED 525i + some options and keep it for at least 4-5 years. I appreciate your constructive comments. : | Depends on the lease rates, sometimes they have crazy specials where you can get a 530i for 24 months doing ED for under 350/month.
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| Reply » Lease or Not to Lease |
Quote: | It seems that most of the BMW ED owner to be are for leases - correct me if I am wrong. I am going for purchasing. Is it better to lease than purchase? I am begining to wonder if I am doing the right thing. I intend to puchase MY2007 ED 525i + some options and keep it for at least 4-5 years. I appreciate your constructive comments. : | Leasing an ED car is attractive because the residual is based on full US MSRP while you're ED Deal is thousands below that.
Downside to doing ED leases is you lose 1-3 months use of your typical 36 month lease, although BMW FS pays for the 2nd month in exchange for a higher money factor surcharge(.0003)
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| Reply » Lease or Not to Lease |
In case of a lease the ED discount is amortized over the lease period. So if you go for a 24 month lease, the entire savings (say 10% of the US MSRP) is spread over a much shorter duration than the typical duration when buying. In December BMW had excellent lease rates (residual of 77% and low MF) which made 24 month leases very attractive. If you are getting 10% off the US sticker you are paying just 13% depreciation in 24 months!!
Since BMW CCA has rebates in place for ED, you can use the rebate money to subsidize your Euro trip. Throw in the 2 for 1 from LH and it becomes even sweeter. 
Plus if you have a new car on order, BMWFS will extend your current lease for another 2-6 months!
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| Reply » Lease or Not to Lease |
ED and leasing is really worth it if you want to drive in Europe and/or have a holiday at the same time. If you just go and pick up the car, then fly straight back, it is only marginally worth it. For purchasing, it is worth it.
Here is what I figure:
Savings
- Price on a 3er is about $2000 cheaper via ED - assuming $1000 over invoice for both deals. Adrian is doing $XXX deals over invoice.
Additional costs
- 2 months without car - say $900 in payments
- Airfare $550
- Hotel $100
- Airport Transfers $75
- Meals $100
The higher MF for ED is a wash with the payment paid by BMW FS. Of course, if you use points and miles for your travels, then monetary outlay is less, but those have worth as well, as well as your time out of the office.
Just my opinion. Of course, the more expensive the car, the better a deal. Then there's the wait...which may kill you.
Chris.
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| Reply » Lease or Not to Lease |
Quote: | In case of a lease the ED discount is amortized over the lease period. So if you go for a 24 month lease, the entire savings (say 10% of the US MSRP) is spread over a much shorter duration than the typical duration when buying. In December BMW had excellent lease rates (residual of 77% and low MF) which made 24 month leases very attractive. If you are getting 10% off the US sticker you are paying just 13% depreciation in 24 months!! | There's caveat to this... some states (like Virginia), you pay the full purchase tax (albeit 3.71%) on the lease at time of signing. So if you do 24 months, the tax is spread over a shorter period, and ends up costing more per month than the 36 month.
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Lease or Not to Lease