[itsTwigs]

I'm interested in getting the xDrive G80 when it drops (I'm military so I need the AWD due to constant unknown future base location weather) but I don't know if I want to lease or finance. It seems as if most people on this forum lease, and I'd like general advice as to why because I'm considering it for the first time.

I love cars. My problem is not being able to stick with them long term. I've had five in three years (F82 stock crank hub death, e92 rear ended at a stop light) and I always seem to have my eye on the new hotness within my budget. I can accept/afford a car payment forever. I do not aspire to ever have a paid off car because I get tired of them after about two years. Not worth it in my opinion. I also don't modify my cars much (wheels, suspension, and exterior goodies) so I figured I should deep dive. The only possible issue I foresee is I like to daily my cars (miles).

Thoughts?

[Transfer]

There are a LOT of things to consider with lease vs buy/finance although you may get a handful of people who think lease is never the right choice. Make sure you take the time to really understand the complexities of a lease because part of their design is to confuse the consumer and get you paying more than you should. If you know how they work and the terms of a lease you might sign, you can come out on top vs finance if you want something new every three years.

I now lease because I want something different every three years, I don't drive crazy miles, and I also don't mod anymore. Another reason is in my state I pay taxes on leased portion only, and our sales tax is a very significant 10%. If you're in a state that leases must pay full tax on total cost of car, I'm not convinced that a lease works unless it can be a business write off. There is so much to discuss on this topic that you just have to educate yourself.

For G80, leases sound like they will land in $1100-1200/month range early on. This is really bad for an M3 and I would hope the residuals and incentives are better 6-8 months from launch. Most of us are used to leasing $70-80k BMWs at about $800/mo with some getting down to $700/mo. Maybe these days are gone, but pretty difficult to accept hundreds of dollars more per month (up to 50%?!) on a similarly priced car.

[Bimmr7]

Buy!!!

[Bimmr7]

Originally Posted by Jimmyraww

I'm interested in getting the xDrive G80 when it drops (I'm military so I need the AWD due to constant unknown future base location weather) but I don't know if I want to lease or finance. It seems as if most people on this forum lease, and I'd like general advice as to why because I'm considering it for the first time.

I love cars. My problem is not being able to stick with them long term. I've had five in three years (F82 stock crank hub death, e92 rear ended at a stop light) and I always seem to have my eye on the new hotness within my budget. I can accept/afford a car payment forever. I do not aspire to ever have a paid off car because I get tired of them after about two years. Not worth it in my opinion. I also don't modify my cars much (wheels, suspension, and exterior goodies) so I figured I should deep dive. The only possible issue I foresee is I like to daily my cars (miles).
Thoughts?

Are you currently stationed overseas? If so we get a no hassle 10% discount direct from the factory. In addition, each option and/or package is also discounted at 10%. My total build for a M3 Competition, IOMG, Carbon Fiber Trim, Exec Pkg, and parking assistance with discount was $70,590 with delivery. Total discount was $7,810.

[itsTwigs]

Originally Posted by Bimmr7

Are you currently stationed overseas? If so we get a no hassle 10% discount direct from the factory. In addition, each option and/or package is also discounted at 10%. My total build for a M3 Competition, IOMG, Carbon Fiber Trim, Exec Pkg, and parking assistance with discount was $70,590 with delivery. Total discount was $7,810.

Currently in Florida but I will remember that. Thank you.

[LOW4LYF]

Originally Posted by Transfer

There are a LOT of things to consider with lease vs buy/finance although you may get a handful of people who think lease is never the right choice. Make sure you take the time to really understand the complexities of a lease because part of their design is to confuse the consumer and get you paying more than you should. If you know how they work and the terms of a lease you might sign, you can come out on top vs finance if you want something new every three years.

I now lease because I want something different every three years, I don't drive crazy miles, and I also don't mod anymore. Another reason is in my state I pay taxes on leased portion only, and our sales tax is a very significant 10%. If you're in a state that leases must pay full tax on total cost of car, I'm not convinced that a lease works unless it can be a business write off. There is so much to discuss on this topic that you just have to educate yourself.

For G80, leases sound like they will land in $1100-1200/month range early on. This is really bad for an M3 and I would hope the residuals and incentives are better 6-8 months from launch. Most of us are used to leasing $70-80k BMWs at about $800/mo with some getting down to $700/mo. Maybe these days are gone, but pretty difficult to accept hundreds of dollars more per month (up to 50%?!) on a similarly priced car.

There is no way to lease any M car for 1% with zero down...

80K for 800$... never. Yes I know about the CS but the CS was never meant to be for lease and got tons of trunk money after sitting on the parking lots forever.

This is what we currently see is similar what we saw over the years with AUDI RS and Mercedes AMG.

Btw... There are currently couple G8X for lease less than 1k/Month.

[Transfer]

Originally Posted by LOW4LYF

There is no way to lease any M car for 1% with zero down...

80K for 800$... never. Yes I know about the CS but the CS was never meant to be for lease and got tons of trunk money after sitting on the parking lots forever.

This is what we currently see is similar what we saw over the years with AUDI RS and Mercedes AMG.

Btw... There are currently couple G8X for lease less than 1k/Month.

Hate to break it to you but yes. My $80k MSRP X3M Comp is $790/mo before taxes, $0 down. Many people did better with F80. There are even some F90 under $1k. Incentives and discounts get you there with 10%+ off before incentives common once these cars are out for a year.

[LOW4LYF]

Originally Posted by Transfer

Hate to break it to you but yes. My $80k MSRP X3M Comp is $790/mo before taxes, $0 down. Many people did better with F80. There are even some F90 under $1k. Incentives and discounts get you there with 10%+ off before incentives common once these cars are out for a year.

How many MSD, 7???

I was talking with Tax rolling in the monthly payments and new released vehicle, no MSD.
Not talking about discontinued cars, cars close the LCI or any other cars sitting on the Lot like some M8.

Here is a great overview....

https://docs.google.com/spreadsheets...t?usp=drivesdk

[frankiebones]

Never buy a depreciating asset.

[Transfer]

Originally Posted by LOW4LYF

How many MSD, 7???

I was talking with Tax rolling in the monthly payments and new released vehicle, no MSD.
Not talking about discontinued cars, cars close the LCI or any other cars sitting on the Lot like some M8.

Here is a great overview....

https://docs.google.com/spreadsheets...t?usp=drivesdk

No MSDs. There are some crazy lease deals out there including on M cars but it's all about timing and incentives. Currently it sounds like there are no great deals other than M8.

[josehb]

Originally Posted by Transfer

No MSDs. There are some crazy lease deals out there including on M cars but it's all about timing and incentives. Currently it sounds like there are no great deals other than M8.

If you are willing to buy and keep for 5 years or more than buying is much better than leasing, and if you only drive like 5000 miles or less per year you definitively want to buy. A 3 year old car with less than 15,000 mile will not depreciate that much. I've done the math 4 times on my last 4 cars and never was the lease a better option.

if you can write off the payments than yes you lease and if you like a new car every 2 to 3 years and don't care about saving a few bucks than you lease.

[dmk08]

Originally Posted by LOW4LYF

How many MSD, 7???

I was talking with Tax rolling in the monthly payments and new released vehicle, no MSD.
Not talking about discontinued cars, cars close the LCI or any other cars sitting on the Lot like some M8.

Here is a great overview....

https://docs.google.com/spreadsheets...t?usp=drivesdk

Dont worry it wont take long for the G80 to be highly discounted. Its not highly desired.

OP I would lease.

[snareman]

I also always want the new fancy stuff and with the lower payments I've always leased. However, I'm considering buying this time around with future looking logic.

It looks like a 0 down lease payment is going to me $1100-1200/month. I just sold my M4 for $15k over what I owed. If I put that plus some extra on a downpayment to purchase the new car I can get the payments well under 1k.

Using this calculator, after a 'usual 3 year lease period' I'll only owe ~$20k on the car which, although selling is certainly more of a hassle than just dropping it back off at the dealer, gives me a nice profit and down payment on the next car. The gift that keeps on giving. Granted you need the money for a decent down payment for this to work well.
https://www.amortization-calc.com/au...an-calculator/

[josehb]

Originally Posted by frankiebones

Never buy a depreciating asset.

Not always true when it comes to cars that don't depreciate as much as the average car and especially with low miles.

[frankiebones]

Originally Posted by josehb

Not always true when it comes to cars that don't depreciate as much as the average car and especially with low miles.

You don't know that. You have no idea what you're going to end up getting for a car upon the time of sale. Your cost of ownership is a total unknown when purchasing. With a lease, there is a reduction in risk AND you are aware of your worst case scenario.

[josehb]

Originally Posted by frankiebones

You don't know that. You have no idea what you're going to end up getting for a car upon the time of sale. Your cost of ownership is a total unknown when purchasing. With a lease, there is a reduction in risk AND you are aware of your worst case scenario.

I purchased a 2010 528xi for 47,000 with 15,000 down and finance the rest at 1.9 % in Oct 2009 sold it Nov 2020 for $9,500. with 95,000 miles in excellent condition and this is one of the cars that depreciate a lot. My cost of ownership was basically the cost of changing oil and brake pads for 11 years which you need to do even if you lease and the car felt as it did when it was new. If I had lease this same car model for the 11 years my total cost would have been Just under 95,000, but my actual cost was only $52,000(inclu tax and interest) -9500 = $42,500 so I saved over $55,000 in 11 years, there is not one good enough reason to lease a car if you care about saving in the long run.

[wtwo3]

Originally Posted by josehb

I purchased a 2010 528xi for 47,000 with 15,000 down and finance the rest at 1.9 % in Oct 2009 sold it Nov 2020 for $9,500. with 95,000 miles in excellent condition and this is one of the cars that depreciate a lot. My cost of ownership was basically the cost of changing oil and brake pads for 11 years which you need to do even if you lease and the car felt as it did when it was new. If I had lease this same car model for the 11 years my total cost would have been Just under 95,000, but my actual cost was only $52,000(inclu tax and interest) -9500 = $42,500 so I saved over $55,000 in 11 years, there is not one good enough reason to lease a car if you care about saving in the long run.

To be fair, you wouldn't have leased anything for 10+ years. Leases are typically 3 years long. So within that time span you would have had 3 brand new cars compared to your 1 car.

Nobody is arguing that long term cost of ownership is justified through lease (and if they are, they don't know how this works). To get a true apples to apples comparison, try buying a new 5 series every 3 years and reselling it... and compare that to leasing a new one every 3 years. In MOST situations, your cost of ownership of leasing will be significantly lower (as long as BMW continues offering strong lease support), not to mention the offset of risk.

What would have happened to your resale value within that time period if you got into an accident? With a lease, your residual is set in stone, accident or not. Same goes for catastrophic maintenance issues. Just because you didn't experience that doesn't mean they don't happen.

I'm not arguing for one method or the other, but your example is unfairly comparing cost of ownership. Ultimately the lease vs. buy decision depends on many factors - personal situation/preferences, the type of car (some cars don't depreciate as quickly and even short term ownership favors purchasing rather than leasing), etc.

With the G80, it's too new to truly understand what resale value will be after 3 years. And if OP has a habit of changing cars frequently, then leasing may be the way to go, at least initially, to hedge against a potentially bad resale value if take rates for these cars is low. Only time will tell.

[josehb]

Originally Posted by wtwo3

To be fair, you wouldn't have leased anything for 10+ years. Leases are typically 3 years long. So within that time span you would have had 3 brand new cars compared to your 1 car.

Nobody is arguing that long term cost of ownership is justified through lease (and if they are, they don't know how this works). To get a true apples to apples comparison, try buying a new 5 series every 3 years and reselling it... and compare that to leasing a new one every 3 years. In MOST situations, your cost of ownership of leasing will be significantly lower (as long as BMW continues offering strong lease support), not to mention the offset of risk.

What would have happened to your resale value within that time period if you got into an accident? With a lease, your residual is set in stone, accident or not. Same goes for catastrophic maintenance issues. Just because you didn't experience that doesn't mean they don't happen.

I'm not arguing for one method or the other, but your example is unfairly comparing cost of ownership. Ultimately the lease vs. buy decision depends on many factors - personal situation/preferences, the type of car (some cars don't depreciate as quickly and even short term ownership favors purchasing rather than leasing), etc.

With the G80, it's too new to truly understand what resale value will be after 3 years. And if OP has a habit of changing cars frequently, then leasing may be the way to go, at least initially, to hedge against a potentially bad resale value if take rates for these cars is low. Only time will tell.

I like the point you make in regards to the 3 year lease vs 3 year buying and selling but for the most cases if you buy is to keep it for at least 5 years where it becomes more desirable to buy. Another case is if you only put about 3 thousand miles a year on the car because a car with 9 k miles will loose much less value compare with the typical depreciation so in this case is better to buy and then sell after 3 years and and I do know a few retired people who do this which is crazy.

[wtwo3]

Originally Posted by josehb

I like the point you make in regards to the 3 year lease vs 3 year buying and selling but for the most cases if you buy is to keep it for at least 5 years where it becomes more desirable to buy. Another case is if you only put about 3 thousand miles a year on the car because a car with 9 k miles will loose much less value compare with the typical depreciation so in this case is better to buy and then sell after 3 years and and I do know a few retired people who do this which is crazy.

Yup so this goes back to - "it depends" - in regards to which is better, leasing or buying.

In the OP's case, sounds like he goes through many cars in a short period of time, but also puts a decent amount of miles on the cars since he daily drives them. So leasing may be the better option in this situation.

[MrSmileyDC]

You can always buy out or sell a lease before your term is up. Some folks who end up with low mileage at the end of the lease have a car worth more than the residual.

[MugenNeuspeed]

Lease since you always like to change it up. Also if your car gets hit, you aren't stuck with it.

[vj123]

Someone or a bot just revived a thread which is more than two years old.