[MunkyTool]

Originally Posted by Gfit

They eliminated 3rd party buyouts like just about all finance companies but I've had good luck finding BMW dealers that will buy it out early and pocket $6k in equity.

I keep hearing / seeing people say they eliminated 3rd part buyouts but I also keep seeing people do 3rd party buyouts. My CA says you still can too. Do you have a source?

[DocWeatherington]

Originally Posted by Draper

I couldn't remember if it was 925 or 975...so thanks. .0005 MF markup is equal to 1.2%, so IMHO no one should be doing this.

The F8x leases were in the $800 range which was an obvious slam dunk, the numbers are just not as sexy with the G8x.

Originally Posted by forcefed

My idea of a good rate is 0% 😂

Yeah the market was different as well as the price of the F80 vs G80.



Yeah 0% is long gone... I have a bank on lock for 1.99

[jmg]

Originally Posted by F8SEVEN

Didn't BMW change the lease terms (like everyone else) when covid happened and values skyrocketed to prevent people from doing this?

You can still sell the car yourself to anyone you want, but you have to buy out the lease yourself, which means you pay sales tax. 3rd party buyouts eliminates sales tax, but BMW will only allow BMW Dealerships or the leaser to buy the leases out. Still, BMW Dealerships are willing to pay more than the residual, and many, including myself, have pocketed some $$ selling to the dealership rather than lease returning.

Originally Posted by stevethegopher

I've never done a lease before, can you explain this a bit more? How does the "if the car is worth more" case work?

When you lease, you are paying the depreciation (plus tax, fees etc...). The bank sets the residual value.

MSRP = $100k
Selling Price = $90k
Residual Value = 0.57 = $57k
Selling price - Residual Value = Depreciation
$100k-$57k=$33k.

Your lease payment will be something like this, (lets just ignore tax, MF, fees etc for simplicity):
$33k/36 months = $916/mo lease payment

Lets say, at the end of 36 months, the value of the car in the secondary market is actually $65k, much like it has been due to the pandemic. Your bank predicted $57k, which is the balance on the lease. You can either:

a) return the car to BMW, and wash your hands.
b) sell the car to a BMW dealership for $65k. They will pay off the $57k balance, and you get to keep the $8k.

On the flip side, let's say the economy collapses, and your car is only worth $50k at the end of the lease. You can still return your car to BMW, and you've only paid $33k of depreciation. If you had bought the car, even in cash, and sold it that day, you would paid $57-$50k=$7k more than if you would have leased it. In reality, we would have to consider money factor (interest) and fees, but these are the broad strokes.

Originally Posted by Draper

The downside to this is you are paying ~6% plus an extra $975 acquisition fee (and a $350 disposition fee if you turn it in). This could be an extra $4-6K over 3 years.

I just have a hard time believing values are going to fall off a cliff and sink below the current residuals, which are currently in the mid-50s.

Leasing is not the cheapest way to drive a car. But it is the easiest, and most protected way, of driving a NEW car every 36 months provided the terms are right.

Originally Posted by Draper

Right. They waive the disposition if you lease (or buy?) another car...but pretty sure you pay a new acquisition with every lease regardless.

Even without the fees, the APR equivalent of the MF is not favorable.

Correct, it depends on the terms.

Originally Posted by Draper

I couldn't remember if it was 925 or 975...so thanks. .0005 MF markup is equal to 1.2%, so IMHO no one should be doing this.

The F8x leases were in the $800 range which was an obvious slam dunk, the numbers are just not as sexy with the G8x.

It's much harder now, for sure. The only reason I still lease is because the market is very unpredictable, and leasing locks in the residual. So I am willing to pay a bit more to wash my hands in 36 months. Case in point, G8X are still going for big money used right now. I'm sure I could either walk away or pocket some $ if I had a dealership buy my lease out.

[DocWeatherington]

Originally Posted by MunkyTool

I keep hearing / seeing people say they eliminated 3rd part buyouts but I also keep seeing people do 3rd party buyouts. My CA says you still can too. Do you have a source?

It has fo be a 3rd party that is part of a network that sells/leasds Bmw new.

[Gfit]

Originally Posted by MunkyTool

I keep hearing / seeing people say they eliminated 3rd part buyouts but I also keep seeing people do 3rd party buyouts. My CA says you still can too. Do you have a source?

Here is one source. I don't think they actually changed the lease agreement since they have always owned leased cars they just decided that they no longer want to accommodate third party buyouts.

https://www.carscoops.com/2022/01/bm...ta-dealer/amp/

[Lakeside]

Originally Posted by DocWeatherington

Yeah the market was different as well as the price of the F80 vs G80.



Yeah 0% is long gone... I have a bank on lock for 1.99

How longs are bank locks right now? I locked with my dealer, but I'm more than double that. I plan to look at credit unions but I likely don't see my car until January at best.

[Gfit]

Originally Posted by Lakeside

How longs are bank locks right now? I locked with my dealer, but I'm more than double that. I plan to look at credit unions but I likely don't see my car until January at best.

I've seen different answers on this question but I ordered a 23 X3M for my wife in august from a PA dealer and my CA (20 years experience) told me 120 days. Not concerned as car being built now.

[DocWeatherington]

Originally Posted by MunkyTool

I keep hearing / seeing people say they eliminated 3rd part buyouts but I also keep seeing people do 3rd party buyouts. My CA says you still can too. Do you have a source?

It has to be a 3rd party that is part of a network that sells Bmw new...

[DocWeatherington]

Originally Posted by Lakeside

How longs are bank locks right now? I locked with my dealer, but I'm more than double that. I plan to look at credit unions but I likely don't see my car until January at best.

You got I call the bank... Some will let you get the loan and pay for the car while in transit but you have to have a vin assigned and the dealership has to do the purchase order.

Some have 30 days. I think BMW FS is doing up to 120 locks.

Going to have to call and ask around as some banks will do a maintenance and just issue a blank check per say but you may have to make a monthly payment.

[Aalfred]

Was going to do 50% down and then 50% finance at the local credit union and pay off in a yr. With the current stock market, tempted to put all that money in but hate to have monthly payments...lol

[Gfit]

Originally Posted by Aalfred

Was going to do 50% down and then 50% finance at the local credit union and pay off in a yr. With the current stock market, tempted to put all that money in but hate to have monthly payments...lol

I look at it this way. You either pay for all your monthly payments up front or pay per month as you use the car and it depreciates.

[BMW1983]

Credit union. 2.29% 60 months

15% down.

Locked x 60 days

[Aalfred]

Originally Posted by Gfit

I look at it this way. You either pay for all your monthly payments up front or pay per month as you use the car and it depreciates.

I think if I put 100K upfront on a car that is worth 50K in 3 yrs, Id lose more money than say 50K in stock say 8% return, which should atleast give me 12K in 3 years (simple interest) but can make more. So the pain of the car depreciating by 50K in 3 yrs is less....just another way of rationalizing.

If you do 90K in stock and finance at 3% for the remaining amount, you will still come out on top at 13.5K return (assuming 8%) than having to pay all cash upfront.

[Gfit]

Originally Posted by Aalfred

I think if I put 100K upfront on a car that is worth 50K in 3 yrs, Id lose more money than say 50K in stock say 8% return, which should atleast give me 12K in 3 years (simple interest) but can make more. So the pain of the car depreciating by 50K in 3 yrs is less....just another way of rationalizing.

If you do 90K in stock and finance at 3% for the remaining amount, you will still come out on top at 13.5K return (assuming 8%) than having to pay all cash upfront.

Oh I agree but people have such strong feelings either way that I wouldn't want to tell someone what to do with their money. I keep a good part of my "cash" in a stock with an 8% dividend yield so that works for me.

[dct203]

Originally Posted by Aalfred

Was going to do 50% down and then 50% finance at the local credit union and pay off in a yr. With the current stock market, tempted to put all that money in but hate to have monthly payments...lol

Putting in 100k into the market at the current levels will net you a lot more than current rates after 5-7 years or however long you'd finance lol

[Lakeside]

Originally Posted by DocWeatherington

You got I call the bank... Some will let you get the loan and pay for the car while in transit but you have to have a vin assigned and the dealership has to do the purchase order.

Some have 30 days. I think BMW FS is doing up to 120 locks.

Going to have to call and ask around as some banks will do a maintenance and just issue a blank check per say but you may have to make a monthly payment.

Oh yeah I’ll definitely be working the phones and emails, etc. I’m just not far enough into the process to lock anything but BMW Financial.

[Bimmer07]

Originally Posted by BMW1983

Credit union. 2.29% 60 months

15% down.

Locked x 60 days

Which one?

[PatientM]

Originally Posted by BMW1983

Credit union. 2.29% 60 months

15% down.

Locked x 60 days

yes which one ? please do share

[BMW1983]

Originally Posted by Bimmer07

Which one?

AMPLIFY.

Located in Austin TX. Need to be a Texas resident.

[bimmerfanpk2020]

Do any of y'all recommend BMW select? Last year dec 2021 it was great at 1.9% now BMW select is 5.29%. I'd rather finance at 72 with 3% from BOA. Any good credit unions in Florida to use?

[DocWeatherington]

Originally Posted by bimmerfanpk2020

Do any of y'all recommend BMW select? Last year dec 2021 it was great at 1.9% now BMW select is 5.29%. I'd rather finance at 72 with 3% from BOA. Any good credit unions in Florida to use?

Have to run the math... Select has a balloon so if you don't plan on keeping the car long term it maybe a good option without the cons or pros of a lease.

I think with select your still responsible for full taxes but your monthly maybe less than a 72 as its a portion of the full value.

However you need to not focus totally on payment but net cost in both cases.

[bimmerfanpk2020]

Originally Posted by DocWeatherington

Have to run the math... Select has a balloon so if you don't plan on keeping the car long term it maybe a good option without the cons or pros of a lease.

I think with select your still responsible for full taxes but your monthly maybe less than a 72 as its a portion of the full value.

However you need to not focus totally on payment but net cost in both cases.

Exactly. Bmw select ends up being 150-200 less than a 72 month finance. Which I do not believe is justified on a car like this. I do not intend to pay the car off (most likely trade in or sell after 3 years). Bmw select at 5.29 comes out to about $1180 vs a 3% 72 month comes out to $1300. Much more interest on the select I feel