[dmann33]

40i

MSRP 94445
discount -2361
loyalty credit -1250

Net Price: 90833
lease origination 925
Doc fee 599
total taxes 3692

Balance $96049

Lease options for 36m/15k
RV is $52890 (56%), I don't recall the MF, but it has not changed for several months.

w/o MSD: $1570
w/MSDs: $1515
zero down

MSD is about 10850


Purchase:
60 months @2.99
$1725/month with $40K principle left after 36 months. Also, I would have paid an extra $5580 in payments vs the $1570 x 36.


I have never leased before, so the inflexibility is a concern. I have no idea if I would keep a purchase longer than 36 months, but 48 months might be a possibility.

I expect the actual RV after 36m and 45K is a little less than lease RV. Would that be a reasonable assumption? Would it be closer to 50%? If so, then we are looking at about $47K resale. So, with the with the $40k in remaining principle leaves about $7k equity. Take off the extra $5580 paid in higher payments and it still leaves a marginal amount of positive equity vs a lease.

It seems that the purchase may be slightly favorable or at least equal to the lease from a cost standpoint, but that is entirely dependent on the actual RV 36-48 months down the road.

Is my 50% at 36 months assumption fair?

Are there any errors in my logic?

What kind of difference between actual vs contract RV have ppl found with their X5s when coming off leases?

[Cabby]

The actual RV at the end of the lease is going to based almost completely on how far over or under you are on mileage, assuming you haven't treated it poorly throughout the course of the 36 months.

In general, buying a car out at the end of a lease in hopes of selling for a bit more to a private party is a bad idea, and certainly not worth the risk or hassle of going through that.

Also, that lease payment is very high, while 56% RV on 36/15k is pretty decent, the MF must be absolutely abysmal for a monthly that high. I would buy if I were in that situation.

[Penguino]

Option 3: get a better lease deal.

[crackerjack15]

Negotiate 7-8% off msrp. And doc fee? Why? Already paying $925 lease origination fee. That's almost $1600 down the drain.

[dmann33]

Originally Posted by crackerjack15

Negotiate 7-8% off msrp. And doc fee? Why? Already paying $925 lease origination fee. That's almost $1600 down the drain.

Thank you kindly for your input. I'd like to keep this thread focused on the lease vs buy matter. I'm past negotiations, my PCD is in 11 days. Not very many ppl see 7-8% off msrp. I know that I am the 1st person to get anything off msrp at my local dealer. It is what it is. They are providing transportation to the PC.

I'm leaning towards buying anyway.

[Metal man]

Wait a couple of months if no actual need for car asap. Thats what I'm doing for my wife’s replacement. Her Lease has a few months left. Not a rush. Will wait for $10k off MSRP and a lower money factor.

[Penguino]

Originally Posted by dmann33

Thank you kindly for your input. I'd like to keep this thread focused on the lease vs buy matter. I'm past negotiations, my PCD is in 11 days. Not very many ppl see 7-8% off msrp. I know that I am the 1st person to get anything off msrp at my local dealer. It is what it is. They are providing transportation to the PC.

I'm leaning towards buying anyway.

That's not the best approach. Nobody wants to compare a bad lease deal to a straight purchase.

[mpop302]

Those are ugly lease numbers, at that rate id probably just buy. I actually deferred getting an x7 and jumped on a heavily discounted 2019 new 7 series.. 92k sticker, 0 down, 0 due at signing, 0 msd for $683 plus tax. Money factor dropped even more in May, so if I held off a couple days and put in msds, payment would have been $628. Point is, if you’re hoping for a deal, look elsewhere for now. The x7 is too hot and too new. Here she is https://www.7post.com/forums/showthread.php?t=1610818

[dmann33]

Originally Posted by Metal man

Wait a couple of months if no actual need for car asap. Thats what I'm doing for my wife’s replacement. Her Lease has a few months left. Not a rush. Will wait for $10k off MSRP and a lower money factor.

Sorry, I already stated that my PCD date is in 11 days. Plus, our sales tax rate is in creasing very soon. I don't expect 10k discounts to be around in a couple months. Its a brand new car with global demand to satisfy.

Originally Posted by Penguino

That's not the best approach. Nobody wants to compare a bad lease deal to a straight purchase.

Well, I did, obviously. Are you saying the buy option is not the best approach??

Originally Posted by mpop302

Those are ugly lease numbers, at that rate id probably just buy. I actually deferred getting an x7 and jumped on a heavily discounted 2019 new 7 series.. 92k sticker, 0 down, 0 due at signing, 0 msd for $683 plus tax. Money factor dropped even more in May, so if I held off a couple days and put in msds, payment would have been $628. Point is, if you’re hoping for a deal, look elsewhere for now. The x7 is too hot and too new. Here she is https://www.7post.com/forums/showthread.php?t=1610818

Damn. That's sounds like a great deal on the 7 series. But, no, I am not looking for a deal. I was looking to compare my options stated in my original post.

[ppagiga]

with all due respect, why are there these long threads about lease vs buy?

leases were created to increase the financing and service fees that we pay. the crappy ones are exceptionally crappy for the consumer. there were designed to take advantage of people who only look at a monthly payment.

[Metal man]

Leases are made for you to “lock in” your losses on a car and make it able to change into something new every 3 years or so. At least thats how i take it. Financing has its cons as well. $100k car even at 2-3% financing with zero down is $1750+ per month in month 48/55/60. Who wants to pay that on a car you may not even like anymore. But i do agree the only way to purchase an x7 right now is cash or finance. The lease deals stink. Once the gls and aviator come out these deals will get better

[ppagiga]

Originally Posted by Metal man

Leases are made for you to “lock in” your losses on a car and make it able to change into something new every 3 years or so. At least thats how i take it. Financing has its cons as well. $100k car even at 2-3% financing with zero down is $1750+ per month in month 48/55/60. Who wants to pay that on a car you may not even like anymore. But i do agree the only way to purchase an x7 right now is cash or finance. The lease deals stink. Once the gls and aviator come out these deals will get better

I appreciate that benefit as well: defined exist costs. You don’t need to worry about selling or trading in etc.

[Jarecki]

Originally Posted by ppagiga

I appreciate that benefit as well: defined exist costs. You don’t need to worry about selling or trading in etc.

This is key for me, and the main reason to lease.

[Penguino]

If the X7 is like the 7-series then it'll depreciate badly the first few years. I'm holding to lease in case the depreciation is not good.

[talldude1930]

I leased mine for 36 months in lieu of purchase because technology can change so much in three years. I just want to be able to walk away from it without worrying about selling out right or getting screwed on a trade in

[760Lifan]

I'm one of those tech geek guys who likes his vehicle pretty much fully loaded and what I experienced over the years is the more expensive (or north of base price) your vehicle is, the better the lease-option gets.

Although the MF on my current Q7-lease stinks, I only have to pay a fraction for options which basically add no value to the residual - like the $5K B&O sound-system.

Although I will be turning in my Audi in February with about 20K miles less than allowed, I can walk away although the residual will be $10K lower than the purchase option price. Now, imagine what that gap would be with 20K miles more on the clock...

If you are planning to keep the vehicle 4 years or more, finance. But if you want a new, fully loaded one every 3 years, you can't beat leasing.

[dmann33]

Originally Posted by 760Lifan

Although I will be turning in my Audi in February with about 20K miles less than allowed, I can walk away although the residual will be $10K lower than the purchase option price. Now, imagine what that gap would be with 20K miles more on the clock...

If you are planning to keep the vehicle 4 years or more, finance. But if you want a new, fully loaded one every 3 years, you can't beat leasing.

Interesting. Generally speaking, this is what I understood about a lease. However, most claim the x7 lease MF doesn't support this. I think its either .00165 or .00177. I was therefore leaning towards buying, but I suspect I will keep it only 3-4 years. I certainly don't want to spend MORE not have equity at the end to cover the higher outlay. The numbers are in my OP above and it appears to me that its about a wash buy vs lease in a 3 year comparison. Payment size does not really matter and with a purchase, I have the flexibility to get out early or whatever.

[ppagiga]

Originally Posted by Penguino

If the X7 is like the 7-series then it'll depreciate badly the first few years. I'm holding to lease in case the depreciation is not good.

It’ll do much better than 7. Market for that vehicle is tiny and not as diverse demographically.

Second hand market is thin

[760Lifan]

Originally Posted by dmann33

Interesting. Generally speaking, this is what I understood about a lease. However, most claim the x7 lease MF doesn't support this. I think its either .00165 or .00177. I was therefore leaning towards buying, but I suspect I will keep it only 3-4 years.

I don't recall the exact MF on my Audi but I can tell you that it was very bad and certainly worse than the current MF on the X7.

To my understanding, the MF on the X7 is identical to the one on the X5 and the lease-deals compared to my Q7 are quite good right now.

The current issue I'm seeing on the X7 is the lack of substantial discounts but that will likely change over the next couple of months.

[aas5]

Originally Posted by 760Lifan

I'm one of those tech geek guys who likes his vehicle pretty much fully loaded and what I experienced over the years is the more expensive (or north of base price) your vehicle is, the better the lease-option gets.

Although the MF on my current Q7-lease stinks, I only have to pay a fraction for options which basically add no value to the residual - like the $5K B&O sound-system.

Although I will be turning in my Audi in February with about 20K miles less than allowed, I can walk away although the residual will be $10K lower than the purchase option price. Now, imagine what that gap would be with 20K miles more on the clock...

If you are planning to keep the vehicle 4 years or more, finance. But if you want a new, fully loaded one every 3 years, you can't beat leasing.

Agree with everything you said. One thing to keep in mind though that the lease deals are just plainly bad for x7s right now so best option is to wait a couple of months. Also, there are free online calculators that allow a pretty easy comparison of lease vs buy options. In my experience, I've always been able to do at least as good on a 3-year lease vs if I bought the car and sold it 3 years later so if you are not planning to keep a car long-term, I would always go with a lease, unless like now the lease terms are just bad.

[Penguino]

Originally Posted by ppagiga

It’ll do much better than 7. Market for that vehicle is tiny and not as diverse demographically.

Second hand market is thin

Plus very well priced. But only time will tell.

[Wristdoc]

Originally Posted by dmann33

Interesting. Generally speaking, this is what I understood about a lease. However, most claim the x7 lease MF doesn't support this. I think its either .00165 or .00177. I was therefore leaning towards buying, but I suspect I will keep it only 3-4 years. I certainly don't want to spend MORE not have equity at the end to cover the higher outlay. The numbers are in my OP above and it appears to me that its about a wash buy vs lease in a 3 year comparison. Payment size does not really matter and with a purchase, I have the flexibility to get out early or whatever.

For what it's worth, Swapalease.com is an excellent resource for finding a "buyer" to take over your lease. I did this on my I8 that was about 18 months into a 36 month lease. I found a buyer in 48 hours and BMW Financial handled almost everything seamlessly. Very easy process.

Bottom line is that it may not be too hard to get out of a lease if necessary.