[Mikegg]

Hi,

I am considering leasing an i8 in NJ here.

I was unable to find August's numbers. (I know, we are in September but rates didn't come out yet)
I therefore calculated the lease off of July's rates. Here is what I come up with.

$145,564 selling MSRP
$129,000 selling price
MF: .00137
Residual 63% (10k miles per-year)
$2465 rebate
NJ Tax (7%)
NO MSD's
Just first month payment due at signing

I am at $1359 per-month ALL IN

I have yet to take this to a dealership, but does this sound right?

[phoenixbmwlife]

These are my calculations. Assuming 36 months.

Vehicle Final Price: 126,535
Sale Tax: 7%
Down Payment:
Trade-in Value:
Amount Owned on Trade-in:
Interest rate (APR): 3.288% per year
Lease Term: 36 months
Residual Value: 91,705

You will pay:

Sales Tax at Signing: 0.00
Lease Price: 126,535.00
Monthly Depreciation Fee: 967.50
Monthly Lease Fee: 298.99
Monthly Payment (no tax): 1,266.49
Monthly Tax: 88.65
Total Monthly Payment: 1,355.14

[phoenixbmwlife]

Assuming you can get this deal it's better if you do the 7 MSDs. Here's the difference.


Vehicle Final Price: 126,535
Sale Tax: 7%
Down Payment:
Trade-in Value:
Amount Owned on Trade-in:
Interest rate (APR): 2.112% per year
Lease Term: 36 months
Residual Value: 91,705

You will pay:

7 MSDs =$9,100.00 (refundable at end of lease)
Sales Tax at Signing: 0.00
Lease Price: 126,535.00
Monthly Depreciation Fee: 967.50
Monthly Lease Fee: 192.05
Monthly Payment (no tax): 1,159.55
Monthly Tax: 81.17
Total Monthly Payment: 1,240.72
Savings at end of lease due to MSDs =$4,119.12

[Mikegg]

Originally Posted by PhoenixWolf

Assuming you can get this deal it's better if you do the 7 MSDs. Here's the difference.


Vehicle Final Price: 126,535
Sale Tax: 7%
Down Payment:
Trade-in Value:
Amount Owned on Trade-in:
Interest rate (APR): 2.112% per year
Lease Term: 36 months
Residual Value: 91,705

You will pay:

7 MSDs =$9,100.00 (refundable at end of lease)
Sales Tax at Signing: 0.00
Lease Price: 126,535.00
Monthly Depreciation Fee: 967.50
Monthly Lease Fee: 192.05
Monthly Payment (no tax): 1,159.55
Monthly Tax: 81.17
Total Monthly Payment: 1,240.72
Savings at end of lease due to MSDs =$4,119.12

Are there any reasons what so ever, that they would NOT give me my money back?

I am reluctant to do it... what happens if the car comes back with a scratch. Do they hold my money till I pay?

[phoenixbmwlife]

Originally Posted by M4lover

Are there any reasons what so ever, that they would NOT give me my money back?

I am reluctant to do it... what happens if the car comes back with a scratch. Do they hold my money till I pay?

Even if you total your car, you get the MSDs back. This is the great advantage over putting money down. You never want to put money down on a lease because if you drive off the lot and total you car after putting say $5,000 down on a lease, your insurance company will help you to get back into another car, but in order to get the same monthly payment you have to put another $5,000 down. Which is the dumbest thing in the leasing laws to me. So financially its too vulnerable for me to do it. Of course you have to have excellent credit or you will have to put money down, but with MSDs it's kinda like a high interest savings plan. Where else can you get that much in return for $9k???

[Foodisfood]

Dont do it paying interest is never the right thing to do. I always go all cash.

[Amgeater2]

Originally Posted by Foodisfood

Dont do it paying interest is never the right thing to do. I always go all cash.

[Longboarder]

Originally Posted by Foodisfood

paying interest is never the right thing to do.

Why

[Foodisfood]

Originally Posted by Longboarder

Why

I never feel right paying interest for anything that is a personal luxury. Investments and mortgages are a different story, but a car is a luxury i think.

[Longboarder]

Originally Posted by Foodisfood

I never feel right paying interest for anything that is a personal luxury. Investments and mortgages are a different story, but a car is a luxury i think.

That's not a bad idea.

Here's another idea if you own a company...follow me here: if you lease the i8 (or any other car for business) the tax savings from writing off the entire lease payment (because through leasing you get to deduct the depreciation, interest and taxes) vs writing off only the depreciation if you purchase, results in a far larger tax deduction. And if your incremental earnings are at the highest brackets (in California for me over 60%), and if interest is very low and your state has a high sales/use tax, then it actually might save you money to lease and pay interest than the buy outright and pay no interest.

You would need a model to run these scenarios but trust me sometimes it's more favorable financially to actually pay interest, all things considered.

[Foodisfood]

Originally Posted by Longboarder

That's not a bad idea.

Here's another idea if you own a company...follow me here: if you lease the i8 (or any other car for business) the tax savings from writing off the entire lease payment (because through leasing you get to deduct the depreciation, interest and taxes) vs writing off only the depreciation if you purchase, results in a far larger tax deduction. And if your incremental earnings are at the highest brackets (in California for me over 60%), and if interest is very low and your state has a high sales/use tax, then it actually might save you money to lease and pay interest than the buy outright and pay no interest.

You would need a model to run these scenarios but trust me sometimes it's more favorable financially to actually pay interest, all things considered.

Hey thats a good advice ill look into. Maybe for a car that i dont drive mich. It just leases have the mileage limitations and even my weekend car i put 20k a year on it, my i8 i put 150 miles a day on it lol. But ill look into your advice thank you!

[phoenixbmwlife]

To me it's cheaper to lease cars in the higher price range like 7 series, and Rolls Royce than to buy them because the depreciation is so high. There are some really good deals on Rolls right now for leases. If you're in that market for a super luxury vehicle, and own your own business you get away from the huge depreciation hit which is over $100,000 and you also get the write of the payments on your business taxes.

The only caveat is that when you buy a lease on your company's name you also pay higher insurance rates.

[Longboarder]

Originally Posted by PhoenixWolf

To me it's cheaper to lease cars in the higher price range like 7 series, and Rolls Royce than to buy them because the depreciation is so high. There are some really good deals on Rolls right now for leases. If you're in that market for a super luxury vehicle, and own your own business you get away from the huge depreciation hit which is over $100,000 and you also get the write of the payments on your business taxes.

The only caveat is that when you buy a lease on your company's name you also pay higher insurance rates.

Yeah with a lease you get a guarantee on the residual value with the option to turn it in or purchase at the end of the term.

But whether you buy or lease you still pay for depreciation over the period in which you use it. For larger cars like the rolls there may be larger initial tax benefit to purchasing if the gross vehicle weight rating is over 6,000 pounds where if used for business purposes you can take a section 179 accelerated depreciation deduction. Works great if you think you are going to have a tax issue in the current period...just go out and buy and a new qualifying car/SUV!