[paul45]

Currently BMWFS provides credit of the $1000 for leasing and $2000 for financing (I believe these include the $1000 loyalty credit).

Though financing provides a better credit, I decided to go with the lease for following justifications;

1. Avoiding the hassle of negotiating a trade-in after 3 years,

2. Avoiding the risk of trade in value depreciation in case of an
accident during ownership and,

3. I believe BMW already provides residuals higher than the expected
market value at the end of the lease, as I have experienced in
leasing 3 prior BMW's.

For example, (MSRP $82K), the 36 month /10K per year residual is 59% for X5.

For same terms, Audi Q8 Prestige has residual value of 56%; I believe Porsche and Merc are about the same. (Porsche actually limits the amount of upgrades eligible for residual calculation).

So by leasing from BMWFS, there is a built in rebate of 3% of MSRP ($2460 in this example), which one will not be getting by financing.

Other situations may have different outlook, particularly if you wish to keep vehicle longer than 3-4 years or have higher mileage needs.

[Penguino]

Originally Posted by paul45

Currently BMWFS provides credit of the $1000 for leasing and $2000 for financing (I believe these include the $1000 loyalty credit).

Though financing provides a better credit, I decided to go with the lease for following justifications;

1. Avoiding the hassle of negotiating a trade-in after 3 years,

2. Avoiding the risk of trade in value depreciation in case of an
accident during ownership and,

3. I believe BMW already provides residuals higher than the expected
market value at the end of the lease, as I have experienced in
leasing 3 prior BMW's.

For example, with an MSRP of about $82K, the 36 month /10K per year residual is 59% for X5.

For same terms, Audi Q8 Prestige has residual value of 56%; I believe Porsche and Merc are about the same. (Porsche actually limits the amount of upgrades eligible for residual calculation).

So by leasing from BMWFS, there is a built in rebate of 3% of MSRP ($2460 in this example), which one will not be getting by financing.

Other situations may have different outlook, particularly if you wish to keep vehicle longer than 3-4 years or have higher mileage needs.

Many reasons to consider lease over ownership. And many reasons to consider ownership over lease.

For me, a payment of $1200-$1300 for a $72k MSRP vehicle versus a payment of $~$900 for a lease makes all the difference.

Unless I can pay the vehicle in full over 36 months, I prefer leasing.