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BMW 5 Series, Car Leasing, Sedan, Wagon
#2390 of 4293 Re: BMW offering Factory-to-dealer $5000? [davidc1]
Jun 24, 2009 (6:58 pm)
Yes, you are right that out of pocket service bills for late model lux cars can be upsetting. But consider this: the absolute biggest cost of car ownership is depreciation. Buying a car at half of what it sold for three years ago puts you so far ahead of the game that even a $1500 brake job can be justified. (But since you are going to buy a CPO it won't need brakes!)
Moreover, Mercedes and maybe Bimmer have CPO programs that allow you to buy additonal coverage to extend the term of the warranty from the factory. Example, a 2007 S Class if CPO'ed has the balance of the new car warranty PLUS an additional year because of the CPO. But why stop there? You can buy directly from MB two more years beyond that. The only limit is that you can't go over 100,000 miles. So, if you spent time researching a good buy on a 2007 (the first year of the current body style) S Class CPO, you could wind up with lots of factory warranty protection while you drove the current body style for 4 years.
Prefer the Ultimate Driving Machine? OK, play your cards right and join BMWCCA for not much money. In addition to getting Roundel which is a good mag, after you have belonged for a year, negotiate your best deal on a CPO 7 Series. After you do that, the factory will then kick in some money or cancel a payment.
All in all it seems to me that a lot of people lease for all the wrong reasons. But if you are the kind of guy that this board seems to attract, a guy who is concerned with researching the absolute best deal why not put the same effort into a purchase? The used market is very "inefficient" and rewards research. Maybe you'd find a black S Class 4Matic in Miami or Las Vegas that the dealer just can't get rid of because no one wants black or AWD in Miami or Vegas (assuming that they have any money left after their housing debacles). You know though it would sure look nice in Boston. Maybe, you'd turn up a low mileage 2006 Bentley Flying Spur with AWD for less than 70K which is a lot less than the 185K someone paid three years ago. If you really want a 5 Series, there are loads of 2007's on Cars.com for well under 40K.
#2391 of 4293 What do you think of this deal?
Jun 25, 2009 (10:42 am)
As Equipped $46,625
Selling Price $43,820
10K per year
1.45 MF (current customer)
Payment $531.94 ($581.17 including 9.25% California tax)
License and Registration $588.75
Bank Fee $725
Doc Fee $45
First Payment $581
No Cap Reduction
But Cap Reduction Tax is 9.25% = $71.22 (What is being taxed?)
Due at signing $2011.15
One dealership already told me that he can't beat it.
Another said he could beat it by $10 a month but I don't know what terms or Cap Red. Cost he factored in.
I know this sounds like a good deal but you guys have more experience in this field so I would like your advice on this one.
Also, do the deals get better as time passes on the 2010? I will be ready for one in July and one more in August. The wife wants one too.
#2392 of 4293 Re: What do you think of this deal? [acgrafx]
by kyfdx@Edmunds HOST
Jun 25, 2009 (2:22 pm)
The bank fee and doc fee paid upfront... are taxed..
#2393 of 4293 Re: What do you think of this deal? [acgrafx]
Jun 25, 2009 (5:21 pm)
What is the mileage penalty if you exceed 30K miles? How much per mile? For your sake I hope that you can keep the mileage down to 30K miles over 36 months. Most lessors have to "buy back" miles at the end of the lease because they exceed the limit. Afterall, they leased the new car to drive it. Not park it.
#2394 of 4293 taking over a 2008 535i lease
Jun 27, 2009 (8:57 am)
hi there, I just found a very nice 08 535i, sport, nav, shift paddles, current mileage is 11k. in lease trader not too far from me. I would be paying $569 (taxes including) per month for 21 months, and aprox 10k miles per year (around 800 per month) which can work out fine since I also have a commuter car. There is a $500 lease transfer fee that I would have to pay.
Is that a good monthly pmt for this car? (there will be zero money down for me), and should I ask the leasor for the $500 fee to be paid by him?
All feedback is greatly appreciated.
#2395 of 4293 Re: BMW offering Factory-to-dealer $5000? [blckislandguy]
Jun 28, 2009 (4:47 pm)
I have to admit I was questioning why people lease also, but as I really compared buying a 2006 or 2007 5 series to a lease, the lease seemed better and better. My lease offer was for a 2010 528 3 years/36k miles for $650 a month including CA sales tax or $23,400 over the term. I was able to order the exact car I wanted and I get to drive around in something brand new.
I estimated a used 2007 5 series with similar features CPO would go for $37k plus another $3,515 in sales tax. For comparisons sake, I estimated a loan doing the same drive offs as my lease which were security deposit only or $700. I used 3.9% for 60 months which was the BMW offer at the time. That means a loan of $39,800 or $731 a month. After financing for 3 years, I would have spent $3535 in interest and that $37k car would now be worth about $19k. So between depreciation of $18k plus interest I would be out $21,500 which is only a savings of $2k over the lease, which may honestly be lost if I cant sell the car for $19k.
Plus, the CPO only lasts for 2 years after the initial warranty expires, so in 3 years that 2007 5 series is now 5 years old and has no warranty, not what I am looking for. I like a new car every 3 years, I drive less than 15k miles per year, and I hate selling a car when I am done with it. The lease seemed like the best option for me.
I am curious, after seeing these figures, if you still disagree?
Jun 28, 2009 (5:03 pm)
I have leased many cars and recently purchased a CPO. Your logic is correct but I think you over estimate the cpo price. I purchased a 2007 550i for 35000. You could get a 530 or 525 for less. So redo your financials using a lower price. However, a new car every 3 yrs typically equals lease.
Jun 28, 2009 (5:11 pm)
Agreed, your CPO estimate is too high. I also purchased a 2007 530, w/ Nav, Sport and Premium package for 33K plus tax.
#2398 of 4293 Re: BMW offering Factory-to-dealer $5000? [jasont]
Jun 28, 2009 (6:29 pm)
I agree with your analysis for your situation. What caused me to write the post though was the almost feverish requests for people to judge if the poster had gotten absolute last nickel out of the deal. Anyone who is working that hard to save a little money, I think, could in most situations, put the same effort into the far less "efficient" used market and come up with a real score. Given that BMW Financial sets the rules and the dealers all buy the cars at the same price, no one is going to come up with a way under market price on a lease.
It is analgous to two investors. One guy researches the big cap stocks which are covered by everybody. He thinks naiveley that with enough work he can get an edge on Google's earnings prospects. The other guy picks an obscure corner of the market with very little coverage, say bonds issued by African countries. With enough research he could come up with an edge that would make him some money.
#2399 of 4293 Re: 2010 BMW 528i [jasont]
Jun 29, 2009 (3:52 am)
Hey jasont. $250 over dealer invoice plus the use of its buy rate lease money factor is an excellent deal on a 2010 528i.
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