Last post on Apr 17, 2013 at 3:13 PM
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BMW 7 Series, Car Leasing, Sedan
#384 of 599 Re: 2010 lease [07montecarloss]
by Car_man HOST
Aug 31, 2010 (1:24 pm)
Hey 07montecarloss. BMW is still providing some lease support on the 2010 7-Series, but its program isn't great.
BMW FS' August buy rate lease money factor and residual value for a 24 month lease of a 2010 750Li with 15,000 miles per year are .00185 and 50%, respectively for consumers who qualify for its top credit tier.
The numbers for an otherwise identical 36 month lease are .00185 and 44%.
I am not aware of any cash incentives on this model at this time, but BMW is providing closeout dealer cash on a number of other 2010 models, so I wouldn't be completely surprised if BMW did introduce some dealer cash on the '10 "7" in September.
Prices Paid: Buying & Leasing Experiences Forum
#385 of 599 Re: Leasing In Order to Buy [Car_man]
Sep 05, 2010 (9:14 pm)
As a buy-and-hold kind of guy, I've always been against leases. But I talked with our CPA firm recently and now I'm convinced that for someone who can claim the vehicle as (mostly) a biz expense that leasing is the only way to go. They told me that on a $1500 a month ($18,000 a year) lease on a new 7 Series at the end of the three year lease I would be able to write off $53,000.
This scenario is better than even waiting a year or so and buying a used 2010 7 Series for $65,000 because of the limited amount of depreciation I could claim even over a 6 year holding period..
As a side note, I heard at a Penske dealership over the weekend that because lots of financial and mortgage types have had their Bimmers repossessed, that the used values have plummeted!
#386 of 599 Re: Leasing In Order to Buy [blckislandguy]
by kyfdx HOST
Sep 06, 2010 (5:01 am)
On a related note.. my next door neighbor just bought an '06 750Li with 52K miles for $30K...
Is the lease payment on a 7-series really $1500/mo.? That's a pretty crappy payment for a $90K car... Tax write-off or not... lower payments are better... Shop around!
#387 of 599 Re: Leasing In Order to Buy [kyfdx]
Sep 13, 2010 (6:36 pm)
Not quite $1500 but close to it for a no money down, 12,-000 mile 36 month lease for a long wheelbase, all wheel drive 750.
Incidentally, I have yet to see a 750iL x with a Moroney of less than 97K because the dealers load them up with Luxury Seating, Cold Weather, Premium Sound (Does anyone over 25 really need something like 16 speakers??), Back Up Camera (if you can't see behind you, maybe you should take Yoga so you could turn your head?), etc. etc.
All in all, I'm seriously considering a Porsche Pamara. Why? Less money, better car (would you ever dare own a 7 Series out of warranty?), etc.
#388 of 599 2011 or 2010 740i MF and residual
Sep 16, 2010 (2:39 pm)
I'm actually looking for a 2011 535i, when I found out there have been so many complaints about the alignment issue, and it doesn't look like there will be a fix any time soon. Given I'll be returning my 2008 535i in 2 weeks, I want to start shopping for a 740i (not the L version). Do you have the Sep MF and residual for a 740i, with 12k a year for 3 years?
#389 of 599 Re: 2011 or 2010 740i MF and residual [ex_sc400]
by Car_man HOST
Sep 17, 2010 (2:45 am)
Hey ex_sc400. BMW Financial Services' September buy rate lease money factor and residual value for a 36 month lease of a 2011 740i with 12,000 miles per year are .00210 and 57%, respectively for consumers who qualify for its top credit tiers.
Prices Paid: Buying & Leasing Experiences Forum
#390 of 599 2011 740i lease how much
Sep 18, 2010 (1:02 am)
I was interested in 2011 740i lease for 60 months and 15k miles/year. What's the numbers on this.
I see in the posts a money factor and read to multiply it by 2400. The last number I saw posted came out to 5.04%. Meanwhile, on BMW's web I see some info that leads me to think the rate is 1.9% on leases > 3 years? Why the difference?
#391 of 599 They've Got You Coming and Going
Sep 19, 2010 (7:36 am)
As I mentioned above, I've always been a buy and hold kind of guy but now my CPA firm has me convinced that leasing--and expensing to my company-beats the much slower buy and depreciate route. So, I checked out leasing a 7 Series with the intention of buying it at the end of the lease.
As far as I can tell, every one agrees on two things.
1) BMW residuals are articificially inflated. Buying a BMW at the end of the lease is going to be an above-market price transaction. Translation: you, a loyal BMW customer, are going to pay more for your soon to be off lease car than the guy who walks in and wants to buy your car. Thank you very much, BMW.
2) Everyone also agrees that you don't want to own a 7 Series that is out of warranty. So, if you want to buy your car at lease end, you will want to have it CPOed to get the added warranty. This is going to cost you roughly $2500 for the paperwork and the remedial work.
All in all, while maybe leasing for business owner is a good deal, BMW makes it harder than they have to if you want to buy the car at end.
A question for the house. We all know that some options are more valuable down the road than others. When they compute residual values do they recognize this? For example does the $6000 M Package have more resale value than larding the 7 Series up with $6000 worth of random options. Saying it differently, does spending $600 on a "ceramic" coating of the I drive knob really have any residual value at all???
#392 of 599 Re: They've Got You Coming and Going [blckislandguy]
by kyfdx HOST
Sep 19, 2010 (6:42 pm)
In general (with BMWs), almost any option on the Monroney sticker is fully residualized.. Almost anything added by the dealer is not...
#393 of 599 Re: They've Got You Coming and Going [kyfdx]
Sep 26, 2010 (8:21 pm)
You know, this whole leasing thing is beginning to hurt my head for several reasons. There seem to be no end to the fees. Moreover, BMW 7 Series option pricing is a suckers game. I think because most 7 Series cars are leased, often by people with advance degrees after their name but not much business savvy, they think " what the heck, just roll the added cost of an option into the lease payment". As a result the cars that are here on the ground are loaded with options of dubious value.
Want an example? The "Premium Sound" package for $1800 adds a couple of speakers, a woofer, Sirius radio and your mobile phone is "prewired." I have never seen a 7 Series without this. Whats the big deal? Well, those three speakers and a woofer just cost you $66 per month for your three year lease. (Who needs a 'prewired phone' when you can hold your cell phone in your hand?).
Or maybe, the car you like has the Luxury Seating package? Again, I have never seen a new 7 Series in New England without this $2000 gem. This option has a massage feature, some ventilation, and a button to push that does something to the bolsters. I figure that the average owner will use these features exactly once, unless he lives in South Texas and really needs the ventilated seats. Again, for a $2000 option you are going to pop $66 bucks a month on a three year lease.
Now, don't get me started on my last example. For $600 BMW will ceramic coat the I Drive knob. The fact that you hardly understand how to work the I Drive is beside the point. This little bit of coating is going to cost you roughly $40 per month for 36 months.
What is particularly galling about this, is that the Aurtomatic Roll Stabilization , the one option that you probably should pop for I have never seen available on a dealer's lot. While it was standard on many 2010 750's , BMW decontented the car and it is now an option. But because it probably doesn't sell well, the dealers don't order cars with it . (Notice how all the Bimmers tested by the car books have this option.)
You want to drive a 7 Series? Tell them to bring one in with zero options. You'll be happy to wait 6 weeks just on principle. Tell them that you didn't build your business or professional practice by being a dummy. Tell them that you would be mortified if a colleague ever said to you, "Bernie, you are paying $40 a month for a coating on a knob you can hardly use?. Don't you remember when we came back from Vietnam and went to school on the GI Bill that we rented a house off campus for $40 a month?"