Quote:
Originally Posted by SLF80
Leasing amounts to paying the perceived depreciation of the car while it is in your possession for a fixed term and number of miles.
There are only has 3 fundamental components:
Sale Price - MSRP is set by BMW - negotiable from the dealer invoice up, the lower the better for you.
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Thanks for confirming MSRP is used in calculating the residual and the other details. I had been using the same formulas and relative data, e.g., obtained current MF from the x3m/x4m forum thread on leases and deals as a lot of activity over there (and M5) given ongoing discounts on the 2019s remaining. However, in the spreadsheet I created I had been using my negotiated sale price as the base for the residual value calculation as it made logical sense to do so. It wasn't until I tried the Leasematic app (someone mentioned it in the x3m/x4m lease thread) did I discover MSRP is used as the base for calculating the residual value.
I'm considering a 36/10K lease as I can fit into that mileage and offers the highest residual (55%). If the MF in play for November renews in December with 7 MSDs in play my 3-year total lease cost forecasts to $57,386. I'm also considering financing via a 60 month loan.
I'm pretty sure I want the M850i for the long haul (I've kept every vehicle to date for a minimum of 8 years) but the lease is attractive as it gives me an easy "out" after 3 if so desired. Plus with the 7 MSDs the net APR is 2.23% which beats the 3.35% from BMW FS and anything in my local market. If I want to keep it I'll either just send BMW FS a check or finance the residual depending on the interest rate at the time and what I can safely earn in a liquid investment.