Quote:
Originally Posted by GHollan921
That's a huge discount.
Congrats.
|
Quote:
Originally Posted by SLF80
The residual value set by BMW FS is inflated to incentivize leasing and higher than market.
Buying you car at the end of the lease, even if your dealer helps you negotiate, may not work out.
If you keep your cars that long, you could keep monthly payment low at first and go with their BMW Select balloon financing.
I have seen the math work out better at times but not by much.
|
Thanks for the info and I am working the numbers including BMW Select. Using the BMW configurator (aka "Build Your Own") with my 2020 specs (minus the fact you cannot select the ZDA package which adds $600 above the ZDA) and selecting "Estimate Payment" it looks like Select has a higher APR than standard financing. The finance APR is 3.65 (assuming they are setting at standard rate vs the 3.35 now offered for exceptional credit which I have) vs Select at 4.15%.
Running the numbers Select doesn't look better than the 36/10K lease for first 3 years with the MSDs. Granted once I get in front of the dealer's finance department the actual Select may be closer to 3.85% (extrapolation from the standard loan vs Select in the "Estimate Payment") with a 3.35% finance rate I still do not think the total cost numbers will beat the 36/10K+MSD TCO with buyout at end of lease.
I'm not worried about the inflated residual as the expectation is to own over the long haul. Rather it is all about total TCO outcome for all financing options with the outcome of owning the M850i.