Quote:
Originally Posted by bloozemanAZ
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. 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.
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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.
This is if you are set on new (which I understand).
Otherwise, with $57,386, get a 2016 CPO $110K+ MSRP M6 or M5.
Contact this buddy of mine, Gabriel (562) 526-8060. He's got an account with BMW FS and he'll help you get a clean lease return and ship it anywhere in the country.