[AlBoston]

So initially I was all settled to buy the F10. Locked in the holiday credit and 0.9% rate. Now I'm thinking I am going to lease it for 3 years. Looks like I'll pay 780 a month(inc 6.25% sales tax) 36/12k no money down (except acq fee, 1st month and lic) for 535Xi with ZPP, ZP2, sport, cold weather, Sport auto, Side and top view camera, Smart phone int.

What do you guys think?

[RCUK]

Can i ask a not totally related question.

Seen you guys over the pond discuss Holiday Credit and the 0.9% rate.

NO idea what holiday credit is - we dont get that here, and am i right to assume the 0.9% is the interest rate on the car loan? IF so thats obscenely low - as a comparison in the UK you would be deliriously happy if you got the loan for around 7.9%.

[LuvMyE92]

to OP: $780 a month sounds like a good deal to me. Of course, I don't know what ZPP or ZP2 are. Guessing premium packages. I leased mine, not because of great rates but to protect myself from outrageous depreciation and lousy resale.

To RCUK: Yes, we here in the states are spoiled by BMW with their often subsidized financing and rebates and such. Conversely, you Brits seem to have it easier as far as "company cars" whereas our "Inland Revenue Service" here frowns upon that. Of course, you guys have a higher income tax rate. But then we have to pay for health insurance.

Which is better? I guess it depends on which side of the road you prefer to drive on, or if you like your beer chilled?

It is annoying though, to negotiate the best deal that you can get and then discover later that if you'd only waited another month or two you could have saved $1500 (that's about 710 Euro at current exchange rates ) or gotten a much better interest rate. It also tends to kill resale value, as people are less likely to buy your slightly used car that they have to borrow money at 8% versus buying a new one for practically nothing.

[RCUK]

Cheers for that! Rather informative!

Re company cars here - though you might get a car from the company - its seen as a Benefit in Kind by the tax folks - so they tax you on a % of the cars value - and the % is driven by its co2 emissions - hence why the 520d is so popular amongst company car owners as its relatively low emissions.

So a £32k car works out at about £220 a month in tax.

Income tax rate depends on how much you earn - think its 20% to £37k, then 40% to £100k, and 50% over that.

(and beer must always be chilled!!)

[AlBoston]

Yes ZPP and ZP2 are the two premium packages. I think I'm going to move forward with the lease. Especially since I won't be getting 6NR on this car.

[Bamsha]

Originally Posted by LuvMyE92

to OP: $780 a month sounds like a good deal to me. Of course, I don't know what ZPP or ZP2 are. Guessing premium packages. I leased mine, not because of great rates but to protect myself from outrageous depreciation and lousy resale.

When I was looking into leasing my car via my workplace I looked at the numbers and I realized that a HUGE majority of the monthly cost was actually the value depreciation. (Dont remember exactly but probably 90-95% of the cost). Basically the monthly cost IS the value depreciation.

Unless you get very diffrent kinds of deals in the US.

You do get away from the annoyance of having to sell the car yourself, or turning it in at a shamefully low value when buying your next car.

[kel3]

leased mine.

[jettie1767]

Bought mine.

[JOHNBMWM5]

Never leased a car in my life, bought every one new.

[ibimmer954]

I go through cars quickly. I lease. Less hassle at the end and less money upfront.

[kel3]

according to BMWNA more than have of their yearly sales are leases, both options have pros and cons and it ultimately winds down to what works best for each individual, I have bought and leased cars. leasing happens to work out best for me.
my favorite pro is; I get a new bimmer every 2.5 - 3 years!

[guji]

Maybe I ask how you get $780/mo?

On bmwusa.com, the lease deal is already $779/mo for a 535xi, 36mo/10k miles, before all the options, tax + fees come in...

My ordered 535i is coming in this weekend. With options, it is around $63k MSRP but I am getting it for $500 above invoice, so it's around $58k. With 36mo/12k, and my lease payment is around $950 a month. I also have the $1,500 holiday credit and bmw loyalty incentives (lower mf).

Would like to know the how you get it so low and to make sure I am not overpaying...

[Bamsha]

Originally Posted by kel3

according to BMWNA more than have of their yearly sales are leases, both options have pros and cons and it ultimately winds down to what works best for each individual, I have bought and leased cars. leasing happens to work out best for me.
my favorite pro is; I get a new bimmer every 2.5 - 3 years!

You could get a new bimmer every 3 years if you bought it too, the only diffrence is when you lease you know exactly what the trade-in price for your old car is going to be(if you take care of it properly).

Its kind of like taking a fixed interest rate for your mortgage, its probably going to cost alittle more, but you know exactly how much is going to cost.

[JOHNBMWM5]

I usually change my cars every year or so and hunt the country for the best deals on PX, I have not as yet ever done a bad deal , example, bought my fully loaded M3 E90 2010 for £50,500, sold it 14 months later for £45635.00
Thats not too much of a loss is it?. I also put 18" STD wheels on it before it went and sold the 19" M Sport wheels for £1200.00.

[Bamsha]

Originally Posted by johnbmw6

I usually change my cars every year or so and hunt the country for the best deals on PX, I have not as yet ever done a bad deal , example, bought my fully loaded M3 E90 2010 for £50,500, sold it 14 months later for £45635.00
Thats not too much of a loss is it?. I also put 18" STD wheels on it before it went and sold the 19" M Sport wheels for £1200.00.

Sounds like a good deal yes.

Still this tactic means taking the biggest hit of the first year value loss, every year. So even with a good deal you spend alot more money on your cars than someone who changes every 5th year or every 10 years. But thats pretty obvious. Its going to cost money to have a brand new car all the time.

Also spending all that time hunting the best deals.. Time is money.

If you can afford it its great, but financially its the most expensive way.

[Glock 32]

I did a short lease (2 years) and look forward to ordering a 2013 M5 in about 1.5 years...

If you are NOT planning to keep the car at least 3 years than a lease is the only way to go, IMO. Typically if you finance for 60 mos. you will be upside down for at least 3 years with close to the same payment as a 3 year lease (based on current finance and lease rates).

Also, if you get in an accident (even minor) you do not have to worry about loss of value due to carfax, etc (just walk away).

At the end of the lease if you had no accidents or major problems you can always buy the car for "option a" (auction value) and a small dealer markup instead of the full residual.

That being said I will probably lease my 2013 M5 for 3 years (was planning to buy) and buyout at the end of the lease for around auction value if there have not been any accidents or problems with the car, else I'll just put back to OE and walk away and pickup a 2016 M5.

I used to hate leasing, but I think I am liking it more and more. I like the protection and getting a new M5 (or 550i) every 2 or 3 years with the latest upgrades and tweaks is not so bad either.

I do plan on modding my next M5 more than the current 550i, but still think I like being protected from accidents, problems or other issues during the first 3 years... then I'll probably buy unless the 2016 M5 is drastically upgraded or tweaked which is the other advantage of a lease (can always have the latest technology like the full black back panel display and iPod interface upgrades that come out in March on the 5-series that I look forward to seeing in my 2013 M5). Keeps you from getting annoyed by that kind of stuff (especially with a 2 year lease).

[Autojack]

Bought mine 12/4/10, using $1,500 BMWNA Holiday cash credit, and .9% financing.

[AlBoston]

your deal sounds identical to mine. I actually went with february rates, ended up being better than holiday credit and higher MF. I was going to wait till march 1 for spring drive event... but based on last year all the residuals dropped in march 2010 so I decided to do it for february.

I also did 7 MSDs to lower the MF.

[bmedude]

picked up my car november 30 2010(brand new) and It now has 7900 miles on it (feb 27, 2011).... i purchased it.

[HouseofPang]

Bought too, main reason for this car for me is good mileage luxury sedan and not being afraid to drive it. Leasing would limit the numbers of miles, 3 months and 6k driven so far and damn it is a joy to drive =) Regret not having active cruise control tho

[stevej2001]

Bought mine, end of November, using the $1,500 credit, 0.9% finance rate over 3 years. The payment is enormous, but they're practically loaning me the money for free at 0.9%.

Also got the $1000 BMWCCA rebate.

[Mtechnique]

Originally Posted by Glock 32

I did a short lease (2 years) and look forward to ordering a 2013 M5 in about 1.5 years...

If you are NOT planning to keep the car at least 3 years than a lease is the only way to go, IMO. Typically if you finance for 60 mos. you will be upside down for at least 3 years with close to the same payment as a 3 year lease (based on current finance and lease rates).

Also, if you get in an accident (even minor) you do not have to worry about loss of value due to carfax, etc (just walk away).

At the end of the lease if you had no accidents or major problems you can always buy the car for "option a" (auction value) and a small dealer markup instead of the full residual.

That being said I will probably lease my 2013 M5 for 3 years (was planning to buy) and buyout at the end of the lease for around auction value if there have not been any accidents or problems with the car, else I'll just put back to OE and walk away and pickup a 2016 M5.

I used to hate leasing, but I think I am liking it more and more. I like the protection and getting a new M5 (or 550i) every 2 or 3 years with the latest upgrades and tweaks is not so bad either.

I do plan on modding my next M5 more than the current 550i, but still think I like being protected from accidents, problems or other issues during the first 3 years... then I'll probably buy unless the 2016 M5 is drastically upgraded or tweaked which is the other advantage of a lease (can always have the latest technology like the full black back panel display and iPod interface upgrades that come out in March on the 5-series that I look forward to seeing in my 2013 M5). Keeps you from getting annoyed by that kind of stuff (especially with a 2 year lease).

Totally agree the leasing make financial sense if you like changing your car often and you do not drive the car for more than 15 miles per year... The down side to leasing is if you drive more that 15K miles per year then the mileage penalties could be a killer.. Glock's observation ref Accidents is very valid. Even a small accident can have a major effect on re sell or PX values.