If I’m doing the math correctly, this looks like an effective $1,280/mo payment. Based on some research for M550i models on this forum, it sounds like a horrible deal. Is that fair to say? Or is this actually decent for the market? (The deals that I did see here were months old.)
I’m pretty sure that this would have been M5 money a couple years ago, but I also realize that this is a very different market. Any feedback would be appreciated. Thanks in advance!
I would first suggest that your friend create an account on LH.
If you want to help your friend, check out the “Marketplace” for broker deals. Car is being sold at MSRP as shown in the deal sheet. You need to provide additional info in order to properly evaluate this deal, such as:
Money Factor being used
Residual Value being used
If your friend can afford this car (ie. good income + good credit), then they should run some financing numbers. Figure out how the monthly would compare on a 6 year loan vs doing two 3-year leases at the above terms.
One piece of advice for your friend: It is not recommended to put such a large downpayment on a lease for a couple of reasons:
It masks the true cost of the lease.
If the car is stolen or totalled, that $11k+ is gone.
EDIT: I just noticed the mileage terms. For 7500 miles, it is an awful deal - even in this current market. BMWs are not good leasing candidates right now.
We figured that it was a horrible deal. As far as the 6-year loan vs two 3-year leases for comparison, that’s an interesting idea. Never heard that before.
Regarding the down payment, I’ll make sure to pass that info along.
Sticker and pumped up rate, at an effective that two years ago would’ve been a deal on a M8 for a M550i (great car nonetheless, closest to a B5 the us will see).
Also, are there other cars they might be interested in?
If they can wait, they could look into ordering one to and see if they could get a discount off MSRP + base MF. Not saying deal will be great, but if they must have this car it could be something to consider.
I think the M550i would be his main choice for a lease. He might just wait it out and see if deals are better way down the road since he’s not in a rush.
