Afternoon all! First post and long time lurker so please take it easy on me! Learned a ton from just reading and trying to put that all to use.
So Iām located in Chicago, IL and currently drive a leased 2021 X3 m40i that I had built and delivered last July. Itās got approx 8200 miles and fully loaded. The wife and I have a 1 yr old and another one on the way as the x3 is too small with two cars seats, a dog, and stroller etc.
Now to my point, the X7 m60iā¦I āneedā this monster asap and just wanted to be sure this pricing is in line with what others have seen or have paid. The part that sux is that living in Chicago, we have a crazy tax for leased vehicles around 18% so just remember that when you look at the quotes. Planned on putting 5k-10k as a down payment and possibly more if necessary. Also, I read up on the whole āMontana LLC registrationā and it seems simple enough, just not sure itās worth it. And I know there are companies that can do it all for you. Anyone have experience doing it? At the end of the day, just looking to hear feedback if I should lease or buy. Just messaged a broker today as well to see if this is all in line as well.
Yea, donāt want to go through the troubleā¦feel like Iād always be paranoid if I got pulled over and had to explain. Also, I saw the insurance claims can be tough with that process.
M60i isnāt really something thatās being discounted yet so yeah itās in line with the market. Your trade being that far flipped is concerning though.
@Clutch works your area and might be able to work something out for you.
Yea, the no discount is what Iāve seen researching these. And with my x3, I had the taxes baked into the lease. Put $0 down and clearly didnāt plan to try and get out of it so soon. My only options there is something like swapalease, pay the difference, or bake that in with the new lease. Still learning all this though
@Jordy830 we can do 2.5% off MSRP on this for you locally with buy rate money factor too.
Looks like they are marking up the rate to the max on your build. If you live within Chicago city limits, it makes 0 sense to pay the tax on a lease. Finance is the way to go since your total tax obligation is 10.5% on a finance. Have done a few of these for IL clients. Its the better approach here. If you have an address outside the city, thatāll save you a bunch. Otherwise, just finance. Tier 1 rate assuming you qualify for 72 months is 4.49% this month.
Rest assured, noone will sell you a 60i to a Montana LLC so if this is the car you are interested in, finance it over 72 months.
I think theyāre confused as to why you would even consider renting (for all intents and purposes) a vehicle for roughly $400 more per month (give or take) than you would spend if you bought it.
Generally speaking, leasing makes sense when it costs less than buying.
In your case, youād be spending an additional $14k+ over 3 years to rent the vehicle than you would if you bought it. Hard to envision a scenario in which that would make sense.
There are always exceptions, but for vehicles in this segment (āperformanceā full-size luxury SUVs), it usually makes more sense to buy rather than lease. All of that being said, here are a couple of other things I would consider if I were you before I finalized any decision:
Trade-In Value: I could be wrong, but my gut instinct is telling me that the dealership might be low-balling you a bit with that trade-in value for your X3. Do some homework on what the market is like in your area for trade-ins on your vehicle and use that information to negotiate for a better trade-in offer if possible.
Alternatives: Have you considered the Audi SQ7? Slightly lower price point, and Audi currently has a more attractive finance offer (4.49% for 72mo on 2023 models, if Iām not mistaken). But if your heart is set on the X7, have you considered a low-mileage used and/or CPO X7 M50i? Pre-face lift, but could save you quite a bit of $. That said, if your heart is truly set on the m60i, then assuming you can comfortably afford it, you should just get what you really want.
Edit - just read another reply indicating that this dealer is marking up the rate and that buy rate is actually the same as Audi. In which case, the only reason to go the sq7 route would be a lower price on the vehicle itself (assuming you prefer the m60i over the sq7, all other things equal).
Thanks for the clear and concise feedback/suggestions. And it looks like buying is definitely the best option. This forum is awesome! I just wanted to be sure the pricing was in line. I plan on using the broker above, Clutch, on the m60i. BMWās website is wonky right, but just need to send him the build.
In that case, it sounds like you know what you want
I would recommend doing a bit of research on the trade-in though (and being a bit more aggressive in trying to negotiate for a better offer if warranted).
Brokers can usually offer some insight into that as well.
Essentially the $400/month buys flexibility. We all know these depreciate right when we leave the lot and Iāve never kept my cars too long as I tend to like the newest thing. So paying that $400 just gives me the peace of mind that I can get out clean after 3 hrs vs holding on to something I may not love in 4-5 yrs.
