Trying to figure out if I should Lease or Finance this custom build coming in next month. Not sure if I put in all the information on the calculator correctly, but did with info I’ve obtained from other online sources.
The Lease vs Finance numbers based on 36 months look way lopsided in favor of Financing - am i doing this correctly? Any help would be greatly appreciated!
Whoops - fixed! Looks better now. Thanks! Now it ain’t too far off from each other. Is this a car most are leasing or financing? Having a tough time deciding…I understand there’s factors like how much one drives and etc, but beyond driving habits, v8 engine reliability, significant depreciation in the first 3 years - are there other factors that would suggest I lease vs finance?
That’s a tough one, it’s an expensive car and is very much pay to play, obviously you see that spending 73k over 36 months with either situation.
Discount seems on par with the brokers here. Do you only plan on keeping it for 36 months if you finance? Financing generally makes more sense if you keep it longer than 36 months. But on the other hand, BMW warranty is only 4 years and included maintenance is 3, so you’d need to consider an extended warranty/maintenance if financing and keeping for a longer term. Have you ran numbers for keeping it for 5-6 years comparing TCO?
Another thing about financing, if you get any kind of ding on the Carfax, at fault or not, the value will drop throwing your lease vs financing calculator out the window.
I’m not familiar with the reliability of this particular engine or what most would do lease vs finance.
Ran some basic numbers through Edmunds for TCO and definitely realize it’s going to be a costly car for 5 years but i’ve never leased before and always intended on financing the car from the get go. But with all sides telling me different stories from engine reliability scenarios and close to 50% depreciation through the first 3 years - i’m just currently at a cross road not sure which direction to go.
On the lease, you’re paying a 5.04% APR with the opportunity to buy it down further with MSD’s.
When the lease is over, if the car is worth less than the residual, not your problem, give it back and move on. If it’s worth more than the residual, at least at this point in time, you have options to capture equity and sell it.
If you finance, you’re looking at 6.49% APR which is basically your carrying cost, but you don’t have the downside protection if you want to sell it in 3 years and it’s worth less than what the lease residual would have been.
If you are doing cash vs lease, this becomes more complicated, but if you’re doing a lease or finance, and the finance APR is the same or higher than the lease APR, I think leasing would only make sense because you’re protected against downside and can capture potential upside if there is equity.
personal preference where I think the X7 looks way better than the Cayenne and space versus the X5M…the X5M was my second option and would’ve considered it more if i got an amazing deal on it.
I always look out for X7 threads as I personally believe its simply the best driving 3 row family SUV. However, after waiting for numbers to improve on both M60i ($1800s) and X40i ($1400’s), I decided to hunt for an XM which starts at a much higher MSRP (~$160k +) and aimed at a price point as close to the X40i pricing. Even with 2 kids, and deletion of 3rd row, the interior space is bigger than the X7 we had and seats even adults more comfortably in the second row. Now I understand exterior styling is not for everyone but since you mentioned second option for X5M, I would definitely recommend into looking at remaining 23 inventory (both demo’s and new) if you are looking for a nice payment. But if you like brand new cars and would still like to build one, a new 24 XM would still be in the same range as your X7 pricing.
Good Luck !
If you’re spending $2k a month for a car, it shouldn’t matter whether you buy or lease. By that I mean you shouldn’t care if one or the other will save a few bucks over 3 years. If saving a few bucks over 3 years is a deciding factor, then you can’t afford $2k a month for a car.
Eh. I had a 540 wagon when I had no kids. Peeps be silly like that sometimes. The key is to have multiple cars for whatever mood you’re in. That’s the proper use of freedom money.
And as a Por-shaa fan boy I hate to say it but the Cayennes have got more ugly with each generation. A Macan on the other hand…
The car is amazing and perfect and the numbers are trash and booty cheeks. It’s probably the best driving 7 seat SUV on the market which is why the numbers are just awful lol
May we never forget…
no kids yet so got some of that freedom spend.