I am considering leasing a BMW. If I end up enjoying the vehicle, I may want to buy it out at the end of the lease. Before getting the actual contract from a dealer, is it possible to determine the end of lease buyout price using just the residual (.54), MSRP, and money factor?
I’ve added an example from the following calculator input. If the MSRP is 57,170 (minus 6 percent discount and 7500 ev discount applied, new MSRP is 46,240?). If the residual is 54 percent, does that mean the buyout price at end of lease would be .54 * 46,240 = $24,969?
The calculator is saying $30,872. Is that the buyout, and if so where does that value arise from.
RV is always on listed MSRP, not on Cap Cost. So 54% of 57,170.
Buyout cost would be 30872 + applicable buyout fees + applicable taxes, assuming you are doing it in the last month. Also, not sure if BMW has restrictions on buying out in last month.
Ahhh ok. So I wanted to lease because I wouldn’t qualify for a 7500 rebate when buying due to single-person income cap, but leasing would add this discount to the MSRP. But by my calculations, if buyout price is 30,872 and total cost of the lease 24,766, the rough total purchase price is 55,638 - so I’m not really getting a 7500 discount?
You do get the 7500 rebate. But you also need to take into account the rent charge, fees and taxes in your lease cost. If you were to purchase instead of lease, you would pay more in taxes. If you were to finance, you would pay a lot more on interest.
Not saying you should take this lease deal, just trying to explain the numbers.
You owe acq. fee, but the rent. charge component of the total cost isn’t due if you’re immediately buying out. Also does the car actually get the rebate, is this an i4 35e?
On BMW buyouts that rent charge that’s not posted will show as unearned rent charge/interest when buying out.
Yah its an e35, so the discount would be present. I do not have enough cash to buyout right away, but I anticipate saving enough in 3 years to do so when the lease is completed. And I kinda wanna see where EV tech is in 3 years, I may want to walk away at the end of the lease should battery technology exponentially advance in that period of time.
But now I understand, it appears the rent charge ($4,800) is essentially where most of the 7500 credit is going. Thanks for the info!
Yah its an e35, so the discount would be present. I do not have enough cash to buyout right away, but I anticipate saving enough in 3 years to do so when the lease is completed. And I kinda wanna see where EV tech is in 3 years, I may want to walk away at the end of the lease should battery technology exponentially advance in that period of time.
But now I understand, it appears the rent charge ($4,800) is essentially where most of the 7500 credit is going. Thanks for the info!
Any recommendations on better EV alternatives? I do like the look of the i4, but if it’s a bad deal I’m open to other options. At what price point would this lease ‘make more sense’?
Also, if I purchase I wouldn’t get a tax credit (single, and income is above the threshold), but I guess the credit is less impactful in the lease anyways.
There’s the Nissan Leaf on one end, and the Mercedes EQE/EQS on the other.
Beyond that most other EVs depend what sort of brand loyalty or federal/state/city/utility rebates you qualify for, because you’d want to start by financing on day one or leasing followed by a financed buyout soon after.
