First time considering a lease and don’t know much about it. I’ve always financed my cars, but now that I’ve decided on my first luxury car nearing $100k ('23 BMW X7), I thought I should at least consider a lease and not have to worry about long term ownership and all that it entails.
I’ll be driving ~18k miles/yr. Salesman told me their maximum allotted miles per year is 15k, +$0.30 per mile above that limit.
If I finance, I plan to purchase an extended warranty and drive it until 100k miles or roughly 66 months.
Going off by the calculator’s numbers, it seems financing is by far the more cost effective decision. Am I wrong to assume this? Any input is greatly appreciated. See link below!
If you do decide to buy, definitely explore outside financing and check the thread below for some credit unions. I do believe that there are a few mentioned in that thread that have lower rates.
In the current market (RV low, MF high, lack of lease incentives), you’re almost always better off purchasing a BMW. Requiring 18K miles per year re-confirms a lease isn’t right for you.
I would suggest you consider BMW Select. The balloon is 30%, so it makes it a nice finance option to have a lower payment for now, if for some reason you decide you won’t want to keep the car for the whole 60 months.
I would suggest this is entirely the wrong vehicle to drive 18,000 miles per year or all the way to 100k in 5.5 years.
Between gas, maintenance and depreciation, it will be a bitter introduction to luxury vehicle expenses.
Your base-case assumptions for value at 100k miles should be 20% of MSRP. So your calculations should assume depreciation of (selling price + TTL - resale value of 20%) plus your financing costs.
Then add consumables such as tires, pads, rotors, oil, brake fluid, differential fluid, etc etc.
So consider getting a 10k lease on the X7 plus a 10k lease on a commuter vehicle (or 7.5k X7 plus 12k).
