Hey all - curious for some input as to whether it makes more sense to buy or lease an X7 40i. I’ve seen pretty solid deals from some of the brokers on here - and it looks like BMW has 4.99% apr for 60 months (which isn’t great compared to the last few years but not awful today). Any major red flags / tips on leasing vs buying this car? My wife either wants this or the GLS which I’ve been told should be purchase only.
thanks all!
makes more sense to finance IMO unless they have massive incentives/discounts off MSRP. I know they increased MF on leases for June for most BMWs.
Only “good” benz leases are demos, loaners, or EVs as of today.
Will she keep the car for 3 yr or 9 yrs? Do you want to pay BMW maintenance when the car is paid off? How many miles a year does she drive? Leasing the new EQS SUV could be very good right now. If you can live with 100% electric
If you negotiate a good price on the extended warranty and keep it for 5-6 years, then 99.99% guaranteed you’ll come out ahead of 2 consecutive leases.
Anything shorter than 4 years, all bets are off. You’ll spend a boat load either way and it’s very hard to tell which will be cheaper.
Just because you finance the car doesn’t mean you have to own it past the warranty period. EQS is garbage. There is a reason they have to firesale them
Finding this out the hard way
Thanks - she’s probably a 3-4 year max person when it comes to cars. no more than 7500 miles and i’m unsure with the maintenance piece. She’s been an XC90 person for years so this will be a step up
thanks @max_g. I know it is going to be a boatload and i can’t talk her into a QX80, Wagoneer, or any other comparable size. It looks like lease/finance aren’t that different just wasn’t sure if one is a much better idea (i’ve been told always lease XC90 over buy, as an example)
I assume you looked at Defender already? If not, 130 (bigger 4 door version) may be worth considering. There is a chance it has a higher residual at the end of ownership than GLS or X7.
Probably better off leasing, especially in that 3 yr range.
However:
A 2020 X7 with a 80k-85k ish MSRP is selling for 60k ish with 25k miles. So to calculate the lease see if the depreciation RV matches up to what you can sell it for “potentially” in 3-4 years. We know the last few years of used car prices have been whacky to say the least. Any type of incident on a car fax report when you own it will hurt the value but wont affect the RV value at lease turn in.
Fair point, not seeing great things about the EQS but its out there. Some people will deal with the known flaws to say they drive a 100k Mercedes for $600 mo. You can certainly sell at anytime but owning and selling before warranty ends has its risks too. New buyer will have to deal with no warranty and that affects sales price. Deprecation is killer in years 1-2. Car fax issues hurt the resale value if you buy vs lease. The issue here is without ALL the facts its very hard to know the lease vs buy breakdown for a certain individual. And even then some car purchases are made - financial outcomes be damned!
My 2019 X7 was garage kept and well maintained. I got rid of it at 48k miles as it felt like it was getting ready to fall apart. Just an input to think about when deciding between lease or finance and extended warranty. Personally, I think the lease programs on these are atrocious right now, but people continue to buy them, so I don’t see that changing in 2023.
I think using a 2020 in 2023 will be a bad data point for a 2023 in 2026. These last few years are the anomaly, not the norm. To me, it’s unsustainable. Otherwise, the clear winner is buying for $85k and selling for $65k in 3 years, but again, I feel that’s unlikely.
Is a Range Rover Sport doable at MSRP (rather than the defender)? I assume that would be a purchase as well.