Quote:
Originally Posted by dmk08
Won't that end up costing more?
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If the market value of the M4 3 years from now end up being lower than the book value yes but otherwise no.
Here's an example:
Lets say you lease an M4/3 for 36 months with 10K miles your monthly payments would be about 900$ a month (using numbers from e93 M3 w/ 69K MSRP) and at lease end you will have the option of either 1) buying the car out or 2) turn the car in.
1) You finance the residual value of the car ~$40K and don't worry about the dealership charging you for the miles you went over from your agreement.
2) If turning the car in you end up with nothing and will get charged for going over mileage whereas buying the car out is kinda of like buying a 3 years old car that is actually yours (if that makes sense)
if you look at current used 3 year old e93/2 M3s with 30-40k miles most of them are priced around $50K which makes buying your car for ~$40K even more of a bargain
Why not just finance the car from the get go? By leasing your barely paying any interest and payments will be much lower freeing up your cash flow to invest or do whatever you want with your money.
Total money spent on a 3 year lease w/10k miles $2.5K down= $34,864
Total money over 3 years of financing with $2.5K down 2.9% APR= $45,556
~10K saved from leasing over 3 years and ~10K Profit made by selling the car at ~40K and selling it for ~50K
Plus by that time LCI will be out