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BMW M5 F90 (2018+) General Forums F90 M5 Pricing, Ordering, Tracking, and European Delivery    Lease or Finance the new M5

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      03-26-2018, 10:30 PM   #1
Abran_tasrif
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Lease or Finance the new M5

I was lookig forward to either Lease or Finance the M5, If I lease, I would put $10,000 down for 12k Miles for 24 months. If I finance maybe 20,000 down for 72 Months. Thing is I never keep cars older than 1.5-2 years, I get rid of them, in a Lease im stuck in contract but than again I dont wanna lose alot money on the depreciation rate by financing. Most important factor is I need this car gone within 1.5-2 years, so what are my best options?

I tried looking at E63 amg, their prices are absurdly high. I love both cars.
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      03-26-2018, 10:39 PM   #2
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Whatever you do, try to minimize the amount you put down on a lease. Only put down the required, meaning taxes, registration, 1st month, bank fee and thats it. The rest is pure profit for the dealer and you lose out on that money if the car were totaled. Realistically, you're looking at around $4000 in taxes, $300 in registration, $725 bank fee and about $1800-$2000 1st payment(based on 24 months). Thats a total of around $7K. Keep the $3k in the bank.
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      03-27-2018, 06:59 AM   #3
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Quote:
Originally Posted by swanson View Post
Whatever you do, try to minimize the amount you put down on a lease. Only put down the required, meaning taxes, registration, 1st month, bank fee and thats it. The rest is pure profit for the dealer and you lose out on that money if the car were totaled. Realistically, you're looking at around $4000 in taxes, $300 in registration, $725 bank fee and about $1800-$2000 1st payment(based on 24 months). Thats a total of around $7K. Keep the $3k in the bank.
Why do people keep spreading misinformation? How is this "pure profit to the dealer"? I'm not sure you understand how a lease works...

BMW leases come with GAP insurance, you won't lose money that you put down. Even then, that could only happen in a scenario where the remaining amount on the lease far exceeds the value of the car (i.e. if you drive it off the lot and total it immediately). In the opposite scenario, where you put money down and have equity in the car, you will get that money from your insurance company.

That said, assuming the MF is low, I still don't advocate for putting money down on a lease and targeting some specific monthly payment.

Last edited by bigsid05; 03-27-2018 at 07:05 AM..
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      03-27-2018, 11:09 PM   #4
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Lease.
Simply because you like to change car every 18-30 months
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      04-04-2018, 03:43 AM   #5
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Lease it for 3 years, put as little down as possible, then put it up on swapalease in a year or two.

But be prepared to offer an incentive. In a year or two, these m5s will be at around 900/1k a month with discounting
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      04-22-2018, 04:53 AM   #6
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i downed 50k and lease is little less than 900/month. im in a process of turning it into finance and they saying it will jump upto 1800.
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      04-22-2018, 09:18 AM   #7
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Quote:
Originally Posted by sollomon View Post
i downed 50k and lease is little less than 900/month. im in a process of turning it into finance and they saying it will jump upto 1800.
Sollomon

Can you please
Clarify what you wrote......


It reads like you put down 50k and are leasing for 900/mo?

That seems way to high
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      04-22-2018, 03:18 PM   #8
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Quote:
Originally Posted by sollomon View Post
i downed 50k and lease is little less than 900/month. im in a process of turning it into finance and they saying it will jump upto 1800.
holy shit lmao.

please, for your own sake ask people on this forum before doing anything first. or even a cpa
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      04-22-2018, 03:22 PM   #9
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Quote:
Originally Posted by sollomon View Post
i downed 50k and lease is little less than 900/month. im in a process of turning it into finance and they saying it will jump upto 1800.
Sounds like you got hosed badddddd
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      04-22-2018, 08:27 PM   #10
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Quote:
Originally Posted by supershaft View Post
holy shit lmao.

please, for your own sake ask people on this forum before doing anything first. or even a cpa
No need.....if he makes decisions like that he will be broke in a year anyways.
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      04-22-2018, 11:36 PM   #11
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no i wanted to buy out the car out right in cash.
and then dealer told me if i do that i will catch a flag on irs system.
best way would be lease it and not pay the sales tax upfront. and few months after turn into finance and pay for few months and pay it off.
thats how i did it with m4 also, i down pay 10k and payment is 1200 but i turned it into finance and now im paying 1300ish.
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      04-22-2018, 11:38 PM   #12
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im paying this car off before 2018 ends
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      04-22-2018, 11:40 PM   #13
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Quote:
Originally Posted by Mr.SugarSkulls View Post
Lease it for 3 years, put as little down as possible, then put it up on swapalease in a year or two.

But be prepared to offer an incentive. In a year or two, these m5s will be at around 900/1k a month with discounting
Did you ever try doing that? Does it sell in swapalease?
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      04-22-2018, 11:45 PM   #14
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Quote:
Originally Posted by sollomon View Post
no i wanted to buy out the car out right in cash.
and then dealer told me if i do that i will catch a flag on irs system.
best way would be lease it and not pay the sales tax upfront. and few months after turn into finance and pay for few months and pay it off.
thats how i did it with m4 also, i down pay 10k and payment is 1200 but i turned it into finance and now im paying 1300ish.
Whatever the reasons, you paid $50k upfront and $900 a month for a F90 lease. If you signed on to a 3 year lease, then you are effectively paying $2300/month (50000/36 + 900).

Even if you paid MSRP and you got every single option available on the car, you are not going to hit a $2300/month rate without a ~$20k dealer markup.
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      04-22-2018, 11:50 PM   #15
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Quote:
Originally Posted by frankchn View Post
Whatever the reasons, you paid $50k upfront and $900 a month for a F90 lease. If you signed on to a 3 year lease, then you are effectively paying $2300/month (50000/36 + 900).

Even if you paid MSRP and you got every single option available on the car, you are not going to hit a $2300/month rate without a ~$20k dealer markup.
well bottom line is im buying it out in 1 year. plus i got this car the day after it landed from germany and there were few people also trying to make the deal. and i didnt really care and think and just paid for it. i dont care how much it is a month. i pay over my payment anywayz
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      04-23-2018, 12:05 AM   #16
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Quote:
Originally Posted by sollomon View Post
no i wanted to buy out the car out right in cash.
and then dealer told me if i do that i will catch a flag on irs system.
best way would be lease it and not pay the sales tax upfront. and few months after turn into finance and pay for few months and pay it off.
thats how i did it with m4 also, i down pay 10k and payment is 1200 but i turned it into finance and now im paying 1300ish.
Your dealer is full of shit and is up to something else.

https://www.irs.gov/businesses/small...dealership-qas

Quote:
If a customer purchased a cashier's check at the bank for over $10,000, would the bank report the transaction? Does the seller of a vehicle need to report the transaction if the same cashier's check is subsequently used to purchase a vehicle?

If the cashier's check was purchased with cash exceeding $10,000, the bank would file a Currency Transaction Report (not a Form 8300).

The purchase of a vehicle with a cashier's check, bank draft, traveler's check or money order with a face amount of more than $10,000 is not treated as cash and a business does not have to file Form 8300 when it receives them.
On the flip side I've leased and negotiated the buyout after my lease was up for substantially less than what the car was worth which sometimes ends up saving you money.

I'm thoroughly confused at your situation.
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      04-23-2018, 12:09 AM   #17
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Quote:
Originally Posted by supershaft View Post
Your dealer is full of shit and is up to something else.

https://www.irs.gov/businesses/small...dealership-qas



On the flip side I've leased and negotiated the buyout after my lease was up for substantially less than what the car was worth which sometimes ends up saving you money.

I'm thoroughly confused at your situation.
i didnt have any plan on getting this car at all. i bought my m4 in october . i know i kinda rushed too much without thinking but what can i do? i love my car and im just paying for what its costing.
maybe next year if i get sick of it ill sell it and get something else.
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      04-23-2018, 07:01 AM   #18
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https://www.bmwusa.com/special-offer...l-offers-legal

$1299 a month.
$5724 due at signing.
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      04-23-2018, 08:19 AM   #19
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Quote:
Originally Posted by Abran_tasrif View Post
Quote:
Originally Posted by Mr.SugarSkulls View Post
Lease it for 3 years, put as little down as possible, then put it up on swapalease in a year or two.

But be prepared to offer an incentive. In a year or two, these m5s will be at around 900/1k a month with discounting
Did you ever try doing that? Does it sell in swapalease?
Yup. I've both listed and transferred out of my original lease and have taken over two leases- one was a steal the other offered me 10k to take over the lease because the payment was too high in comparison to other m6s listed
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      04-23-2018, 09:49 AM   #20
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Quote:
Originally Posted by sollomon View Post
no i wanted to buy out the car out right in cash.
and then dealer told me if i do that i will catch a flag on irs system.
best way would be lease it and not pay the sales tax upfront. and few months after turn into finance and pay for few months and pay it off.
thats how i did it with m4 also, i down pay 10k and payment is 1200 but i turned it into finance and now im paying 1300ish.
Out of curiosity, are you planning on letting the dealership file your taxes? I've never heard of anyone taking any type of tax advice (let alone financial advice) from a dealership.

Next time, talk with a tax professional, CPA or tax lawyer instead.
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      04-23-2018, 10:34 AM   #21
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Quote:
Originally Posted by smiff View Post
https://www.bmwusa.com/special-offer...l-offers-legal

$1299 a month.
$5724 due at signing.
Wow, a great offer! What dealership can offer this deal?

Last edited by Greer; 04-23-2018 at 10:44 AM..
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      04-23-2018, 10:47 AM   #22
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Quote:
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Wow, a great offer! What dealership can offer this deal?
The key is in the fine print, this deal is on a 105k msrp car so its basically got nothing... so the payment will be less just based on the start point of the gross cap. I dont think Ive found one car at this msrp yet but its early.

In reality is the lessee thats contributing to driving the price down not the lessor here:

Quote:
Monthly lease payments of $1,299 per month for 36 months is based on an adjusted capitalized cost of $101,675 (MSRP of $105,295, including destination and handling fee of $995, less $3,500 customer down, $0 security deposit and suggested dealer contribution of $120).
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