topic Re: 2013 BMW 750i Lease vs. Financing Questions??? in Auto Loans

2013 BMW 750i Lease vs. Financing Questions???

JKeeler1121 — Wed, 10 Oct 2012 23:00:07 GMT

Hello,

I am more towards leasing because of my business. Im 26 and I recently strated my business and was quoted for this vehicle.

2013 BMW 750i xDrive Sedan $96,495.00

The salesperson told me leasing looks like a better opinion for me. He quoted me 36 months, 10,000 miles 6,800 total out of pocket $1,326.00 month

The payment isnt too bad because I make about 130,000.00 and have no mortgae or rent nor no expenses other than credit cards. He pulled my credit and said it qualifies for tier 1 leasing

Your thoughts???, suggestions???, I am kind of excited

Re: 2013 BMW 750i Lease vs. Financing Questions???

Default4 — Thu, 11 Oct 2012 05:03:38 GMT

It all depends on what works for you. If your not going to drive over 10k miles a year then it's probably ok. I don't know about the exact numbers on a 7, especially a new one. Just out of curiosity and because it would save you a lot of money in the long run have you looked at the previous design (E65) or are you set on the new one (F01)? Maybe even a used F01? They started making them in 2008 if I remember correctly. Whatever you end up doing congrats!

Re: 2013 BMW 750i Lease vs. Financing Questions???

JKeeler1121 — Thu, 11 Oct 2012 11:49:24 GMT

Default4 wrote:
It all depends on what works for you. If your not going to drive over 10k miles a year then it's probably ok. I don't know about the exact numbers on a 7, especially a new one. Just out of curiosity and because it would save you a lot of money in the long run have you looked at the previous design (E65) or are you set on the new one (F01)? Maybe even a used F01? They started making them in 2008 if I remember correctly. Whatever you end up doing congrats!

thank you and yes i only want to buy new

Default4 wrote:
It all depends on what works for you. If your not going to drive over 10k miles a year then it's probably ok. I don't know about the exact numbers on a 7, especially a new one. Just out of curiosity and because it would save you a lot of money in the long run have you looked at the previous design (E65) or are you set on the new one (F01)? Maybe even a used F01? They started making them in 2008 if I remember correctly. Whatever you end up doing congrats!

Re: 2013 BMW 750i Lease vs. Financing Questions???

GregB — Fri, 12 Oct 2012 15:08:18 GMT

I can't even begin to explain how foolish it is for someone in your position to buy a car like that. I say this from the point of view of someone that did something very much like that although I bought instead of leased. My first expensive car had a payment that was double my house payment at the time. You do own a house, right? Some of the CPAs that work with me have found that a lease makes sense for a tiny, tiny number of buyers in very specific situations but only if you structure the lease correctly and buy the car at the end.

I just made the final payment on a BMW that I purchased new and have bought 6 new ones over the years. Do you want to know how badly I wish that I had NOT bought that one? It might have been justifiable at half price.

Re: 2013 BMW 750i Lease vs. Financing Questions???

Epcot — Fri, 12 Oct 2012 15:19:06 GMT

That seems like too much of a car payment for someone who just started their business.

If you are dead set on it. Bring your down payment down some, and possibly look into MSD's.(Multiple Security Deposits) to get your money factor down. The nice thing is that the MSD's are refunded to you at lease end. Would the mileage cap be any problem for you? Whatever you choose to do, hope it works out!

Re: 2013 BMW 750i Lease vs. Financing Questions???

ImprovingYouth — Fri, 12 Oct 2012 15:24:16 GMT

GregB wrote:
I can't even begin to explain how foolish it is for someone in your position to buy a car like that. I say this from the point of view of someone that did something very much like that although I bought instead of leased. My first expensive car had a payment that was double my house payment at the time. You do own a house, right? Some of the CPAs that work with me have found that a lease makes sense for a tiny, tiny number of buyers in very specific situations but only if you structure the lease correctly and buy the car at the end.

I just made the final payment on a BMW that I purchased new and have bought 6 new ones over the years. Do you want to know how badly I wish that I had NOT bought that one? It might have been justifiable at half price.

+1 You may have the income now, but you are committing yourself to a 1.2k payment every month for years to come, and then have nothing to show for it unless you buy out the loan, which at that point will still be considerable. How bout short term PURCHASE a 3 series or 5 series(personally I think BMW kicks the crap out of Audi in the mid range cars), and save. Once you can buy the A8 in cash then do so. You may have a huge bank roll but turn on the news man, one misfortune in life and you are up s@#$ creek without a paddle.

Re: 2013 BMW 750i Lease vs. Financing Questions???

fuzzybean — Fri, 12 Oct 2012 16:52:23 GMT

Between this, the economy and the upscale clothing the OP talks about, I sure hope we don't see them on the BK boards in a year or two! My husband makes 138k and we own our home outright. Even if we could get the financing for it, I would never even consider it!

Re: 2013 BMW 750i Lease vs. Financing Questions???

monaarts_hotmail — Fri, 12 Oct 2012 17:15:05 GMT

JKeeler1121 wrote:
Hello,
I am more towards leasing because of my business. Im 26 and I recently strated my business and was quoted for this vehicle.
2013 BMW 750i xDrive Sedan $96,495.00
The salesperson told me leasing looks like a better opinion for me. He quoted me 36 months, 10,000 miles 6,800 total out of pocket $1,326.00 month
The payment isnt too bad because I make about 130,000.00 and have no mortgae or rent nor no expenses other than credit cards. He pulled my credit and said it qualifies for tier 1 leasing
Your thoughts???, suggestions???, I am kind of excited

I am being serious with this... Why don't you "settle" for a BMW 5 series for almost half the price and save 6months - 1 year income before you go crazy. I have a friend (27 years old) who has owned a business for about 4 years making cloe to $250k/year. 2 years ago he sold half the business to a partner and opened another business that is kind of a sister company, almost instantly started making about $200k/year from it... So total income 2 years ago was close to $325k!!! Last February some of his biggest clients had to stop using them because they needed to tighten their expenses, after that a bunch of his smaller clients had to do similar things. With all that said, last year he made LESS THAN $50k! He had 2 cars, a brand Masarati and (ironically) a brand new BMW 7-series. Needless to say, he no longer owns either car and is driving a mid-1990's Honda Civic that he had to finance. :-(

BE SMART ABOUT STUFF!!!

Re: 2013 BMW 750i Lease vs. Financing Questions???

birjest — Fri, 12 Oct 2012 18:31:10 GMT

Oh snap!!!!

Re: 2013 BMW 750i Lease vs. Financing Questions???

Default4 — Fri, 12 Oct 2012 20:53:30 GMT

Or as I was saying if you go with a 7 that is 07 or older you can find some killer deals and they are still very nice cars. Especially if you get one private party.

Re: 2013 BMW 750i Lease vs. Financing Questions???

Infil — Sat, 13 Oct 2012 01:37:42 GMT

Im in the industry if that helps, I manage an independant repair shop, however I have spent years in numerous dealers and am a ford senior master tech, as well as an ase certified L1 master technician.

Leases, are excellent if you dont mind being locked into a payment. You build up no equity in the car and will have no incentives upon renewal except loyalty and renewal incentives. Maintenence costs can be high as you will get banged out for any scratch/ding/dent that is over 2" (most manufacturers), curb rash over 4" per wheel, etc etc etc, depending on who checks the car in they can chop the value in half depending on how thorough they are.

With financing you have a higher payment, but you will build equity into the car and it will have actual value come trade-in time if/when you decide to replace it. You also aren't locked into the originating dealer/manufacturer for maintenence/service as many leases will have a stipulation to that effect written in somewhere.

One thing to consider either way, european cars depreciate at a sickening rate. My father in law's porsche cayenne turbo s was 96k out the door when he bought it outright, 2 years later he was considering trading it it, galves value on it(US dealer standard for car valuation) put it at a nice 52k at 23 months old.

Be prepared for that.

ON a european vehicle i would probably shove you towards leasing as by 50k miles, maintenence alone gets insane and parts for anything that says BMW, Mercedes, Porsche, Audi or VW are obscenely expensive IMO. Hope this rambling was helpful lol. Enjoy it either way

Re: 2013 BMW 750i Lease vs. Financing Questions???

JKeeler1121 — Sat, 13 Oct 2012 02:19:52 GMT

Thank You all for your posts Like I said at this point i am an corporate accountant and have an bussiness with my brother . The income was just from the accountant job which is about 130,000 and the other income is cash off the books and I have no mortgage nor rent nor really any expenses other than minor credit cards and i am going to live and I have a meeting with the manager on sunday to hopefully close the deal on the 750i leased

Infil wrote:
Im in the industry if that helps, I manage an independant repair shop, however I have spent years in numerous dealers and am a ford senior master tech, as well as an ase certified L1 master technician.

Leases, are excellent if you dont mind being locked into a payment. You build up no equity in the car and will have no incentives upon renewal except loyalty and renewal incentives. Maintenence costs can be high as you will get banged out for any scratch/ding/dent that is over 2" (most manufacturers), curb rash over 4" per wheel, etc etc etc, depending on who checks the car in they can chop the value in half depending on how thorough they are.

With financing you have a higher payment, but you will build equity into the car and it will have actual value come trade-in time if/when you decide to replace it. You also aren't locked into the originating dealer/manufacturer for maintenence/service as many leases will have a stipulation to that effect written in somewhere.

One thing to consider either way, european cars depreciate at a sickening rate. My father in law's porsche cayenne turbo s was 96k out the door when he bought it outright, 2 years later he was considering trading it it, galves value on it(US dealer standard for car valuation) put it at a nice 52k at 23 months old.

Be prepared for that.

ON a european vehicle i would probably shove you towards leasing as by 50k miles, maintenence alone gets insane and parts for anything that says BMW, Mercedes, Porsche, Audi or VW are obscenely expensive IMO. Hope this rambling was helpful lol. Enjoy it either way

Re: 2013 BMW 750i Lease vs. Financing Questions???

blackie1 — Sat, 13 Oct 2012 03:44:32 GMT

I am a little curious. If you are making 138,000 and have no expenses other than a few minor credit cards, no rent or morgtage, where is all that money going? If that is true you should save up the money to buy it in cash in less than a year! Just saying,!!

JKeeler1121 wrote:
Thank You all for your posts Like I said at this point i am an corporate accountant and have an bussiness with my brother . The income was just from the accountant job which is about 130,000 and the other income is cash off the books and I have no mortgage nor rent nor really any expenses other than minor credit cards and i am going to live and I have a meeting with the manager on sunday to hopefully close the deal on the 750i leased
Infil wrote:
Im in the industry if that helps, I manage an independant repair shop, however I have spent years in numerous dealers and am a ford senior master tech, as well as an ase certified L1 master technician.

Leases, are excellent if you dont mind being locked into a payment. You build up no equity in the car and will have no incentives upon renewal except loyalty and renewal incentives. Maintenence costs can be high as you will get banged out for any scratch/ding/dent that is over 2" (most manufacturers), curb rash over 4" per wheel, etc etc etc, depending on who checks the car in they can chop the value in half depending on how thorough they are.

With financing you have a higher payment, but you will build equity into the car and it will have actual value come trade-in time if/when you decide to replace it. You also aren't locked into the originating dealer/manufacturer for maintenence/service as many leases will have a stipulation to that effect written in somewhere.

One thing to consider either way, european cars depreciate at a sickening rate. My father in law's porsche cayenne turbo s was 96k out the door when he bought it outright, 2 years later he was considering trading it it, galves value on it(US dealer standard for car valuation) put it at a nice 52k at 23 months old.

Be prepared for that.

ON a european vehicle i would probably shove you towards leasing as by 50k miles, maintenence alone gets insane and parts for anything that says BMW, Mercedes, Porsche, Audi or VW are obscenely expensive IMO. Hope this rambling was helpful lol. Enjoy it either way

Re: 2013 BMW 750i Lease vs. Financing Questions???

fuzzybean — Sat, 13 Oct 2012 04:48:13 GMT

blackie1 wrote:
I am a little curious. If you are making 138,000 and have no expenses other than a few minor credit cards, no rent or morgtage, where is all that money going? If that is true you should save up the money to buy it in cash in less than a year! Just saying,!!
JKeeler1121 wrote:
Thank You all for your posts Like I said at this point i am an corporate accountant and have an bussiness with my brother . The income was just from the accountant job which is about 130,000 and the other income is cash off the books and I have no mortgage nor rent nor really any expenses other than minor credit cards and i am going to live and I have a meeting with the manager on sunday to hopefully close the deal on the 750i leased
Infil wrote:
Im in the industry if that helps, I manage an independant repair shop, however I have spent years in numerous dealers and am a ford senior master tech, as well as an ase certified L1 master technician.

Leases, are excellent if you dont mind being locked into a payment. You build up no equity in the car and will have no incentives upon renewal except loyalty and renewal incentives. Maintenence costs can be high as you will get banged out for any scratch/ding/dent that is over 2" (most manufacturers), curb rash over 4" per wheel, etc etc etc, depending on who checks the car in they can chop the value in half depending on how thorough they are.

With financing you have a higher payment, but you will build equity into the car and it will have actual value come trade-in time if/when you decide to replace it. You also aren't locked into the originating dealer/manufacturer for maintenence/service as many leases will have a stipulation to that effect written in somewhere.

One thing to consider either way, european cars depreciate at a sickening rate. My father in law's porsche cayenne turbo s was 96k out the door when he bought it outright, 2 years later he was considering trading it it, galves value on it(US dealer standard for car valuation) put it at a nice 52k at 23 months old.

Be prepared for that.

ON a european vehicle i would probably shove you towards leasing as by 50k miles, maintenence alone gets insane and parts for anything that says BMW, Mercedes, Porsche, Audi or VW are obscenely expensive IMO. Hope this rambling was helpful lol. Enjoy it either way

Who knows?

Re: 2013 BMW 750i Lease vs. Financing Questions???

fuzzybean — Sat, 13 Oct 2012 04:49:21 GMT

JKeeler1121 wrote:
Thank You all for your posts Like I said at this point i am an corporate accountant and have an bussiness with my brother . The income was just from the accountant job which is about 130,000 and the other income is cash off the books and I have no mortgage nor rent nor really any expenses other than minor credit cards and i am going to live and I have a meeting with the manager on sunday to hopefully close the deal on the 750i leased
Infil wrote:
Im in the industry if that helps, I manage an independant repair shop, however I have spent years in numerous dealers and am a ford senior master tech, as well as an ase certified L1 master technician.

Leases, are excellent if you dont mind being locked into a payment. You build up no equity in the car and will have no incentives upon renewal except loyalty and renewal incentives. Maintenence costs can be high as you will get banged out for any scratch/ding/dent that is over 2" (most manufacturers), curb rash over 4" per wheel, etc etc etc, depending on who checks the car in they can chop the value in half depending on how thorough they are.

With financing you have a higher payment, but you will build equity into the car and it will have actual value come trade-in time if/when you decide to replace it. You also aren't locked into the originating dealer/manufacturer for maintenence/service as many leases will have a stipulation to that effect written in somewhere.

One thing to consider either way, european cars depreciate at a sickening rate. My father in law's porsche cayenne turbo s was 96k out the door when he bought it outright, 2 years later he was considering trading it it, galves value on it(US dealer standard for car valuation) put it at a nice 52k at 23 months old.

Be prepared for that.

ON a european vehicle i would probably shove you towards leasing as by 50k miles, maintenence alone gets insane and parts for anything that says BMW, Mercedes, Porsche, Audi or VW are obscenely expensive IMO. Hope this rambling was helpful lol. Enjoy it either way

No utilities? Where do you live?

Re: 2013 BMW 750i Lease vs. Financing Questions???

Dustink — Sat, 13 Oct 2012 07:40:22 GMT

JKeeler1121 wrote:
Hello,
I am more towards leasing because of my business. Im 26 and I recently strated my business and was quoted for this vehicle.
2013 BMW 750i xDrive Sedan $96,495.00
The salesperson told me leasing looks like a better opinion for me. He quoted me 36 months, 10,000 miles 6,800 total out of pocket $1,326.00 month
The payment isnt too bad because I make about 130,000.00 and have no mortgae or rent nor no expenses other than credit cards. He pulled my credit and said it qualifies for tier 1 leasing
Your thoughts???, suggestions???, I am kind of excited

That was a waste of a credit pull. What is the point of that car? For a 10th of the price you can get a nice reliable car. No matter how much money you make, it is still a waste. Don't flush your money down the drain. Save it for when you aren't making as much.

Re: 2013 BMW 750i Lease vs. Financing Questions???

fuzzybean — Sat, 13 Oct 2012 13:55:12 GMT

Dustink wrote:
JKeeler1121 wrote:
Hello,
I am more towards leasing because of my business. Im 26 and I recently strated my business and was quoted for this vehicle.
2013 BMW 750i xDrive Sedan $96,495.00
The salesperson told me leasing looks like a better opinion for me. He quoted me 36 months, 10,000 miles 6,800 total out of pocket $1,326.00 month
The payment isnt too bad because I make about 130,000.00 and have no mortgae or rent nor no expenses other than credit cards. He pulled my credit and said it qualifies for tier 1 leasing
Your thoughts???, suggestions???, I am kind of excited
That was a waste of a credit pull. What is the point of that car? For a 10th of the price you can get a nice reliable car. No matter how much money you make, it is still a waste. Don't flush your money down the drain. Save it for when you aren't making as much.

I totally agree!

Re: 2013 BMW 750i Lease vs. Financing Questions???

ds3 — Sat, 13 Oct 2012 13:56:43 GMT

The question, IMHO, is not whether to lease or buy this car, but why? I am fortunate enough to have a household income similar to your's, and could also easily afford a payment that high. The difference between being 26 and 48 years old is perspective. No one is going to be impressed with your choice of cars. In fact, if I ran a corporation and had a 26 year old accountant who drove a $96k car, I'd have to seriously question my judgment as to whether I want this irresponsible kid anywhere near my financials. I understand your desire to have such a cool car, but 20 years from now, you'll probably be wishing you had bought an equally reliable car for a 3rd of the price and invested the rest of what you are planning to spend.

That being said, I'd buy it vs. lease. In your situation, it sounds like you could easily pay it off in 18 months or so, which is about 12 months after the new wears off, and you aren't locked into it for 3 years.

Just my 2 cent's worth.

Re: 2013 BMW 750i Lease vs. Financing Questions???

GregB — Sat, 13 Oct 2012 16:36:58 GMT

ds3 wrote:
The question, IMHO, is not whether to lease or buy this car, but why? I am fortunate enough to have a household income similar to your's, and could also easily afford a payment that high. The difference between being 26 and 48 years old is perspective. No one is going to be impressed with your choice of cars. In fact, if I ran a corporation and had a 26 year old accountant who drove a $96k car, I'd have to seriously question my judgment as to whether I want this irresponsible kid anywhere near my financials. I understand your desire to have such a cool car, but 20 years from now, you'll probably be wishing you had bought an equally reliable car for a 3rd of the price and invested the rest of what you are planning to spend.
That being said, I'd buy it vs. lease. In your situation, it sounds like you could easily pay it off in 18 months or so, which is about 12 months after the new wears off, and you aren't locked into it for 3 years.
Just my 2 cent's worth.

I think that advice is worth far more than 2 cents. I'm a business consultant and no client of mine would have anything to do with him.

Re: 2013 BMW 750i Lease vs. Financing Questions???

trumpet-205 — Sun, 14 Oct 2012 01:09:31 GMT

Personally, I think a fully equipped Honda Accord or Toyota Avalon is very comfortable for a long distance road trip. I tend to think cars like BMW 7 series are over-engineered and not practical. Luxury cars also depreciate very fast compared to others.

Looks like you are going with lease. I think it is a poor choice, given than you don't own the car to begin with. With financing, you at least have the option to resell the car somewhere down the line.