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Member
Infil
Posts: 12
Registered: ‎10-11-2012
0

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

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

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Established Member
JKeeler1121
Posts: 36
Registered: ‎10-10-2012
0

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

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


 

Valued Member
blackie1
Posts: 36
Registered: ‎06-26-2012
0

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

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


 


 

2fst4u
Frequent Contributor
fuzzybean
Posts: 309
Registered: ‎04-04-2012
0

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

[ Edited ]

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?

 

Frequent Contributor
fuzzybean
Posts: 309
Registered: ‎04-04-2012
0

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


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?

 

Valued Contributor
Dustink
Posts: 3,008
Registered: ‎10-02-2012
0

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


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. 

 

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Frequent Contributor
fuzzybean
Posts: 309
Registered: ‎04-04-2012
0

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


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! 

 

New Contributor
ds3
Posts: 76
Registered: ‎10-02-2012
0

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

[ Edited ]

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.

Valued Contributor
GregB
Posts: 1,669
Registered: ‎05-24-2007
0

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


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.

 

Valued Contributor
trumpet-205
Posts: 2,494
Registered: ‎11-11-2010
0

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

[ Edited ]

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.

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