Better to lease or buy?
12-31-2008, 12:25 PM
#76
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Join Date: Dec 2006
Location: MPLS
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2016 E350
Key Points...
The key in any leasing is the residual and MF. People get wrapped up in payment and can end up paying MSRP or higher.
The C63 sucks to lease - high MF and not so great residual. If you want a similar caliber of car (not wanting to start a flame war here) go get an M3 4 door. MF is almost zero right now - they need to move them, but with $6000 off sticker, trunk money from BMW and that MF the payments work out in the low $700s (without tax and little drive off). Heck, maybe you could get two for the price of the C63!
Here is an example of why leasing is a good idea:
2007 E350 loaded - MSRP $57,500
CAP Cost or purchase price $48,000 (2k trunk money and almost 8k from sticker)
MF .00015
Residual 70% or $40k.
Payment $460 if paid in full at the front for a total of $12,400 for 27 months.
Car is going back to them at the end of February and is only worth $24,000 right now.
If I buy it from MBFin my total expenditure for the car is only $37,000.
Had I bought it up front for $48,000 I would have paid a whole lot more versus the $13k I have into it. Figure $10k down and payments of $730 or so - I would have paid $30,000 by now (more than double) and still upside down by at least 1 or 2 thousand. All of this is without taxes - factor that in and it can be worse - you are only paying taxes on the payments while leasing.
If you switch cars = LEASE!
However, you can also take a bath leasing - try to get out of one 6 months into it when you are over miles, paid MSRP and it can get very ugly. Plus if you don't know what you're doing (MF, Cap cost, Residual, Mile allotment) you can get clocked by the dealer.
The dealer hates me......
The C63 sucks to lease - high MF and not so great residual. If you want a similar caliber of car (not wanting to start a flame war here) go get an M3 4 door. MF is almost zero right now - they need to move them, but with $6000 off sticker, trunk money from BMW and that MF the payments work out in the low $700s (without tax and little drive off). Heck, maybe you could get two for the price of the C63!
Here is an example of why leasing is a good idea:
2007 E350 loaded - MSRP $57,500
CAP Cost or purchase price $48,000 (2k trunk money and almost 8k from sticker)
MF .00015
Residual 70% or $40k.
Payment $460 if paid in full at the front for a total of $12,400 for 27 months.
Car is going back to them at the end of February and is only worth $24,000 right now.
If I buy it from MBFin my total expenditure for the car is only $37,000.
Had I bought it up front for $48,000 I would have paid a whole lot more versus the $13k I have into it. Figure $10k down and payments of $730 or so - I would have paid $30,000 by now (more than double) and still upside down by at least 1 or 2 thousand. All of this is without taxes - factor that in and it can be worse - you are only paying taxes on the payments while leasing.
If you switch cars = LEASE!
However, you can also take a bath leasing - try to get out of one 6 months into it when you are over miles, paid MSRP and it can get very ugly. Plus if you don't know what you're doing (MF, Cap cost, Residual, Mile allotment) you can get clocked by the dealer.
The dealer hates me......
