I don't have any statistics, but I don't know many people who actually get 15k miles for their lease.
Everyone I know gets either 10 or 12k miles...
Wasn't even aware that 15k mile option was available on the leases...
Yup, you can even do higher on some cars. You can do 3 year lease on a Mini Cooper S at 33,000 miles PER YEAR. Yes, it would be a 99,000 mile lease. Residual is extremely low on that.
On the other hand, Ferrari primarily does leases for 3,500 or 5,000 miles per year.
As someone already pointed out, lease it, buy it at the end of the lease, sell it to CarMax walk away with few K in your pocket, think of it as offsetting the overall cost of the lease. Did this with a Range Rover lease, residual value was in the high 40s similar to the M5, bought it, CarMax offered me almost 20K over what I bought it for at the end of the lease term.
As someone already pointed out, lease it, buy it at the end of the lease, sell it to CarMax walk away with few K in your pocket, think of it as offsetting the overall cost of the lease. Did this with a Range Rover lease, residual value was in the high 40s similar to the M5, bought it, CarMax offered me almost 20K over what I bought it for at the end of the lease term.
Dude, that's awesome! Good for you.
I'm pretty confident that we'll be able to make a good profit on the F10 M5, once our leases are up like you did with your Range Rover.
"You can't make an E60 M5 like this no matter what you do. I don't mean that in a negative way. It is just a completely different type of car."
M5Board Member: Coldlist
--------------------------------------------------------------------------- Member of the E60 M5 200mph club. Future Member of the F10 M5 200mph club.
--------------------------------------------------------------------------- Dyno-Jet Dyno results: Best Run = 549whp and 512wtq. The only horsepower mods I have right now are the Charcoal Filter Delete and RPi GTM (Straightpipe) Exhaust.
I'm pretty confident that we'll be able to make a good profit on the F10 M5, once our leases are up.
I think it is still a pretty big gamble. The leasing companies are being a little conservative because they (or the insurers who insured any "gap") got burned. And not just on BMW's.
3 years from now gas prices will be up (bad), but the economy should be doing noticeably better (good).
Just recognize the leasing companies have shifted risk of depreciation to the lessee from the lessor. So you get higher payments up front, and hope to recoup some (if you are lucky) at the back end. If you do a straight buyout, you may also have to pay sales tax on the buyout, which you will lose on any resale.
pardon if this question if it isn't a good one or hasn't been covered...but since this residual rate is an estimation, they are not bound to stick to this and it is ultimately the market that determines the true value in a few years..correct? Do you guys believe options will drive value in the short term future? what i am trying to say is since there are no packages..owners will have a wide range of differing options so 3 years from now some models may be in the 50's whilst others may be higher? because you can build 110k+ M's in this model which differ greatly from you know..the 91k near base prices
pardon if this question if it isn't a good one or hasn't been covered...but since this residual rate is an estimation, they are not bound to stick to this and it is ultimately the market that determines the true value in a few years..correct? Do you guys believe options will drive value in the short term future? what i am trying to say is since there are no packages..owners will have a wide range of differing options so 3 years from now some models may be in the 50's whilst others may be higher? because you can build 110k+ M's in this model which differ greatly from you know..the 91k near base prices
Hi, Iand112.
The residual value as put out by BMW is based off of U.S. MSRP, this includes any options that are on the car. So if you spec out an F10 M5 with lots of options with a U.S. MSRP of 105,000 and its residual value at the end of the lease is 48% then it'll you'll be able to purchase the car from BMW for 50,400.
Now if the Real Market Value of your car according to Kelley Blue Book, is 65,000 at the time the lease ends, then you will have 14,600 in equity in the car.
What other members have said, is that this can be a good thing, because then you could buy the car and then turn around and sell it and make about 14,600 off of the car potentially, not including tax on the 50,400 of course.
I was so close to pick up a F10 M5 with Eloy and Dave on Euro delivery picked out the color package had the dealer write it up, but once money factor residual rates were released I abandon ship!
2-Year Lease on a F10 M5 is about $2000-2100 a month compared to a 2013 GTR which is $1600 for 2-years and they both have the same MSRP.. But they do make about 3-4 times more M5 per year than GTR's so it does make sense why the depreciation value is so low. But in General even on the E60 M5 they depreciated about 45k in 2-years..
F10 does not have an advantage on leasing its better to purchase it in my opinion. Good Luck to all of you and cant wait till here all the stories of the Euro Delivery guys!
As has been discussed, at least indirectly, in the messages above -- there is more to the setting of residual values than just an estimate of the market value of the car at the end of the lease. For BMW there is future sales to keep in mind.
First, BMW doesn't sell cars to us, they sell cars to dealers; the dealers sell the cars to us. For BMW the setting of residual values must also include consideration for the sales of new cars at the end of the lease of the 'older' cars. The difficult part for BMW is how to price leases (residual value being the factor they have the most discretion on) to 1) get people to buy the car now (and for BMW a lease is still a sale) and 2) also not create a disincentive for people to buy a new car at the end of the lease. One of the benefits to leases, for dealers, is that cars turned in after leases are still saleable. After a 36 month lease they may become CPO cars. But historically BMW wasn't too keen on CPOing M cars because of the extended warranty that goes with a CPO car. Perhaps BMW is setting the residuals low so as to not hurt current sales too much yet give the lessee an incentive to sell it to a private party rather than just turn it back in at the end of the lease and hope they'll use the "profit" toward the purchase (or lease) of a new BMW.
The residual value as put out by BMW is based off of U.S. MSRP, this includes any options that are on the car. So if you spec out an F10 M5 with lots of options with a U.S. MSRP of 105,000 and its residual value at the end of the lease is 48% then it'll you'll be able to purchase the car from BMW for 50,400.
Now if the Real Market Value of your car according to Kelley Blue Book, is 65,000 at the time the lease ends, then you will have 14,600 in equity in the car.
What other members have said, is that this can be a good thing, because then you could buy the car and then turn around and sell it and make about 14,600 off of the car potentially, not including tax on the 50,400 of course.
Can you buy the car back from BMW "without" having to register the car and pay (I live in CA) California State tax? And just sell it via AutoTrader/CarMAX without being registered? Would save $5K
Can you buy the car back from BMW "without" having to register the car and pay (I live in CA) California State tax? And just sell it via AutoTrader/CarMAX without being registered? Would save $5K
Probably not. First you can't sell a car to CarMax if you don't own it; until you buy it from the lessor they own it. That's when California will want to collect the sales tax. At least the tax will be on the residual value. If there's a "profit" (market less residual values) and you're not willing to buy the car per the lease terms the lessor will want the profit.
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105,000 and its residual value at the end of the lease is 48% then it'll you'll be able to purchase the car from BMW for 
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