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Discussion Starter · #1 ·
I just booked my m5 and should recieve by Feb in Houston TX a few months earlier than the 48 month lease for my 745Li expires.
Over the years I have realized I can take a car maximum 3 years then I like to change.
But this is my 1st M5 - Need help in making a decision - should I lease for 36 months or 48?
Thanks in advance.
 

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Since it is the first model, I would get the 3 year.. maybe even 2 year, then get a new (and possibly/probably facelifted/improved version) in a couple of years. Besides, you might not like SMG and want to offload it even faster.
 

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Leasing, while often a very expensive financing option, is even worse when you don't know how long you wish to own the car.

Tom
 

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you should look at the residuals and decide. Generally speaking on a BMW FS lease, the "best bang for the buck" is the 3yr....as the average annual depreciation is less with the 3yr vs the 2 or 4yr, plus with a 3 yr, you should be covered for all warranty and service under the 4yr 50K mile plans. At 4 yrs, you could go over 50K miles and be on the hook yourself.

Don't expect aggresive terms on the M5 for leases. I'd expect the rates to be similar to a 7 series.

Leasing, is not always more expensive, we just leased a 2005 X5, with a 59% 3 yr residual, 3300 off MSRP (+1000 over dealers cost with mkting fees), .00075 Money Factor (that's 1.8% APR).....typical BMW money factors are around .0025. The difference in payments from the money factor is around 160/month. Equivalent to getting another $10,000 off the price.
 

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Leasing beyond 36 months always results in a disadvantageous situation for the consumer because you end up paying MORE than the car is depreciating. Standard cars with promotional lease plans, such as what BMW is doing with the X3 and X5 currently, create a VERY FAVORABLE situation to lease the car. Remember leasing should only be 24,30 or 36 months (39 mo is ok if it is based on a 36 month residual ONLY) The M5 or any other limited production cars in general should not be leased because at the end of the day, due to high demand, you can sell the car yourself in any time period and it would cost you far less than the same time period if leased.
 

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I agree with Dan's advice here. I bet the 2 year lease is not as attractive than the 4 year lease, so I would go for the standard 3 year deal and tell the dealer you want to be back one the list for a new M5 when your lease ends.

BMW FS has been able to do leases pretty competitively because of the high residual values BMWs are fetching. With the new M5, I think they know they will have a hit on their hands so I do not expect to see very aggressive residual values built in, but I remember when the 7 first came out- you could get a 745 short wheel base for around $800/mo/36 months/0 down. It was all in what they rated the residual at- which was kind of high. When you watch what the lease rates do over time, you will see little games played with residual values and money factor (the interest rate they charge).
 

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Discussion Starter · #7 ·
Thanks guys - 36 months it will be.




MEnthusiast said:
I agree with Dan's advice here. I bet the 2 year lease is not as attractive than the 4 year lease, so I would go for the standard 3 year deal and tell the dealer you want to be back one the list for a new M5 when your lease ends.

BMW FS has been able to do leases pretty competitively because of the high residual values BMWs are fetching. With the new M5, I think they know they will have a hit on their hands so I do not expect to see very aggressive residual values built in, but I remember when the 7 first came out- you could get a 745 short wheel base for around $800/mo/36 months/0 down. It was all in what they rated the residual at- which was kind of high. When you watch what the lease rates do over time, you will see little games played with residual values and money factor (the interest rate they charge).
 
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