[KG11]

The M4's residual is 63%, so $45,800. That is obviously attractive. What would be the actual "street value" of the M4 in 4 year's time?

Selling price $67k (invoice $72,745), or $68k if leasing (BMWFS $1k credit does not apply).

They want .00175 for MF though.

I am conflicted. The Residual on lease is great. But the interest rate is quite high at 4.2% I can re-fi after 6 months with my local CU for 2.19% for 72 months. I don't have to pay the $995 acquisition fee though.

Here is the question: the M4's residual is 63%, so $45,800. That is obviously attractive. What would be the actual "street value" of the M4 in 4 year's time?

My monthly depreciation is $643, and leasing costs are $200, so $844/mo

Now, if I finance for 72 months (let's assume rates go up a bit in 6 months, so 2.39%) at $68k purchase price (the $1k I get discounted if purchased outright), at a payment of $1014/mo for 72, then after 36 mo, I would be at:

$3817 in interest paid
$34272 still owed on the car

If I lease, then after 36 months, I would have no equity with an $843/mo payment, but have paid $6120 less.

Therefore, after 3 years, apples to apples, it looks like $40,392 would be what approximately I would be at with the same payment for purchasing as leasing ($843: I know that interest accrued would change slightly with the smaller payment, but it's close enough for an estimate)

So, then: in 3 years, with around 27k miles on the car, would a new M4 be worth: $45,800 (residual), $40,392 (what I would still owe based on lower interest and saving $1k up front), or somewhere in between? That's really the only variable here. Are M4's holding their values similar to what the E92 M3 was doing after 2 years? It seems like a 2013 E92 M3 w/30k miles is selling for around $44-46k on average. But the E92 may or may not be considered "more" desirable. Also, with the M2 on the horizon, it may pull buyers away from the F80 platform. Those people who love M cars but don't need a car as big or powerful, will opt for an M2?

Not getting the base MF rate costs me $600 or so, FYI. They ditch the acq. fee and add in the higher MF to make $600.