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      04-12-2016, 04:35 AM   #2297
trey100
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Drives: 2020 M2 Competition
Join Date: Jul 2007
Location: New York

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I've done the same analysis a dozen times and for me it always comes down to this: worst case scenario, the lease will cost me $1-2k a year extra but I have the guarantee of handing it in in 3 years with no other risks. If I get into an accident, no big deal on a lease. To me that is worth the "potential" extra costs. Best case scenario - the lease could be cheaper if your street value in 3 years is less than the lease residual. Win win. I think if you know you are getting into a new car in 3 years, a lease wins.

Also have you considered multiple security deposits? Takes the interest rate from 3% (MF of .00135) to 2% (.00086). That's what I did and combined with my wife's corporate discount (lowers an additional .0002), my effective interest rate is 1.5%. For me that is only $70/month interest.

PS - My analysis above Is based on me maximizing my lease by planning incentives like UDE, doing Max MSDs, etc. keep in mind that the MF is bumped that much which is the equivalent of adding $1,500 to the price. My experience a lot of dealerships wanted to offer me an attractive price attached to a bumped up MF. I finally found a dealership that gave me a good price AND a base MF. At the end of the day, I don't care how the move the money around, I judge the deal on the overall numbers.
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