[ACZakka325i]

Guys,

Starting to run numbers on a purchase of the M2 with the intention to sell in 3yrs. There are good chances I keep the car (non-daily) unless the CS/CSL/etc materializes.

In any case, it appears leasing is a terrible proposition and therefor financing at 1.99% with $20k down for 5yrs (with my CT tax) nets a payment of $665. I wanted to keep payments around $600-800/mo.

In this scenario, the amortization table shows outstanding loan balance of $15k after 3yrs.

Given the above, what can we expect fair market value to be after 3yrs assuming babied non-DD and low miles? Mid to high 20's?

Thinking out loud here but hoping to arrive to consensus regarding the value proposition of purchasing without intention to keep. I think in this scenario I am paying the car off too quickly. The car should be worth much more after year 3, which means I should potentially put less down. I usually lease my vehicles. Thanks for any input.

[zenmaster]

The M4 residual is 57% at 3 years:
http://f87.bimmerpost.com/forums/sho....php?t=1222491

[ACZakka325i]

Thanks, that is helpful.

It would appear that it will take a couple years for supply to catch up to pent-up demand for this car. While this car will not be like the 1M, there are more indicators pointing to a favorable depreciation than not, at this point in time.

[dalrx]

What's wrong with that lease numbers??? M2 numbers I got quote from dealer
Is $1000 mth for 39 mths 5.9% residual is 60%

[ACZakka325i]

Originally Posted by dalrx

What's wrong with that lease numbers??? M2 numbers I got quote from dealer
Is $1000 mth for 39 mths 5.9% residual is 60%

Not sure how Canada compares, but $1k/mo is a heft payment for a $55k car.

[BEM-S4]

Originally Posted by ACZakka325i

Not sure how Canada compares, but $1k/mo is a heft payment for a $55k car.

That's similar to the numbers the Jag dealer was quoting me on a new XE w the F type engine in it, MSRP was identical. And the Jag leases are usually HORRIBLE. Looking at this another way, is the M2 more car than the 235? Yes without question. But comparing lease payments, is it 2x nicer? That's a stretch.

[ACZakka325i]

Originally Posted by BEM-S4

That's similar to the numbers the Jag dealer was quoting me on a new XE w the F type engine in it, MSRP was identical. And the Jag leases are usually HORRIBLE. Looking at this another way, is the M2 more car than the 235? Yes without question. But comparing lease payments, is it 2x nicer? That's a stretch.

You're right on. Most agree the MSRP of the M2 presents a tremendous value over the MSRP of the M235i. So now, we must decide if we can justify purchase (plus interest expense) to carry the car with intention of selling in a few years. 3 years seems to be where the depreciation curve flattens a little bit. 4 years may be even better.

The wild-card is how soon will the M2 CSL/CS/GTS be coming? Seems like it is around 2 or so years away. This is really the only reason why I am agonizing over the time frame. Otherwise, I would be happy to just keep the car without an exit strategy.

[BEM-S4]

Originally Posted by ACZakka325i

You're right on. Most agree the MSRP of the M2 presents a tremendous value over the MSRP of the M235i. So now, we must decide if we can justify purchase (plus interest expense) to carry the car with intention of selling in a few years. 3 years seems to be where the depreciation curve flattens a little bit. 4 years may be even better.

The wild-card is how soon will the M2 CSL/CS/GTS be coming? Seems like it is around 2 or so years away. This is really the only reason why I am agonizing over the time frame. Otherwise, I would be happy to just keep the car without an exit strategy.

On the flip side, since you won't be getting a "BMW subsidized lease" on the M2, that could work to your advantage. If you are 24 months in and the CSL gets here you should have no problem exiting your lease maybe with a little $ coming back to you. If you end up keeping it, your buyout will be below market assuming this plays the way folks think it will. So let's say you run the 36 month lease, buy the car when you are done and finance it. Worst-case scenario, at least for you, is that 40 months from now the CSL arrives and you just bought the M2 4 months before. Since you financed less than what the car is worth, you wouldn't be upside down on your note and have to pay to disappear the M2 to get the CSL.

[gmzanatta]

Originally Posted by ACZakka325i

Not sure how Canada compares, but $1k/mo is a heft payment for a $55k car.

It's $61K base price, $65K with all options and DCT.

Plus slap on anywhere from 10-15% sales tax and you end up at $1000/mo

EDIT: should also note a near 6% lease interest rate

[Lt1camaro]

Yeah, Canada has outrageous lease payments compared to the US. I know people who pay 700-800 in the states for their M3s but in Canada its 1300+.

[dmk08]

Originally Posted by dalrx

What's wrong with that lease numbers??? M2 numbers I got quote from dealer
Is $1000 mth for 39 mths 5.9% residual is 60%

Residual on 15k in US is 49% @ 36mo.

[3tekcorps]

Originally Posted by Lt1camaro

Yeah, Canada has outrageous lease payments compared to the US. I know people who pay 700-800 in the states for their M3s but in Canada its 1300+.

I think it's more about the taxes you pay and value of your currency than anything else.

[ACZakka325i]

Originally Posted by gmzanatta

Plus slap on anywhere from 10-15% sales tax and you end up at $1000/mo

15% Sales Tax?????

[gmzanatta]

Originally Posted by ACZakka325i

15% Sales Tax?????

Somebody's gotta pay for that free healthcare

[Dabozo]

Where do u think the $$ comes from for the 'free' health care we enjoy...

Not all lease rates are high though. This is a high demand car...