Quote:
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Originally Posted by MIKEYMIKE
According to BMWUSA....
Regardless of downpayment.........
The 24 monthly payment is always less than the 36 monthly.
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Depending what you are saying, this may be true...
You will always pay less over the 2 year period (TOTAL) than you would over the 3 Year Period (TOTAL)...
HOWEVER your monthly payment on a 2 year lease is always HIGHER than the monthly on a 3 Year lease (assuming there is no special MF or Residual for 2 year leases, which there is none that I am aware of for 330i BMW). If you keep doing 2 year leases then you are on AVERAGE paying much more than you would be paying on a 3 year lease....
Here are two examples...(values from bimmerfest forum)
Case 1: 330i 3Yr/12K Residual 64% MF .00195
Case 2: 330i 2Yr/12K Residual 71% MF .00195
(assuming MSRP $37,075 and Gross cap Cost $35,885)
NOTE: NO SALES TAX INCLUDED IN BELOW CALCS...
Case 1:
Total Depreciation $12,157
Rent Cost: $4,184
Total Cost for 3 yrs: $16,341
Per Month: 16,341/36=$453
Case 2:
Total Depreciation: $9,561
Rent Cost: $2,911
Total Cost for 2 Yrs: $12,473
Per Month: 12,473/24=$520
2 Year Lease costs approximately $70 more per month over a 3 year lease.
Over 6 years (3x2yr or 2x3year) total costs would be roughly...
12,473*3 = $37,419 for 3 2-year leases
vs.
16,341*2= $32,682 for 2 3-Year Leases
2 Year leasing cycles would cost you approximately $5,000 more over that period.
BMW's lose greatest amount of value over the first 2 years.
100%-71%=29%=~15%/Year.
In the third year it loses 71%-64%=7%
So if you lease in 2 year cycles you are not getting the real benefit of residual value which occurs in the third year.
Put another way.. the numbers above..
$12,473 for 2 years
$16,341 for 3 years...
The first two years are costing you $6,237/Year
The third year is costing you only $3,868 (16,341-12,473)
The 3rd Year is the cheapest year to own a car.
After the 3rd year the residual/MF's become unattractive (depending on the model).
In short the sweet spot (at least for 330i's) is 3 years
EDIT:P.S
I ran the same MSRP/Agreed price for a 325i sedan and it looks like BMW has incredibly good residual for 325i 2Yr lease. 76% for 2Yr/12K. This is a really good residual, the money factor is a little higher than the 330i, but the payment of a 2 year lease works out about $10 cheaper than a 3 year lease. Not a huge saving, but interesting none the less.
It works out that a 325i sedan built for the MSRP/Negotiated price shown above would be ~$481/mo (before tax) on a 2 year lease. However a 330i, for the same MSRP/Negotiated price would cost $453/month for a 3year lease.
The debate about which of those a better deal could go on forever and is most likely subject to personal preferences!!! There's about 5K in difference between the invoice of a 325 and a 330. You could get a lot of nice options on a 325i for 5K.