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Originally Posted by Robert A
There is an exception to all this, and that is with European Delivery. The ED discount will nearly always make the 24 month lease cheaper than the 36 month lease.
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Not sure if I agree, ED gives you lower cap cost in the form of
1. Reduced invoice price (and therefore reduced sales price)
2. No MACO
3. No Training Fees
However the MF is always marked up, I don't know the exact value, but it is the same mark up regardless of model. The MSRP, Base MF and Residuals are the same for ED vs non-ED.
Therefore the same logic/calculations as I used above applies and it depends on the residual/MF whether a 2 year lease monthly is less than a 3 year lease monthly.
For a 330i ED, a 3 year lease would be still cheaper than a 2-year.
For a 325i ED, the 2-year would slightly beat out the 3-Year.
Of course a 2year ED will always be cheaper than a 3Year NON-ED if that's what you were originally alluding to.
For ED you also need to factor in the cost of travel, I'd say about $2K is about average. Sure you get to take a vacation in Europe and drive your new car around, but you also throw away one months lease payment while the car is in transit. It's really 2 months but BMW pays for the second month. That increases your monthly effective monthly by 400/23=$17 (assuming $400/month lease).
I think ED is an excellent program if you can afford the time.