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      11-28-2013, 12:09 AM   #26
regular_joe
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Drives: 2014 320XI Modern Line
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Quote:
Originally Posted by Powaup View Post
Might be able to write off the lease if I categorize it as a company car for my dad's business... Or lease an M4 and then buy it out at lease end? I hear you on the "buy a car that will run for 2-3 years" but I've already been doing that for almost 2 years and now have a cash budget of roughly $20K to put towards a car so I wanna make this happen. Won't make a decision until February
You have quite a few options, depends on what you are able to do / live with. While reading on keep in mind that by february the residual rates will have gone down and at that point you are going to be looking at high monthly payments as a consequence.

1) If you can in fact write the lease payments off for your dad business then 100% lease. Now don't lease a brand new car at this point because of residual rates. Take over someone else's lease on a bmw that that is active for the next year. During which time you can wait for the 2015 availability and then jump at the release dates which will yield high residuals (60%+) and low money factor/APR %.

2) if you cannot write off the payments, then your next option is to finance. pretty straight forward. however, I would wait until the interest rates go back down in spring to 0.9% and not at the current 2.9%. Beater car it until then.

3) (personal biased option) When financing, lets say a brand new $50,000 at 2%, you will have paid an extra $10,000 ($50,000*2%) for this car for no reason at all. (there are more factors but lets keep it simple for arguments sake) Pure profit for the dealership and corporate bmw. I would wait and find a year old M4 and purchase that one after it has depreciated. This way keeping its value longer based on what you paid for it and not the purchase price of brand new. Secondly, you will have not paid anything extra interest wise to dealership.

If i made any mistakes feel free to correct them guys.