Quote:
Originally Posted by cadman50
So I think you answered my first question. Discounting the finance charges it looks like it will cost you a little over 7K/year (21.3K/3 years). If you lease or buy you still have finance charges so you have to take that out of the equation, right? Seems like you always have a car finance charge unless you pay cash for the car. So i wonder if after 3 years you decide to sell it privately what is a reasonable asking price? You say that BMW says your car is worth 29K.
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i could have gotten a finance rate lower than bmwfs' if i had purchased outright, but the finance savings were going to be less than the tax advantages of doing it as a lease. as to what the private value of the depreciated car will be in 3 years, that's very much a crap shoot depending not only on the car itself, and whether i've actually driven it the 15kmi/yr or more or less than that, but on the availability and prices of competing used vehicles, the state of the u.s. economy, and so on. i assume that captive finance companies, such as bmwfs, have an interest in estimating residual values on the high side, since that lowers the leasing cost and thus "sells" more vehicles. however, they also have an interest in not losing money.