BMW M3 Forum (E90 E92)

BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read


Go Back   M3Post - BMW M3 Forum > M3 (E90 / E92 / E93) > General M3 Forum (E90 + E92 + E93)
 
GT Haus
Post Reply
 
Thread Tools Search this Thread
      12-23-2011, 03:34 PM   #1
bimmer4life24
Private First Class
 
bimmer4life24's Avatar
 
Drives: GTI MK6
Join Date: Jan 2010
Location: Chicago

Posts: 186
iTrader: (0)

Finance a 2012 135i or lease a 2012 E92 M3?

  • They are both going to be around the same monthly payment well equipped
  • I do not want to go through the hassle of buying a used M3 (vehicle history, extending warranty, etc.)
  • If I choose to lease, it will be a 3 year term and I will be looking to refinance and purchase towards the end
  • What do you guys think? Will I be losing a ton of money if I decide to lease an M3?

Thanks in advance everyone!
bimmer4life24 is online now  
0
Reply With Quote
      12-23-2011, 03:48 PM   #2
Mike van D
Major
 
Mike van D's Avatar
 
Drives: SG X6 35i; MW e92 M3
Join Date: Jan 2011
Location: Germany

Posts: 1,114
iTrader: (0)

...M3 forum, guess which car will be recommended? Never leased before, always purchase...so can't help you there. Good luck with your decision.
__________________
...just enjoying life.
Mike van D is offline   Germany
0
Reply With Quote
      12-23-2011, 03:58 PM   #3
ES_TRADER
Colonel
 
Drives: 328i, 335i, M3, 535i, X5, 36M
Join Date: Oct 2010
Location: OC

Posts: 2,566
iTrader: (3)

Garage List
2014 Ford Raptor  [0.00]
2012 328i E92  [5.00]
2013 X5  [0.00]
2013 335i F30  [4.00]
1990 Toyota Previa  [0.00]
1997 E36 M3  [5.00]
2011 E92 M3  [0.00]
2011 535i  [0.00]
you need to look at your own situation and not just the payments. both are completely different cars even when "similarly equipped." its not apples to apples, and asking if u should finance one vs leasing the other is also just complicating matters more.

look at what you can afford and be comfortable with paying and are you the type of person that wants/gets a new car every 3 years? if that is your lifestyle, then i say lease it and look for something else later.

if you are like me, and like to buy a bunch of cars and drive em to the ground and buy new ones every 10-15 years or so, then finance it or pay cash. it will be cheaper and u spread the cost over a decade.

to each his own u know
ES_TRADER is online now  
0
Reply With Quote
      12-23-2011, 04:09 PM   #4
Mr. ///M3 RD
Major General
 
Mr. ///M3 RD's Avatar
 
Drives: E350 & 280 SL on Weekends :)
Join Date: May 2010
Location: GTA, Ontario - Canada

Posts: 7,863
iTrader: (0)

Garage List
No one can help you there (people will recommend ... then you are the final decision maker) ... you need to decide after all you will be driving the car yes ... there you have it.
__________________
Cheers, Rolf-Dieter

Life will take us to some interesting places, fortunately The ///M3 will too with a many of us know this very well
---> Click here for some good stuff I found
Mr. ///M3 RD is offline   Canada
0
Reply With Quote
      12-23-2011, 04:09 PM   #5
luis_m3
Low Pro...
 
Drives: 2011 E90 AW
Join Date: Dec 2010
Location: Arizona

Posts: 972
iTrader: (0)

It might be the way I read your post, but it sounds like you cannot afford to purchase the M3; therefore, I would say leave it alone, purchase the 135i. It is not only about the monthly payment, maintenance and gas will affect your wallet as well...
Good luck in making your decision.
luis_m3 is offline   United_States
0
Reply With Quote
      12-23-2011, 04:12 PM   #6
luis_m3
Low Pro...
 
Drives: 2011 E90 AW
Join Date: Dec 2010
Location: Arizona

Posts: 972
iTrader: (0)

BTW, do NOT test drive the M3 unless you're ready to pull the trigger on it...
luis_m3 is offline   United_States
0
Reply With Quote
      12-23-2011, 05:19 PM   #7
nick3753
Lieutenant
 
Drives: 2012 e92 M3 DCT ZCP
Join Date: Oct 2010
Location: Fresno,CA

Posts: 534
iTrader: (0)

I would hardly say he is getting both for the same just because monthly payments are equal for 3 years. OP, if you can swing those payments indefinitely than its a no brainer, get the M.
nick3753 is offline  
0
Reply With Quote
      12-23-2011, 05:35 PM   #8
saeyedoc
Lieutenant
 
Drives: 2012 Cayman S, 2012 Panamera
Join Date: Jun 2010
Location: San Antonio, TX

Posts: 540
iTrader: (0)

Keep in mind that in IL you will pay tax on the cap cost of your lease, not on the payments themselves.
It's generally not a good idea to lease with the intention of buying it out at the end, you're better off financing for a longer term if you want to keep your payments at a certain level.
saeyedoc is offline  
0
Reply With Quote
      12-23-2011, 05:35 PM   #9
bimmer4life24
Private First Class
 
bimmer4life24's Avatar
 
Drives: GTI MK6
Join Date: Jan 2010
Location: Chicago

Posts: 186
iTrader: (0)

Quote:
Originally Posted by nick3753 View Post
I would hardly say he is getting both for the same just because monthly payments are equal for 3 years. OP, if you can swing those payments indefinitely than its a no brainer, get the M.
Financing for 6 years
Leasing for 3 years (+$75/month)
bimmer4life24 is online now  
0
Reply With Quote
      12-23-2011, 05:57 PM   #10
Ateam
Banned
 
Drives: M3
Join Date: Sep 2011
Location: USA

Posts: 1,109
iTrader: (0)

I think if you are planning to simply buy out the lease than you are only wasting money by doing this. You are going to be buying your lease out at a much higher price than market value, which is ok if you end the lease but you will have piad the premium costs of having a lease and then overpay buy buying your car at overmarket residual price.

Sounds like you are doing it because you cannot afford the finance payments on the m3 now? Otherwise there is zero point to planning to buy out a lease.

I would buy a lease out if it turned out the car was really something I was not planning to keep but I loved it and did not want to turn it back, but would never plan to do so from the get go-makes zero sense.
Ateam is offline  
0
Reply With Quote
      12-23-2011, 05:58 PM   #11
luis_m3
Low Pro...
 
Drives: 2011 E90 AW
Join Date: Dec 2010
Location: Arizona

Posts: 972
iTrader: (0)

Quote:
Originally Posted by username11 View Post

Maintenance will be free for the lifetime of the lease.

135i gets around 19mpg combined.

M3 gets around 17.5-18mpg combined.

It's really not a big difference.

On other hand, the M3 is so much better of an automobile than a 135i in every way imaginable it is not even funny. If you get them for the same amount then why would anyone ever choose the 135i?

OP, compare TCO between M3 and 135i based on how long you plan to keep the car, miles driven per year, etc. Then go test drive both cars and you'll pick the M3 no matter what the numbers say.

Ignore the people who will say "if you cannot afford to pay cash for the car you cannot afford it." These people think an intelligent use of equity is purchasing a rapidly depreciating liability outright, so you can assume their financial advice is a bit suspect.
Just for the record, I did not say he must pay cash for it. I personally financed mine for 5 years. He asked for advice, so I gave it to him. I ran into the same dilemma before I purchased my M; I wanted a GT-R, which technically I could afford, but it would not have been a good financial decision.
You have a good point regarding the maintenance, but when it comes to gas, there is a big difference. My neighbor has a 135i, we make the same trip to work everyday, and I spend a lot more in gas than he does. For sure, I don't get 17's MPG.
luis_m3 is offline   United_States
0
Reply With Quote
      12-23-2011, 06:19 PM   #12
Darth One
Former yr 1of1 owner
 
Darth One's Avatar
 
Drives: SGM E90
Join Date: Jul 2008
Location: FL

Posts: 1,109
iTrader: (0)

Quote:
Originally Posted by bimmer4life24 View Post
  • If I choose to lease, it will be a 3 year term and I will be looking to refinance and purchase towards the end
  • What do you guys think? Will I be losing a ton of money if I decide to lease an M3?

Thanks in advance everyone!
yes, you will lose a ton of money if you lease it and then purchase the thing after the term ends. or let's just say you'll spend a lot more than if you just bought it in the first place
Darth One is offline   United_States
0
Reply With Quote
      12-23-2011, 08:24 PM   #13
Purple88Gold
Holding Out
 
Purple88Gold's Avatar
 
Drives: 88 Honda Civic DX
Join Date: Dec 2008
Location: SoCal

Posts: 234
iTrader: (0)

Quote:
Originally Posted by saeyedoc View Post
Keep in mind that in IL you will pay tax on the cap cost of your lease, not on the payments themselves.
It's generally not a good idea to lease with the intention of buying it out at the end, you're better off financing for a longer term if you want to keep your payments at a certain level.
+1

OP, can you post the numbers?

Monthly payments:
Finance for 6 years - M3
Lease for 3 years - 135i

Merry Christmas!
__________________
E92 AW/FR Ext 6MT/ZCP/ZPP/ZTP
"The M3 M DCT simply does everything well except tow a hot-dog stand. It may even be the second-best car in the world after the M3 manual. "
Purple88Gold is offline   No_Country
0
Reply With Quote
      12-23-2011, 09:16 PM   #14
Ateam
Banned
 
Drives: M3
Join Date: Sep 2011
Location: USA

Posts: 1,109
iTrader: (0)

Quote:
Originally Posted by username11 View Post
OP,

You should also be aware that it is really easy to get very good deals on the M3 where it might be harder on the 135i. Around here (NE) M3s seem sit on the lot for several months. You could search for a new M3 in your area and work out a below invoice deal from your dealer. You can then lease at money factor with no mark up. See the sub-forum on leasing/pricing on this forum. Might shift the equation more in favor of the M3.

I have a friend that purchased a leftover 2011 135i (fully loaded) for 4K under invoice last year. He pays around $580/mo. I pay 40/mo more for my E92 M3. We are both leasing for 36/12K. I ordered mine and did ED. For me the M3 was worth $1440 more than the 135i and I got to sit around and eat Spaetzle and drink amazing beer for a week.

Please test drive both cars. The 135i and M3 feel worlds apart to me. There is really no comparison.
OP mentioned a fully loaded or well optioned which would be at 73-74k. A few grand below invoice is not going to happen. Even the online dealers give 600 over invoice. So you are looking at 67k at invoice. No money down, lease payments will still be in the 900's with the 2012 MF and lease rates. Obviously this is not affordable, let alone finance payments of 1200-1300.

Sounds like this would be a way big stretch. Get the 500 buck a month 135 and enjoy it for 5 years. Then upgrade when you have the finances to do it comfortably.

Are you considering gas, insurance and tire prices, all of whicih are more expensive on the m3
Ateam is offline  
0
Reply With Quote
      12-23-2011, 11:11 PM   #15
spmd11
Captain
 
spmd11's Avatar
 
Drives: 2014 M235i AW
Join Date: Sep 2007
Location: Austin, TX

Posts: 850
iTrader: (2)

Ignoring the financing options and discussing the cars, I have a 2011 M3 convertible, a 2011 135 coupe and a 2010 135 convertible. The 2011 135 coupe has the BMW performance suspension.

The differences in performance and luxury between the 1ers and the M are so dramatically different, that if one were blind folded on a test drive, one would think that the cars were built from two different manufacturers. Nothing wrong with the 1ers.. we love them.. but the M is so much more car, there is really no point in comparing the two products.

If you want to lease the M and enjoy the car, go for it.. it is a significant jump in automobile. I was shocked to find the differences in suspension, handling, braking and power delivery when comparing the M products and the standard line. We have had a 2009 M3 sedan (6MT) and a 2004 e46 M (6MT) as well.
__________________

2014 M235i, 2008 JB e90 M3, 2011 X5 5.0, 2011 335i Sport
spmd11 is offline   United_States
0
Reply With Quote
      12-23-2011, 11:17 PM   #16
Mookster
Lieutenant
 
Mookster's Avatar
 
Drives: 2009 Z06
Join Date: Dec 2008
Location: Seattle

Posts: 569
iTrader: (0)

Have you considered a CPO'd M3?
__________________
Mookster is offline  
0
Reply With Quote
      12-24-2011, 01:40 AM   #17
luis_m3
Low Pro...
 
Drives: 2011 E90 AW
Join Date: Dec 2010
Location: Arizona

Posts: 972
iTrader: (0)

Quote:
Originally Posted by Mookster View Post
Have you considered a CPO'd M3?
1
luis_m3 is offline   United_States
0
Reply With Quote
      12-24-2011, 12:16 PM   #18
askharjoon
Private
 
Drives: e92 M3
Join Date: Aug 2011
Location: The big oven

Posts: 91
iTrader: (0)

To the OP, you should NEVER make a financial decision if the monthly payments are your primary decision factor in buying a car. The stealer can make almost any car on their lot fit someone's monthly budget but in the long run can easily rob you. If choosing between two cars comes down to the finances, do consider depreciation, insurance and gas and tax benefits as your biggest factors. Personally, I would not consider buying a used M3 as a "hassle" but instead a smarter financial decision that buying new. Let someone else take the big hit for you when they drive their new car off the lot.
If you where to ask me I would say used M3>new 135>leased M3 (especially if you can't write off the lease payments.)
__________________
'01 M3 Cab. (gone) '04 Maserati Coupe Cambiocorsa (gone) '08 S550 (gone) '07 550i (gone) '07 911S (gone) '08 M5 (gone)
'10 M3 Alpine White - DCT(gone) 2012 Porsche 911S

Last edited by askharjoon; 12-24-2011 at 03:32 PM.
askharjoon is offline  
0
Reply With Quote
      12-24-2011, 12:45 PM   #19
Aquariu///M
Captain
 
Aquariu///M's Avatar
 
Drives: 2009 M3 E92 & 13 X5///M
Join Date: May 2010
Location: Diamond Bar

Posts: 787
iTrader: (6)

Yep used M3
Save $30k by buying a used 2009-10 M3 with low milage 10-20k miles which is still under warranty and buy extended warranty for $3800 !!
You can get one for $50k, when if new that car is stickered at $76k + tax
Aquariu///M is offline  
0
Reply With Quote
      12-24-2011, 01:26 PM   #20
MKE_M3
Lieutenant Colonel
 
MKE_M3's Avatar
 
Drives: 2011 e90 M3
Join Date: Feb 2009
Location: Milwaukee, WI

Posts: 1,679
iTrader: (0)

drive both and then make the decision. I'm leasing although I could have purchased, I just preferred to keep my payments down for the time being. For reference, I put $2500 down, plus first month's payment, 36mo 12k mi. lease = $690/mo. 5.1% tax included in the $690. Car is pretty stripped, e90 with ZCP and that's about it
__________________
MKE_M3 is offline   United_States
0
Reply With Quote
      12-24-2011, 01:37 PM   #21
rjd598
Brigadier General
 
rjd598's Avatar
 
Drives: 10' M3
Join Date: Jan 2009
Location: San Diego,CA

Posts: 4,598
iTrader: (2)

Garage List
2010 BMW M3  [4.50]
1999 BMW M3  [0.00]
is it just me or does anyone else not see a problem between the two vehicles? how can the lease payments for a m3 be the same as a 135i financed? regardless if thats an option you have to consider it really does seem you might not be able to afford the m3 at this time and i mean in a smart financial decision type of way. a 135i and a m3 will never get the same gas mileage so i think gas will play a huge role in it too. youll floor the m3 way more often
__________________
rjd598 is online now   United_States
0
Reply With Quote
      12-24-2011, 02:52 PM   #22
Better With Age
Enlisted Member
 
Better With Age's Avatar
 
Drives: 2011 E92 Jerez Black
Join Date: Oct 2011
Location: Bellevue, WA

Posts: 33
iTrader: (0)

Have leased and purchased over 15 cars over the past 20 years.

Leaving business expense motivations out of the equation (favors leasing), my simple rule of thumb for personal acquisitions :

1. Lease the car when you truly believe you will only want to keep the car for a limited time and never really want to own outright plus you might expect to put "reasonable" miles and wear and tear;

2. Purchase the car when you believe you expect you will really want to own the car outright following the finance period and/or might put excessive miles on the car and/or have higher wear and tear

The simple fact is that you are renting the "temporary use" of a vehicle under a lease (payment = monthly depreciation + cost of money [%] factor); you build no equity.

For one of the earlier posters raising this question, it is not totally unusual for a purchase monthly payment (with a down payment) to be equal to a lease payment (w/o any down payment). It's an apple and an orange.

Facts of life on a lease :

1. You never really "own" anything - you just think you might;
2. High mileage and/or wear and tear will incur a penalty;
3. Don't lease and "mod"; you will be sorry you did;
4. You might be able to personally sell a lease car on or before lease due date but conditions will apply and most require lessor approval, plus the market needs to cooperate with you (I have lived both sides of this coin);
5. Upon lease termination be prepared for lessor to nickle and dime you on wear and tear and other "final condition" considerations

While I have leased more cars than I have purchased my head starts to hurt when I hear someone say that "leasing let's them 'buy' more car than they might otherwise be able to with a purchase". Another good one is "but the monthly payment is lower". If these are your sentiments be prepared to be "hosed" somewhere in the transaction.

The most expensive transaction possible is leasing for a 3 or 4 year term, then deciding you want to own the car and you wind up buying out the residual and financing that for another 3 or 4 year term. A real "fool's game" generally.

As to financing or leasing over 60 months, I know we are living in different economic times but the only ones coming out ahead under these long term deals is the financing company. If you can't afford to pay off in 3-4 years you really shouldn't be acquiring that particular rig - just my humble opinion.

Oh, in case anyone is wondering, I "purchased" my 2011 M3 E92. Simply because I'm older and could.

An older and experienced car purchaser . . .

Last edited by Better With Age; 12-24-2011 at 03:00 PM.
Better With Age is offline  
0
Reply With Quote
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -5. The time now is 01:53 PM.




m3post
Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST