Quote:
Originally Posted by esquire
yes. that's exactly what i'm saying. when you lease a car you are only financing the amount that depreciates, not the entire amount. for simplicity's sake let's just say that amount is 40% (which is not correct, do some research and find out for yourself exactly what the residual amount is, and for the sake of this calculation subtract it from 100% to see what amount you'd be financing).
now let's say your ED car ends up being 7000 dollars cheaper than if you had bought it here (non-ED purchase). well since you're leasing you wouldn't realize that full 7000 dollar savings. you'd only be saving 40% of that 7000, or in other words 2800 dollars.
then take into account the cost of your ED trip, the delay in getting the car, and the 1 month payment you'll have to make before you even receive the car and it's likely you won't be saving anything. you might even be losing money.
if you end up negotiating an ED discount greater than that, that's another story ,you'll have to do the math on that. but i think the results will be about the same.
the point being that unless you end up purchasing the ED car outright, you wont be saving the kind of money on ED with a lease that would make the trip worth it FINANCIALLY speaking. (of course there's value to the trip aside from the financial savings. i.e. memories, pictures, experiences etc etc).
DISCLAIMER: the math is technically a little more complicated than what i've presented above as far as calculating actual cost/savings. but for the purposes of this excercise, it's a good indicator of whether ED is the way to go or not.
hope that helps,
- esquire
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Thanks for the help. That's exactly what I was understanding, just wanted confirmation.
I think I will just wait toward the end of the E92 M3 production and go from there. If I do ED, I definitely want to buy the car (so perhaps I should go with next generation M3 b/c the E92 will age and have low resell value if I decide to get the next gen M3 and sell the E92).