Quote:
Originally Posted by M6-Coupe
Well, there are always good deals available for any 6 er (including M6) because it's hard for dealers to sell these most expensive BMWs. If you look at the "BMW Group U.S. Reports July 2014 Sales" you can see in July 2014 only 384 6er have been sold in US while over 12497 3/4 series and 5676 5 series are sold:
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A car that does not sell in numbers does not always mean it is not wanted and/or that you can get a great deal on it. The X6 is case in point - everyone always thought they could write their own deal on them because BMW didn't sell too many. Fact was, BMW just didn't make too many and other countries got most of them! so for much of 2012 and 2013 it was kind of hard to get a deal on an X6!
Now the 6-series is one of the slower selling cars (slower selling as they don't make that many and therefore don't sell that many) - it is a bit of a niche car and will never sell like the 5 series and/or 3 series. (I love C&D's review saying "We wonder how many people sit in a 5-series and say "I like it, but do you have something that is smaller on the inside, larger on the outside and costs more?"")
But a $125-$140K car on the lot costs money to have on the lot. Especially when newer models are out. So you will see some deals. Case in point was the two months this year where you could get $7,500 off a 6-series (as long as it wasn't a GC!).
In addition, behind the scenes BMW corporate will make deals with the dealer. For mine, they titled it as a demo 15 days before I bought it - that got them another $2K off the price (BMW wanted the car shown as SOLD for the month and this is a tricky way to do it). There are all sorts of other secret dollars that go back and forth.
So where am I going with this? Here (and Sal this should make you feel a little better):
Leasing a car is basically paying the depreciation (at about 3% interest) off as well as borrowing the residual (at about 3% interest*) which you will never pay off. The depreciation is calculated at the purchase price minus the residual. The residual is calculated as a percentage of the MSRP (sans delivery)
So...
The advantage of a $130K car that is written down to $110K is that the residual is still based on the $130K. So a 54% residual of $130K is $70K and that means you are borrowing $70K with no intent to pay back and only really financing $40K ($110-$70K). Granted lots of other factors at play here.
Now take a $80K 640 - that residual is $43K - so you are only paying interest on that. The extra residual for the M6 will cost you about $67.50 a month*. The remaining amount ($80-43 = 37K) is financed at the 3%. The good news (SAL) is that the M6 is financed at $40K as well (you are financing $40K vs. $37K so about $1,000 more per year) ! So your M6 could in theory cost you only $150 or so more per month. Keep in mind there are so many factors that can change this -for instance sales tax here in and TX would be on $110K (approx $8K here in IL) vs. the $5,800 on the 640. This alone would raise your monthly by $65.
But my point is....and I stand by it...
The numbers are the numbers. We are talking a $110K car with a sticker of $130K that makes this scenario work. If this was a $110K car with a sticker of $110K everything changes. So you need to find someone desperate to get rid of their car - you need to make sure it is still a leasable year as BMW will not lease you a 2013 sitting on the lot and there are other numbers/factors at play here (early 2015 6-series cars had 50% ish residual vs. 56ish% residual on the 2014s - right there you can change the whole game).
*My final point is regarding MSDs. I'm going to come right out and say it. THEY ARE STUPID. Yea, you are lowering your interest rate and you better be damn sure you are going to be in a position to lease that car for the full duration. Cause getting someone to fork over those MSDs to you midlease is a real bitch. So for the love of God, let's stop seeing how cheap we can get a car with MSDs - it is a bad bad option for most people and we are therefore no longer comparing apples to apples.