[F12M6MD]

Just gathering everyone’s most up-to-date thoughts on which method of ownership makes the most sense to you currently (whether you have your i5 currently or not).

Personally, for my state of TX, unless you can get the dealer to give you sales tax incentives (typically reducing your sales tax to 1% without any trade), it does not make financial sense to lease here. That being said, a 36mo lease at 10k per year is 53% for January but is that realistic for the market? Who do you want holding the bag at the end? It’s more clear to me than ever that BEVs are like iPhones…who wants to buy an old one?

Thoughts on your plan if this is the car for you? Thanks.

Mark

[attack7777]

You do get a $7500 credit from BMW if you lease (the EV credit as a pass through) which you're not eligible for if you finance or pay cash.

The i5 is also new, and I think in 3 years there will be a model with improved battery efficiency/capacity. So I'm leasing.

I did this with a 2016 model S, and I'm glad I did... the battery capacity had dropped ~25% after 3 years, and I think I would have taken a bath on resale.

[RichardInCA]

I leased, considered buying but also wanted to see what advances had happened in battery EV tech in 3yrs. Residuals (and used values) are not super hot right now.

I LOVE my i5 thought - it’s a great car.

[aptekcom]

Originally Posted by F12M6MD

Just gathering everyone’s most up-to-date thoughts on which method of ownership makes the most sense to you currently (whether you have your i5 currently or not).

Personally, for my state of TX, unless you can get the dealer to give you sales tax incentives (typically reducing your sales tax to 1% without any trade), it does not make financial sense to lease here. That being said, a 36mo lease at 10k per year is 53% for January but is that realistic for the market? Who do you want holding the bag at the end? It’s more clear to me than ever that BEVs are like iPhones…who wants to buy an old one?

Thoughts on your plan if this is the car for you? Thanks.

Mark

I am assuming tax credits will be back and once they are I plan on leasing. I want to take advantage of the $7500 rebate plus $1500 loyalty plus any discount (6-7%). If and when the tax credit comes back, then that will be gravy on the top. I should have pulled the trigger in December but…

[Theophilus]

I purchased after getting about 13% off MSRP, but after thinking about it, I should have leased, because the battery is going to degrade and the technology will advance in a few years. EVs are different than ICE cars in the sense that people will most likely not keep them for the long term. They are more like an iPhone or computer that is meant to be replaced every so often.

[ntailor]

Originally Posted by attack7777

You do get a $7500 credit from BMW if you lease (the EV credit as a pass through) which you're not eligible for if you finance or pay cash.

The i5 is also new, and I think in 3 years there will be a model with improved battery efficiency/capacity. So I'm leasing.

I did this with a 2016 model S, and I'm glad I did... the battery capacity had dropped ~25% after 3 years, and I think I would have taken a bath on resale.

Same reasons why I am leasing. This is also my 1st EV. The way used EV values are dropping, I would take a bath selling this down the line. I am assuming EV tech/range will improve in that time as well.

[Scrapula]

I was going to lease, but I purchased at the special finance rate they had going in December. I don’t drive a lot and I expect to hit the 8 year battery warranty before the 100k miles. At that point, I will be 75 and who knows if I will still be driving? If I were 10 years younger, I would have leased and waited for the new platform.

[attack7777]

Originally Posted by Scrapula

I was going to lease, but I purchased at the special finance rate they had going in December. I don’t drive a lot and I expect to hit the 8 year battery warranty before the 100k miles. At that point, I will be 75 and who knows if I will still be driving? If I were 10 years younger, I would have leased and waited for the new platform.

People live forever now - you're still going to be driving . And if not, by then maybe they'll have figured out automation enough so that you can still enjoy a BMW ride, but have it do the work for you...

[SpaceSilver.X1]

Originally Posted by attack7777

People live forever now - you're still going to be driving . And if not, by then maybe they'll have figured out automation enough so that you can still enjoy a BMW ride, but have it do the work for you...

I fell in love with Waymo taxis... too bad they are not available near me.

When I was riding in them Jaguars, I kept thinking "why didn't Waymo partner with BMWs instead of stupid Jaguars?"


Although I guess "BMW" and "car napping" don't really belong in the same sentence.(which was what I was doing most of the time in Waymo taxis while the non-human driver drove me around)

[ando]

I bought and took advantage of the BMW Financial special pre-order loan rate because (1) there’s a lease tax where I live and (2) I wanted additional flexibility to trade cars.

[Scrapula]

[QUOTE="SpaceSilver.X1;30801558"]I fell in love with Waymo taxis... too bad they are not available near me.

When I was riding in them Jaguars, I kept thinking "why didn't Waymo partner with BMWs instead of stupid Jaguars?"


Although I guess "BMW" and "car napping" don't really belong in the same sentence.(which was what I was doing most of the time in Waymo taxis while the non-human driver drove me around)

I loved my Jaguar. I kept her for four trouble free years. They have free maintenance for 5 years but I fell in love with the i5. I wasn’t super fond of the iPace, but I will definitely check out their new EVs in a couple years.

[697105e1]

Originally Posted by aptekcom

I am assuming tax credits will be back and once they are I plan on leasing. I want to take advantage of the $7500 rebate plus $1500 loyalty plus any discount (6-7%). If and when the tax credit comes back, then that will be gravy on the top. I should have pulled the trigger in December but…

You don't get the federal tax credit when you lease. The $7500 lease credit from BMW only exists because they get the tax credit and pass it along when you lease.

[SkykingUSA]

Originally Posted by F12M6MD

Just gathering everyone’s most up-to-date thoughts on which method of ownership makes the most sense to you currently (whether you have your i5 currently or not).

I'm glad you started this thread because I have not decided yet whether to purchase or lease and love reading everyone's thoughts.

I think it really depends on two things: how long you want to keep the car, and if you're ok with "renting" a car instead of owning a car. Here is a video that I found last night by chance, and found it helpful.

I'm the kind of guy who has always purchased in the past, and have kept my cars for between 7 and 20 years each. That should tell you that I'm not one to be overly concerned with aging technology - heck, I just got rid of my Toyota truck after 20 years and the technology it had pales in comparison to just about any car being sold today. So for me, since I plan to hold onto this car for a long time, I am going to take the option that costs me the least money assuming I purchase at the end of the lease. I suspect that will be leasing for three years, with the option to buy it at the end. That way, even though I don't plan on returning it after three years I still have the OPTION to do so if things go really downhill with the car or my circumstances change and I don't want it. Having that option is always good. I think the lease could be the cheapest way to go simply because of the $7,500 discount that is applied when you lease here in the US. Basically, as long as the extra money you spend on a lease due to the money factor (interest) is less than or equal to the $7,500 credit, you'll either break even on price or get a better price than the selling price if you purchase.

I just really enjoy going for years without a car payment - that's why I end up purchasing. The lack of a car payment after 3-6 years has more value to me than the latest and greatest technology in my vehicle. Coming from a 2003 Tundra, the tech in the i5 should keep me happy for many many years to come. In addition, I expect the car to feel pretty "new" for a long time since I typically drive less than 3000 miles per year, and my wife (who will also drive the i5 periodically) currently puts less than 7000 miles on her Mazda each year. Like Scrapula wrote, I expect to hit the 8 year battery warranty before the 100,000 miles, and I'm ok with that. :-)

[aptekcom]

Originally Posted by 697105e1

You don't get the federal tax credit when you lease. The $7500 lease credit from BMW only exists because they get the tax credit and pass it along when you lease.

I realize that it’s not the federal tax credit, but bmw is offering $7500 if you lease. The other credit is sales tax that some dealers will offer when you lease. Instead of 6.25%, you pay 1.25%. That’s what was confirmed by my sales person and understood this is the way that it works anyways. Please feel free to correct me if I am misunderstanding something.

[F12M6MD]

Yeah lease credit is electively applied by BMWFS (the business that owns the car) but can be easily removed at any point. The list of BEVs that actually qualify in 2024 for tax credits is very slim if you went the traditional route (cash or finance) filing your taxes (but i5 wouldn’t qualify in the non-business ownership method anyways). So it’s funny manufacturers are using it as an incentive rather than an entitlement. Either way, cars with this incentive are certainly getting more attention as residuals suck, money factors are getting worse, cars more expensive so something’s gotta pull you in to justify buying these type of cars.

M

[F12M6MD]

To add, for example current 36 month 10k miles/yr lease is 0.00220 (5.28%) with a 53% residual. Financing is at 2.99% for 60mo. At 36 mo though, I can’t know for sure but based on a recent dealer principle comment in a Facebook group, it appears they wouldn’t get caught dead wholesaling a 3 year old BEV more than 35-40% residual. So if you’re comfortable turning a financed car at 36mo for a massive loss (upside down) then that’s just the new acceptable cost of driving the new and cool. I might just lease for the first time in my life because of this.

Mark

[Theophilus]

Agreed… Leasing is definitely the way to go if you’re giving up the car in 36-48 mos. to make way for something newer or more advanced.

[Scrapula]

When I bought, there was an incentive interest rate reduction, which saves me $6,000 over 5 years. Pretty close to the lease incentive of $7,500. Then, at the end of the lease, to keep the vehicle, I have to finance anyway which will add more interest. I come out ahead buying.

[wagonallterrain]

I leased for 3 reasons:

1. $7,500 lease credit that would otherwise not be available if I purchased.
2. I like getting new cars, so leasing avoids me the headache of worrying about trade-ins, accidents, etc. Actually i5 is my 5th new car in the past 6 years lol
3. Like someone mentioned, technology evolves so fast these days and who know what gadgets they will come up with next year? You don't want to keep using an old iPhone forever, right? :-)

[Travis]

To me right now lease is a no brainer: 1) you get $7500 incentive, 2) you avoid the downside of huge used EV depreciation thanks to Tesla, 3) you can also pay the residual to own it when the lease expires; 4) the APR is not that bad, compared with financing; 5) you can wait for the next gen BMW EV and enjoy the advancement of technology.

[Windshieldfarmer]

Originally Posted by Travis

To me right now lease is a no brainer: 1) you get $7500 incentive, 2) you avoid the downside of huge used EV depreciation thanks to Tesla, 3) you can also pay the residual to own it when the lease expires; 4) the APR is not that bad, compared with financing; 5) you can wait for the next gen BMW EV and enjoy the advancement of technology.

One other big lease advantage often overlooked; in the event of damage and repair, a lessee does not absorb the resulting diminished value unlike an owner. (Of course any repairs must be properly performed). With high dollar vehicles, this is a big deal.

[COBodom]

These are disposable items NOT to be owned long term. As its been stated here before, depreciation on luxury German EVs is insane while lease figures continue to look very competitive against ICE.