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      05-09-2014, 08:21 PM   #5
BEM-S4
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Drives: Dinan M235, Dinan Sport Wagon
Join Date: Oct 2012
Location: Philadelphia

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Quote:
Originally Posted by ERod1020
Quote:
Originally Posted by BEM-S4 View Post
Search the forum it has been discussed quite a bit especially in the pricing thread. Short answer: if you can tie up the capital do it. I won't bore you with time value of money and IRR lectures, but it's a great guaranteed return tax free. Only downside is if you need to have someone take over lease they need to pay you bc BMW will reimburse them not you.
Thanks...couldn't find full threads on the subject...just the occasional comments on discussions that kinda went off topic. Just thought it might be helpful for other Noobs as well.

Good point on the lease transfer thought though. I would never have thought to ask that.
VERY rough numbers, $4K in MSD will save you $1K over 36 month lease, again that $1K "return" is actually less spending as opposed to investment income so it's tax free. If you destroy car day one you get your $ back. Don't put anything towards cap cost reduction.
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