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BMW 3-Series Prices Paid and Buying Experience

11958 messages,  Last post on Jun 17, 2013 at 8:29 PM

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What is this discussion about? BMW 3 Series, Sedan, Wagon

Messages Page 957 of 1196

#9561 of 11958 Re: Why lease? [asi12] by blueguydotcom

Jan 29, 2009 (7:03 pm)

Replying to: asi12 (Jan 29, 2009 6:32 pm)
I just can't understand why would you lease a car? I am sure you all know that dealers make most money off leases. You can always sell the car after 2 or 3 or 4 years and still get a better deal in terms of price.
 
Do they? The M3 lease i mentioned above, had a finance charge of $355. That's total. Over the course of 3 years the M3's interest would be $355. 57% residual too.
 
Well, you're saying it's on the residual they make it up. If they're selling me a 59.3k car for 52k and the residual is 33.8k, how much are they really getting from me? 18.2k + the lousy $355 interest charge or 18.5k.
 
I also only pay tax on what I spend, so my tax is only on the 18.5k - sop $1433.
 
Tell, me, if I bought the car what's the best finance rate? BMWFS isn't offering 2.9 on Ms. It's 5% through my credit union. First, I'll end up paying all tax on the purchase price - so off the bat the car's selling for 56k. That's a payment of 1070 a month.
 
Over 36 months that's $38520 out the door. At the end of 3 years you owe ~24k on the loan and you might be able to get that back on if the residual is legit. Problem is, if the car is worth less than 57% of its MSRP then you've lost even more. To be nice we'll say by a miracle the residual was right and your M3 is worth 33829. If you sell the car and pay off your loan you're still down 9-10k more than if you had leased it.
 
Remember, if the car is worth more than 57% on the lease at lease end, you can always buy it and sell it yourself or just walk away.
 
Leasing can be an insane advantage. Right now the lease deals on M3s and 3 series cars of the 08 year are to the buyer's advantage if they're clever (MSDs, insisting on sub-invoice pricing).
  
What most people here think of buying 2-3 years old cars? Most of the cars still work great, reliable and I assume you can have mechanic look at the car before you buy.
 
Yes great deals on 2-3 year old cars. I've seen 2007 3 series cars listed for 22-23k. but after 3 BMW products though, I will admit I'm disinclined to believe they're good cars. I love driving them and don't mind all the warranty work as it's their dime but I fear the repair bill on used bimmers. Others have had better luck than I. And in the case of the current lease deals, it's hard to find another situation where you pay so little in interest.
 
Five or 10 years old cars can be tricky but I have not heard many horror stories of buying 2 or 3 years old cars. I am fan of buying outright and no loan outstanding
 
When you can get close to 0% on a loan - 1% and lower - it's hard to agree with investing cash into a car. I'd rather have 56k sitting in the bank collecting 3%-4% (or invested) than sitting in my garage depreciating.
 
At 4% and up a case can be made for buying with cash and certainly buying used for full cash. Then again, 2006 3 series cars are going for 0.9% financing and two payments made by BMW. Why would you put your cash into the car when you make more with it sitting in the bank?
  
and in this way I don't have to have insurance deductibles what dealers dictate?
 
Not following. Nobody really dictates anything beyond $500 deductibles. I've leased two BMWs...they don't check and they don't press on deductibles. My 2003 330i was hit a few times (parked 2 of them and a girlfriend drove it into a pole another time) - BMW didn't blink when I returned the car.
 
You are generally right about leasing. But on some occasions the deals are too good, the interest too low and the deal just right. Heck, people who leased 06 330is are now buying out their leases as CPO (warranty to 100k on powertrain) for 3-4k below the original lease residual. They're getting a crazy deal on a used car they already leased!

#9562 of 11958 Re: Why lease? [blueguydotcom] by asi12

Jan 29, 2009 (7:32 pm)

Replying to: blueguydotcom (Jan 29, 2009 7:03 pm)
Thanks Blue guy for detailed response.
 
I guess I was thinking from the point of simplicity. What you are telling works for perfect world. Lets say if I miss one payment or lost job and can't pay lease payment, you do know what impact it will have on my credit report and not to mention you loose car as well. So far I am in ok financial condition so I just don't like to take loan unless absolute necessary.
 
What I have seen, brand new 2009 328xi are going close to 40K and in case of lease you are kind of renting it for 3 years at the cost close to 18K for that time period. But when I can get 07 328xi for 22-23K and I own it outright, that's why I am not very much fan of lease. Other thing is I am really not into getting latest model every few years. I have bought brand new car (camry) and it was due to price difference between used and new was only 3 or 4 thousands plus at that time most used cars just did not have safety features like side curtain airbags, I guess most people just buy what come standard.
 
Regarding insurance (I should have been more clear), I like to have $1000 and I with loan/lease I think you are supposed to have $500 deductible.

#9563 of 11958 asi12 by nyccarguy

Jan 29, 2009 (8:06 pm)

your M3 is worth 33829. If you sell the car and pay off your loan you're still down 9-10k more than if you had leased it.
 
First I'd like to tell blueguy that you made some excellent points.
 
Also, I'm not sure what your (asi12) work schedule is like, but selling a car isn't all that easy. All you need is one person, but you've got to sift through a lot of BS getting to THE ONE. Especially when you're talking about collecting Close to $34,000 from a private party. How do you know the certified bank check they give you isn't phony? Then you say, OK, I'll trade the car in and the dealer gives you a couple of lines of BS and tells you the best he can do is $25K.

#9564 of 11958 blueguydotcom by nyccarguy

Jan 29, 2009 (8:09 pm)

Contrary to your experience with BMWs, my family's has been stellar as far as reliability goes. I was at the dealer yesterday (towed with my Dad's '07 X5 3.0si, due to a piece of wood that he drove over and punctured his radiator) and while I was waiting I checked out the showroom. They had a loaded to the gills '08 335i SP (MSRP was north of $49K), Black on Black... Damn thing was a slushbox!

#9565 of 11958 Re: blueguydotcom [nyccarguy] by asi12

Jan 29, 2009 (9:05 pm)

Replying to: nyccarguy (Jan 29, 2009 8:09 pm)
nycarguy:
 
I agree selling in the car is pain in neck esp. when you deal with 20-30k valued car. But I was not suggesting to sell a car every 2 or 3 years either. Perhaps I am not just not lease kind of person.

#9566 of 11958 Re: Why lease? [asi12] by blueguydotcom

Jan 29, 2009 (9:06 pm)

Replying to: asi12 (Jan 29, 2009 7:32 pm)
I guess I was thinking from the point of simplicity. What you are telling works for perfect world. Lets say if I miss one payment or lost job and can't pay lease payment, you do know what impact it will have on my credit report and not to mention you loose car as well.
 
1. Someone was claiming the ability to buy a car for cash, so therefore, the cash is still available.
 
2. You can get rid of a leased car easily through Swapalease.com But when I can get 07 328xi for 22-23K and I own it outright, that's why I am not very much fan of lease.
 
You can get an 06 with 0.9% financing and save even more, the car is CPO and you keep your cash in the bank, protecting you on the off chance of losing a job.
 
Regarding insurance (I should have been more clear), I like to have $1000 and I with loan/lease I think you are supposed to have $500 deductible.
 
There's not much difference in insurance rates, so I still don't get this...sorry but no loan or lease demands to see a copy of your insurance paperwork.

#9567 of 11958 Re: blueguydotcom [nyccarguy] by blueguydotcom

Jan 29, 2009 (9:07 pm)

Replying to: nyccarguy (Jan 29, 2009 8:09 pm)
Near impossible to find a manual. The M3 i lost out on was a manual with only a few features... only one for 1000 miles under 60k msrp.

#9568 of 11958 Re: Why lease? [blueguydotcom] by asi12

Jan 29, 2009 (11:08 pm)

Replying to: blueguydotcom (Jan 29, 2009 9:06 pm)
I understand what you are saying but what I am saying is from a very pessimistic point of view. We all saw financial tsunami last year and we are not out of woods yet. Lets say you money is with kind of Lehman brothers, what can you do? Regarding FDIC insured, it looks good on paper, when a bank fails sometimes it takes months to get your money back from FDIC insurance program in case of bank failure and you don't get interest during that waiting time either.
 
From the convenience point of view, smell of new leather, no hustle to deal with individual buyers lease make sense but I just don't buy a car with a intention of keeping just for 2 or 3 years.
 
I decreased my car insurance rate little over $100 per year from going $500 to $1000 deductible.

#9569 of 11958 blueguydotcom by asi12

Jan 29, 2009 (11:11 pm)

I really appreciate that your explained to me how lease worked. I did not know little interest payment is on lease these days. I keep that in mind when I buy my new car.

#9570 of 11958 Re: Why lease? [asi12] by banker2

Jan 30, 2009 (9:00 am)

Replying to: asi12 (Jan 29, 2009 6:32 pm)
Look at leasing this way..........it's a free 3-year put option on a car..........during the three years, you can decide if you like the car, if it is reliable, and see if it has held its value. If, at the end of the lease term, the car is worth more than your residual value, then buy it (you can then turn around and sell it yourself if you want). If the car is worth less than the stated residual value at the end of the lease term, then you can just turn the car back in to the leasing co.- they take the loss, not you. At the end of the day, I think you buy things that appreciate in value, and you rent things that depreciate.

Messages Page 957 of 1196

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