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Prices Paid: Buying & Leasing Experiences BMW 3-Series Lease Questions
2455 messages, Last post on Sep 05, 2008 at 2:50 AM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: oceana143 (Aug 20, 2007 6:29 am) Shipo will need at least this much info to prove why leasing will be more expensive (it always is). |
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Replying to: oceana143 (Aug 20, 2007 6:29 am) Because you'll be financing that car for a loooong period of time, first with the lease and again with the buy-out loan (which you have no way of knowing what the finance rate will be in a couple three years). I'm thinking that financing a car for eight years (three year lease, five year conventional loan) would mean that you'll rack up more than twice as much in finance changes as you would if you just paid for the car with a 48 month note. I ran a calculation on a $43,000 financed amount and came out with about $4,000 in finance charges. I then calculated how much you'd pay over the eight years with the lease/buy method and it came to well over $8,000. That money doesn't include any origination fees, conversion fees or CPO fees, which if added in, raises the price even more. Best Regards, Shipo
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Replying to: shipo (Aug 20, 2007 9:46 am) |
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Car_Man, I have a friend who is in an existing BMW lease that is ending in Oct. She is interested in re-leasing a 2007 328 convert. What are the current residuals and MF's on a 36 month 15k/yr lease on this vehicle. She lives in FL if that matters. Does BMW do any favors for returning leasees? Ie. Waive security deposit, etc.
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Replying to: shipo (Aug 20, 2007 9:46 am) I guess this would make leasing in general a much more expensive proposition than buying since the interest rate on a lease is closer to 5% and you continue to pay that 5% with each new car you get. Hmm. And I was considering trying out leasing for the first time. I suppose there is no free lunch -- you can't drive a new car every few years without paying for this luxury.
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Replying to: dan12 (Aug 21, 2007 12:41 pm) If you want a new car every couple of years I see absolutely nothing wrong with leasing, hell, I've been leasing since the mid 1980s and have every intension of continuing that practice. Regarding the language of my previous post, the point I was trying to make is that if one wants to ultimately own any given car free and clear, it doesn't make any financial sense to lease it first and then buy it out at lease end by taking out another loan on it. Simply buy the car with a conventional loan and you'll be waaaaaay ahead. Best Regards, Shipo |
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Replying to: Car_man (Aug 31, 2005 3:10 am) I recently ordered a 07 335i coupe at the end of July and I'm expecting to pick up the car in the beginning of September. I've read that there are different buy rates for each month. If that's true, can I renegotiate my deal when I go to the dealer to pick up my car? If so, what items can I renegotiate (MF, deduction off MSRP)? Here's the deal I got: MSRP - 43,075 Drive off - 3,800 (~2,600 down) Initial Cap Cost - 42,355 Adjusted Cap Cost - 40,579 = 42,355 + 825 (Bank Fee) Residual - 25,845 (60%) (Is this good for an 07?) Money Factor - 0.00235 (Negotiable???) Monthly - $613.46 (incl. 8.50% tax) Total  end of lease - $25.274.44 Any advice/help would be greatly appreciated! Thanks, Eric
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Replying to: shipo (Aug 21, 2007 5:45 pm) If the car proves to be reasonably reliable & not one of the horror stories one hears about, buying it out at the end of the lease may not be all bad. Also, in my case, I'd really like a diesel 3-series, but doubt that any such will be avilable for at least a couple of years, and they may be hard to negotiate on for some initial period as well. Leasing for 3 years would give me the opportunity to enjoy a BMW for a very competitive monthly fee while I wait for the car I'd buy and hold for years, as I have my present vehicle. Now, if it were possible to negotiate a buyout at less than the stated residual, it'd be a no-brainer, but from what I've heard, it never happens. I've never come to grips with how BMW is able to lease based on a residual that isn't supported by the market when it comes time for them to sell the off-lease unit. Looks a bit like a house of cards to me. Oh well, it obviously works for them. |
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Replying to: shipo (Aug 21, 2007 5:45 pm) Doesn't that get extremely expensive over time? So far I have been buying my cars outright with the plan of holding on to them for 10 years. But in reality I get a new car every 4-5 years or so. I think about 6 years is my practical limit before my drooling over new cars gets excessive. So I'm trying to figure out how much more expensive it is to do 3 year leases instead of what I've been doing. |
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Hey Car_Man, My dealer tells me that with a very high credit rating (800+) that I qualify for an "Elite Tier," that, as opposed to standard rates, gives me a bit of an edge. Any idea what sort of MF discount I can expect? I thought BMW was strictly Pass/Fail?? I find nothing that speakes to this in BimmerZone, Roadfly or here?? Thanks!
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