BMW Leasing Question...

[onza]

Lease is 10k miles/year for 39 months with $2500 cap reduction. 1st payment, security deposit, cap reduction, acquisition fee,and license due at signing. OAC. Payment excludes sales tax.

bmw link

So it says, 2500.00 cap reduction and then it says cap reduction again... my question is.. is there 2 cap reduction fees?

Or just a typo by the website?

thnx

 

[HappyPuppy]

1. Don't lease.

2. 10,000 miles per year is nothing unless you plan on parking it in your garage for the duration.

3. I have no idea what cap reduction is.

 

[onza]

1. will lease, as it will reduce costs
2. 10k will be enough, as that is planned out already
3. me either

 

[bolido2000]

I recommend Fatwallet's finance section and vwvortex car purchasing sections for these kind of questions. My understanding is that unless you have a business to write off the payments leases are usually not worth it.

 

[slick230]

Cap reduction on a lease is like a down payment on a financed car, which to me is a stupid thing to do. All they're saying is that for whatever lease they are offering 10k miles a year, you need to put down $2500 at signing. there is only 1 cap reduction fee, not 2.

 

[JulesMaximus]

1. Don't lease. If you can't afford the payments to buy the vehicle then you should consider a less expensive car.

2. 10k miles a year is nothing. You will exceed this easily and they are counting on this.

3. I have no idea what cap reduction is either.

 

[onza]

k, thats all i need to know.

 

[bolido2000]

$2500 seems a lot for a cap reduction. Ideally you want to have a downpayment of $0. The monthly payments will be higher, but I remember reading that in case your car gets totalled or stolen the downpayment you made will go against you as the insurance won't give you as much as if you hadn't put anything down. Something like that 🙂

 

[onza]

Originally posted by: JulesMaximus
1. Don't lease. If you can't afford the payments to buy the vehicle then you should consider a less expensive car.

2. 10k miles a year is nothing. You will exceed this easily and they are counting on this.

3. I have no idea what cap reduction is either.

1. getting a new car is good every 3 yrs.
2. 10k is ok, since we have 3 cars already, well minus 1 since lease is almost up.

 

[onza]

Originally posted by: bolido2000
$2500 seems a lot for a cap reduction. Ideally you want to have a downpayment of $0. The monthly payments will be higher, but I remember reading that in case your car gets totalled or stolen the downpayment you made will go against you as the insurance won't give you as much as if you hadn't put anything down. Something like that 🙂

true, but this isnt an american car.. no offense.. its foreign and not much negociation in these cars to begin with.

 

[JulesMaximus]

Originally posted by: onza

Originally posted by: JulesMaximus
1. Don't lease. If you can't afford the payments to buy the vehicle then you should consider a less expensive car.

2. 10k miles a year is nothing. You will exceed this easily and they are counting on this.

3. I have no idea what cap reduction is either.

1. getting a new car is good every 3 yrs.
2. 10k is ok, since we have 3 cars already, well minus 1 since lease is almost up.

If you have 3 cars already WTF do you need a 4th for?

 

[onza]

Originally posted by: JulesMaximus

Originally posted by: onza

Originally posted by: JulesMaximus
1. Don't lease. If you can't afford the payments to buy the vehicle then you should consider a less expensive car.

2. 10k miles a year is nothing. You will exceed this easily and they are counting on this.

3. I have no idea what cap reduction is either.

1. getting a new car is good every 3 yrs.
2. 10k is ok, since we have 3 cars already, well minus 1 since lease is almost up.

If you have 3 cars already WTF do you need a 4th for?

3 total. the 3rd is on lease, and wife, and 2 kids.

 

[spidey07]

Originally posted by: HappyPuppy
1. Don't lease.

2. 10,000 miles per year is nothing unless you plan on parking it in your garage for the duration.

3. I have no idea what cap reduction is.

then you have no right posting.

-edit- as evidence by the "I have no idea what cap reduction is"

Look - leasing is a viable alternative depending on what ones goals/priorities are.

I lease - and I've come out ahead financially.

 

[Chadder007]

Originally posted by: onza

Originally posted by: bolido2000
$2500 seems a lot for a cap reduction. Ideally you want to have a downpayment of $0. The monthly payments will be higher, but I remember reading that in case your car gets totalled or stolen the downpayment you made will go against you as the insurance won't give you as much as if you hadn't put anything down. Something like that 🙂

true, but this isnt an american car.. no offense.. its foreign and not much negociation in these cars to begin with.

Trust me....there is more to negotiation on BMW's than you think.

 

[slick230]

Originally posted by: spidey07

Originally posted by: HappyPuppy
1. Don't lease.

2. 10,000 miles per year is nothing unless you plan on parking it in your garage for the duration.

3. I have no idea what cap reduction is.

then you have no right posting.

He has as much right as you do with YOUR extremely helpful offering. :roll:

 

[JulesMaximus]

Originally posted by: spidey07

Originally posted by: HappyPuppy
1. Don't lease.

2. 10,000 miles per year is nothing unless you plan on parking it in your garage for the duration.

3. I have no idea what cap reduction is.

then you have no right posting.

No, he might not be the best person to offer advice regarding leasing a vehicle but just because he doesn't know what cap reduction is (neither do I quite frankly) doesn't mean he has no right to post.:roll:

He made some good points. 😛

 

[onza]

hi

 

[JulesMaximus]

Originally posted by: Chadder007

Originally posted by: onza

Originally posted by: bolido2000
$2500 seems a lot for a cap reduction. Ideally you want to have a downpayment of $0. The monthly payments will be higher, but I remember reading that in case your car gets totalled or stolen the downpayment you made will go against you as the insurance won't give you as much as if you hadn't put anything down. Something like that 🙂

true, but this isnt an american car.. no offense.. its foreign and not much negociation in these cars to begin with.

Trust me....there is more to negotiation on BMW's than you think.

Yep, use the "I really prefer the Mercedes ML320 line."

 

[DorkBoy]

Originally posted by: spidey07

Originally posted by: HappyPuppy
1. Don't lease.

2. 10,000 miles per year is nothing unless you plan on parking it in your garage for the duration.

3. I have no idea what cap reduction is.

then you have no right posting.

-edit- as evidence by the "I have no idea what cap reduction is"

Look - leasing is a viable alternative depending on what ones goals/priorities are.

I lease - and I've come out ahead financially.

Yeah, that was just a thread crap

 

[onza]

spidey was angry cause happypuppy said "dont lease" and to some that isnt a resonable suggestion, as you do save money in some ways.

 

[JulesMaximus]

Originally posted by: spidey07

Originally posted by: HappyPuppy
1. Don't lease.

2. 10,000 miles per year is nothing unless you plan on parking it in your garage for the duration.

3. I have no idea what cap reduction is.

then you have no right posting.

-edit- as evidence by the "I have no idea what cap reduction is"

Look - leasing is a viable alternative depending on what ones goals/priorities are.

I lease - and I've come out ahead financially.

I've leased exactly one vehicle in my lifetime. I planned to buy it but ended up trading it about 5 months early. I pretty much broke even on the deal (actually I had to pay about $100 to pay off my trade). I negotiated 15k miles per year on my lease and I managed to put 25k miles on it the first year I owned it on a 36 month lease. I had 43k on it at 30 months when I traded it.

10k miles per year seems really low. This is negotiable. I would try to get them to increase it or walk. Everything is negotiable.

 

[CFster]

I'd love to hear somebody's justification for leasing...

It makes poor financial sense.

 

[onza]

Originally posted by: CFster
I'd love to hear somebody's justification for leasing...

It makes poor financial sense.

you get a new car every 3 yrs?

 

[dirtboy]

Originally posted by: onza

Originally posted by: CFster
I'd love to hear somebody's justification for leasing...

It makes poor financial sense.

you get a new car every 3 yrs?

And your car is always under warranty. Leasing can be a good deal. I recently leased my Crossfire for $299/mo for 39 mo with 15k miles per year and 15 cents/mile overage. That's a great deal. 15 cents per mile is dirt cheap. So I get to drive a cool car, pay very little and get a new car 39 month later. Hard to argue that.

 

[onza]

Originally posted by: dirtboy

Originally posted by: onza

Originally posted by: CFster
I'd love to hear somebody's justification for leasing...

It makes poor financial sense.

you get a new car every 3 yrs?

And your car is always under warranty. Leasing can be a good deal. I recently leased my Crossfire for $299/mo for 39 mo with 15k miles per year and 15 cents/mile overage. That's a great deal. 15 cents per mile is dirt cheap. So I get to drive a cool car, pay very little and get a new car 39 month later. Hard to argue that.

oh yah dude, warranty on a foreign car is huge... imagine if something went wrong after the warranty period... lots of money out of YOUR pockets