BMW Leasing Question...

[Turkish]

onza, don't listen to the folks that say "don't lease" and "10k miles is too low" ...

leasing sometimes makes sense and whoever that said "put $0 down payment on a car on financing or leasing" is plain stupid. if they had at least a tiny bit of idea about what they are talking about, they would know putting more on the downpayment /cap reduction is better.

also i dont know where the hell y'all driving to? 10k miles is not a little amount... I put 6k miles in mycar in the last year and I thought that was a lot... oh well

 

[spidey07]

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

It makes poor financial sense.

Its a tax right off
I'm able to lower my payments and invest the difference and outpace inflation
I don't want to own a car for more than 3-5 years
I use a 3rd party leasing company that does a straight interest loan on the differnence between cap cost and residual at 2% for the term of the lease.
I avoid maintenance costs

It does NOT make poor financial sense depending on your short/long term goals. My goals say that I will continue to increase my income over the next 5 years and make the most of my current income. Much like I buy houses that are somewhat beyond my means due to tax advantages...always buy a little above what you can reasonably afford due to tax advantages.

Sure the best financial sense says buy a used car that will get you to work and costs next to nothing. But I like to drive and the joy a new car brings me is worth it because I have plenty of disposible income.

Does leasing work for some folks? Yes, but not for all...it depends on your financial goals and situation.

 

[onza]

Originally posted by: Xiety
onza, don't listen to the folks that say "don't lease" and "10k miles is too low" ...

leasing sometimes makes sense and whoever that said "put $0 down payment on a car on financing or leasing" is plain stupid. if they had at least a tiny bit of idea about what they are talking about, they would know putting more on the downpayment /cap reduction is better.

also i dont know where the hell y'all driving to? 10k miles is not a little amount... I put 6k miles in mycar in the last year and I thought that was a lot... oh well

never did listen to them, i asked for a simple question and it got answer, but this grew to something else lol

 

[spidey07]

onza,

before you lease....

read the fine print and shop around, you can do much better.

They like to lure in folks with "you can drive this great car for only 299/mo.*" What they don't tell you are the details.

Make your money work for you.

*meaning we'll take your first born if you sign.

 

[onza]

yah, for sure.. we have 2 bmw dealers, if there is no deal, we'll move to a audi.

do bmw's have holdback percentages?

 

[kermalou]

Originally posted by: onza
hi

HI2U

 

[Koing]

Originally posted by: spidey07

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

It makes poor financial sense.

Its a tax right off
I'm able to lower my payments and invest the difference and outpace inflation
I don't want to own a car for more than 3-5 years
I use a 3rd party leasing company that does a straight interest loan on the differnence between cap cost and residual at 2% for the term of the lease.
I avoid maintenance costs

It does NOT make poor financial sense depending on your short/long term goals. My goals say that I will continue to increase my income over the next 5 years and make the most of my current income. Much like I buy houses that are somewhat beyond my means due to tax advantages...always buy a little above what you can reasonably afford due to tax advantages.

Sure the best financial sense says buy a used car that will get you to work and costs next to nothing. But I like to drive and the joy a new car brings me is worth it because I have plenty of disposible income.

Does leasing work for some folks? Yes, but not for all...it depends on your financial goals and situation.

Yup thats waht I intend to do. I'd rather not drive a new car every 3yrs or so. And hey I'm a student so disposable cash isn't an option lol. When I finish I'll buy a moderate car for about £10k less then 40-50k miles on it. And drive until I run that ah heck in to the ground. I think I'll have gotten my money's worth 😀

I live in England so distances are MUCH shorter. None of this drive 3hrs to Vegas sort of thing then come back a few days later and another 3hrs! Typically a long drive is 1.5hrs-2hrs for me so I don't think I'll put more then 6k miles in a year.

First up to to save loads and get a house for myself 😀

Koing

 

[dirtboy]

Originally posted by: spidey07
onza,

before you lease....

read the fine print and shop around, you can do much better.

They like to lure in folks with "you can drive this great car for only 299/mo.*" What they don't tell you are the details.

Make your money work for you.

*meaning we'll take your first born if you sign.

Were you referring to my post? Leasing is simple. So much down, so much per month, so much per mile over the limit. If they advertise something, it's legit.

 

[Mill]

How are people saying 6-12k miles is a lot? I can do that much in a few months... I've had my car since October, and I've already added 20k miles.

 

[onza]

Originally posted by: Mill
How are people saying 6-12k miles is a lot? I can do that much in a few months... I've had my car since October, and I've already added 20k miles.

they might not drive as much as you 🙂

 

[Mill]

Originally posted by: onza

Originally posted by: Mill
How are people saying 6-12k miles is a lot? I can do that much in a few months... I've had my car since October, and I've already added 20k miles.

they might not drive as much as you 🙂

I really don't drive THAT much.

 

[Koing]

Originally posted by: Mill

Originally posted by: onza

Originally posted by: Mill
How are people saying 6-12k miles is a lot? I can do that much in a few months... I've had my car since October, and I've already added 20k miles.

they might not drive as much as you 🙂

I really don't drive THAT much.

Well for me it is different. I live in England and typically people don't drive THAT long to get to work. People don't drive far to go to place's (Vegas from where I was in CA was about 3hrs). Stuff like that I guess. People just don't bother to travel far in a car. If it is that far they'll get a train or something.

Koing

 

[CChaos]

First it tells you what the cap reduction is, and then it tells you that it's due up front, along with the first payment and other fees .

Some absolutely amazing comments here. Spidey's post about the advantages of leasing is a good one. Remember folks, if we were talking about finding the cheapest way to get into a car, new cars and BMWs would never come into the conversation.

The amazing comments are all related to how many miles you'd need on a lease. Personally, I take the train to work so I drive about 6 miles/day. Even running a few errands on a weekend I'll put about 5k miles on my car this year. My wife got a new car in October and has around 6500 miles on it. She works in the next town over and we use her car alot on weekends. At this rate it will see about 9k miles a year.

As for the cap cost reduction, well, personally I think you're better off putting as little down as possible. Do as you like if you're financing and in general be aware if you need gap insurance. The advantage of the down payment is certainly lower payments and less of a gap between what you owe and the value of the car.

Dealers were pushing leases like mad a few years back, but no longer. Certainly there are cons to leasing, but frankly it's been demonized because people lease for the wrong reasons. Lease because you don't mind always having a car payment knowing that you'll never have a car more than 3 years old and you car will never be out of warranty. Lease because you don't put many miles on your cars and you take good care of them. Don't lease because you can't afford to buy the car you want and you aren't willing to adjust your expectations to buy something cheaper. Leasing isn't about getting more car for your money, it's about just paying for the value of what you're using.

Almost forgot: If you don't know what cap cost reduction is, it's probably best not to give your opinion of leasing.

 

[ElFenix]

if you're going to lease get some lease software to calculate things for you, doing a lease by hand is impossible. use it to compare the present discounted value of your money in a lease and buy at the end period of the lease. if the pdv of the buy is higher take the buy, if the lease is better do the lease. the biggest problem with a lease is that it is really easy to get screwed. anyone with a hand calculator can figure, roughly, a buy payment. can't do that with a lease.

 

[spidey07]

one last thing...you can shop around for leases just like you can shop around for financing.

You don't have to go thru the dealer.