Was this a good deal?

[SGBAILEY79]

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[BSM328xi]

You put 11k down on a lease? If so then it is a horrible deal. You will never see that money again. Unless I read this wrong and you did MSDs???

[SGBAILEY79]

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[BSM328xi]

Even if you are going to buy it, why let the bank hold your money for 3 years? Further, why not just put the 11k down and finance the car. Sounds like your situation calls for a purchase not a lease.

Multiple Security Deposits are used to buy down the money factor each by .00007 up to a total of 7 (with BMWFS). That will lower your payment and at the end of the lease you get the deposits back. In many cases, people actually are making money this way.

*disclaimer- I am not giving you financial advice. In my opinion, money down on a lease is a loser no matter what your intentions are with the only exception being MSDs.

[cb4]

Did you run the numbers based on doing a 5 year financing term. Since you are planning to buy at the end of the lease anyway it probably makes more sense to finance. I'm seeing rates as low as 1.9%.

[SGBAILEY79]

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[SGBAILEY79]

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[BSM328xi]

Originally Posted by SGBAILEY79

What is confusing is that I have run the numbers using lease calculators and it seems like a good deal.

I guess we are just not following your logic. Why are you just not financing the car if you intend to buy it anyway? You're going to spend significantly more money the way you are planning on doing it now.

Good luck.

[C17MooseDriver]

Originally Posted by SGBAILEY79

Hey, just curious what you guy's you guy's think of this deal.

2012 X5d 36 months w/12000 miles per year 38,857 residual,550.00 per month

Sticker 66,995 + 2147 Wheel/tire/interior/dent warranty
4500 eco credit
5140 positive equity on trade
3000 more in incentives ie.. loyalty credit/USAA
6102 down

Thx for your input

How did you get the USAA incentive? It doesn't list the x5 diesel as eligible. Only for the 3.5, 5,0, and M.

[micosilver]

Instead of using $11K as a down payment - ask them to recalculate it using it as multiple security deposits. This should lower your rate, and you will get the money back at the end.

Lease vs. purchase - the special APR is 2.9%, I don't know where people get 1.9%, it is not currently available. Plus you will plunk down sales tax on the whole car, instead of just the lease payment.

[micosilver]

Originally Posted by C17MooseDriver

How did you get the USAA incentive? It doesn't list the x5 diesel as eligible. Only for the 3.5, 5,0, and M.

Not his problem. The dealer may have messed up, it will come out of their pocket.
Unless the model IS eligible...

[ATX78703]

if you're planning on buying, you should buy it now - o/w you will lose more in the long-run. that is the only way to justify plunking 11k down into a depreciating asset. At least, if you're buying the depreciation dramatically reduces after 3 years. If you're leasing, you just chunked cash into the worst part of the depreciation cure.

don't take this the wrong way, but 11k down on a lease is the stupidest thing I've ever heard off.

[SGBAILEY79]

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[Bestia]

Just use the $11K for a year's worth of payments. Set-up a new checking/mm account, and do automatic withdraws to BMW. If you continue to deposit $550 a month - as you plan to pay with the down payment - you will have another set 6 months payed out by the end of the year.

[BSM328xi]

Originally Posted by SGBAILEY79

Thx for the input, well If I did not put the money down then my payment would have been 880. I would rather have the lower payment and have more to invest on a monthly basis, with the option of more discretionary money if needed.
I ran the numbers and it will be about the same amount of money if i bought it or leased it then bought out the residual. As far as the USAA discount my sales person just threw it in, I think it was 1,000.

Again, this logic doesn't work either.

You asked if you got a good deal. You didn't. You are either not understanding the logic or buying more car then you can afford. If you want a lower payment, drive a less expensive car. You can't change the fact that the numbers are the numbers.

I'd suggest buying a less expensive car, which gives you lower payments and discretionary moneys. It also makes fiscal sense.

Sorry for the bad news but I think you wanted someone to tell you not to do this. Hence your thread...

[BSM328xi]

Originally Posted by micosilver

Instead of using $11K as a down payment - ask them to recalculate it using it as multiple security deposits. This should lower your rate, and you will get the money back at the end.

Lease vs. purchase - the special APR is 2.9%, I don't know where people get 1.9%, it is not currently available. Plus you will plunk down sales tax on the whole car, instead of just the lease payment.

1.99% is available. Try PenFed. BMWFS rates are stupid high right now.

[SGBAILEY79]

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[jspdr]

i am sure you have done your shopping before you purchased. you know what is the best price for the truck you get with the options you wanted. as you said you ran the numbers and it will be about the same. i am saying prices vary depend on many factors, like from regions to regions, dealers to dealers, etc. it seemed like you don't trust your decision, and have some doubts about the deal you signed. a good deal is the one you comfortable and can live with, regardless of everyone's opinion. I was just wondering why you have to bring it here, and why you have to check with your coworkers, and double check with sales person, salesperson is never on your side.

[cb4]

I just ran the numbers and it looks like your lease will end up costing you about 6k more over a 5 year 2% finance with 11k down.

Go with the financing and save yourself 6k!

To run the number yourself simply calculate your total spend after you lease for 3 and add that to the residual which will be your buy out at lease end.

The best deal for you is to finance and with that credit score you should be able to get sub 2%.

Good luck!

[jddssc121]

Originally Posted by SGBAILEY79

I am going to buy the vehicle in cash once the lease is finished which is why I bought the warranty's. I was just trying to get the monthly payment down by putting that much cash down. What are MSD's?

if you're going to buy it then why lease it? that only makes sense when the lease finance rate is lower than the loan finance rate (like Nissan/Infiniti is right now). BMW lease rates work out to over a 4% APR. Even maxing out the MSD's, it's cheaper in the long run to get a loan at 1.9%.....

[BSM328xi]

Originally Posted by SGBAILEY79

BSM328xi, I can afford the car I was just checking with the forum. My credit score is 826 which you don't get by being stupid or purchasing things you cant afford. I went back to the dealer and sat down with my salesperson who used to sell leases, and went over the numbers again. Once again the numbers seemed fine. I have a business degree and had some coworkers look it over as well, and they thought it was fine. I was just curious how good of deal it was relative to others who have leased one recently. You have yet to explain why its a bad deal. I will be buying the car in cash when the lease is up, and it comes out to about the same as if I bought it right now so Im not worried about that aspect of it. So BSM328xi if you cant show me why the numbers are bad I don't need your opinion and conjecture in regards to this deal. Everybody else thanks for the input about purchase vs lease.

Dude...

Lease will cost you $20 plus the buyout will cost you $38, plus the $11 you put down. That's $69K.

What B-school did you go to? You are effectively paying full MSRP plus the warranty. That's a bad deal. Not to mention you lose the use of the money for 3 years.

If you can't tell, not one person in this thread told you this was a good idea.

By the way...What does an 826 credit score have to do with what you can afford?

Again, at 1.99% for 60 months you should finance this vehicle.

[Kief]

Originally Posted by BSM328xi

1.99% is available. Try PenFed. BMWFS rates are stupid high right now.

+1
For a one time $20 membership fee, nothing beats PenFed's 1.99% if you have to finance