Was this a good deal?

[NRG]

Your numbers looking good for that lease deal on X5. You should go with what you feel more comfortable even if it is not the most profitable way in a long run. But that does reduce your monthly payments and it looks like that is what you after. I'm too following a similar approach in buying my cars. Here is my example without going into too much detail. 2012 X5D fully loaded from 20" to BMW Apps. Priced after rebates and my dealer discounts at 79k CAD before 15% tax. I've put $30k before tax down on 48 months lease, with residual at around $36 before taxes. My monthly is $400.00. I will buy out the truck at the end and sale it right away privately for around $40k+ CAD. Don't let the numbers scare you I'm in Canada.

[SGBAILEY79]

Once again thanks for the input, BMW is offering 3.9%APR on their website. I used 2.9% for 60 months in the lease vs. buy comparison. I found that after adding the taxes and fee's both come out to about the same amount of money except I pay 550 for 35 months and the residual in cash. Instead of 900+ for 60 months. For me this way works best, I don’t want to get into details because of people like BSM328xi. I only bring this up on the board and to my coworkers because I’m humble and don’t assume every move I make is the best one. Regardless of what BSM328xi and some others say this is not a bad deal. I have the actual numbers and fees from the contract and have run it every way possible. I won’t be checking this thread again so flame somewhere else BSM328xi.

[BSM328xi]

Originally Posted by SGBAILEY79

Once again thanks for the input, BMW is offering 3.9%APR on their website. I used 2.9% for 60 months in the lease vs. buy comparison. I found that after adding the taxes and fee's both come out to about the same amount of money except I pay 550 for 35 months and the residual in cash. Instead of 900+ for 60 months. For me this way works best, I don’t want to get into details because of people like BSM328xi. I only bring this up on the board and to my coworkers because I’m humble and don’t assume every move I make is the best one. Regardless of what BSM328xi and some others say this is not a bad deal. I have the actual numbers and fees from the contract and have run it every way possible. I won’t be checking this thread again so flame somewhere else BSM328xi.

Is this guy for real? Who is flaming you? You asked if you got a good deal. Numbers don't lie. You do not have a good deal. Why do you want reasurrance that you have a good deal if you already believed you did?

Your co-workers must be awesome people.

Good luck with your new car.

[jddssc121]

Originally Posted by micosilver

Plus you will plunk down sales tax on the whole car, instead of just the lease payment.

He's buying the car at lease end, so he's going to eventually pay sales tax on the whole thing anyways

[BSM328xi]

Originally Posted by jddssc121

He's buying the car at lease end, so he's going to eventually pay sales tax on the whole thing anyways

None of this matters anymore. I've never seen anyone post a thread, not like the answers they were given, and then delete all their posts. Why are they even on this forum?

By the way, in many states, sales tax is higher on leases. So, if that's the case he will pay a higher blended sales tax when the car is finally his.

This is a perfect example of how NOT to buy a car.

[watrob]

I think this thread is a matter of fact.

The header read "Was this a good deal"

It did not say "Is this a good deal"

Think he has purchased the vehicle already and is now finding out it could have bought several different ways..........mmmmm.

Hindsight is a wonderful thing.

[jddssc121]

I never really understood why people posted that question after the fact...... Why beat yourself up. Regardless of it was a good deal or not, it's done.

[ATX78703]

I almost feel bad for the guy now (note the word almost) b/c i've never seen anyone go back and delete all their posts.

[BSM328xi]

Originally Posted by ATX78703

I almost feel bad for the guy now (note the word almost) b/c i've never seen anyone go back and delete all their posts.

He took his ball and bat and went home

[watrob]

Originally Posted by BSM328xi

He took his ball and bat and went home

Actually he was fairly new to XPost, and I think he may feel a little hard done by some of the comments.

I remember I got some harsh comments ounce, mmmmmmmmm maybe twice but you get over it.

[BSM328xi]

Originally Posted by watrob

Actually he was fairly new to XPost, and I think he may feel a little hard done by some of the comments.

I remember I got some harsh comments ounce, mmmmmmmmm maybe twice but you get over it.

That really wasn't my intention. Numbers don't lie. He asked whether or not it was a good deal and it wasn't. He just kept insisting that it was. My point was that if he was so convinced it was a good deal, why ask?

We're all here for one reason...our passion towards our vehicles. I hope he enjoys his in good health.

[snk]

Always go for $0 down or as close as possible to $0.

Correct me if I'm wrong but from my understanding:

One good scenario is that you plan on purchasing the car at lease end, hence put down a larger down payment to lower the monthly payments. You got into a car accident and the car was totaled. Lease gap insurance will pay the bank for the difference of amount owed and present value of the vehicle. You get nothing or close to nothing.

In a nutshell, if you need to increase downpayment to lower the monthly payment - you can't afford the car

[Kief]

Originally Posted by snk

Always go for $0 down or as close as possible to $0.

Correct me if I'm wrong but from my understanding:

One good scenario is that you plan on purchasing the car at lease end, hence put down a larger down payment to lower the monthly payments. You got into a car accident and the car was totaled. Lease gap insurance will pay the bank for the difference of amount owed and present value of the vehicle. You get nothing or close to nothing.

In a nutshell, if you need to increase downpayment to lower the monthly payment - you can't afford the car

However, don't confuse cap cost reduction with MSDs...

[NRG]

Originally Posted by snk

In a nutshell, if you need to increase downpayment to lower the monthly payment - you can't afford the car

There could be hundred of scenarios why people go for a large downpayment. This is my third BMW, the previous 2 were one shot lease payment for 36 months both were bought out by me at the end if term with one shot payment and sold privately right after. I'd love to put more down for my E70 to make it a one shot lease payment. This car is leased under my business and I need some sort of monthly payment to show. With $30k before taxes I'm already way over the downpayment limit for this car.

[BSM328xi]

Originally Posted by snk

Always go for $0 down or as close as possible to $0.

Correct me if I'm wrong but from my understanding:

One good scenario is that you plan on purchasing the car at lease end, hence put down a larger down payment to lower the monthly payments. You got into a car accident and the car was totaled. Lease gap insurance will pay the bank for the difference of amount owed and present value of the vehicle. You get nothing or close to nothing.

In a nutshell, if you need to increase downpayment to lower the monthly payment - you can't afford the car

1) So you are saying people should put large downpayments on a lease and then hedge their bets and assume they will total their cars? That seems a little sadistic, not to mention the odds of a totaled car during a 36 month period are fairly low.

2) Your second point is somewhat strange too. Downpayments on lease are generally a bad idea because it is money you will never see again. Even if you plan on buying the car at lease end, that money could have been earning more money if you have invested it for 36 months. Now, the MSD scenario in this economy tends to work in favor of the lessee. Those who use MSDs rather than a downpayment to lower their monthly payment, not only save money monthly, but they also earn more money than an investment of a similar size would earn in a bank (US).

At the end of the day, I only suggested the OP did not have a good deal because by the time he paid for all of the fees associated he paid more than MSRP for the vehicle. As a general rule, if you plan to purchase the car, then purchase the car. At 1.99% for 60 months you will save money vs. a lease.

[BSM328xi]

Originally Posted by NRG

There could be hundred of scenarios why people go for a large downpayment. This is my third BMW, the previous 2 were one shot lease payment for 36 months both were bought out by me at the end if term with one shot payment and sold privately right after. I'd love to put more down for my E70 to make it a one shot lease payment. This car is leased under my business and I need some sort of monthly payment to show. With $30k before taxes I'm already way over the downpayment limit for this car.

Not sure what you are eluding to. See my previous posts.

I don't believe you could convince me that leasing a car with a large downpayment and then buying it at lease end is a wise financial decision. I repeat, numbers don't lie.

Now, if there are business/tax reasons, that is another story. I reside in the USA so I am not familiar with Canadian laws.

You live in a beautiful country by the way...

[NRG]

I was replying to the poster who said that if there is a large downpayment on the lease then you can't afford the car. My approach to lease/buy is best suited my situation and that all that matters to me. I care less of other people lease situations or were they save or spend their money.

[snk]

Originally Posted by BSM328xi

1) So you are saying people should put large downpayments on a lease and then hedge their bets and assume they will total their cars? That seems a little sadistic, not to mention the odds of a totaled car during a 36 month period are fairly low.

2) Your second point is somewhat strange too. Downpayments on lease are generally a bad idea because it is money you will never see again. Even if you plan on buying the car at lease end, that money could have been earning more money if you have invested it for 36 months. Now, the MSD scenario in this economy tends to work in favor of the lessee. Those who use MSDs rather than a downpayment to lower their monthly payment, not only save money monthly, but they also earn more money than an investment of a similar size would earn in a bank (US).

At the end of the day, I only suggested the OP did not have a good deal because by the time he paid for all of the fees associated he paid more than MSRP for the vehicle. As a general rule, if you plan to purchase the car, then purchase the car. At 1.99% for 60 months you will save money vs. a lease.

I think you misunderstood me (or I misunderstood you)

My point is to put as little as down payment as possible. Instead of putting that lump sum in the beginning, why not keep the money and spread it over the term of the lease.
MSD is not considered as downpaymet.

[BSM328xi]

Originally Posted by snk

I think you misunderstood me (or I misunderstood you)

My point is to put as little as down payment as possible. Instead of putting that lump sum in the beginning, why not keep the money and spread it over the term of the lease.
MSD is not considered as downpaymet.

Oh yes, then we completely misunderstood each other. You're correct. I'm sorry.

[snk]

There are multiple ways to look at auto lease terms, depending on your objectives.

Mine is:

1. Put as close to $0 as downpaymet
2. Higher residual at lease ends = lower monthly payment (BMW was running a lease special on Z4 last year at 79% residual on 3 yrs lease with 12k miles.)
3. As low as possible on the money factor. (duh!)

I know I will not keep the car so I always aim for high residual.

[BSM328xi]

Originally Posted by snk

There are multiple ways to look at auto lease terms, depending on your objectives.

Mine is:

1. Put as close to $0 as downpaymet
2. Higher residual at lease ends = lower monthly payment (BMW was running a lease special on Z4 last year at 79% residual on 3 yrs lease with 12k miles.)
3. As low as possible on the money factor. (duh!)

I know I will not keep the car so I always aim for high residual.

Considering most people don't buy their lease out, your objectives are wise. The benefits to leasing vs. financing are lower payments and a new car every few years! Welcome to the forums!

[jddssc121]

Originally Posted by BSM328xi

1) So you are saying people should put large downpayments on a lease and then hedge their bets and assume they will total their cars? That seems a little sadistic, not to mention the odds of a totaled car during a 36 month period are fairly low.

Do you only wear a seatbelt when you think you're going to get in an accident?

Oh, you wear it all the time? Why, do you assume you're going to get in a wreck? That seems a little sadistic....