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      12-12-2012, 04:10 PM   #15

Drives: Looking
Join Date: Oct 2006
Location: Canada, Toronto

iTrader: (1)

Originally Posted by Havok_2011
Originally Posted by bolty View Post
Theres not enough info.

Dealers will typically try to fixate people on the the monthly payments. Tell her to work out a final purchase price with some amount of discount off of sticker price, then work the financing out from there.

Unfortunately, I dont know what a good discount for a 1er is these days. I got about 8 points off of sticker when I bought my car 4 years ago.
I found out the sticker price for the car is $37,950.00 and then she needs to pay $3,860 to end the lease of her Mini.

However, she just told me the $624.00 per month is based on a balloon payment, so at the end there is still payment of just over $11,000.00.

I told her not to do it. I have balloon payments, its rigged for people that can't really afford the car, or get tricked into the low monthly payments. At the end of the day, you have paid too much for it.

I'm going to Downtown BMW tomorrow, and see what I can get a sale rep to give me for the same car she wants.
Not entirely true in regards to balloon loans. You need to calculate the effective rate on the loan. If the rate is close to zero, it might be a good deal. You get to keep your cash and save on the interest.