Finance vs Lease

Magimac · 04-21-2009, 06:27 PM

Another option if you have the cash or ability to finance is to look for a 1-2 year old 335i...

I leased my last car -- in the long run I paid way more for it than I would have if i had financed it. The current one I bought outright

joleel7 · 04-21-2009, 07:43 PM

Quote:

Originally Posted by peanuboy

cant put it better than that, well said MovinUp!

that's very similar to my experience, I wonder anyone has any BMW lease-end experience?

perhaps they aren't as bad, but I have had frens leasing bimmers who's been hit by leae-end inspections.....

My lease end experience is inspected by DataScan my wear and tear is $900 + tax. My brother is in car business himself he said if you intend to buy the car DO NOT lease it, if you lease return the car you end paying more for lease car.

Kid Eh · 04-21-2009, 07:55 PM

Quote:

Originally Posted by joleel7

My lease end experience is inspected by DataScan my wear and tear is $900 + tax. My brother is in car business himself he said if you intend to buy the car DO NOT lease it, if you lease return the car you end paying more for lease car.

I've leased my current car and it ends in December. All this end of lease fees has me worried now. What exactly do they look at? I keep my car mint. The day before I picked it up I brought my own wheels and tires and had them put them on. The OEM's have never seen the road so I won't have an issue there.
Anything else I should be careful of? Thanks in advance.

Bimmer Al · 04-21-2009, 08:29 PM

Depends on what you want. I have leased 4 cars in a row and was on the leasing treadmill. Leasing is great for having a new worry free warranty car. But it is a very expensive way of insuring you have a warranty. I recently bought instead. Think about it. If you are willing to keep a car for 10 years and you pay it off in 5, the last 5 years cost you nothing but maintenance. Show me one 3 series that will cost you $600-800 a month every month for the last 5 years to maintain it.....no way. Even taking into account tires and brakes and a transmission(something major) you still will not spend $7-$10k per year. Plus you do not have to pay crap like freight 3 times for leases over the same period. Look mathenatically it makes sense to buy and keep the car. The heart however can suggest otherwise.......I started going with my head after 10 years of heart.

joleel7 · 04-21-2009, 08:31 PM

Quote:

Originally Posted by Kid Eh

I've leased my current car and it ends in December. All this end of lease fees has me worried now. What exactly do they look at? I keep my car mint. The day before I picked it up I brought my own wheels and tires and had them put them on. The OEM's have never seen the road so I won't have an issue there.
Anything else I should be careful of? Thanks in advance.

BMW said DataScan will call me but I end up calling them to come to my house for inspection, he checked

1. Interior and exterior body
2. Tire (they need all original all season)
3. Engine and KM used
4. He put a small meter in my dash for some kind of reading don't know what was that..

BTW they request you to wash your car and all keys and manual before the inspection. 2 days later logon a web sit and enjoy your extra charges

Bimmer Al · 04-21-2009, 08:32 PM

Quote:

Originally Posted by lcs

I am planning to purchase a 2009 328i sedan but I don't know which is better..leasing the car or financing. I am planning to buyback the car if there is nothing much wrong with it after a 4 years. Could anyone help me out? Thanks so much!

Leasing then buying is the most expensive way you can possibly acquire a car unless you buy it for cash at the end the lease period.

Kid Eh · 04-21-2009, 09:10 PM

Quote:

Originally Posted by joleel7

BMW said DataScan will call me but I end up calling them to come to my house for inspection, he checked

1. Interior and exterior body
2. Tire (they need all original all season)
3. Engine and KM used
4. He put a small meter in my dash for some kind of reading don't know what was that..

BTW they request you to wash your car and all keys and manual before the inspection. 2 days later logon a web sit and enjoy your extra charges

Cool. Thanks.

1. Interior and exterior body
- I keep my car in great shape

2. Tire (they need all original all season)
- Never touched the road by me

3. Engine and KM used
- I'm way under my KM's

4. He put a small meter in my dash for some kind of reading don't know what was that..
- We'll see about this

A.Kon · 04-21-2009, 09:57 PM

Quote:

Originally Posted by Bimmer Al

Depends on what you want. I have leased 4 cars in a row and was on the leasing treadmill. Leasing is great for having a new worry free warranty car. But it is a very expensive way of insuring you have a warranty. I recently bought instead. Think about it. If you are willing to keep a car for 10 years and you pay it off in 5, the last 5 years cost you nothing but maintenance. Show me one 3 series that will cost you $600-800 a month every month for the last 5 years to maintain it.....no way. Even taking into account tires and brakes and a transmission(something major) you still will not spend $7-$10k per year. Plus you do not have to pay crap like freight 3 times for leases over the same period. Look mathenatically it makes sense to buy and keep the car. The heart however can suggest otherwise.......I started going with my head after 10 years of heart.

10 years?!! You must be OLD!! JK.

Of course it makes sense to keep a 10 year old car. It actuall makes a lot more sense to buy a 3 year old used CPO car and keep it for 10 years ... financially. But then again, I don't think most of the peeps in THIS forum are like this and we enjoy newer cars much more than old beaters.

dpwr · 04-21-2009, 11:15 PM

Quote:

Originally Posted by Bimmer Al

Leasing then buying is the most expensive way you can possibly acquire a car unless you buy it for cash at the end the lease period.

you don't know his situation, if he owns his business he can write off his payments and then sell it to himself for extra deductions... don't assume everyone's in the same situation

joleel7 · 04-22-2009, 08:18 AM

Quote:

Originally Posted by Kid Eh

Cool. Thanks.

1. Interior and exterior body
- I keep my car in great shape

2. Tire (they need all original all season)
- Never touched the road by me

3. Engine and KM used
- I'm way under my KM's

4. He put a small meter in my dash for some kind of reading don't know what was that..
- We'll see about this

BTW I am just off the phone with BMW lease and finance department I told him I am going to get another 328XI he knock off $200 of my $950 wear and tear charges.

A.Kon · 04-22-2009, 09:19 AM

Quote:

Originally Posted by joleel7

BTW I am just off the phone with BMW lease and finance department I told him I am going to get another 328XI he knock off $200 of my $950 wear and tear charges.

WTF? This was not at the dealership level right?
Think I can call them and get $200 of as well? My dealership is charging me $999!

A.Kon · 04-22-2009, 09:21 AM

Quote:

Originally Posted by dpwr

you don't know his situation, if he owns his business he can write off his payments and then sell it to himself for extra deductions... don't assume everyone's in the same situation

Does anyone know more about this?
I am working AND have my own business. I heard you can only write-off the car if you put the car under the business name AND in case you get audited you need to demonstrate the car is for business purposes.

Anyone?

MMachines · 04-22-2009, 10:35 AM

I am in the same boat. My accountant told me to calculate how many kms I drive / yr to get that income from my own business, and then don't forget to include any kms I may have accumulated looking for new work, whether I got the work or not. For example I'm 40kms to the office I work at that's not a part of my salary job. Twice a week that's 8000kms + 2000kms driving around looking for work. That's 10000kms of my 20000 annual = 50% of my car was used to earn that portion of my income. Sure the car is under the business name, the business is MY name (not registered or anything, if you make less than 30k you don't need to register for GST)

A.Kon · 04-22-2009, 11:51 AM

Quote:

Originally Posted by MovinUp

I am in the same boat. My accountant told me to calculate how many kms I drive / yr to get that income from my own business, and then don't forget to include any kms I may have accumulated looking for new work, whether I got the work or not. For example I'm 40kms to the office I work at that's not a part of my salary job. Twice a week that's 8000kms + 2000kms driving around looking for work. That's 10000kms of my 20000 annual = 50% of my car was used to earn that portion of my income. Sure the car is under the business name, the business is MY name (not registered or anything, if you make less than 30k you don't need to register for GST)

That sounds right. I don't drive for my business and I'm not going to put the car under the business name. I have registered my business with Ontario but did not apply for GST - I thought GST only applies for retail services and other goods.

Are you sure I'm supposed to get a GST number if I am making more than $30k from my business?

Alex_bm · 04-22-2009, 12:36 PM

As soon as you go over 30k on your invoices for a single year it's required by the goverment to open GST account and pay installments or single payment (if you don't) the penalty.
Talk to an accountant, this forum is not really about business.

Quote:

Originally Posted by A.Kon

That sounds right. I don't drive for my business and I'm not going to put the car under the business name. I have registered my business with Ontario but did not apply for GST - I thought GST only applies for retail services and other goods.

Are you sure I'm supposed to get a GST number if I am making more than $30k from my business?

joleel7 · 04-22-2009, 12:55 PM

Quote:

Originally Posted by A.Kon

WTF? This was not at the dealership level right?
Think I can call them and get $200 of as well? My dealership is charging me $999!

If you get another BMW again you can negotiate.. My 200 of is from BMW Canada not from the dealer.

Bimmer Al · 04-26-2009, 07:36 AM

Quote:

Originally Posted by A.Kon

10 years?!! You must be OLD!! JK.

Of course it makes sense to keep a 10 year old car. It actuall makes a lot more sense to buy a 3 year old used CPO car and keep it for 10 years ... financially. But then again, I don't think most of the peeps in THIS forum are like this and we enjoy newer cars much more than old beaters.

Quite possibly the most inteligent post ever......

musicteacher · 04-28-2009, 01:03 PM

What about taking over somebody's lease? (i.e. www.leasebusters.com, www.swapalease.com). In that way, you get the benefits of a new(er) car every 3-4 years (or less), and you do away with the downpayment (and not to mention, other upfront costs). Often, you will also be able to get an incentive to lower the monthly payments. With BMW's scheduled maintenance on these vehicles, it's a major win on the payee. Furthermore, you may also be able to drive more kilometres per month than a brand new lease. That's what I did, personally!

kluk · 07-14-2009, 04:51 PM

can you still have a residual value at the end of your finance period? Is it possible? Because if it's possible then having a lower monthly payment would be a plus. I'd rather pay it off at the end then have higher monthly payments.

Another reason why i'm not considering a lease is because i'm planning to put a large down payment too.

I know when you lease, you would definitely residual.

lcs · 07-14-2009, 05:09 PM

Yes, there is a BMW owner's choice method. You pay smaller amounts of payments every month and at the end of the finance period, you pay the remaining balance/balloon

MMachines · 07-14-2009, 06:43 PM

Quote:

Originally Posted by kluk

can you still have a residual value at the end of your finance period? Is it possible? Because if it's possible then having a lower monthly payment would be a plus. I'd rather pay it off at the end then have higher monthly payments.

Another reason why i'm not considering a lease is because i'm planning to put a large down payment too.

I know when you lease, you would definitely residual.

Definitely possible, as mentioned, there is owners choice. This is what I have on my 330i.

The reason I chimed in though is because of the leasing and definitely having a residual. Not necessarily (not really anyway). My dad leases his cars as well and has the company reimburse him (let the company write off what's allowable), but he does 3rd party leasing and he just tells them what he wants the residual to be. I suppose you could do this with a dealer too and just tell them you want 100k / yr or something if they allow it. For example his E320 has a 5 yr lease, with a $1000 residual. Sure it's like $1500/month but at the end the car is "paid off" and mom gets an E320 for $1000. I'm know this isn't what you're looking to do anyway, I'm just sayin'.

samchoi604 · 07-14-2009, 07:57 PM

The finance vs. lease topic is EVERYWHERE. People never get tired of the debate.

The fact of the matter is, both options are equally good and bad. For high-end luxurious vehicles like BMW, people tend to want to change cars more often. Also, the lease rates from BMW are good, and the residual cost is very high, so leasing is a better option for cars like BMW. You would never want to lease a GMC truck.

04-21-2009, 06:27 PM	#23
Magimac First Lieutenant 4 Rep 302 Posts Drives: 08 335i sedan Join Date: Sep 2007 Location: Ottawa, ON iTrader: (0) Garage List 2008 335i sedan [0.00]	Another option if you have the cash or ability to finance is to look for a 1-2 year old 335i... I leased my last car -- in the long run I paid way more for it than I would have if i had financed it. The current one I bought outright
	Appreciate 0 Quote

04-21-2009, 08:29 PM	#26
Bimmer Al Lieutenant 24 Rep 597 Posts Drives: 2010 335xi Coupe MSport, 6MT Join Date: Aug 2007 Location: Ontario, Canada iTrader: (0)	Depends on what you want. I have leased 4 cars in a row and was on the leasing treadmill. Leasing is great for having a new worry free warranty car. But it is a very expensive way of insuring you have a warranty. I recently bought instead. Think about it. If you are willing to keep a car for 10 years and you pay it off in 5, the last 5 years cost you nothing but maintenance. Show me one 3 series that will cost you $600-800 a month every month for the last 5 years to maintain it.....no way. Even taking into account tires and brakes and a transmission(something major) you still will not spend $7-$10k per year. Plus you do not have to pay crap like freight 3 times for leases over the same period. Look mathenatically it makes sense to buy and keep the car. The heart however can suggest otherwise.......I started going with my head after 10 years of heart. __________________ *2010 335i xDrive Coupe, Titanium Silver, MSport 6MT* 2006 325i Sparkling Graphite Sport Package 6MT Retired 1999 323i Titanium Silver, Sport Package, 5MT Retired
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04-22-2009, 10:35 AM	#35
MMachines BMW Owner 46 Rep 532 Posts Drives: 2008 E92 M3, 2006 4Runner Join Date: Mar 2009 Location: Oregon iTrader: (1)	I am in the same boat. My accountant told me to calculate how many kms I drive / yr to get that income from my own business, and then don't forget to include any kms I may have accumulated looking for new work, whether I got the work or not. For example I'm 40kms to the office I work at that's not a part of my salary job. Twice a week that's 8000kms + 2000kms driving around looking for work. That's 10000kms of my 20000 annual = 50% of my car was used to earn that portion of my income. Sure the car is under the business name, the business is MY name (not registered or anything, if you make less than 30k you don't need to register for GST)
	Appreciate 0 Quote

04-28-2009, 01:03 PM	#40
musicteacher Private 4 Rep 60 Posts Drives: Past: 2012 BMW X1, 2015 BMW 32 Join Date: Apr 2009 Location: Mississauga iTrader: (0)	What about taking over somebody's lease? (i.e. www.leasebusters.com, www.swapalease.com). In that way, you get the benefits of a new(er) car every 3-4 years (or less), and you do away with the downpayment (and not to mention, other upfront costs). Often, you will also be able to get an incentive to lower the monthly payments. With BMW's scheduled maintenance on these vehicles, it's a major win on the payee. Furthermore, you may also be able to drive more kilometres per month than a brand new lease. That's what I did, personally!
	Appreciate 0 Quote

07-14-2009, 04:51 PM	#41
kluk New Member 9 Rep 25 Posts Drives: highlander Join Date: Jun 2009 Location: vancouver iTrader: (0)	can you still have a residual value at the end of your finance period? Is it possible? Because if it's possible then having a lower monthly payment would be a plus. I'd rather pay it off at the end then have higher monthly payments. Another reason why i'm not considering a lease is because i'm planning to put a large down payment too. I know when you lease, you would definitely residual.
	Appreciate 0 Quote

07-14-2009, 05:09 PM	#42
lcs Lieutenant 30 Rep 522 Posts Drives: 328i LCI Join Date: Apr 2009 Location: GTA iTrader: (2)	Yes, there is a BMW owner's choice method. You pay smaller amounts of payments every month and at the end of the finance period, you pay the remaining balance/balloon
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07-14-2009, 07:57 PM	#44
samchoi604 Colonel 60 Rep 2,334 Posts Drives: black on black Join Date: Mar 2009 Location: Burnaby, BC iTrader: (3)	The finance vs. lease topic is EVERYWHERE. People never get tired of the debate. The fact of the matter is, both options are equally good and bad. For high-end luxurious vehicles like BMW, people tend to want to change cars more often. Also, the lease rates from BMW are good, and the residual cost is very high, so leasing is a better option for cars like BMW. You would never want to lease a GMC truck.
	Appreciate 0 Quote