E90Post
 


ECS BMW
 
BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > New & Preowned BMW Ordering / Pricing / Tracking Information Forum (including European Delivery) > Can someone explain leasing to me????



Reply
 
Thread Tools Search this Thread
      02-07-2008, 11:41 PM   #1
luckym13
Registered
 
Drives: Honda that is slow
Join Date: Feb 2008
Location: Chicago

Posts: 2
iTrader: (0)

Can someone explain leasing to me????

When I get out of the military I plan on getting a BMW. Obviously cant pay for it all cash so I have to lease it, but I dont understand how that works.

Because say for instance you see a car for 500/mo for 48 months, but the car retails for 34,000. You really end up only paying 24,000 by my calculations and I have seen this type of situation on a lot of ads.

Other than that can someone just generally explain leasing to me?

Thanks.
luckym13 is offline  
0
Reply With Quote
      02-07-2008, 11:44 PM   #2
Double White
Second Lieutenant
 
Double White's Avatar
 
Drives: Crimson Red e90
Join Date: Feb 2008
Location: SoCal

Posts: 232
iTrader: (0)

well after a lease you give the car back and what you pay is how much the car depreciates throughout your term
__________________
Double White is offline   Armenia
0
Reply With Quote
      02-07-2008, 11:47 PM   #3
canucklion
pull my finger to get your kinder® surprise
 
canucklion's Avatar
 
Drives: circles around you
Join Date: Dec 2005
Location: Toronto, Canada

Posts: 10,454
iTrader: (9)

http://www.google.com/search?hl=en&q...xplained&meta=
__________________
canucklion is offline   Canada
0
Reply With Quote
      02-07-2008, 11:51 PM   #4
BMWE90
Major
 
BMWE90's Avatar
 
Drives: E90 335
Join Date: Aug 2007
Location: Bay Area

Posts: 1,153
iTrader: (1)

Quote:
Originally Posted by canucklion View Post
niiiice

The "enforcer" is making his round on all the noobs.


To the original poster- if you still have questions after researching, feel free to PM me and I'll be more than happy to help clarify things for you.
BMWE90 is offline   United_States
0
Reply With Quote
      02-07-2008, 11:54 PM   #5
AndrewAZ
Major
 
AndrewAZ's Avatar
 
Drives: 335i
Join Date: Jan 2007
Location: CA

Posts: 1,244
iTrader: (0)

A lease is a way of financing..


You are paying the cost of the car which should be negotiated as if your buying the car. Minus the depreciation after the set time in your example 48 months. So your paying for the difference in value of your purchase and what BMW thinks the car will be worth in 48 months.

Leasing is not good if you can not afford the car to begin with, first 500 a month quotes are to get you into the door, most come with $3k needed to sign and drive off the lot. Leasing main advantage is for folks who own their own business and cuse use it as a tax write off or for folks who end up buying a new car every few years and dont drive much.

Its something that you want to do a lot of research on since you can get easily burned by a lease if you dont understand accounting and financing and even then its hard. Never NEVER worry about the monthly payments, you always worry about the begging purchase price and interest rate along with the residual value (which is set by BMW if you lease from them) generally BMW and Mercedes have higher than actual market residual value since they want you to lease the car since they make the most money off that arm of the company, but again they will screw you with the interest rate, sure they might drop $20 a month off but your interest rate might go up .02 or so.

So in conclusion do a lot of research, I would hate to have you get into a lease contract and end up getting screwed after you have worked hard.
AndrewAZ is offline  
0
Reply With Quote
      02-08-2008, 12:06 AM   #6
luckym13
Registered
 
Drives: Honda that is slow
Join Date: Feb 2008
Location: Chicago

Posts: 2
iTrader: (0)

Oh, see I thought leasing was paying for the car monthly and you OWN it. But now that I know what it is, that doesnt seem too profitable if you lease it. Your just paying to rent a car basically...

I will have probably 30 grand when my enlistment time is done for a car in around 3 years.....should I just buy one used?? Do BMW's have good resale value??

Thanks AndrewAZ
luckym13 is offline  
0
Reply With Quote
      02-08-2008, 12:15 AM   #7
tintivilus
Lieutenant Colonel
 
tintivilus's Avatar
 
Drives: E92 335i
Join Date: Sep 2006
Location: Lake County, IL

Posts: 1,826
iTrader: (0)

Garage List
2007 E92 335i  [0.00]
2003 325i  [0.00]
Send a message via AIM to tintivilus
Quote:
Originally Posted by luckym13 View Post
Oh, see I thought leasing was paying for the car monthly and you OWN it. But now that I know what it is, that doesnt seem too profitable if you lease it. Your just paying to rent a car basically...

I will have probably 30 grand when my enlistment time is done for a car in around 3 years.....should I just buy one used?? Do BMW's have good resale value??

Thanks AndrewAZ
If you could handle lease payments, you can handle payments on a traditional loan with that much cash to drop. If you put 30K down on a 50K car you loan's not going to be that big.

If you're just paying cash up front I'd much rather get a used 3'er than a new Corolla.
tintivilus is offline   United_States
0
Reply With Quote
      02-08-2008, 02:03 AM   #8
AndrewAZ
Major
 
AndrewAZ's Avatar
 
Drives: 335i
Join Date: Jan 2007
Location: CA

Posts: 1,244
iTrader: (0)

Quote:
Originally Posted by luckym13 View Post
Oh, see I thought leasing was paying for the car monthly and you OWN it. But now that I know what it is, that doesnt seem too profitable if you lease it. Your just paying to rent a car basically...

I will have probably 30 grand when my enlistment time is done for a car in around 3 years.....should I just buy one used?? Do BMW's have good resale value??

Thanks AndrewAZ
To give you an idea it costs about $5-6k a year to lease a 328i sedan. And if you into getting cars often its worth it to lease like I mentioned BMWs residual values are very high compare to what the car would sell for in the real market down the road.

A better bet if you dont have a house is to start investing in a house rather than a car which is a depreciating asset.
AndrewAZ is offline  
0
Reply With Quote
      02-09-2008, 03:44 PM   #9
Uberdude328i
Second Lieutenant
 
Drives: 97 328i, 08 335i
Join Date: Jan 2008
Location: ATL

Posts: 263
iTrader: (0)

Quote:
Originally Posted by luckym13 View Post
Oh, see I thought leasing was paying for the car monthly and you OWN it.
That's called financing. Not a bad option. Substantial down payment (a portion of your savings there) with manageable monthly payments.

Leasing IS basically renting long term. It makes sense for some, like those whose job tells them how old their car can be. People who need a car short term. Those who fell in love with the 335 and decided they'd rent it for three years then exercise their payoff option because they're going to own it the rest of their lives.

One last piece of advice: never take financial advice from a forum.
Uberdude328i is offline  
0
Reply With Quote
      02-09-2008, 04:24 PM   #10
AoshichanX
Brigadier General
 
AoshichanX's Avatar
 
Drives: Jet Black e90 335i
Join Date: Jul 2007
Location: Claremont, CA

Posts: 3,103
iTrader: (16)

Garage List
2007 e90 335i  [0.00]
Send a message via ICQ to AoshichanX Send a message via AIM to AoshichanX Send a message via MSN to AoshichanX Send a message via Yahoo to AoshichanX Send a message via Skype™ to AoshichanX
Quote:
Originally Posted by Uberdude328i View Post
That's called financing. Not a bad option. Substantial down payment (a portion of your savings there) with manageable monthly payments.

Leasing IS basically renting long term. It makes sense for some, like those whose job tells them how old their car can be. People who need a car short term. Those who fell in love with the 335 and decided they'd rent it for three years then exercise their payoff option because they're going to own it the rest of their lives.

One last piece of advice: never take financial advice from a forum.
Was that an intentional oxymoron?
AoshichanX is offline   United_States
0
Reply With Quote
      02-09-2008, 06:17 PM   #11
Leonardo629
Major
 
Drives: 2013 M3 Coupe
Join Date: Sep 2006
Location: Walnut, CA

Posts: 1,201
iTrader: (9)

whatever you do, don't put any downpayment when you lease.
Leonardo629 is offline   United_States
0
Reply With Quote
      02-09-2008, 09:41 PM   #12
Bulldog 6
The Logistician
 
Bulldog 6's Avatar
 
Drives: 2007 328i TiAg
Join Date: Feb 2007
Location: Richmond, VA

Posts: 746
iTrader: (0)

Garage List
2007 328i E90  [0.00]
Leasing is like renting when your time is up you turn it back in. I think it is good if you like to get a new car every few years and don't want the hassle of selling a car. A down side is that you continually have car payments. Just choose which fits your life style. If you are active duty military I wouldn't recommend leasing because of the mile restrictions. A couple of PCS's, trips to see your family or TDY trips my put you in a tight spot.
Bulldog 6 is offline   United_States
0
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -5. The time now is 05:20 AM.




e90post
Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST