[OC Guy]

Originally Posted by jdink

and you may get more flexibility and less liability, but you become the b and get f'ed in the a at the same time financially...

How so? What are you basing this on?

[jdink]

the effective interest rate that you are paying on the car is much higher

[jdink]

why do you think dealerships push leases in the first place? because they are better for the customer? no. because they get fat comissions because the company makes more business. obviously, such isnt always the case.... but in this case it is.

(when i looked at an audi there effective intrest rate was like 1%... in which case i would have leased because the financing interest rate was 2.9%)

[OC Guy]

I can guarantee you I did the numbers and I will save more money leasing, using that money that I was going to down on a finance to invest, and purchasing at the end rather than financing outright.

1. Interest was MUCH, MUCH lower than financing at the time.
2. 10k down vs. 10k invested. I get more of a return on my investment than I pay on interest due to the absurdly low money factor on the lease at the time.
3. Less liability. - Crash the car? You're fine. Get in an accident and your car depreciates? Give it back to BMW.

Financing vs. Leasing all depends on the numbers, it's not always black and white. Either way, you are financing, just going about different ways about it.

[Bimmerbaby]

this is all very confusing

[OC Guy]

Originally Posted by jdink

why do you think dealerships push leases in the first place? because they are better for the customer? no. because they get fat comissions because the company makes more business. obviously, such isnt always the case.... but in this case it is.

(when i looked at an audi there effective intrest rate was like 1%... in which case i would have leased because the financing interest rate was 2.9%)

BMW does it partly because of their high resale value (3 series always rank one of the highest in their class). They can lease a car, the buyer returns it, then they can sell it as CPO and make the money twice.

[OC Guy]

Originally Posted by jdink

the effective interest rate that you are paying on the car is much higher

Not when the interest rates were near 6% (even with stellar credit) and the money factor equated to ~3%.

I did the math financing vs. leasing and then buying outright. And I didn't even include the money saved/earned by investing what I was going to make as a downpayment.

Oh also, leasing for me was more attractive because on an ED car is the residual is based on full US MSRP while you're ED Deal is thousands below that.

There is no wrong way to go. It comes down to what works best for you. Both options require the consumer to pay for depreciation. The person leasing only pays for depreciation and rental charges where the buyer pays for the asset and depreciation.

[OC Guy]

Originally Posted by Bimmerbaby

this is all very confusing

It is because there's a lot of misconceptions on the subject. It all boils down to the numbers.

If you go to the Ask-A-Dealer forum over at Bimmerfest, there are tons of good stickies on leasing vs. buying.

[jdink]

1) i wasnt talking about your numbers. i AM talking about the numbers Nabil is getting. His effective interest rate is upwards of 6.5%

2) i wont even get into the "i'll just invest my money instead" arguement.

3) yes, bmws have a higher resale. which means BMW benefits from you leasing, again not you.

[!Xoible]

Originally Posted by OC 335i

What's the MF again?

I think you can do up to 7.

(0.0007 x 7) = 0.0049

0.00275. ur saying it'll drop it 0.0049 points? that's like 20 bucks a month

[jdink]

bah, f it i will get into the "invest my money" arugmenet.

if we are talking stock market or whatever, nothing is guaranteed.

if we are talking savings account/cd/bonds or some other fixed income investment yeah you might have been able to get 5% on your money, but after taxes you are probably looking at a 3-3.5% return.

[!Xoible]

i have no fucking clue what you guys are saying.

[OC Guy]

Originally Posted by jdink

1) i wasnt talking about your numbers. i AM talking about the numbers Nabil is getting. His effective interest rate is upwards of 6.5%

2) i wont even get into the "i'll just invest my money instead" arguement.

3) yes, bmws have a higher resale. which means BMW benefits from you leasing, again not you.

1. I have to run his numbers more closely. Don't have access to lease calculators here as they are blocked.
2. ok
3. Unless the leaser decides to buy his car and resell since the car could be worth much more than what it is owned. It has happened.

Again, everyone's situation is different. If Nabil could provide proof that he has some sort of business, he can get a tax break on the leasing payments as well.

[OC Guy]

Originally Posted by jdink

bah, f it i will get into the "invest my money" arugmenet.

if we are talking stock market or whatever, nothing is guaranteed.

if we are talking savings account/cd/bonds or some other fixed income investment yeah you might have been able to get 5% on your money, but after taxes you are probably looking at a 3-3.5% return.

Yes, I'm talking about savings/cd/bonds/fixed. I agree, it isn't worth making talking about the stock market or some variable return.

That 3-3.5% return is more than what I'm paying on interest.

Lease depreciating "asset."
Finance depreciating "asset."

[jdink]

chances are if you are letting the amount of your payment drive your decision then you arn't making a sound financial decision.... my last 2 cents that i'll throw in here.

[OC Guy]

Originally Posted by jdink

chances are if you are letting the amount of your payment drive your decision then you arn't making a sound financial decision.... my last 2 cents that i'll throw in here.

Okay I'll agree on that one.

[jdink]

nabil, if you want send me a pm with all the financial details of each offer and i can lay all your possibilities out to you in a nice neat spreadsheet. from there its really up to you to decide what the difference is worth to you.

[Bimmerbaby]

Originally Posted by mantis

i have no fucking clue what you guys are saying.

Just get a 328 and mod the heck out of it. Yes it is not as fast as the 335, but then that's good for you.

[Kyosho]

hey everybody
im in class and im boredddd as hell
whats up

[E90SLAM]

Originally Posted by Bimmerbaby

Just get a 328 and mod the heck out of it. Yes it is not as fast as the 335, but then that's good for you.

[E90SLAM]

Originally Posted by Kyosho

hey everybody
im in class and im boredddd as hell
whats up

lots of money talk....

[Bimmerbaby]

Originally Posted by E90SLAM