[BRAISKI]

I am still not sure if I should lease or finance.

As it stands I'd like to keep the car but who knows 4 yrs from now if I still want it.

The reason I want to lease is that I don't want to pay $1,000/mth. (Saving for a down payment on a house) I'd prefer to pay around $800 or less if that is possible. I can put around $10k or even $15k but I don't think that is a good idea to do on a leased car. Part of my income is invested, thats why I need to play around with the #s.

How flexible is the dealer with working on the #s? Do they need to meet a certain requirement? Like if I put $0 down I need to pay $1k/month and if put say $5k I need to pay $800/month. Something like that. For the buy back does it need to be at least a certain amount?

When the prices for the 2010 comes out the dealer that I am dealing with will contact me. I just want to know how I can "haggle" with the price.

Do you think they will give me a "free" package?

As it stands I am thinking of getting the...

M-Package
Navigation
Audiophile
Executive Package

Do you think I can ask for one of them to be free?

[doctor_vino]

They've got something called Owner's Choice which works kinda the same way a mortgage does......... you'd finance a portion of the total value - say 70% - and make payments on that for 4 or 5 yrs......and at the end you'd have a ballon payment of the remaining 30% so this way ur payments are lower.....but you still OWN the car

if you do a search for owners' choice you'll find plenty of information.....or even walk into the dealer

[BRAISKI]

Originally Posted by doctor_vino

They've got something called Owner's Choice which works kinda the same way a mortgage does......... you'd finance a portion of the total value - say 70% - and make payments on that for 4 or 5 yrs......and at the end you'd have a ballon payment of the remaining 30% so this way ur payments are lower.....but you still OWN the car

if you do a search for owners' choice you'll find plenty of information.....or even walk into the dealer

Very interesting, I haven't heard about that. Thanks!

[A.Kon]

Check out bmw.ca and the different finance and lease options.

Put in whatever discount you are expecting to get into the downpayment part and you'll get a fairly good idea as to the payment streams.

If you're ordering the car, you prolly won't get as good of a discount if you buy one off the lot although a lot of posters say they got big discounts even on special orders.

But before you consider the balloon finance you need to first think about how long you plan on keeping the car.

[w2]

Originally Posted by BRAISKI

The reason I want to lease is that I don't want to pay $1,000/mth. (Saving for a down payment on a house) I'd prefer to pay around $800 or less if that is possible. I can put around $10k or even $15k but I don't think that is a good idea to do on a leased car. Part of my income is invested, thats why I need to play around with the #s.

Whether you pay $10,000 now and $800/month for 48 months, or you pay $0 now and $1000/month for 48 months won't affect your ability to save, because the total cash outlay is the same. It may feel more expensive when the payment gets deducted each month, but it isn't. If you have $10,000 in cash right now and you are saving for a house, then why not use that $10,000 for part of the home down payment and put nothing down on the lease? You still have to make sure you can afford the monthly carrying costs of both a mortgage and a car loan/lease, but the total amount owed will be the same regardless of where you put the down payment. Personally, I'd rather have $10K in equity on a house rather than $10K of a lease prepaid.

How flexible is the dealer with working on the #s? Do they need to meet a certain requirement? Like if I put $0 down I need to pay $1k/month and if put say $5k I need to pay $800/month. Something like that. For the buy back does it need to be at least a certain amount?

Your monthly payment is a function of the purchase price of the car, the interest rate, the lease/finance term, and the residual value of the car (if it is a lease). The dealer can juggle the numbers around to make your monthly payment come out to pretty much anything within reason, but you have to be cognizant of the total amount paid over time. Someone paying $800/month with a $10,000 down payment and a 60 month repayment term is actually going to pay thousands more in total than someone paying $1,100 a month with no down payment and a 48 month repayment term.

Always negotiate the purchase price first, then negotiate lease vs. buy, interest rate, finance/lease term, and residual value. Don't ask how much it costs per month: just get a quote on all of the above factors and that will determine the monthly cost. If, for cash flow reasons, the number is too high, you can lower the monthly payment by stretching out the finance term (at the cost, of course, of paying more in total, but over a longer period of time) or making a down payment (which sounds like a bad idea if you are saving to buy a house, and it probably not good for a lease).

As far as lease vs. buy goes, the monthly payment should probably not be the main factor in your decision: a car lease and a car purchase are different kinds of things, and you need to know which one you want, not just which one costs what per month. If you want to keep the car for more than four years, you should probably buy it. If you will want a new one after two or three years, you should probably lease it, but make sure you understand all of the details of a lease, including your lease end obligations, and why it costs what it does. If you are in between, it will depend on other factors. Leasing gives you a certain amount of flexibility, and protects you from a sudden drop in the value of the car (due to general market forces, or if your car is in an accident) but my sense is that, right now, buying is, on average, more cost effective than leasing over a four year term. Last year was different, but leasing looks less attractive than it did in 2008.

[2kaccordocoupe]

^ Well said.

[dpwr]

Originally Posted by w2

Whether you pay $10,000 now and $800/month for 48 months, or you pay $0 now and $1000/month for 48 months won't affect your ability to save, because the total cash outlay is the same. It may feel more expensive when the payment gets deducted each month, but it isn't. If you have $10,000 in cash right now and you are saving for a house, then why not use that $10,000 for part of the home down payment and put nothing down on the lease? You still have to make sure you can afford the monthly carrying costs of both a mortgage and a car loan/lease, but the total amount owed will be the same regardless of where you put the down payment. Personally, I'd rather have $10K in equity on a house rather than $10K of a lease prepaid.




Your monthly payment is a function of the purchase price of the car, the interest rate, the lease/finance term, and the residual value of the car (if it is a lease). The dealer can juggle the numbers around to make your monthly payment come out to pretty much anything within reason, but you have to be cognizant of the total amount paid over time. Someone paying $800/month with a $10,000 down payment and a 60 month repayment term is actually going to pay thousands more in total than someone paying $1,100 a month with no down payment and a 48 month repayment term.

Always negotiate the purchase price first, then negotiate lease vs. buy, interest rate, finance/lease term, and residual value. Don't ask how much it costs per month: just get a quote on all of the above factors and that will determine the monthly cost. If, for cash flow reasons, the number is too high, you can lower the monthly payment by stretching out the finance term (at the cost, of course, of paying more in total, but over a longer period of time) or making a down payment (which sounds like a bad idea if you are saving to buy a house, and it probably not good for a lease).

As far as lease vs. buy goes, the monthly payment should probably not be the main factor in your decision: a car lease and a car purchase are different kinds of things, and you need to know which one you want, not just which one costs what per month. If you want to keep the car for more than four years, you should probably buy it. If you will want a new one after two or three years, you should probably lease it, but make sure you understand all of the details of a lease, including your lease end obligations, and why it costs what it does. If you are in between, it will depend on other factors. Leasing gives you a certain amount of flexibility, and protects you from a sudden drop in the value of the car (due to general market forces, or if your car is in an accident) but my sense is that, right now, buying is, on average, more cost effective than leasing over a four year term. Last year was different, but leasing looks less attractive than it did in 2008.

i agree with all you said except that last sentence... the only reason you see such a low rates right now is because of a market crush, otherwise they would not be this low... alot of people got stuck in 6-7% lease rates prior to market crush, so I would not be saying leasing is less attractive now with 2.5-3.9%.... sure residual is less, but you can make it up by negotiating like crazy since car sales are way down and they're desperate to sell

[BRAISKI]

w2 thanks for the in depth explanation!!!

I will need to re-read this again to get solid understanding.

With BMW's current #s for lease and financing is 3.9% and 2.9% respectively, based on a certain # of months. Which I think its an awesome rate. I was checking the M3 for fun and the rate is around 9%!!!

I might have to check the #s again if I can fit $1,000/mth comfortably.


The thing is if I put $0 down and then I can use the $10,000 which I "was" planning to put as a down payment and invest it on a GIC or Money Market. Something more secure or guaranteed so nothing aggressive. So in the end if all goes well I can still make money from my $10k but the question is how much more... It will depend on the rate of return.

[BRAISKI]

Originally Posted by A.Kon

Check out bmw.ca and the different finance and lease options.

Put in whatever discount you are expecting to get into the downpayment part and you'll get a fairly good idea as to the payment streams.

If you're ordering the car, you prolly won't get as good of a discount if you buy one off the lot although a lot of posters say they got big discounts even on special orders.

But before you consider the balloon finance you need to first think about how long you plan on keeping the car.

I will be ordering the car for sure since, I am planning to do a European Delivery

Thats the thing I really don't know how long I will want to keep the car, since I don't have it yet. I am sure my decision will change once I have the car. But then again by that time depending of my decision its way too late since I already signed on the dotted line...

As it stands I am kinda leaning towards financing since I will own the car. Also since I am planning to buy a house, in the next 2 or 3 yrs, I'd prolly prefer not buying a new car that time.

[BRAISKI]

Originally Posted by dpwr

i agree with all you said except that last sentence... the only reason you see such a low rates right now is because of a market crush, otherwise they would not be this low... alot of people got stuck in 6-7% lease rates prior to market crush, so I would not be saying leasing is less attractive now with 2.5-3.9%.... sure residual is less, but you can make it up by negotiating like crazy since car sales are way down and they're desperate to sell

Thats what I will be doing negotiating like crazy lol


I have no problems going to 10 dealers to find out the bet deal I can get. But then again, I would really prefer local, esp the dealer is about 3 min drive.

[A.Kon]

Originally Posted by BRAISKI

I will be ordering the car for sure since, I am planning to do a European Delivery

Nice.

Good luck,
BTW - why are you always getting blue?
Didn't you learn? ... PWP>>ABP

[BRAISKI]

I just checked "Owners Choice" but the problem is that the rate is 7.99% so not an option anymore...

[BRAISKI]

Originally Posted by A.Kon

Nice.

Good luck,
BTW - why are you always getting blue?
Didn't you learn? ... PWP>>ABP

Thanks, I like colour not shade

[ians]

Originally Posted by A.Kon

Nice.

Good luck,
BTW - why are you always getting blue?
Didn't you learn? ... PWP>>ABP

PWP rules just see how many PWP in Toronto! but... on E92, MB FTW

[bulldog_yyc]

Originally Posted by BRAISKI

I will be ordering the car for sure since, I am planning to do a European Delivery

Thats the thing I really don't know how long I will want to keep the car, since I don't have it yet. I am sure my decision will change once I have the car. But then again by that time depending of my decision its way too late since I already signed on the dotted line...

As it stands I am kinda leaning towards financing since I will own the car. Also since I am planning to buy a house, in the next 2 or 3 yrs, I'd prolly prefer not buying a new car that time.

Why not get a CPO? 0.9% interest rate plus more warranty?

[BRAISKI]

Originally Posted by turkish335

Why not get a CPO? 0.9% interest rate plus more warranty?

Its hard to find a LeMans Blue (M-Package) and with Navigation, Executive and Audiophile Package.

And I am going to Germany in July and I'd like to do the ED.

[bulldog_yyc]

Originally Posted by BRAISKI

Its hard to find a LeMans Blue (M-Package) and with Navigation, Executive and Audiophile Package.

And I am going to Germany in July and I'd like to do the ED.

want to buy some parts for me LOL

[A.Kon]

Originally Posted by ians

PWP rules just see how many PWP in Toronto! but... on E92, MB FTW

AW >>> MB

[BRAISKI]

Originally Posted by turkish335

want to buy some parts for me LOL

lol

Is your car back? You still need to take me for a ride

[bulldog_yyc]

Originally Posted by BRAISKI

lol

Is your car back? You still need to take me for a ride

shes still away - will let you know when I get her back