Need Advice

[rangerfan]

Originally Posted by gresch

and you walk away.

I beg to differ. The bank will keep you on the lease as the secondary lessee, so they can go after you if the person to whom you transfers the car stops paying.

[bozo]

Originally Posted by gresch

If you want to convert the lease to a purchase you're responsible for the total of the remaining monthly payment PLUS the residual.

HOLY SH#&!!...So, would it be safe to assume that the longer the lease, the better the deal, and vice versa?! In other words, would they even do something like, say, a one-year lease?! And I heard they have milage limits too..Is that true? Geez, I'd be scared SHI*^LESS to sign one of those things!!

What are the pros?!

[hellcat]

Leasing can be a great way to buy a car. In most cases you have two chances to negotiate the deal. Once when you initially purchase the vehicle and a second time at lease end if you actually want to buy the car. I have leased many vehicles (BMWs and others) and have always had the option to buy the vehicle for less than the original residual value at lease end.

Another thing to note when leasing is to never put down any money. There will be out of pocket administrative costs at lease inception but these should not amount to a significant amount of money. Any additional money used as a "down payment" or capitalized cost reduction is subject to loss if something happens to the vehicle. Included in your lease payment is Gap Protection which is essentially insurance against what you owe the finance company (the total of your remaining payments) and what your insurance company will pay if the vehicle is stolen or totaled. This Gap Protection does not cover any money used as a down payment in the transaction.

BMWs have high residual values compared to their competitors. From a competitive value stand point they make really great lease vehicles, in fact BMW has one of the highest lease penetrations in the business. I personally think that leasing is a great way to buy a BMW.

[Thunder22]

Originally Posted by rangerfan

I beg to differ. The bank will keep you on the lease as the secondary lessee, so they can go after you if the person to whom you transfers the car stops paying.

Sorry, but i just spoke to BMWFS yesterday and was told I am free and clear once the leased is assigned to someone else, so unless the woman i spoke with was mistaken or i misunderstood, you walk away as soon as the other person assumes the lease.

[Thunder22]

Originally Posted by bozo5521

HOLY SH#&!!...So, would it be safe to assume that the longer the lease, the better the deal, and vice versa?! In other words, would they even do something like, say, a one-year lease?! And I heard they have milage limits too..Is that true? Geez, I'd be scared SHI*^LESS to sign one of those things!!

What are the pros?!

yes, the longer the lease the lower the money factor, i.e. financing charges. 1 year leases are extremely rare, i've never heard of one.

the pros are simple, the monthly payments are lower which means you can drive a more expensive/higher end car, there is less out of pocket up front (i've never put any money down on a lease other than title and reg), if you're into switching cars every year because you're an impulse buyer it keeps you from blowing money on a new car every year ( i have no self control when getting a new car, a lease helps me keep my money in the bank!), if you own your own business you can write it off to the business, after 3 years you can walk away and get whatever you want without the hassle of trying to sell a depreciating asset (despite what some say, it's very rare to sell any car for more than you paid for it unless it was a garage queen).

[Juanted]

For what it's worth, I would not do it -- regardless of whether this is a good deal or not. You are giving up your Z4 and putitng down $5K as a "filler" until the new X comes out? What are you going to do 12 or 13 months from now when it DOES come out? You'll have $12K less that you have now, and be "stuck" with a car you don't want but to which you are committed for two more years.

Keep the Z4, and save the $5k for a down payment on your the new X5 next September or October. That's just my opinion.

Juan

[somewhereinla]

I see your point Juan, but I don't think I want the 1st year new X5, plus I like the size of the x5 now, not too small, not to big... And I realy need a bigger car. I think I am going to go the CPO way, I have found 2004's 4.4 fairly loaded (no Nav but with the pan.roof) for under 48k which after I trade in the Z4 will make it a similar payment as the lease one. I have the feeling that it might be the most flexible option. I am telling you this x5 bug is highly contagious.

[bozo]

Wow, there sure is a lot to learn about it I guess. I was always curious about the whole process. I think you are doing the right thing with the CPO..

LA, I wish I was there to buy your Z4, Id put 2 coats of Z5 on it, stick a "Vanillaroma" under the seat, and put a 2k mark-up on it...GOTCHA! People are suckers for a pretty car.. Make some $$$ on it!

[rangerfan]

Originally Posted by gresch

Sorry, but i just spoke to BMWFS yesterday and was told I am free and clear once the leased is assigned to someone else, so unless the woman i spoke with was mistaken or i misunderstood, you walk away as soon as the other person assumes the lease.

Every bank is different, and BMWFS is far and away in the minority. I am still on the books for the Audi allroad I transferred 18 months ago thru Audi FS. Additionally, I would not count on them keeping this as their policy. That being said, good for you!