Sorry to be a pain... I need help understanding LEASING - Page 2

Thunder22 · #11 05-02-2007, 02:33 PM

A couple more points:

b-line said it, but i want to stress it - NEVER EVER put money down on a lease, ever, EVER. I"m not talking about tax, title, lease, i'm talking cap cost reduction i.e. down payment.

For example, if you are after a 36 month lease, and they as for a $3600 down payment, you've just increased your payment by $100/month, UP FRONT!.

Also, negotiate the purchase price first, but don't let on that you're leasing. ONce you've negotiated and then said ok, let's do the lease numbers on that purchase price, they'll probably say "oh, i can't do a lease on that number, tha'ts only for a retail purchase", it's at that point that you walk out.

Bank fees are complete bullshit, ALWAYS ask to have it waived, it's unlikely, but it can't hurt to ask.

You can roll the sales tax into the lease, which will cost you a bit more because you're now financing the tax, but if you pay the tax out of pocket up front, you don't get it back in certain states if the car is stolen or totaled. It's best to check the laws in your state before making this decision.

Now, here's the ass kicker.

If you lease, and then move to another state, say from NY to NJ, you will get whacked for sales tax on the total of the remaining payments that you owe on the lease. There is no way to get around it, just accept that you will have paid double sales tax. So if you plan on moving to a new state during the term of the lease, don't lease. (Some states like CA charge sales tax monthly, which is the right way to do it, NY and NJ and CT screw you).

Don't lease if you don't plan on taking care of the car. There will be an end of lease inspection and you have to give the car back with only normal wear and tear. If you have a "screw it, it's a lease" mentality and don't take care of the car, you're in for a rude awakening at the end of the lease when they whack you for fixing all of the dents, scratches, rips and tears and new tires.

Sponsored Links

B-Line · #12 05-02-2007, 02:35 PM

Quote:

Originally Posted by Blue Mountain Raider

just curious though, some of say the dealer sales people will try to confuse people with money factor to conceal the real interest rate. however doesnt the bmw site already give you the rate when you finish building you car? for bmw.ca its 7.75%

When you build, it often does give the finance charge and the money factor charge. They are really the same thing. But since the money factor is usually a bit higher than a finance charge, they try to hide it by calling it something different and factoring it as a .0032 instead of a 7% type deal.
Yes, all the information is usually there, but you have to know how to read it.
If you know what your reading (and you know do,) you will see that leasing a vehicle does cost a bit more in interest.

B

Boston X5 4.4 · #13 05-02-2007, 03:11 PM

Great advice from everyone

Another way to reducing the money factor is by paying multiple security deposits upfront (not cap cost reduction). There are mixed opinions on this but it will give you roughly ~10% return on investment. If you are getting >10% return on your money then obviously no point in doing this.

If you have the time, patience and fortitude there is quite a bit of information and a handy spreadsheet on Bimmerfest in the 'ask a dealer' forum stickies.

http://www.bimmerfest.com/forums/forumdisplay.php?f=20

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Sponsored Links