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      06-02-2015, 11:10 AM   #1
salukutinaveen
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Finance or Lease

I have ordered my X5 with the below options. MSRP is $68125, and I got it for $61500+TTT. I was thinking to take a loan on the car, but now I am thinking if I should lease ?
I am getting a 1.49 APR for 65 months from a local credit union. I am sure I will sell the car after 4 years. I am not sure how leasing works, so I am trying to see what might be a good lease deal for the 61500+3500(TTT) car.

Any help is greatly appreciated !!

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      06-02-2015, 12:04 PM   #2
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Here are my tips for your.

1. Read up and research on leasing so you understand fully what you are doing.
2. Do not put any "down payment" against the leased car.. you should only put down first payment, taxes, and other "fees" only. MSD ( multiple security deposit ) which you get back at the end of the lease would be idea to lower the money factor aka interest rate.
3. Determine how many miles you will drive and choose the following 10K, 12K, 15K miles lease program. If you think you will go over then you can purchase the miles prior to lease ending at $0.15/miles .. if you go over 1,000 miles then you pay $150.00 at the lease end.
4. If you want to drive a "new" car every 3 years then leasing is for you. Don't quote me on this but you can also extend your lease longer than 3 years.. and from time to time you have opportunity to to end your lease early with a pull ahead program of up to 6 months or more.

I am sure others will chime in.
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      06-02-2015, 12:15 PM   #3
batmanken
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for me, german cars I lease, japanese cars I buy it. I can't imagine driving this car without warranty.
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      06-02-2015, 01:27 PM   #4
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Not to mention the potential hit you would take if a collision was involved in your purchased car. if leased, it goes back no matter what the damage was.
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      06-02-2015, 01:47 PM   #5
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Leasing
Pros:
Like Kzang said, you should lease a car if you want a new car every 3 years. If you buy and trade in 3 years, it's a headache to get a decent price for your trade in. I know. I had to shop around to get an acceptable price on my recently traded-in 5 Series.

Artdnj is spot on in his statement. If something happens to your car, its not your car. It hurts much less. I got rear ended at a stop sign about 5 years ago. My car was leased. I was mad but in the end, the car was given back.

Cons:
Sometimes you want to switch cars before 3 years go by. I only had my car for 2 years and 5 months. I would not of been able to pull my lease forward this early if I had leased.

Cars lose most of their values within the first 3 years. If you plan on keeping the car for longer, you'll get more value for your money. This is why I decided to purchase a X5, I plan on keeping it for 4 to 5 years. New cars are nice but I think I can love this X5 for a while......I said that about my past 3 cars so maybe this time will be different!
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      06-06-2015, 06:50 PM   #6
darrvao777
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I'll vote for a lease as well. I enjoy driving BMWs while they are under warranty and then getting new ones on the eve of warranty expiration :-)
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      06-07-2015, 12:14 AM   #7
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Quote:
Originally Posted by twelve535i View Post
Leasing
Pros:
Like Kzang said, you should lease a car if you want a new car every 3 years. If you buy and trade in 3 years, it's a headache to get a decent price for your trade in. I know. I had to shop around to get an acceptable price on my recently traded-in 5 Series.

Artdnj is spot on in his statement. If something happens to your car, its not your car. It hurts much less. I got rear ended at a stop sign about 5 years ago. My car was leased. I was mad but in the end, the car was given back.

Cons:
Sometimes you want to switch cars before 3 years go by. I only had my car for 2 years and 5 months. I would not of been able to pull my lease forward this early if I had leased.

Cars lose most of their values within the first 3 years. If you plan on keeping the car for longer, you'll get more value for your money. This is why I decided to purchase a X5, I plan on keeping it for 4 to 5 years. New cars are nice but I think I can love this X5 for a while......I said that about my past 3 cars so maybe this time will be different!
The idea that you can't sell/trade a leased car early is a complete fallacy. I lease specifically because I turn my cars every 12 to 18 months. In California you only pay sales tax on the lease payment monthly and not on the entire purchase price. It saved me about $6K on my M5 vs buying it.

A lease has a monthly buyout just like a purchase, there is no difference. If you are upside down you will pay out of pocket and if there is equity you will get it back.

Also, make sure you do the math on holding a car longer than 3 years. On luxury cars I have not found it to be advantageous to buy and hold. One simple issue out of warranty can put you upside down very quickly. Even without considering maintenance costs the depreciation curve continues to be pretty steep.
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      06-07-2015, 06:10 AM   #8
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Just exited lease via Swapalease

I totally agree with the prior replies about the advantages of leasing.

For $99, I was able to post my 2013 740il on Swapalease and no longer have it. BMW charged the person assuming it $500 to process the transfer and I have no legal obligations.

Take a look at either Swapalease.com or Leasetrader.com. These sites are fantastic if you're looking for a really short lease (i.e. Waiting for a new model to be released and temporarily need a car), or....you find someone who desperately wants to end their lease (overseas relo, divorce, financial issue, or like us...wants a change).

Another reason to look at these sites is to learn how to avoid getting ripped off when leasing a new vehicle. Take a look at the wide spread of monthly lease payments for a particular car and you'll quickly see how others failed to negotiate well. It's a real education on leasing.
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      06-07-2015, 10:28 AM   #9
salukutinaveen
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Thanks a lot for all your inputs guys ! What do you think is a superb deal for a $65000 X5 including TTT and 0 downpayment. Online I see $825 per month with a $3500 downpayment.
This doesn't look like a good deal to me.

Do you think I can get it for $750 per month with 0 down !?
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      06-07-2015, 11:19 AM   #10
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Not sure if that's feasible. If you don't put shutting down, which is always wise with a lease, then you need to amortize the amount over the lease months, and add that to your monthly lease payment.

To adjust your lease payment you need to negotiate the purchase price down, which will reduce the capitalized cost.
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      06-07-2015, 11:32 AM   #11
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Can somone trade in their old car that they own and still lease? How does that work?

I am trading in a 2006 Honda Odyssey and was planning to buy. The lot of comments about maintenance costs after warranty are making me doubt if that is the right choice. I am planning to keep the car for 7 years or so.

Last edited by realsgy; 06-07-2015 at 11:35 AM.. Reason: Claeification
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      06-07-2015, 12:11 PM   #12
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Quote:
Originally Posted by salukutinaveen View Post
Thanks a lot for all your inputs guys ! What do you think is a superb deal for a $65000 X5 including TTT and 0 downpayment. Online I see $825 per month with a $3500 downpayment.
This doesn't look like a good deal to me.

Do you think I can get it for $750 per month with 0 down !?
I think that might be tight. I'm around $750/month but with $1500 down on a cheaper car. You might need to pay a bit more per month
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      06-07-2015, 12:13 PM   #13
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A trade is just like a down payment...

Think of a trade in as a down payment, which is not advisable when leasing a new car.

If you did trade it, and then totaled the new car, you'd be out the value of your down payment.

Try selling the car yourself, or go to Carmax and have them buy it if you want to avoid the hassle. They use the proceeds to help pay the monthly lease on your new car.
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      06-07-2015, 12:28 PM   #14
salukutinaveen
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Quote:
Originally Posted by darrvao777
Quote:
Originally Posted by salukutinaveen View Post
Thanks a lot for all your inputs guys ! What do you think is a superb deal for a $65000 X5 including TTT and 0 downpayment. Online I see $825 per month with a $3500 downpayment.
This doesn't look like a good deal to me.

Do you think I can get it for $750 per month with 0 down !?
I think that might be tight. I'm around $750/month but with $1500 down on a cheaper car. You might need to pay a bit more per month
Hmm .. Do u mind me telling out the door cost on your car pls. I will calculate mine accordingly.
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      06-07-2015, 01:35 PM   #15
darrvao777
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Quote:
Originally Posted by salukutinaveen View Post
Hmm .. Do u mind me telling out the door cost on your car pls. I will calculate mine accordingly.
I think it was 59k (basic 35i + leather + rear view camera, no other options)
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