BMW Lease questions

brocktune90 · Unread post by **brocktune90** » Fri Mar 27, 2015 11:42 am

Hi everyone, I'm looking at potentially leasing a BMW 320i. Any have one of these? Would you recommend it?

Also, this would be my first time leasing and I am still apprehensive about it. The deal they are offering is $299/mo for 36 months with $299 down at signing. There is a $750 acquisition fee but he will waive that with my USAA membership. The allotted 10,000 miles a year won't be a problem for us.

What am I missing? This is significantly better than other BMW dealerships in town who will all require $2000+ at closing. Am I being too cautious?

Thank you for any feedback.

NewApp · Unread post by **NewApp** » Fri Mar 27, 2015 11:50 am

brocktune90 wrote:Hi everyone, I'm looking at potentially leasing a BMW 320i. Any have one of these? Would you recommend it?

Also, this would be my first time leasing and I am still apprehensive about it. The deal they are offering is $299/mo for 36 months with $299 down at signing. There is a $750 acquisition fee but he will waive that with my USAA membership. The allotted 10,000 miles a year won't be a problem for us.

What am I missing? This is significantly better than other BMW dealerships in town who will all require $2000+ at closing. Am I being too cautious?

Thank you for any feedback.

The thing about a lease is at the end of the term, you have nothing and at their mercy of what they will allow you for a new extension.

Unread post by **Yosef** » Fri Mar 27, 2015 12:14 pm

In general - leases are the second most expensive way to get a car. The most expensive way is to rent a car from someone like Enterprise. Why not buy one that's 4 years old? You'll have a payment that's around the same $300 (depending on price of course) and at the end of it, you'll still own the car. If you don't like it then - trade it in.

With that said if you're committed to leasing for other than financial reasons (or you don't care), $299 down is extremely low like you indicated. Be sure to dot your i's and cross your t's. My brother-in-law looked at leasing like you did and when they got everything drawn up, it was for the most basic model and there were hidden fees in there.

APPARJ · Unread post by **APPARJ** » Fri Mar 27, 2015 1:11 pm

Why in the world would you put $10,000 ($300 x 36) into a car and not own it? You just want to look cool in a sweet ride?

Leasing is a really bad idea. Go buy a car, own it and don't throw your money away.

AtlantaMountaineer · Unread post by **AtlantaMountaineer** » Fri Mar 27, 2015 1:47 pm

I have had 5 BMWs, three 3 serires and now 2 5 series. I have loved all of them. But I have never leased a car. I am retired and don't drive that much now, but I still exceed 10,000 miles a year, and I understand there are substantial penalties if you exceed your allowed miles. Good luck on whatever you decide.

ASUPATCH · Unread post by **ASUPATCH** » Fri Mar 27, 2015 2:13 pm

If your someone that doesn't want the hassle of repairs and rarely keeps a car longer than 3 years. Leasing us the way to go. Within 3 years of a New car purchase you are usually upside down in a payment anyways, which in a sense means you own nothing. So you get a much lower payment never have to worry about being out of warranty and get a new car every 3 years. Purchasing a vehicle outright for someone like myself makes zero sense.

Unread post by **Yosef** » Fri Mar 27, 2015 2:18 pm

ASUPATCH wrote:If your someone that doesn't want the hassle of repairs and rarely keeps a car longer than 3 years. Leasing us the way to go. Within 3 years of a New car purchase you are usually upside down in a payment anyways, which in a sense means you own nothing. So you get a much lower payment never have to worry about being out of warranty and get a new car every 3 years. Purchasing a vehicle outright for someone like myself makes zero sense.

Oh Patty cake. Don't buy brand new - buy 3-4 years old and your payment will be darned near the same if not lower than the lease. When you lease - you still have to take it in for repairs in the event there's an issue. They aren't going to send someone to his house to fix it. You can still sell it and buy a new one in 3 years but you'll quickly find that trading in every 3 years in this way is significantly less expensive than leasing.

I know you. You're better than that.

NewApp · Unread post by **NewApp** » Fri Mar 27, 2015 2:48 pm

ASUPATCH wrote:If your someone that doesn't want the hassle of repairs and rarely keeps a car longer than 3 years. Leasing us the way to go. Within 3 years of a New car purchase you are usually upside down in a payment anyways, which in a sense means you own nothing. So you get a much lower payment never have to worry about being out of warranty and get a new car every 3 years. Purchasing a vehicle outright for someone like myself makes zero sense.

The thing to do us not to trade every three years and you won't be upside down.

ASUPATCH · Unread post by **ASUPATCH** » Fri Mar 27, 2015 3:14 pm

Yosef wrote:
ASUPATCH wrote:If your someone that doesn't want the hassle of repairs and rarely keeps a car longer than 3 years. Leasing us the way to go. Within 3 years of a New car purchase you are usually upside down in a payment anyways, which in a sense means you own nothing. So you get a much lower payment never have to worry about being out of warranty and get a new car every 3 years. Purchasing a vehicle outright for someone like myself makes zero sense.

Oh Patty cake. Don't buy brand new - buy 3-4 years old and your payment will be darned near the same if not lower than the lease. When you lease - you still have to take it in for repairs in the event there's an issue. They aren't going to send someone to his house to fix it. You can still sell it and buy a new one in 3 years but you'll quickly find that trading in every 3 years in this way is significantly less expensive than leasing.

I know you. You're better than that.

You still have to bring them in but the repairs are free. Having done 2 transmissions ac fix and a hybrid battery all well over a grand through the years, New car warranty is gold to me. I also don't keep cars more than 3 year's, nevvever have. Hance why buying new or preowned make no sense for me or my family. For others it make work out fine. No two family situations or tastes are the same. Just responding to the blanket statement someone made that leasing never makes sense, when in fact for mine and others circumstances it does

asu66 · Unread post by **asu66** » Fri Mar 27, 2015 3:59 pm

brocktune90 wrote:Hi everyone, I'm looking at potentially leasing a BMW 320i. Any have one of these? Would you recommend it?

Also, this would be my first time leasing and I am still apprehensive about it. The deal they are offering is $299/mo for 36 months with $299 down at signing. There is a $750 acquisition fee but he will waive that with my USAA membership. The allotted 10,000 miles a year won't be a problem for us.

What am I missing? This is significantly better than other BMW dealerships in town who will all require $2000+ at closing. Am I being too cautious?

Thank you for any feedback.

I just read a few interesting articles earlier today. You might want to take a few minutes to look them over. It's a mixed bag; depends on who you ask and your circumstances.

http://www.usatoday.com/story/money/per ... /24635427/

http://archive.courierpostonline.com/us ... e/24635427

http://www.kiplinger.com/article/cars/T ... a-car.html

http://findependencehub.com/a-strategy- ... etirement/

http://www.bankrate.com/finance/auto/re ... w-car.aspx

http://www.bankrate.com/finance/auto/le ... izens.aspx

http://www.foxbusiness.com/personal-fin ... -citizens/

97grad · Unread post by **97grad** » Fri Mar 27, 2015 4:17 pm

ASUPATCH wrote:If your someone that doesn't want the hassle of repairs and rarely keeps a car longer than 3 years. Leasing us the way to go. Within 3 years of a New car purchase you are usually upside down in a payment anyways, which in a sense means you own nothing. So you get a much lower payment never have to worry about being out of warranty and get a new car every 3 years. Purchasing a vehicle outright for someone like myself makes zero sense.

If you start from the premise that you have to have a new car every 3 years then maybe it makes sense. Beyond that, it makes no sense, as it puts you on a never ending treadmill of payments. Don't buy cars you can't afford, and keep them at least 10 years. You'll come out way ahead.

brocktune90 · Unread post by **brocktune90** » Fri Mar 27, 2015 4:25 pm

Thanks for everyone's thoughts.

I see this lease as a low risk decision. I can afford the monthly payment. I do not have to shell out $2000-$3000 out of my savings at closing. I will not be on the hook for any mechanical issues as it will be under warranty. There will also be no issues from a previous owner.

In my head, this is like kicking the can down the road. In three years, I can look at buying a car and taking on that associated risk.

Getting a new car every three years is not a big motivator for me. It's been four years since I had my own car. I ride the bus everywhere now and in truth, I'd be fine doing that again in three years if my schedule will allow.

I have read MANY articles of the subject and have read a lot of horror stories and a lot of success stories. That is what has me nervous and waffling on my decision every 3-4 minutes. hahahaha

97grad · Unread post by **97grad** » Fri Mar 27, 2015 4:33 pm

Despite my previous comment, if you just have to have a Bimmer leasing probably isn't the worst idea. Like most european cars, reliability is questionable and maintenance/repairs are crazy expensive. This is the main reason I don't own one.

App91 · Unread post by **App91** » Fri Mar 27, 2015 4:45 pm

97grad wrote:
ASUPATCH wrote:If your someone that doesn't want the hassle of repairs and rarely keeps a car longer than 3 years. Leasing us the way to go. Within 3 years of a New car purchase you are usually upside down in a payment anyways, which in a sense means you own nothing. So you get a much lower payment never have to worry about being out of warranty and get a new car every 3 years. Purchasing a vehicle outright for someone like myself makes zero sense.
If you start from the premise that you have to have a new car every 3 years then maybe it makes sense. Beyond that, it makes no sense, as it puts you on a never ending treadmill of payments. Don't buy cars you can't afford, and keep them at least 10 years. You'll come out way ahead.

Personally like the idea of a lease. Imo, a car payment is the cost of living, just like a house payment. 3 yrs, wash your hands of it, get another, wash, rinse, repeat. No need for expensive repairs. Just be careful of what you owe at the end of the lease.

97grad · Unread post by **97grad** » Fri Mar 27, 2015 5:57 pm

App91 wrote: Personally like the idea of a lease. Imo, a car payment is the cost of living, just like a house payment. 3 yrs, wash your hands of it, get another, wash, rinse, repeat. No need for expensive repairs. Just be careful of what you owe at the end of the lease.

It sounds like you've accepted as fact that you are always going to have a car payment. Lease or buy, that's the treadmill I'm talking about. Prior to last year my wife and I haven't had a payment in almost 10 years, and I'll pay this one off this year. We drive decent cars and that have been very reliable. Although we haven't had the need, we could cover a lot of "expensive repairs" with the money we haven't made payments with over that time.

App91 · Unread post by **App91** » Fri Mar 27, 2015 6:17 pm

Different strokes for different folks.

97grad · Unread post by **97grad** » Fri Mar 27, 2015 6:31 pm

App91 wrote:Different strokes for different folks.

Absolutely. If having new cars is your thing, go for it. Just don't tell yourself you're saving money

Unread post by **Yosef** » Fri Mar 27, 2015 6:47 pm

97grad wrote:
App91 wrote:Different strokes for different folks.
Absolutely. If having new cars is your thing, go for it. Just don't tell yourself you're saving money

Bingo.

bcoach · Unread post by **bcoach** » Fri Mar 27, 2015 8:04 pm

1. Most expensive way to drive a car
2. There is something to that deal that smells bad. You are going to get a surprise in the front or at the end. The deal you describe will not stand up. You should be nervous. If you absolutely have to do this go somewhere else. Not hard to figure it out. Get the new car price, go to Kelly bluebook and get the three year used value, figure their cost of money.. Throw in some repairs. Add 4,000 profit and see if the numbers work. One other thing look very closely at the mileage penalty.

asu66 · Unread post by **asu66** » Sat Mar 28, 2015 6:19 am

bcoach wrote:1. Most expensive way to drive a car
2. There is something to that deal that smells bad. You are going to get a surprise in the front or at the end. The deal you describe will not stand up. You should be nervous. If you absolutely have to do this go somewhere else. Not hard to figure it out. Get the new car price, go to Kelly bluebook and get the three year used value, figure their cost of money.. Throw in some repairs. Add 4,000 profit and see if the numbers work. One other thing look very closely at the mileage penalty.

If you're leasing a high-dollar luxury brand,(like an Acura, Audi, Bimmer, Benz, Caddy, Lexus or above), a lease might be the best deal. I say--might. Do the homework Use a sharp pencil. Ask lots of questions and document the answers. Also, there could some value in taking over an existing lease from another driver.

http://www.bmwusa.com/Standard/Content/ ... ogram.aspx.

The thing I like about a lease is that it gives you the chance to take advantage of new technologies when they hit the market--particularly all the new high-tech on-the-road safety features being introduced every year now by the luxury brands.

Keeping a car ten years locks you out of the cutting-edge, life-saving safety features of the new, upscale vehicles. I know; I'm still driving an '05 Acura MDX Touring w/Nav that's approaching 130,000 mi. A great ride; still looks almost mint, but is missing a list of new safety systems my wife wants on her car. We'll consider a lease. Why, because even more safety features are calendered for '17. '18 and '19 models.