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      02-06-2008, 04:05 PM   #16
john970
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Drives: 08 135
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Quote:
Originally Posted by linus View Post
Because you have to make a certain $ amount of payments during the term of the lease anyway to pay down "1-residual", irrespective of how little you put down. Putting as much down as possible to minimize lease interest charges can be a smart strategy if your personal cost of financing is less than BMW Canada's lease rates. I would definitely consider such a strategy if the lease rate offered is greater than 6%.
Organizing your finances around the assumption you can't beat 6 or 7 percent is a scary idea. You can get a fixed interest account at 6 percent, most people average well over 10% with conservative investing strategies.