Quote:
Originally Posted by VFX
Stock, no options, 128i coupe $33,900 CND (no Freight/PDI, tax or fees included)
36 month lease @ 6.9% with 24k km allowance per year.
Zero Down Payment.
36 x $558
Residual $19,323
Total Lease Payments (36x558) = $20,088
If you buy out the car this will cost you approx. (19323+20088) = $39,411
Zero Down 60 month Finance @ 5.9%
Finance Payments = 60 x $733
Total (60 x 733) = $43,980
$15k Down Payment 36 Month Finance @ 5.9%
Finance Payments = 36 x $698
Total {$15000+(36x698)} = $40,128
I don't get it.
I understand that when you lease, you don't pay interest or taxes on the residual amount (or interest on those taxes!) so i understand why it costs less than financing the whole car, but why is leasing working out less than the MSRP of the car?
Also, can somebody explain why a down payment on a lease is a bad idea?
You pay 6.9% interest on every cent I owe on the lease, whilst you'd only be earning around 2.75% interest if you placed the money in a savings account. (in Vancouver anyway...)
Logic says after three years I'll be better off if I make a down payment & pay less interest right?
Anyways, if there's a financial expert in here please help us understand it all! :smile:
Thanks!
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In your lease calculations you aren't factoring in the fact that you would likely finance the $19,323.00 residual to buy the car out which would cost you another approx $3 to $5k in interest.
I am no financial expert in any way, but am still paying for this situation on an '01 325ci!(soon to be for sale as my 135 is scheduled to be picked up 1st week in Sept:thumbup
