Good deal? Lease takeover

lannypoffo · 08-07-2008, 05:40 PM

Good deal? Lease takeover

Real simple. Lease started June 2008. Car has 1,600 miles.

135i with no options at all except ipod/usb.

I could take over the 3 year lease (12k per year) for $600/month including tax. No extra money down, straight transfer.

I was thinking the price might be a tad high for a car with no options, but then you consider I probably save 3-4k in down payments.

Decent at all?

AchtungF80 · 08-07-2008, 06:29 PM

Quote:

Originally Posted by lannypoffo

Good deal? Lease takeover

Real simple. Lease started June 2008. Car has 1,600 miles.

135i with no options at all except ipod/usb.

I could take over the 3 year lease (12k per year) for $600/month including tax. No extra money down, straight transfer.

I was thinking the price might be a tad high for a car with no options, but then you consider I probably save 3-4k in down payments.

Decent at all?

FYI, you could finance 100% a 135i for a little under $700/mo with more options.

lannypoffo · 08-07-2008, 06:32 PM

I'm only interested in short term. And 600 is already pushing my budget. I was thinking about paying the 3-4k down and leasing anyway, but then i saw this deal.

ucbsupafly · 08-07-2008, 07:00 PM

Quote:

Originally Posted by lannypoffo

Good deal? Lease takeover

Real simple. Lease started June 2008. Car has 1,600 miles.

135i with no options at all except ipod/usb.

I could take over the 3 year lease (12k per year) for $600/month including tax. No extra money down, straight transfer.

I was thinking the price might be a tad high for a car with no options, but then you consider I probably save 3-4k in down payments.

Decent at all?

Short Answer: Not a bad deal.

Long Calculation:
To give you something to compare with. A three year, 12K miles per year lease for a stripped 135i coupe with non-metallic paint and ipod/usb is around $650/month with zero down.

MSRP: $36125
Cap Cost: $36125
Acq. Fee: $825 (rolled into the lease)
Residual for 12K miles: 58%
Money Factor (Base Rate): 0.0027
Tax rate: 8%

Payment per month = $648.76

To give you something else to compare with, for the same car, if you put down $8K and financing $30K through PenFed at 4.5% for 5 years, you will be looking at $570 per month.

It's up to you to decide which way is more economical and/or suitable for your situation. Hope this helps.

lannypoffo · 08-07-2008, 07:06 PM

Thanks for your input! I tend to keep my cars 2-3 years max and im sick of always buying for 5 years.

I might even have to sacrifice and go with a 128i lease instead, maybe save me some money.

deeb · 08-07-2008, 08:38 PM

You Americans are so lucky... I'm looking at minimum 800 a month CDN to lease with zero down. base price with taxes and all that junk is $45k. nuts!! I need to lease from a US dealer...

drand · 08-07-2008, 09:34 PM

Just for perspective, I did an ED lease nearly fully loaded (everything except auto, active steering, HD and satellite radio) with a $45,500 MSRP and with nothing down except first, inception and security and my payment is $588 a month. You do need to offset this with the cost of going to Europe which can be done for $1500 or so for a real quick turn around trip (mine was 2 1/2 weeks with 4 and 5 star hotels and cost $7k). You may not do quite as well as I believe the MF is a little higher than when I got mine, but it would be cheaper than you are seeing in this deal.

amurph182 · 08-07-2008, 10:04 PM

Quote:

Originally Posted by lannypoffo

Thanks for your input! I tend to keep my cars 2-3 years max and im sick of always buying for 5 years.

I might even have to sacrifice and go with a 128i lease instead, maybe save me some money.

nothing is stopping you from financing it for 5 years and then paying it off in 3. Well, unless your loan sucks. But most that I've seen allow you to do this.

As for putting money down on a lease...isn't it generally considered a bad idea to do this? If anything happens to the car then this money is just gone.

lannypoffo · 08-07-2008, 10:09 PM

Quote:

Originally Posted by amurph182

As for putting money down on a lease...isn't it generally considered a bad idea to do this? If anything happens to the car then this money is just gone.

very right. which is why i am putting ZERO down on this lease.. the first buyer already took care of that part for me.

smoke20 · 08-07-2008, 10:28 PM

When leasing, put as little down as you can negotiate!

lannypoffo · 08-08-2008, 09:14 AM

I did find the user on here, and turns out zero was put down on the lease. I wont bring him up unless he posts in this thread. I was thinking I was gaining something by taking over this lease. Still, waiting for one a long time does suck, and if I had more options which I would like the payment would be too high for me anyway. Bottom line, I dont think I could get a "better" deal leasing brand new, plus its the color I want. So instead of going thru all the hassle of a dealership, i might just transfer this one and be done with it.

GigEm93 · 08-08-2008, 09:56 AM

Quote:

Originally Posted by angkor

Just for perspective, I did an ED lease nearly fully loaded (everything except auto, active steering, HD and satellite radio) with a $45,500 MSRP and with nothing down except first, inception and security and my payment is $588 a month. You do need to offset this with the cost of going to Europe which can be done for $1500 or so for a real quick turn around trip (mine was 2 1/2 weeks with 4 and 5 star hotels and cost $7k). You may not do quite as well as I believe the MF is a little higher than when I got mine, but it would be cheaper than you are seeing in this deal.

Wow, you must have gotten a great residual too. My lease numbers aren't anywhere near that.

lannypoffo · 08-08-2008, 02:40 PM

ah i wasnt approved.. because of my wifes loan which i co signed for.. my dream is over.

All4One · 08-08-2008, 03:19 PM

Quote:

Originally Posted by deeb

You Americans are so lucky... I'm looking at minimum 800 a month CDN to lease with zero down. base price with taxes and all that junk is $45k. nuts!! I need to lease from a US dealer...

Huh, lucky? with a president like ours and an economy like now? I dont think so.

Noize · 08-08-2008, 04:01 PM

I did a lease on a 335i last year and regretted it bigtime. I had someone assume it. Save and put down enough to make your purchase payment within your budget. When it is, pay on it for that same years and then sell the car. You will come out WITH money, which is way more than I can say for the end of the lease, where you end up paying more to get out. I bought my 1 and am not looking back. FWIW, my payments are just a tiny bit more than what your lease payment is because I put some money down. Save up and do it right, man!

Screw a lease.

Mitiko99 · 08-08-2008, 04:35 PM

A lease works great if you drive around 10K per year. Much cheaper than owning, especially on a 128i (77% 24 month residual is unbelievable). On any other car that has residuals of 60s and 50s % in yr 2 and 3, thats a different calculation.

lannypoffo · 08-08-2008, 04:59 PM

Quote:

Originally Posted by Mitiko99

A lease works great if you drive around 10K per year. Much cheaper than owning, especially on a 128i (77% 24 month residual is unbelievable). On any other car that has residuals of 60s and 50s % in yr 2 and 3, thats a different calculation.

a 128i would be nice.. but i'd always be thinking about the 135i power while I drove it..

lannypoffo · 08-11-2008, 01:38 PM

well i just got approved for the lease takeover. i hope to have it in a couple weeks.

AchtungF80 · 08-11-2008, 01:56 PM

Quote:

Originally Posted by lannypoffo

I'm only interested in short term. And 600 is already pushing my budget. I was thinking about paying the 3-4k down and leasing anyway, but then i saw this deal.

I still don't get why you think leasing is a better idea. Food for thought, my monthly is $665/mo with $0 down and I'm financing it 100%..in the end, I don't have any mileage restriction and its my car. It's also brand new with 0 miles.

1ofthe1 · 08-11-2008, 03:40 PM

Quote:

Originally Posted by amurph182

As for putting money down on a lease...isn't it generally considered a bad idea to do this? If anything happens to the car then this money is just gone.

What do you mean by that? Can you give an example of how you could loose the money down on a lease?

coco_m3 · 08-11-2008, 03:48 PM

DO ET!

VFX · 08-11-2008, 04:00 PM

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!

.

08-07-2008, 05:40 PM	#1
lannypoffo Lieutenant 19 Rep 564 Posts Drives: 2013 Dodge Charger SRT8 Join Date: Aug 2008 Location: Cali iTrader: (1)	Good deal? Lease takeover Good deal? Lease takeover Real simple. Lease started June 2008. Car has 1,600 miles. 135i with no options at all except ipod/usb. I could take over the 3 year lease (12k per year) for $600/month including tax. No extra money down, straight transfer. I was thinking the price might be a tad high for a car with no options, but then you consider I probably save 3-4k in down payments. Decent at all?
	Appreciate 0 Tweet Quote

08-07-2008, 06:32 PM	#3
lannypoffo Lieutenant 19 Rep 564 Posts Drives: 2013 Dodge Charger SRT8 Join Date: Aug 2008 Location: Cali iTrader: (1)	I'm only interested in short term. And 600 is already pushing my budget. I was thinking about paying the 3-4k down and leasing anyway, but then i saw this deal.
	Appreciate 0 Quote

08-07-2008, 07:06 PM	#5
lannypoffo Lieutenant 19 Rep 564 Posts Drives: 2013 Dodge Charger SRT8 Join Date: Aug 2008 Location: Cali iTrader: (1)	Thanks for your input! I tend to keep my cars 2-3 years max and im sick of always buying for 5 years. I might even have to sacrifice and go with a 128i lease instead, maybe save me some money.
	Appreciate 0 Quote

08-07-2008, 08:38 PM	#6
deeb boss. 19 Rep 216 Posts Drives: 135i Join Date: Aug 2008 Location: Vancouver, BC iTrader: (0)	You Americans are so lucky... I'm looking at minimum 800 a month CDN to lease with zero down. base price with taxes and all that junk is $45k. nuts!! I need to lease from a US dealer...
	Appreciate 0 Quote

08-07-2008, 09:34 PM	#7
drand Private First Class 7 Rep 186 Posts Drives: X3 M40 Join Date: Jun 2008 Location: Oregon iTrader: (0)	Just for perspective, I did an ED lease nearly fully loaded (everything except auto, active steering, HD and satellite radio) with a $45,500 MSRP and with nothing down except first, inception and security and my payment is $588 a month. You do need to offset this with the cost of going to Europe which can be done for $1500 or so for a real quick turn around trip (mine was 2 1/2 weeks with 4 and 5 star hotels and cost $7k). You may not do quite as well as I believe the MF is a little higher than when I got mine, but it would be cheaper than you are seeing in this deal. __________________ 135i May 3,2008 ED - Retired M235i Sept. 15, 2014 ED - Retired
	Appreciate 0 Quote

08-07-2008, 10:28 PM	#10
smoke20 New Member 0 Rep 13 Posts Drives: Dodge Magnum Join Date: Jan 2009 Location: USA iTrader: (0)	When leasing, put as little down as you can negotiate!
	Appreciate 0 Quote

08-08-2008, 09:14 AM	#11
lannypoffo Lieutenant 19 Rep 564 Posts Drives: 2013 Dodge Charger SRT8 Join Date: Aug 2008 Location: Cali iTrader: (1)	I did find the user on here, and turns out zero was put down on the lease. I wont bring him up unless he posts in this thread. I was thinking I was gaining something by taking over this lease. Still, waiting for one a long time does suck, and if I had more options which I would like the payment would be too high for me anyway. Bottom line, I dont think I could get a "better" deal leasing brand new, plus its the color I want. So instead of going thru all the hassle of a dealership, i might just transfer this one and be done with it.
	Appreciate 0 Quote

08-08-2008, 02:40 PM	#13
lannypoffo Lieutenant 19 Rep 564 Posts Drives: 2013 Dodge Charger SRT8 Join Date: Aug 2008 Location: Cali iTrader: (1)	ah i wasnt approved.. because of my wifes loan which i co signed for.. my dream is over.
	Appreciate 0 Quote

08-08-2008, 04:01 PM	#15
Noize Under the radar 41 Rep 840 Posts Drives: FWD in reverse Join Date: Jan 2007 Location: In traffic at idle iTrader: (1)	I did a lease on a 335i last year and regretted it bigtime. I had someone assume it. Save and put down enough to make your purchase payment within your budget. When it is, pay on it for that same years and then sell the car. You will come out WITH money, which is way more than I can say for the end of the lease, where you end up paying more to get out. I bought my 1 and am not looking back. FWIW, my payments are just a tiny bit more than what your lease payment is because I put some money down. Save up and do it right, man! Screw a lease.
	Appreciate 0 Quote

08-08-2008, 04:35 PM	#16
Mitiko99 New Member 0 Rep 8 Posts Drives: Join Date: Jul 2008 iTrader: (0)	A lease works great if you drive around 10K per year. Much cheaper than owning, especially on a 128i (77% 24 month residual is unbelievable). On any other car that has residuals of 60s and 50s % in yr 2 and 3, thats a different calculation.
	Appreciate 0 Quote

08-11-2008, 01:38 PM	#18
lannypoffo Lieutenant 19 Rep 564 Posts Drives: 2013 Dodge Charger SRT8 Join Date: Aug 2008 Location: Cali iTrader: (1)	well i just got approved for the lease takeover. i hope to have it in a couple weeks.
	Appreciate 0 Quote

08-11-2008, 03:48 PM	#21
coco_m3 Brigadier General 167 Rep 4,311 Posts Drives: Supercharged E90 M3 Join Date: Mar 2008 Location: SL,UT iTrader: (1) Garage List 2008 BMW M3 [0.00] 2010 BMW E90 335i [0.00]	DO ET! __________________
	Appreciate 0 Quote

08-11-2008, 04:00 PM	#22
VFX First Lieutenant 34 Rep 386 Posts Drives: 128i Coupe Join Date: Jul 2008 Location: Vancouver iTrader: (0) Garage List 2008 Porsche Cayenne S [0.00] 2008 BMW 128i Coupe [0.00] 2005 Porsche 987 Bo ... [0.00]	Straight from BMW.ca 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! .
	Appreciate 0 Quote