Now that Canadian pricing is out.. lets talk abour interest rates...

[pwong888]

If the leasing rate for the 1er is 7.75%, I will be wait until next year or when they have any promotion.
Last month my sales use 6.9% for a 49,000 135i it come out of 930(tax include), but now is 7,75%.
Forget about the car for now!

[koala]

Originally Posted by YYZATC

I will admit I have never leased a car and never considered it therefore I know nothing about a lease.

It was my understanding that money factor is the same thing as lease rate just expressed in a different form.

7.75/2400 = 0.00323

I am sure I will be corrected almost instantly on here if I am wrong. Hahaha

You know what, I just realized you're right, they must be the same thing.

:iono:

[stefan]

From Edmunds.com

Money Factor
Also called the "lease factor," this is the implicit interest rate you are charged in a vehicle lease. Money factor is a method of expressing an interest rate that is more suited to computing your monthly payments. It is calculated by dividing the percentage interest rate by 2400 (regardless of the length of the loan). For example, 7.2% interest expressed as a money factor is 0.003.

[stefan]

Oh good god.. I just read the rest of this thread.. 7.75% are you s***ing me! Wow.. that is a huge disappointment. I actually was really looking forward to this.

My dealer has 2.9% on used coupes, 1.9% on used 4Dr. Looks like E46 M3 for that price!!

[benchmark2020]

Very Dissapointed. Hey, check out the new C230!

[looking]

It's not that I don't believe the #'s just wanted to be 100% sure we're all complaining about an actual fact.

Really surprised at such a high rate, especially in the current economic environment. I wa expected a higher rate than the rest of the the range, but 7.75% is steep....

[linus]

Guys, BMW Canada is screwing all of you 1er purchasers three ways. First is the massive price discrepancy from the US - a 20% markup (I'll accept that 6ppts of this is Canadian duties though). Second, our maintenance plan is far inferior to the US plan - where brakes, rotors, wipers, etc. are replaced. They also get four years of BMW Assist as part of bluetooth, we get 1.

Third, obviously, is the lease/financing rate of 7.75%. That is entirely absurd considering the Bank of Canada overnight target rate is 4% and prime is 5.75%. The Bank of Canada is also very likely to cut rates another 0.25% next week, which will bring their target down to 3.75%. How can BMW justify charging its Canadian customers 7.75% in this environment? Easy. All of you are excited and buying.

Honestly folks, if you band together and get the word out to non-forum members, BMW WILL lower their rates. It's a business for them pure and simple. You can all walk away from your contracts to purchase the 1er if they do not deliver the vehicle to you within 90 days - that's Canadian law - look at the back of your contract. And you'll get your downpayment returned. I've done that before as well.

Come on folks, look at my experience. I just picked up my E92 335i last week. I enjoyed a 5% discount to MSRP and my lease rate is 3.9% with a 59% resid. Face it, they're screwing you. You 135i buyers are going to end up spending as much or more than a 335i buyer. My monthly lease payment is $980 and I loaded the car with everything except idrive (also got the 19" OEM style 230s). Think about it.

[looking]

^^^

I full agree with everything you're saying. The problem is, I don't think there's enough 1 buyers out there that really care. Look at the poll post, 20 people answering? I just don't think we have the numbers, most BMW customers just don't care and BMW knows it.

I'm also curious as to just how many people will actually be leasing this car? I have a feeling that the majority interested in the 1 are buyers.

I like you're attitude though!

[linus]

Excel, that's too bad that most people don't care about spending those kinds of $$$ when reasonable alternatives exist.

If I hadn't loaded up my E92 335i like I did and configured it pretty much identically to YYZATXC, my monthly lease payment including taxes would have been $770 compared to $829 for the 135i.

I have no intention of trying to debate which car is better 135i or 335i. Probably both equally a blast to drive. I personally prefer the styling of the 335i to the 135i and find that the former accommodates my need for space while still being a small car.

[looking]

^^^

Ya I agree with you, it is a shame that more people don't care.

I think we shouldn't forget that BMW is a luxury item and most people buying luxury items are not overly concerned with price, even if it's thousands of dollars. You and I might not think like that, but for every you and me out there, I'm pretty sure there's 2 or 3 times more of the other buyers.

In BC, I know a few lux car sales people and they rake in the $$$ because there isn't much negotiation going on, a lot of "lay down" as they're called...if you compare that to the people I know selling toyota's and the such, they got to work a lot harder to get a sale.

[stefan]

I don't know if there's much we can do. Though, then again, you would think 7.75% should turn many people off or at least make them put up a BIT of a fight.

[dalrx]

One area in pricing that strikes me is the tax on a tax going on here. If you look at the breakdown of previous posters lease quote, you see that they include the fuel tax and excise tax in the total overall price. They then will add the GST and PST to this total price. So in essence you are paying the GST and PST on the gas and fuel excise tax according to the quote! Even more disturbing is paying interest on a loan or lease on top of tax! I would rather save pay the taxes outright up front rather than pay interest on taxes! For me it is just the thought of it that disturbs me. I don't mind paying interest for a loan on the car itself, but not the tax on it.

[YYZATC]

I personally dont like the car but I was just on the infiniti canada site and I can get a G37 Sport M6 Coupe with an MSRP of $49 950 financed over 60 months with the same $1000 downpayment for $1054.91. That is over $5000 more in MSRP and I am sure I can get a discount. The finance rate is 3.9%.

A lease is out for me for sure. I want the car and am willing to finance but the 7.75% from BMW is absurd.

Does anyone know what rates you can currently get though the banks?

[linus]

If you have a secured line of credit against your home, you should be able to finance at 5.75% today and this should drop next week to 5.5%. A worthwhile option, although you'll be paying variable rates.

[dalrx]

Haha, don't go the route of through loan through the home, look at the mess in the USA!

[linus]

I'd say, given that you're going to borrow one way or another, using your home equity to secure a lower rate is probably the right decision.

The more important question is ... should you borrow to buy your new BMW ?

[koala]

If you guys want to let BMW know their actions are directly affecting their ability to sell cars, here is what you can do. A friend of mine wanted to buy a Toyota Tundra last fall. They're quite a bit cheaper in the US than they are in Canada, and being that it's made in NA, there is no duty either, which makes importing one even more attractive.

Anyway, he has a buddy at a Toyota dealer in Spokane that was ready to sell him a truck, they had the deal done and the money was being transfered. Sure enough, this was right when Toyota decided to fax all of their American dealers specifically "forbidding" them from selling to Canadians.

Needless to say, this pissed my buddy off.

Anyway, we got about 15 to 20 people to all email Toyota Canada saying something along these lines:

I am writing to inform you of my recent experiences in trying to purchase a brand new Toyota Tundra. I had been comparing pricing on this truck and found that I could buy one for substantially less money in the US. I went ahead and found a dealer, they knew I was from Canada and they treated me wonderfully, we agreed upon a fair price and the deal was written up.

Then, Toyota decided to inform all of it's American dealers that selling to Canadians was no longer an option. The dealer I was working with called me to refund my deposit and apologized profusely for wasting my time.

At this point, I am not going to be buying a Toyota, in either country. The actions of Toyota quite frankly absolutely disgust me. Consumers should have the choice of where they do business. In fact, the NAFTA provides us with this option.

I would have been willing to purchase my Tundra in Canada had the dealers been able to come relatively close on price. Unfortunately they do not have this ability, and I do not fault the dealer for this, as they have the right to earn a fair profit.

Toyota needs to consider giving Canadian consumers a fair choice. I can understand our vehicles being more expensive in Canada as you're dealing with a larger country and only 1/10th the market size, but surely these handicaps do not add up to the enormous price discrepancies we're seeing now.

--Anyway, basically replace Toyota with BMW and Tundra with 135 or 335 and feel free to use this.

Maybe edit it in your own words so that it doesn't sound like a bunch of people ganging up on BMW

Will it make a difference? Hard to say... look at Toyota and Lexus, they dropped their MSRP's quite a bit. A Lexus IS250 is $31,900 in Canada and $31,775 in the US. Pretty good parity there!

[koala]

Originally Posted by dalrx

Haha, don't go the route of through loan through the home, look at the mess in the USA!

No, they should do it... that way those of us in a secure financial position can swoop in and take your house and your car for pennies on the dollar :biggrin:

(It's already happening here in Edmonton-- Lot's of houses being foreclosed, stupid offers being accepted, cars being thrown in with the home purchase, etc).

[123d]

Originally Posted by koala

No, they should do it... that way those of us in a secure financial position can swoop in and take your house and your car for pennies on the dollar :biggrin:

(It's already happening here in Edmonton-- Lot's of houses being foreclosed, stupid offers being accepted, cars being thrown in with the home purchase, etc).

Really!?! Wow, I should look up there for a good used car!

[looking]

^^^
Wow I didn't know they were throwing in cars to buy a home! I think we should all go to edmonton, buy a house for investments and get the car for fun!

I know in HK they throw in ferrari's and exotics all the time....but the house cost are unbelievable!

[benchmark2020]

I dont understand this pricing. If I get a 328i with same options I want for my 128, I pay almost $100 less per month for the 328i. Why would anyone get a car a class lower for a higher price?

[koala]

Originally Posted by 123d

Really!?! Wow, I should look up there for a good used car!

Oh it's happening in Calgary, too. You just need to know where to look.