BMW 1 Series Coupe Forum / 1 Series Convertible Forum (1M / tii / 135i / 128i / Coupe / Cabrio / Hatchback) (BMW E82 E88 128i 130i 135i)
 





 

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      08-11-2008, 05:36 PM   #23
imported_mega
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the reason main down payments are bad, if the car is hit/totaled or stolen etc for whatever reason written off and insurance checks cut

they don't care how much you paid down, that money is gone
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      08-11-2008, 06:12 PM   #24
VFX
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Originally Posted by mega View Post
the reason main down payments are bad, if the car is hit/totaled or stolen etc for whatever reason written off and insurance checks cut

they don't care how much you paid down, that money is gone

Do you guys have 'New for Old' policies in the US?

In the UK some Insurance companies do it for a small fee.

In Vancouver I think you can also do the same thing with ICBC (we have Government controlled Car Insurance here)

.
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      08-11-2008, 08:28 PM   #25
imported_mega
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allstate does it, new car replacement, pay a little extra for it, I have it on my mini and I will on my 135
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      08-12-2008, 11:53 AM   #26
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Quote:
Originally Posted by VFX View Post
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!

.
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
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      08-12-2008, 12:19 PM   #27
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Originally Posted by Zyphen View Post
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
I figured in 3 yrs I would've saved more than enough to pay the $19k plus taxes needed to buy the car out.

Also, if the car gets into an accident I can have the option to ditch the car instead.

Pay a little extra for new replacement on your insurance & leasing (with or without money down) seems the way to go.

oh & Congrats on the 135i :w00t:

.
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      08-18-2008, 10:17 PM   #28
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Quote:
Originally Posted by VFX View Post
I figured in 3 yrs I would've saved more than enough to pay the $19k plus taxes needed to buy the car out.

Also, if the car gets into an accident I can have the option to ditch the car instead.

Pay a little extra for new replacement on your insurance & leasing (with or without money down) seems the way to go.

oh & Congrats on the 135i :w00t:

.

Thanks, it's landing in the US today, so I am a week or so out from getting my hands on it! Can't wait!
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