Leasing a BMW...

[dirtboy]

Originally posted by: BarneyFife

Originally posted by: dirtboy
Putting money down on a lease is one of the dumbest financial moves you can make. And my guess is the terms of your lease aren't all that favorable.

But at least you have a BMW now.

Wow, a lot of jumping to conclusion here.

A refundable security deposit is a month's payment.

If I have a high money factor that isn't inline with the money factor and residual posted on various boards then I'm not touching it.

I told the person that I'm not interested in reducing the cap cost by putting down a large down payment. The money is gone if you total it or have it stolen.

I don't have a BMW now. I never signed anything.

I've been researching this for over a year. I didn't just wake up one day and say I'm leasing a BMW. If I can't get the 335i, then I will move on.

Researching for a year and you didn't know if you could qualify for a lease? Wow...

 

[BarneyFife]

Originally posted by: alkemyst

Originally posted by: Vic

Originally posted by: BarneyFife

Originally posted by: alkemyst

Originally posted by: BarneyFife

Originally posted by: dirtboy
Leasing is for people with good credit. If you don't have good credit, or a long established credit history, then you're not going to get a lease. That is why they asked for a cosigner.

Actually have a 760 credit score and pay all my bills on time. I just never leased before. I bought my car used with cash in college. I think BMW is just more stringent because I was approved for a CTS and they both are around the same msrp.

Probably a lack of tradelines. Credit score is only a level...what makes that up is whats important.

You can have an 800, but if you have nothing over 2 years old and no serious credit then most will not want to touch you.

Define serious credit? I have about 50k in credit card limit and use them alot without any balance. If you're talking about a mortgage or car loan, no I haven't had one in the last 2 years.

And that's why you're not leasing a ~$50k BMW.

I understand that you shouldn't have gotten a lecture, but it sounds like you gave her some lip, and it's not like she made the credit decision (or got paid for telling you your app got rejected either).
Another thing to keep in mind too is that if corporate rejected your credit app, just walking over to another BMW dealership is not going to get you approved. And usually the only reason they asked for a cosigner is because your credit was not acceptable. Score is not everything.

edit: by chance, I just spoke with a friend of mine who works F&I. He says BMW requires 5 active tradelines in the past 24 months, 2 of which must be installment (or mortgages) > $10k original balance.

QFT...no balance...a lease is a balance, a house is a balance, etc. This is why so many people that brag about how they have some great credit score can get no REAL credit.

Next time look at your situation instead of attacking the messenger Barney.

Where are we going with this topic?

The point is the person blew up at me after I said I wasn't interested in a high interest car loan. This has nothing to do with my financial situation or anything else. Not sure why I'm being "attacked" because I don't have debts and save my money unlike most Americans. Sounds like a lot of haters.

 

[alkemyst]

Originally posted by: BarneyFife
Where are we going with this topic?

The point is the person blew up at me after I said I wasn't interested in a high interest car loan. This has nothing to do with my financial situation or anything else. Not sure why I'm being "attacked" because I don't have debts and save my money unlike most Americans. Sounds like a lot of haters.

So how is the BMW you should have been able to get from ANY other BMW dealer been for you then?

 

[rh71]

why do people only shop at 1 dealer? Varying prices @ varying dealers. If all require a co-signer, then that is your only option.

 

[iamwiz82]

Originally posted by: alkemyst

Originally posted by: BarneyFife
Where are we going with this topic?

The point is the person blew up at me after I said I wasn't interested in a high interest car loan. This has nothing to do with my financial situation or anything else. Not sure why I'm being "attacked" because I don't have debts and save my money unlike most Americans. Sounds like a lot of haters.

So how is the BMW you should have been able to get from ANY other BMW dealer been for you then?

Probably because they never even ran his credit. Perhaps the sales person assumed that it would not go through, perhaps that dealership has a bigger kickback for loans?

 

[nealh]

Originally posted by: Arkaign
Luxury Car leases are severely unwise, unless the car depreciates like a rock (the 335i won't, btw).

Buy it, there's nothing stopping you from trading it in when you feel like it. Do a decent down payment, and if you run 36-month financing, you can have the thing fully paid off and ready for a cash trade-in in 3 years. With the 335i, you'll probably be looking at 70% original value retention. $50k today, $30+k in 3 years.

Sorry, I really have to disagree...you may think these high end cars keep their value but go and try to trade these things and whether it is Mercedes, BMW, Audi..you will not get "blue book" but some value close to auction $$ from a dealer...

if you sell to carmax I hear they are lowering there offers as well....you can sell privately but I find this to be a pain

BMW leases from BMWFS if you can get a good Money factor(ie "interest rate") will have the highest residual

I have decided after buying my 530i after 4yrs seeing its value(I own this car outright..paid straight up for it) lower than expected...I think buying it was not a great idea...lost 40K for investments, it is a depreciating asset with more vlaue ot me than anyone else..period

I realize I would have had payments on the car..but the $40K invested would have done me better in the long run(not to mention if I need the $$$) I would have had access to them

Bottom line is car are crap investments..whether bought or leased

My most recent cars have been 91 Maxima, 92.5 Infiniti G20, 1996 Audi A4, 2001 ML320, 2003 530i

 

[Aimster]

You have a good credit.

760 credit score
50k in credit limit

no reason why u shouldn't get a 335i lease.

The woman was not making money off of u and was being a bitch.

 

[StageLeft]

You have a good credit.

760 credit score
50k in credit limit

no reason why u shouldn't get a 335i lease.

The woman was not making money off of u and was being a bitch.

That's kind of what I got, too.

If you get the lease from this other place, I would write her manager and CC her to let her know she lost a customer.

I still have, years later, a sour spot for capital one for never giving me a secured $200 credit card when I was starting out (and a month or so later MBNA gave me a non-secured one for a couple thousand). And now fvck them, my credit is top shelf and I run thousands through other CC companies all the time. CO will never get jack from me ever, ever, ever! HA! Rub it into this lady, too, make it hurt.

 

[dirtboy]

Originally posted by: Skoorb

You have a good credit.

760 credit score
50k in credit limit

no reason why u shouldn't get a 335i lease.

The woman was not making money off of u and was being a bitch.

That's kind of what I got, too.

If you get the lease from this other place, I would write her manager and CC her to let her know she lost a customer.

I still have, years later, a sour spot for capital one for never giving me a secured $200 credit card when I was starting out (and a month or so later MBNA gave me a non-secured one for a couple thousand). And now fvck them, my credit is top shelf and I run thousands through other CC companies all the time. CO will never get jack from me ever, ever, ever! HA! Rub it into this lady, too, make it hurt.

Wow that's mature.

And if BMWNA's credit turned him down, he coudl go to EVERY dealership in the USA and get turned down. Seeing how I can get approved for a lease in less than 15 minutes and he's not gotten approved yet, the proof is in the 335 that he's not driving right now.

Nice to learn about everyone's true character... I hope you never wrong anybody. :roll:

 

[alkemyst]

Originally posted by: dirtboy

Originally posted by: Skoorb

You have a good credit.

760 credit score
50k in credit limit

no reason why u shouldn't get a 335i lease.

The woman was not making money off of u and was being a bitch.

That's kind of what I got, too.

If you get the lease from this other place, I would write her manager and CC her to let her know she lost a customer.

I still have, years later, a sour spot for capital one for never giving me a secured $200 credit card when I was starting out (and a month or so later MBNA gave me a non-secured one for a couple thousand). And now fvck them, my credit is top shelf and I run thousands through other CC companies all the time. CO will never get jack from me ever, ever, ever! HA! Rub it into this lady, too, make it hurt.

Wow that's mature.

And if BMWNA's credit turned him down, he coudl go to EVERY dealership in the USA and get turned down. Seeing how I can get approved for a lease in less than 15 minutes and he's not gotten approved yet, the proof is in the 335 that he's not driving right now.

Nice to learn about everyone's true character... I hope you never wrong anybody. :roll:

I think it's funny someone is holding not getting a CO card against them. They are designed for those with less than stellar credit was probably the type he had at the time.

I don't know why anyone with good credit would want to apply with Capital One.

 

[StageLeft]

They are designed for those with less than stellar credit was probably the type he had at the time.

I don't know why anyone with good credit would want to apply with Capital One.

I had no credit (not bad or good) and a good income. They didn't even give a secured card. MBNA gave a non-secured one for $2kish, so MBNA > Capital One. Who cares whether it's mature or not to begrudge them? There are a thousand credit card companies. Let me have my fun and please, please don't make this into more than it is [dirtboy]

 

[ponyo]

Originally posted by: alkemyst

I think it's funny someone is holding not getting a CO card against them. They are designed for those with less than stellar credit was probably the type he had at the time.

I don't know why anyone with good credit would want to apply with Capital One.

Capital One charges 0% international or foreign transaction fee while most cards charge 3%. Capital One actually eats 1% fee that Visa and Mastercard charges. Every international traveler should have a Capital One card, perfect credit or not. It will save you lot of money.

 

[zoiks]

Originally posted by: BarneyFife

Originally posted by: alkemyst

Originally posted by: Vic

Originally posted by: BarneyFife

Originally posted by: alkemyst

Originally posted by: BarneyFife

Originally posted by: dirtboy
Leasing is for people with good credit. If you don't have good credit, or a long established credit history, then you're not going to get a lease. That is why they asked for a cosigner.

Actually have a 760 credit score and pay all my bills on time. I just never leased before. I bought my car used with cash in college. I think BMW is just more stringent because I was approved for a CTS and they both are around the same msrp.

Probably a lack of tradelines. Credit score is only a level...what makes that up is whats important.

You can have an 800, but if you have nothing over 2 years old and no serious credit then most will not want to touch you.

Define serious credit? I have about 50k in credit card limit and use them alot without any balance. If you're talking about a mortgage or car loan, no I haven't had one in the last 2 years.

And that's why you're not leasing a ~$50k BMW.

I understand that you shouldn't have gotten a lecture, but it sounds like you gave her some lip, and it's not like she made the credit decision (or got paid for telling you your app got rejected either).
Another thing to keep in mind too is that if corporate rejected your credit app, just walking over to another BMW dealership is not going to get you approved. And usually the only reason they asked for a cosigner is because your credit was not acceptable. Score is not everything.

edit: by chance, I just spoke with a friend of mine who works F&I. He says BMW requires 5 active tradelines in the past 24 months, 2 of which must be installment (or mortgages) > $10k original balance.

QFT...no balance...a lease is a balance, a house is a balance, etc. This is why so many people that brag about how they have some great credit score can get no REAL credit.

Next time look at your situation instead of attacking the messenger Barney.

Where are we going with this topic?

The point is the person blew up at me after I said I wasn't interested in a high interest car loan. This has nothing to do with my financial situation or anything else. Not sure why I'm being "attacked" because I don't have debts and save my money unlike most Americans. Sounds like a lot of haters.

What you should do is prequalify for a loan from a credit union or some other place and then go to the dealer. I'm pretty sure that the dealer will try to rip you off.

 

[Arkaign]

Originally posted by: nealh

Originally posted by: Arkaign
Luxury Car leases are severely unwise, unless the car depreciates like a rock (the 335i won't, btw).

Buy it, there's nothing stopping you from trading it in when you feel like it. Do a decent down payment, and if you run 36-month financing, you can have the thing fully paid off and ready for a cash trade-in in 3 years. With the 335i, you'll probably be looking at 70% original value retention. $50k today, $30+k in 3 years.

Sorry, I really have to disagree...you may think these high end cars keep their value but go and try to trade these things and whether it is Mercedes, BMW, Audi..you will not get "blue book" but some value close to auction $$ from a dealer...

if you sell to carmax I hear they are lowering there offers as well....you can sell privately but I find this to be a pain

BMW leases from BMWFS if you can get a good Money factor(ie "interest rate") will have the highest residual

I have decided after buying my 530i after 4yrs seeing its value(I own this car outright..paid straight up for it) lower than expected...I think buying it was not a great idea...lost 40K for investments, it is a depreciating asset with more vlaue ot me than anyone else..period

I realize I would have had payments on the car..but the $40K invested would have done me better in the long run(not to mention if I need the $$$) I would have had access to them

Bottom line is car are crap investments..whether bought or leased

My most recent cars have been 91 Maxima, 92.5 Infiniti G20, 1996 Audi A4, 2001 ML320, 2003 530i

Well, of course it varies widely with value retention, but I get what you're saying. When it comes to BMW/Mercedes, the low end cars lose the least value, the midrange lose a lot more (like your 5 series), and the high end lose TONS of value.

So I guess it just depends on person to person, and what they're looking at. I still think that a purchase + later trade-in system works good for a lot of people, particularly if they're able to do something like a 3-series every 36 months. Bringing 25-35k to the trade-in table brings the cost of the next one down considerably.

 

[Arkaign]

Ah, and also, if your job goes south, or you suffer some other financial downturn, you will own a car with a definite value, as well as the confidence coming from a 1-owner car with all service records, in the case that you want to keep it long-term.

 

[rh71]

Originally posted by: nealh
Bottom line is car are crap investments..whether bought or leased and that's why they should be considered toys / for use only and not investments.

There ya go - adjusted above.

Unless you're rich and just want a new car every couple years, I never understood why people buy a car based on what it will sell for. You buy a car to get around (cheap dependable Hondas) or because you love that specific one.

 

[BarneyFife]

Just an update...

I ended up skipping the BMW. Had an attorney friend tell me about the expenses such as having to replace the tires when you return it. I got a great deal on a Lincoln MKZ through the ford employee discount so I went with that.

 

[alkemyst]

Originally posted by: BarneyFife
Just an update...

I ended up skipping the BMW. Had an attorney friend tell me about the expenses such as having to replace the tires when you return it. I got a great deal on a Lincoln MKZ through the ford employee discount so I went with that.

lolz...any lease you need to do tires usually. I wouldn't say just because someone is an attorney they know about leases though.

A $300 lease was probably more your speed.

 

[fleabag]

A lease only makes sense if your employer or company is using the monthly fees as a corporate tax deduction and or you're able to use it as a tax deduction, otherwise there is no point and it's a losing proposition.

 

[mh47g]

Originally posted by: BarneyFife
Just an update...

I ended up skipping the BMW. Had an attorney friend tell me about the expenses such as having to replace the tires when you return it. I got a great deal on a Lincoln MKZ through the ford employee discount so I went with that.

You would think after doing half of a master's degree worth of research you would have known that already

 

[iamwiz82]

Originally posted by: fleabag
A lease only makes sense if your employer or company is using the monthly fees as a corporate tax deduction and or you're able to use it as a tax deduction, otherwise there is no point and it's a losing proposition.

Sounds like you are just regurgitating what you read on the internet.

 

[alkemyst]

Originally posted by: iamwiz82

Originally posted by: fleabag
A lease only makes sense if your employer or company is using the monthly fees as a corporate tax deduction and or you're able to use it as a tax deduction, otherwise there is no point and it's a losing proposition.

Sounds like you are just regurgitating what you read on the internet.

so what is the advantage for a private individual?

 

[iamwiz82]

Originally posted by: alkemyst

Originally posted by: iamwiz82

Originally posted by: fleabag
A lease only makes sense if your employer or company is using the monthly fees as a corporate tax deduction and or you're able to use it as a tax deduction, otherwise there is no point and it's a losing proposition.

Sounds like you are just regurgitating what you read on the internet.

so what is the advantage for a private individual?

Lower price. A good lease will end up being a better choice versus financing unless you keep cars 10+ years. Just because some people get sucked into crappy leases (the thread the other day of an RX8 for $400 is an example of that) doesn't mean all people do.

 

[dirtboy]

Originally posted by: mh47g

Originally posted by: BarneyFife
Just an update...

I ended up skipping the BMW. Had an attorney friend tell me about the expenses such as having to replace the tires when you return it. I got a great deal on a Lincoln MKZ through the ford employee discount so I went with that.

You would think after doing half of a master's degree worth of research you would have known that already

Especially when I pointed it out in this and other leasing threads...

 

[dirtboy]

Originally posted by: iamwiz82
Lower price. A good lease will end up being a better choice versus financing unless you keep cars 10+ years. Just because some people get sucked into crappy leases (the thread the other day of an RX8 for $400 is an example of that) doesn't mean all people do.

Agreed. If you don't rack up the miles, and in some cases depending on how many you go over & your lease terms, if you don't care what you drive, you can get some great deals.

I saw an 08 Jetta, probably base, 15,000 miles 24 months, $199/mo + 2,000 down. So for 300 a month and 2-3 oil changes, you can drive a new car with full warranty. Probably cheaper than buying new and you don't get stuck with your crappy VW falling apart out of warranty.