Offered a 2009 BMW 335i sedan, good deal?

[yuppiejr]

leasing is a rip off.. no doubt about it if you paid the car off in 5 years you would have equity leasing will cost you more than half the car in about 3 years which is a lot more than the car would depreciate in 3 years.

If you are a yuppie it makes sense. You get a new car frequently and don't have to ever worry about maintenance or mechanics ripping you off, or driving something old and outdated. Plus you can drive it harder than you would if it were your own.

the pos. list goes on and on

the neg. is extra $$$$$$$$$ it costs to lease.

Actually I like to drive new cars and I still think leasing is dumb... I used to be hyper paranoid about driving without a warranty since I average 15k a year but I just started purchasing Hondacare extended warranties (usually 5/80k) for a couple hundred bucks.

I purchased a 2007 Honda CR-V 4WD/EX in July 07 with 0 down for $22k and just traded it in for $18,500 on Monday. I owed $14,000 (right side up in less than 2 years) and put the difference into a down payment on an invoice price purchase of a 2010 pilot AWD/EX with 2.9% financing through Honda.

The difference out of pocket per month in a lease on either vehicle with 15k miles per year would have been higher than buying and both SUV's are well regarded for having a low depreciation rate which normally makes for a compelling lease payment. The tax advantages on a buy are also nice since you can deduct the taxes paid (this year anyway) as well as your annual registration/tabs.

I've made some dumb moves when purchasing and leasing cars in the past and they all involved ignorance, poor negotiating and an emotional response to the purchase decision.

This whole BMW deal has to be an emotional/car lover thing because there's no other way pissing away $24k+ over 3 years makes any rational sense. Since the OP's current car is only worth 8k and is haggling to keep payments around $400 without a down payment I have to assume young/dumb is coming in to play here rather than someone who's rich and can afford to piss money away on a vehicle for the sheer joy of driving it. I'm afraid his "stroke my ego about my awesome lease deal" thread has gone in unexpected directions...

 

[y2kse]

Is it a good deal? I suppose that it depends on your financial priorities. Personally, I think all personal auto leases are bad ideas. I also think buying new cars every 3-5 years is a bad idea.

It depreciates whether you own it at the end or you give it back.

The difference: do you want to eat the depreciation twice in three years or have the option to eat it once over a longer time-span? Either is fine, but there is a clear distinction.

Do you really want to own something worth less than you bough it for as opposed to giving it back?

Nearly all cars are worth less than their purchase price. Worth only matters if one considers selling the car.

 

[lastig21]

I've leased a car before. There is nothing wrong with it if you know what you are getting into. Buying a new car and selling it in 3 years would likely lose a similar amount of money with significantly more hassle.

That said, I would not want to tie up over $6k in a downpayment on a lease. I would even consider selling the car, getting the cash, and leasing at a higher monthly payment before this. If that car is totalled in the first month, you would have paid nearly $7k for a month's worth of driving. You are not the owner, and the insurance company will not reimburse you for any part of your downpayment. If BMW wants the deal, let them write you a check for your car (CarMax style) and sign for the higher monthly payment. Simply pay $437 from your monthly expendible income, and the additional payment from the money made from the sale of your current car.

With such a valuable trade-in, a CPO purchase might be a great idea. Depending on your tax rate, you could save another $1k in taxes on top of the trade-in value.

 

[RichieZ]

i don't think its a good deal, but if you are going to do it at least do multiple security deposits to buy down the money factor instead of a cap reduction.

 

[evident]

While he could have gotten a much better deal selling private party, I always make a point of giving a PSA about those Blazers. They should all be taken to the crusher.

http://www.youtube.com/watch?v=oTbA0fhBark

I had a friend, not a close friend, but a co-worker I used to hang out with from time to time, he was killed in his Blazer after being struck by a Taurus that had pulled out of a parking lot into traffic. He was hit on the FR side, which caused the thing to twist and roll onto the driver side, and the roof just caved on him like nothing. He was doing less than 40mph at the time, and left behind a 3 year old daughter.

Fuck those things.

holy shit. that is almost china car level.