View Poll Results: How did you finance your car?
Voters: 63. You may not vote on this poll
how did you finance the car (lease vs. buy)
11-21-2006, 10:46 AM
#21
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Join Date: May 2006
Location: Davidson, North Carolina
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My Ride: On Order as of May 6- 2007 530i Titanium Grey and Grey Leather, with Sport Package, Premium Pkg, Cold Pkg.
2006 Porsche Boxster
Cash on the barrel head
11-21-2006, 10:49 AM
#22
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Join Date: Jul 2004
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My Ride: BMW 545iA Black Sapphire
Model Year: 2005
Engine: 545i
Originally Posted by LowOrbit' post='358878' date='Nov 21 2006, 06:52 PM
Agree with leasing as long as the money factor is low. I always bought my cars previously but when I got my 545i, they had a 0.0001 money factor (2.4%), plus I liked the guarenteed residual and I don't pay the full sales tax on the car.
IMHO, there is absolutely no reason to buy a 525/530i now in the U.S. as lease rates are rediculously low (MF = 0.0005 or 1.2% APR). You can always buy it at the end of the lease if you wish.
IMHO, there is absolutely no reason to buy a 525/530i now in the U.S. as lease rates are rediculously low (MF = 0.0005 or 1.2% APR). You can always buy it at the end of the lease if you wish.
11-21-2006, 12:47 PM
#23
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Join Date: Jul 2006
Location: Bitburg Germany
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My Ride: 2007 530i
Military sales. Purchased. Bought a vehicle that goes for 52k Stateside for 43k. Put a good chunk of change down and financed the rest. I will probably sale it after 3 years of ownership.
11-21-2006, 03:24 PM
#25
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My Ride: 2006 BMW 550i "Ben Hogan's 5 Iron"
SilverGrey/Black Sport, L7, NAV, CW, AS, Split FR
2003 Audi A4 3.0 CVT "Part of the Moniker"
Silver/Ebony, Prem, CW, Star 17s
Originally Posted by lawguy' post='358649' date='Nov 20 2006, 11:29 PM
Just curious how the majority of members decided to finance their car....leases vs. purchase?
11-22-2006, 03:32 PM
#26
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Join Date: Nov 2006
Location: Atlanta, GA- USA
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My Ride: 2007 550i - Monaco Blue with Auburn Interior. Sport, auto. Ordered 10-30-06
With the current lease rates on the 550 and 530 here in the US (1.5% on the 530 and 3.7% on the 550) leasing may be a good alternative even if you intend to purchase the car at the end. I'm waiting for my 550 to arrive (driving me crazy). I've ran some numbers, and with the residual value at %59 I'm looking at a 39K buyout at the end of the term. If I lease the car and finance the 41% depreciation at 3.7% I can actually save money assuming I can earn at least 5% on the roughly 63K that I'd spend on the car.
There is some extra inventory on the car lots that's causing BMW to subsidize the lease rates to get the cars on the road. They only do this with leasing, it allows them to cut customer acquisition costs without changing sticker prices. The competitive pressures they're facing from lower cost alternatives from the Japanese automakers exacerbates this problem as well. I see the dealers offering relatively deep discounts on the '07 models already, one would assume that these discounting practices will continue and expand as the model year progresses. I've also seen the APR on the lease rates drop from September to October, and October to November.
So, buy vs. lease has many factors and your tax situation is definitely a consideration. In the US we have this thing called the "Alternative Minimum Tax" that limits our deductions.
These are the things you have time to think about while waiting the two months for your car to show up?..
There is some extra inventory on the car lots that's causing BMW to subsidize the lease rates to get the cars on the road. They only do this with leasing, it allows them to cut customer acquisition costs without changing sticker prices. The competitive pressures they're facing from lower cost alternatives from the Japanese automakers exacerbates this problem as well. I see the dealers offering relatively deep discounts on the '07 models already, one would assume that these discounting practices will continue and expand as the model year progresses. I've also seen the APR on the lease rates drop from September to October, and October to November.
So, buy vs. lease has many factors and your tax situation is definitely a consideration. In the US we have this thing called the "Alternative Minimum Tax" that limits our deductions.
These are the things you have time to think about while waiting the two months for your car to show up?..
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