10-11-2013, 07:16 AM | #1 |
Private First Class
10
Rep 135
Posts |
First lease, need some help!
Hey all,
I ordered the 2014 x5 and am going to be leasing it as a secondary car. This will be my first lease, and I could use some advice. What are the catches with the lease? I see a lot of people talking about the buyout rate. Where is my dealership going to try and screw me? Anything I should be looking out for? Thank you all for any help offered! |
10-11-2013, 08:40 AM | #2 |
Brigadier General
547
Rep 3,307
Posts |
1st and foremost, make sure you read and understand every line. Every dollar figure you see, make sure you understand and know about it and what it really is, some things can be presented as this or that fee and really translate to dealer profit. So just make sure you know where it is all going.
BMW's tend to have good residual rates (which determines the buyout). The residual is what you pay at lease end if you want to buy the car (thus the term "buyout" or "buy it out"). The higher the residual, the lower your payment (assuming the same finance rate, which for a lease is translated to a "money factor"). So as long as you don't intend to buy it after the lease, you want the best residual possible. Edmunds has a some good information on how to calculate a lease and what all the components are, check out here: http://www.edmunds.com/car-leasing/c...e-payment.html The residual and money factor is set by BMW and vary by model. The dealer doesn't control that, so your biggest concern with the dealer should be getting the biggest discount off of MSRP you can get and make sure you read all the terms and understand any up-front ("due at signing") fees, make sure they didn't sneak anything in there to give you a lower payment without your knowledge. I've never had this happen with a BMW dealer, but some places will sneak a "cap cost reduction" in there that is included in your due at signing fees, out of your pocket. This is just a down payment. So like I said, make sure you understand everything on the sheet. Oh, and NEVER pay for floor mats! Good luck. |
Appreciate
0
|
10-11-2013, 10:40 AM | #3 |
First Lieutenant
45
Rep 331
Posts |
Chrisny - great response and info.
I'm coming up on the end of my first lease and trying to figure out my options. While I know if I was going to buy the car out, it would have been best to purchase in the first place vs lease - but I've become attached to the 2011 335is and considering buying out when my lease ends. Based on what I've researched - the residual or buyout price is actually related to the MSRP - NOT the negotiated price of the vehicle - which kind of sucks. Granted with a lease in VA - all of the car tax is paid during the lease, so if I purchase the vehicle there will be no additional tax. Is there any room for negotiation? will the vehicle go through a CPO process, or is that extra? I probably need to search the forums regarding buyout strategies and options - but wanted to get any additional advice from you since you seem to have a lot of knowledge/experience in working with BMW leases. |
Appreciate
0
|
10-11-2013, 02:15 PM | #4 | |
Private First Class
10
Rep 135
Posts |
Quote:
Thank you for the advice. Greatly Appreciated! |
|
Appreciate
0
|
10-12-2013, 07:35 PM | #5 | |
Brigadier General
547
Rep 3,307
Posts |
Quote:
I've never bought one out, but from my understanding, that is negotiable to. They'll have to sell it to someone, why not negotiate with you instead of certifying the car and waiting for someone to buy off the lot (or BMWFS selling/auctioning it to dealerships). So it is worth asking at least... |
|
Appreciate
0
|
10-19-2013, 06:41 AM | #6 |
Captain
98
Rep 693
Posts |
I have a question regarding lease...
I leased a Cayenne couple of years ago and was paying close to a grand a month. I still had 10 months to go until the lease end. But since we have kids, my wife wanted to get a minivan. So we visited a Honda dealer to see what they had. The CA asked, "If I can get you out of the lease, will you take the minivan?" I didn't think the Honda dealer could get me out of a $10,000 payment left lease. But he did. And I got a great price on a minivan purchase. Granted, the car wasn't over the allotted mileage or have any damage to the car, but the dealer never asked anything like that. My question is...can I drive a leased car as I see it...put on more miles than allotted (granted it's not excessive), and then lease/purchase another car (of different brand) and turn the current lease car over to the new dealer before my current lease is over? If the new dealer is motivated enough to get me out of my current lease and pay for any over mileage, will they do so? Or will they make me pay for the overage of miles? Z. |
Appreciate
0
|
10-19-2013, 07:06 AM | #7 | |
Lieutenant
165
Rep 418
Posts |
Quote:
|
|
Appreciate
0
|
10-19-2013, 07:37 AM | #8 | |
Captain
98
Rep 693
Posts |
Quote:
But as far as the new car goes...I checked my price on Truecar and got a good deal. Z. |
|
Appreciate
0
|
Post Reply |
Bookmarks |
|
|