What do you think of these two scenarios?

odiesback · 06-06-2008, 07:47 PM

Which of the options below you think I will be better off?

I have a trade-in value at 16K that I could use to lower
my payments. Since giving this trade-in in a lease it will be
practically losing my trade-in over time, or losing it all if my new bimmer
gets totalled. So I thought about using it to buy the new car
with a lower payment as shown below.

I know I can do better as far as deal is concerned but I just
want to get a feel about which way I should go.
Both are rough stimates from BMW site.

Option 1: LEASE 335 coupe 36 mos 15K

MSRP (as built bmwusa.com): 50,450
Dealer discount : -2,000
Down payment : -2,000
Savings ED : -2,855
----------
43,595
Monthly payment: $651

Option 2: FINANCE same car @ 5.9

MSRP : 50,450
Dealer discount : -2,000
Down payment : -1,000
Trade-in : -16,000
Savings ED : -2,855
------------
28,595

Monthly payment: $553

Thanks for your comments

Houman21 · 06-06-2008, 07:51 PM

You should be able to get 3.9 finance till the end of June or maybe lower after June. It all depends on what you plan on doing - If you're going to keep the car for more than 3 years, then buy it. Otherwise lease it especially if you can work in a tax incentive.

There are a lot of Buy vs Lease threads on this forum - a quick search will tell you everything you need to make an informed decision.

LaLakers91tc · 06-06-2008, 07:52 PM

wait they will only give you 16k for a 330i?
i'd like to think that one of those babies is worth a little more that that

odiesback · 06-06-2008, 08:34 PM

Quote:

Originally Posted by LaLakers91tc

wait they will only give you 16k for a 330i?
i'd like to think that one of those babies is worth a little more that that

No... I will turn my 330i in. End of lease.

I have another vehicle for a trade-in.

AndrewAZ · 06-06-2008, 11:34 PM

Well whats you finance time period?(seems to be 50 months) Most likely you will be upside down in the loan near the ending part.

CALIF65GM · 06-06-2008, 11:48 PM

I'm not understanding the "dealer discount" and then the ED Savings.

You should simply figure out the ED invoice on the car and add the dealer profit that you believe is fair.

Remember to add 0.0003 to the MF on an ED lease too.

Houman21 · 06-06-2008, 11:58 PM

To help you visualize

odiesback · 06-07-2008, 12:09 PM

Thank you guys for the replies, specially the finance chart.
Very helpful.

It is a 60 mo term.

The dealer discount was the amout off MSRP.

This is my dilema: I have an SUV that I will not be using
much. It's paid for and I was given 16K trade-in.

I wanted to use that asset into a new car before it
depreciates to nothing over time by just sitting there on the driveay.

From this forum, I learned that it is not wise do put a
large down payment on a lease for the reasons you all know.
So, I thought about transfering the equity from my SUV to
my new BMW with a 60 mo term. In that case I would still
be able to recover some of my down payment if I sold the car.
In a lease all the money down would be gone as soon as I sign
the contract. Am I on the right track here?

I hope I was not too confusing. Thanks again.

06-06-2008, 07:47 PM	#1
odiesback 2021 330ix 217 Rep 539 Posts Drives: 2021 330ix Join Date: Aug 2005 Location: Maryland iTrader: (0) Garage List 2021 330i xDrive [0.00]	What do you think of these two scenarios? Which of the options below you think I will be better off? I have a trade-in value at 16K that I could use to lower my payments. Since giving this trade-in in a lease it will be practically losing my trade-in over time, or losing it all if my new bimmer gets totalled. So I thought about using it to buy the new car with a lower payment as shown below. I know I can do better as far as deal is concerned but I just want to get a feel about which way I should go. Both are rough stimates from BMW site. Option 1: LEASE 335 coupe 36 mos 15K MSRP (as built bmwusa.com): 50,450 Dealer discount : -2,000 Down payment : -2,000 Savings ED : -2,855 ---------- 43,595 Monthly payment: $651 Option 2: FINANCE same car @ 5.9 MSRP : 50,450 Dealer discount : -2,000 Down payment : -1,000 Trade-in : -16,000 Savings ED : -2,855 ------------ 28,595 Monthly payment: $553 Thanks for your comments
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06-06-2008, 07:51 PM	#2
Houman21 Captain 30 Rep 949 Posts Drives: Nothin right now Join Date: Jul 2005 Location: L.A. iTrader: (0)	You should be able to get 3.9 finance till the end of June or maybe lower after June. It all depends on what you plan on doing - If you're going to keep the car for more than 3 years, then buy it. Otherwise lease it especially if you can work in a tax incentive. There are a lot of Buy vs Lease threads on this forum - a quick search will tell you everything you need to make an informed decision. __________________ 2008 e92 335i Step \| Is Gone - It was fun but not meant to be \| M3 - Cancelled \| 135 Ordered
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06-06-2008, 07:52 PM	#3
LaLakers91tc Lieutenant Colonel 51 Rep 1,860 Posts Drives: BSM E92 335i 6MT Join Date: Feb 2008 Location: Lawrenceville NJ iTrader: (5)	wait they will only give you 16k for a 330i? i'd like to think that one of those babies is worth a little more that that __________________ Current 07 BSM E92 335i Previous SGM E90 330i (R.I.P.)
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06-06-2008, 11:34 PM	#5
AndrewAZ Major 137 Rep 1,243 Posts Drives: 335i Join Date: Jan 2007 Location: CA iTrader: (0)	Well whats you finance time period?(seems to be 50 months) Most likely you will be upside down in the loan near the ending part.
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06-06-2008, 11:48 PM	#6
CALIF65GM Colonel 97 Rep 2,041 Posts Drives: e93-35 May08 ED Join Date: Jun 2005 Location: SF, CA iTrader: (0) Garage List 06 - Oct. 05 build ... [0.00]	I'm not understanding the "dealer discount" and then the ED Savings. You should simply figure out the ED invoice on the car and add the dealer profit that you believe is fair. Remember to add 0.0003 to the MF on an ED lease too. __________________ 5-2-08 e93-35 ED Montego w/Jade Grey, Step w/Paddles, PP, SP, CA, hot seats and iPod.Awaing re-delivery soon. Debadged 330xi ED 11/14/05 Auto/Mystic Blue/Gray leather with Alum/PP/SP/CA/Fold-down rear seats/Alarm. Sold to Carmax on 6/7/08 with 50,624 miles on clock
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06-06-2008, 11:58 PM	#7
Houman21 Captain 30 Rep 949 Posts Drives: Nothin right now Join Date: Jul 2005 Location: L.A. iTrader: (0)	To help you visualize __________________ 2008 e92 335i Step \| Is Gone - It was fun but not meant to be \| M3 - Cancelled \| 135 Ordered
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06-07-2008, 12:09 PM	#8
odiesback 2021 330ix 217 Rep 539 Posts Drives: 2021 330ix Join Date: Aug 2005 Location: Maryland iTrader: (0) Garage List 2021 330i xDrive [0.00]	Thank you guys for the replies, specially the finance chart. Very helpful. It is a 60 mo term. The dealer discount was the amout off MSRP. This is my dilema: I have an SUV that I will not be using much. It's paid for and I was given 16K trade-in. I wanted to use that asset into a new car before it depreciates to nothing over time by just sitting there on the driveay. From this forum, I learned that it is not wise do put a large down payment on a lease for the reasons you all know. So, I thought about transfering the equity from my SUV to my new BMW with a 60 mo term. In that case I would still be able to recover some of my down payment if I sold the car. In a lease all the money down would be gone as soon as I sign the contract. Am I on the right track here? I hope I was not too confusing. Thanks again.
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