View Single Post
      11-24-2012, 09:12 AM   #10
Reznick
First Lieutenant
 
Reznick's Avatar
 
Drives: 2008 M3 ,2000 330
Join Date: Jul 2007
Location: Syracuse NY

Posts: 383
iTrader: (0)

Quote:
Originally Posted by fshubert View Post
Key to leasing is residual value. You want a high residual as this is what the car is worth when you return it and your lease payments are what you pay for the depreciation of the car over the lease period. You should get a 60-64% residual on a 36-month lease with 15k miles per year. Try to minimize your "cap cost reduction" or cash up front to lower your lease payments. If you pull out of the dealership with the new car and it is totaled, the "gap" insurance (part of every lease) pays whatever your primary insurance doesn't cover for the loss value. But whatever cash you put out is gone forever. Speet spot for BMWFS is 36-months at 12k per year. I've done 36-months at 15k per year for the last 3 cars. Works out nicely. Don't overestimate your annual mileage. If you turn the car back in with 41k miles and your lease was 3 year/45k miles, you're not credited back any money for turning in the car "light" on miles. You would be if you turned it in 10% under but best to figure out how much you drive before you lease. And if you're going over, you can buy mileage during the lease cheaper than if you turn the car in with too much mileage. Good luck! You'll love the car!!
^^^ Yes negotiate the final price of the the car and know exactly what the residual value will be when you turn it in so that you don't owe. Leasing has become so common place , they almost make too easy for you.But I have an Aunt that got hit with a $2000+ payment(not a BMW..a Honda Pilot) on turn in because they said the residual value was less then anticipated.(the car was in perfect shape. There is NO way she would have paid that if I was there. It was a line o crap to get some $)Just know exactly what the residual value will be and make sure there is no stupid "turn in " fee. Other than knowing the mileage you'll need per year , its pretty straight forward and as said above try to go through BMW financial. But remember everything is negotiable , even your months of ownership and mileage . Dealerships used too play fast and loose with leases, but the laws have changed in the buyers favor.Everything is pretty straight forward. WHen you negotiate,, I believe ever $1000 off the car equals about $15 less per month on your payment.If you give specs on exactly what you're looking at ,I'm sure a lot of the guys on here could let you know exactly the range you want to be in. I don't personally lease my own cars . But I do lease negotiations for my parents and my Aunt ,but the aren't BMW's.They're those lowly Caddy's & Merc's.Fro shame .lol .In the end the lease part is all the same.Good luck.
Reznick is offline   United_States
0
Reply With Quote