04 330i Performance Package

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#1
Hey BMW Buddies!

I'm looking at leasing the 04 330i with perfomance package. Imola Red with black interior. Any feedback about the o4's. What about leasing to buy?

Thanks for any inquireries! :0)
 
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#2
This is strictly just my opinion but I would just go ahead and put the down payment on it and buy it...leasing is kinda shady b/c you its not really your car and you have to meet and follow leasing requirements or you will get charged extra...in addition, leasing to buy or leasing period will cost you more in the long run that if you just bought the car
 
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#4
if you were to put down a down payment of a good sum and take out a loan of less than 2 years the interest will not add up to as much as it would with a lease, even with the lease to own option. Not to mention when you lease a car you have to take the car to the dealership for every oil change and problems you might be having with it (that amount of money adds up, especially when you consider that you could change the oil yourself for a lot less) and when you lease you also will be charged extra if you go over the set number of miles you are allowed to put on the car in any given period of time...it is just a bynch of stuff you wont have to worry about if you just bought the car to begin with
 
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#5
Leasing is the only way to go. [thumb]

I get into the leasing thing with people all of the time. A guy I work with just cannot understand why I would ever lease, or "“rent” as he calls it. My response is why would I ever want to pay more every month, possibly $100.00 or even more, to be in a position where 2-3 years down the road I am upside down.

I see it like this:

1. Banks never want you to be upside down 2-3 years down the road because that means they have lost money if you return the lease.

2. Shorter term financing is always cheaper.

3. If you don’t like the car give it back at the end and walk away, no upside down concerns.

4. If you like the car, just buy it out at the end for cash or negotiate a good interest rate with the lessor. Remember, the last thing they want is the car back, too expensive for them to deal with, they are better off cutting you a deal on buyout.

5. Limited mileage can be a concern, but remember, you can buy more miles and you are paying, or should be paying, a lot less in financing charges. A good lease will give you a lower payment as well as a lower principal balance at the end of 2-3 years over traditional financing.

6. If the car is a business expense, there is no need to capitalize the car (include it and maintain it as an asset) it is pure expense. Even in the situation of a home based business where the value of the property and so on is an issue, there is none of this BS on a lease.

7. I think leasing can be the best way to buy a car. On the flip side, there are far fewer regulations on the structure and disclosure of leases. It is easier for the dealer to hide extra profit. If the lease you are looking at does not allow you to fulfill the lease, say for three years, and then buy the car for a reasonable interest rate, and the total of payments are not less than the total payments on traditional financing the lease is probably not worth it.

I tell you I work these people over when I lease. I go through ever little detail to make sure they are not showing a 2.5% effective interest rate, and then padding them the equivalent of 10% in profit. The money factor (interest) on mine is about 2.9%. Lower payments and a lower balance down the road should I keep the car.

If you have any questions let me know. It depends on what you plan to do with the car, keep it, trade later, or so on. Leasing is a good option to keep open I think.
 
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#6
This was posted by "wileycoyote" a month or so ago. He gives some great examples. I hope it is okay if I repost this, it is too good of information to not pass along.

Consider these Examples (actual current rates and residual values).

2004 BMW 330ci (Premium Package, Sport Package, SMG, Xenon)
MSRP $43,670
Negotiated price $41,000 (Dealer cost $40,028)

Cash purhcase
Cost of Vehicle - $41,000
Taxes - $2,870
Total Cost - $43,870

60 Month purchase
4.8% APR No Money Down
Cost of Vehicle- $41,000
Amount Financed - $43,870
Monthly Payment - $824
Taxes - $2,870
Finance Charges - $5,570
Total Cost - $49,440

39 Month Lease (36K total miles - $.18 per mile over)
Money Factor .00202
Capitalized Cost - $41,695 ($41,000 + $695 Acquisition Fee)
Residual Value - $24,019
Depreciation - $17,676 (Cap. Cost - Residual)
Monthly Payment - $628.09 ($587 + $41.09 Tax)
Dipsosal Fee - $395 (or $350 buy out fee)
Taxes - $1,602.51
Finance Charges - $5,612 ($587 * 39 = $22,893 - $17,676 depreciation + $395 Disp. Fee)
Total of Payments - $24,495

If you choose to lease instead of paying cash -
Invest the difference between the lease total of paymnets and the purchase total cost ($19,375) at 8%
Use the interest to offset the finance charges ($5,731)
Now the cost of the lease is $18,764

If you can get more than $25,106 for the car after 39 months, you are better off paying cash.
If you don't have $43,870 to pay cash, the loan seems the better deal to me.
If you can't afford $824 per month, consider the lease or a less expensive car.
 
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Houston, Texas
#7
All new BMW's have 4 years 50,000 mile maintenance schedule.......you don't pay for any repairs or oil changes, same as if you bought it........Bryan is right, plus I write it off on my taxes as a business expense......with the miles I put on the car, I change cars every two to three years anyways and purchasing them I was always upside down......for people who keep their cars forever, purchasing a car is good.....
 
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#8
Wow this is good stuff. I've been looking at leasing information recently. Everyone tells me something different whether positive or negetive. If I do my home work I should be OK, right. I like what all of you have been saying. Keep it coming!! I love to learn!

What might be some of the hidden aspects to look out for when leasing?

Kimble
 
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tempe, az
#9
I have alway had good luck with leasing.... I have always come out a head. But I have also bought as well. It really depends upon how long one wants to keep their car.
 
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Jacksonville, FL
#10
OK yes i should clear up what I was saying...The other people are 100% correct...I did not take into consideration the factor that you actually might not want to keep the car around until it no longer can move...I keep my cars around until they roll over dead so for me, in that respect, as I said buying a car would be better for you....but If you didn't plan on doing that then yes leasing would be the way to go...For some reason I never even thougt about someone getting rid of the car before it was a paperweight, guess I'm too narrow minded lol
 

mikev

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#11
MVPBird33 said:
OK yes i should clear up what I was saying...The other people are 100% correct...I did not take into consideration the factor that you actually might not want to keep the car around until it no longer can move...I keep my cars around until they roll over dead so for me, in that respect, as I said buying a car would be better for you....but If you didn't plan on doing that then yes leasing would be the way to go...For some reason I never even thougt about someone getting rid of the car before it was a paperweight, guess I'm too narrow minded lol
Hehe just like me. My huble E30 only goes when i've put a piston through the Bonnet!!! (even if i have to sit by the side of the road and do it.[:D] )
 
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#12
2 of the biggest things to think of: how long do you want to keep the car for, and how many miles will you put on?

usually the your car will have about 50-55% of the msrp in 3 years, so if you like to change cars every couple years, lease is the way to go. but if yer thinking 6+ years, i'd say purch is prolly a better option.

from teh above example by bryan, you have to also think of financing the final 24k on the residual if you plan on purchasing, which will increase the final purch price for the lease.. and getting 8% back in investing is questionable.. for me anyway.. :(

ultimately you'll have to think about what is more important to you, pay a lil more to keep a new car every 3 years or so.. (driving 2 new cars in 6 years = finacing a new car for 5 years..) so if you keep the car for more than 5, 6 years, you'll save money once the car is paid off vs constant leasing..
 


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