Financing or Leasing?? HELP PLZ!!

[heyloo]

Hello...
I'm a total novice (this is my first car) and I am very confused on what options I should take in terms of financing...

If I take out a traditional loan from CapitalOne, I believe I could take one out at about 3.88%. My financing representative from my dealership just suggested that I should take out a lease.

I'm thinking about taking 36 mo. financing or lease, whichever is more beneficial in terms of money...

I will be taking delivery of my X3 3.0i in a day or so...so I'd have to make my decision quick!

Here are some information

X3 3.0i

Money Factor .00190
Base Rate (good for all terms and mileage)
36 mo/12k mi = 59% residual


THANKS!!!!

 

[Bryan330i]

You are talking about a big payment difference between a 36 month buy and a 36 month lease. While the payment is high(1237.77), you pay very little interest. (schedule below)

For a lease you are probably about residual 24,000.00, total payments 18,800.00 at about 530.00/mo.


P A Y M E N T S C H E D U L E

Description: X3
Principal: 42,000.00
Interest rate: 3.880%
Number of payments: 36
Payments per year: 12
Payment: 1,237.77

------------------------------------------------------------------------------------------------------------------------------------
Pmt-# Date Payment Principal Interest Balance
------------------------------------------------------------------------------------------------------------------------------------

1 06/01/04 1,237.77 1,101.97 135.80 40,898.03

2004 Totals: 8,664.39 7,789.01 875.38



2005 Totals: 14,853.24 13,768.99 1,084.25



2006 Totals: 14,853.24 14,312.83 540.41


36 05/01/07 1,237.68 1,233.69 3.99 .00
Date 04/29/2004 Time 14:13:31

P A Y M E N T S C H E D U L E

------------------------------------------------------------------------------------------------------------------------------------
Pmt-# Date Payment Principal Interest Balance
------------------------------------------------------------------------------------------------------------------------------------

2007 Totals: 6,188.76 6,129.17 59.59


Total repayment: 44,559.63
Total principal: 42,000.00
Total interest: 2,559.63

 

[Bryan330i]

This is for 60 months


P A Y M E N T S C H E D U L E

Description: X3
Principal: 42,000.00
Interest rate: 3.880%
Number of payments: 60
Payments per year: 12
Payment: 771.22



Total repayment: 46,273.26
Total principal: 42,000.00
Total interest: 4,273.26

 

[heyloo]

Wow. Thanks for the report, Bryan330i.
So, it seems like if I do not really mind the larger monthly payment, I should stick with traditional financing?
The benefit of leasing would be...for those who own business (so that they could count the payments as expenses) and for those who favors lower monthly payment...?

Do you know of any places that might offer me a better deal than CapitalOne?