M3 lease rates (money factor and residuals) came out today

[bfung]

my 335 lease payment is $1.3k x 36 momths in canada, if that makes u guys feel better

[MFL101]

Yeah, with taxes it will be even more...

It's not that I can't afford it...that's not the problem. It's the fact that it might be financially irresponsible at this moment in our economy. Plus I can see them dropping the price by a huge chunk in about 8 months if things stay on the same path...

Then again, it's a luxury item to splurge on, so I haven't made my mind up.

[Accounting4Speed]

Just a little economic note for everyone out there. I work in finance and have been looking at BMW FS compared to other auto makers. Going forward you will see increasing money factors across the board as a result of the credit crunch. Since BMW issues bonds and corporate paper for all of the leases and financing they do, they have a need for liquidity to repay these debts. Banks have been tightening liquidity and demanding higher spreads on bonds from corps like BMW. This has resulted in a "front loading" of liabilities, meaning the steady income stream from our payments will not offset the new financing they write because banks only extended short term paper instead of the previous 1-5 year instruments. So, to meet liquidity needs to pay off bondholders, BMW manufacturing will have to inject cash into the FS biz, which I see as a last resort, or pass along the increased cost of financing to customers. So if you are looking to buy with an attractive rate, I'd pull the trigger sooner than later. And if you do wait, I'd suggest going to a 3rd party bank, you will probably get a better rate. One interesting side note, of the cars BMW sells in Europe, 1/3 are bought outright, 1/3 are financed through BMW FS and the other 1/3 is financed from an outside bank. In the US, 80% of cars are financed. You think we might be living a little outside of our means here folks??

[Accounting4Speed]

Seriously, why pay interest on a car? You are just throwing your money away. Lets see:
Depreciating assets, check.
Interest payment, check.
No ownership, check.
That's just stupidity. A perfect example of living outside your means. To avoid this all, get a car you can afford. I'd suggest doing that by saving enough money to pay for the full lease UP FRONT. Then you pay no interest, how much better does that sound? Granted you may not be driving and M3, but you shouldn't be anyway, because you clearly can't afford it.

[konaforever]

Originally Posted by Accounting4Speed

Seriously, why pay interest on a car? You are just throwing your money away. Lets see:
Depreciating assets, check.
Interest payment, check.
No ownership, check.
That's just stupidity. A perfect example of living outside your means. To avoid this all, get a car you can afford. I'd suggest doing that by saving enough money to pay for the full lease UP FRONT. Then you pay no interest, how much better does that sound? Granted you may not be driving and M3, but you shouldn't be anyway, because you clearly can't afford it.

Dad, is that you?

[M2MG17]

Originally Posted by konaforever

Dad, is that you?

That was funny.

I don't think it is in anyone's right to suggest to someone else how to spend their hard earned money.

What good is money if you can't use it to improve the quality of your life and enjoy it.

Its not like we are planning on being buried later with all that saved cash.

Just my $0.02

[nusevad]

Originally Posted by konaforever

Dad, is that you?

good one!

[gblansten]

Originally Posted by chasem3

That was funny.

I don't think it is in anyone's right to suggest to someone else how to spend their hard earned money.

What good is money if you can't use it to improve the quality of your life and enjoy it.

Its not like we are planning on being buried later with all that saved cash.

Just my $0.02

Well said. I think you nailed that.

[!Xoible]

please let's not turn this thread into another lease vs. purchase thread.

[Hans Delbruck]

Originally Posted by gblansten

Well said. I think you nailed that.

+2 then.

& LOL, that smilie "slays" me!

[Jimmyz]

Originally Posted by Accounting4Speed

Seriously, why pay interest on a car? You are just throwing your money away. Lets see:
Depreciating assets, check.
Interest payment, check.
No ownership, check.
That's just stupidity. A perfect example of living outside your means. To avoid this all, get a car you can afford. I'd suggest doing that by saving enough money to pay for the full lease UP FRONT. Then you pay no interest, how much better does that sound? Granted you may not be driving and M3, but you shouldn't be anyway, because you clearly can't afford it.

[jaiman]

Originally Posted by Accounting4Speed

Seriously, why pay interest on a car? You are just throwing your money away. Lets see:
Depreciating assets, check.
Interest payment, check.
No ownership, check.
That's just stupidity. A perfect example of living outside your means. To avoid this all, get a car you can afford. I'd suggest doing that by saving enough money to pay for the full lease UP FRONT. Then you pay no interest, how much better does that sound? Granted you may not be driving and M3, but you shouldn't be anyway, because you clearly can't afford it.

I’ll lease because it allows me to maximize the amount of money I save in a given year. I gave a numerical example in another post, but for me, I come out way ahead by leasing and investing the difference between a lease and a purchase. Could I save up the cash in a year or two and buy the car outright? Sure. But for me, the balance that makes me happy, and that is financially prudent, is to lease and invest.

And yes, I own my home.

[asif163]

Originally Posted by Technic

i think that these M3 lease rates are way off... for that kind of monthly payments my local dealer was offering M6's with $0 down for 24 months last month.

Yea same here BUT, those were 07 M6 Coupe's only- a bunch of them were sitting on the lot so they were selling them as demo's etc...

[asif163]

Originally Posted by Jimmyz

That was a special running to get rid of 07 cars. They jacked up the residual, so that a 24 months lease ran something around 1100 a month. It was an amazing deal that I would have jumped on had the powers that be not stated that 500HP was too powerful.

I had the same situation- in my case it was the wife haha

[asif163]

Originally Posted by Jimmyz

So with the options I want, and basically all cars being equally equipped (using E90 M3 lease numbers on the C63)

S5: 1030 a month
E90 M3: 1090 a month
E92 M3: 1160 a month
C63 AMG: 1000 a month

The C63 is looking pretty tantalizing, I must say.

The S5 at 1030/mo seems a bit high- my friend just picked one up two months ago for $895/mo- 12k miles/36mo.

[asif163]

Originally Posted by konaforever

Dad, is that you?

Haha that's priceless

[Alumac]

Originally Posted by chasem3

That was funny.

I don't think it is in anyone's right to suggest to someone else how to spend their hard earned money.

What good is money if you can't use it to improve the quality of your life and enjoy it.

Its not like we are planning on being buried later with all that saved cash.

Just my $0.02

Well it's not really "hard earned" money that's being spent. It's potentially earned money being spent. On a car. Yes life is short, and money should be used to improve the quality of life, but home equity lines of credit and 6 year notes on a car are good indications that some people really ought to look elsewhere. But I suppose the financial crunch now (in the US) is because people spent their "hard earned" money; right?

[Keto]

As we say in medicine to folks who don't follow good medical advice (ie my patient yesterday having a heart attack who wanted to go home to handle "personal business" prior to his angiogram),

"In America you have the right to make really stupid decisions."

Just because you have the right to make a certain decision it isn't necessarily a smart one. If you are "stretching" to purchase *any* asset, much less a depreciating one, think twice. The idea that no one has the right to suggest how other people spend money is fairly laughable. The whole financial industry is based on telling people how to spend their money.

OTOH, I can think of a good reason to finance rather than purchasing the car outright -- over the long run, stock rate of return beats car loan interest charge. Admittedly, this year maybe that's not such a great idea . Most years, I do better financing then purchasing outright. This does increase your risk, however.

[eclipsisNA]

Anytime a thread relating to leasing is started, it turns into nothing but arguing between people leasing and those who think it's stupidity. Even if some of our decisions don't make much sense financially, we obviouslly have pretty strong reasons to make such a decision. It boils down to what you value in life and where you want to take yourself.

Here's an example. My best friend's father has an Enzo,Carrera GT, SLR Convertible, 599 GTB, F430 Spider, and a Bentley GTC. He leases every one of those cars. I've talked to his mother many times to know that they have practically no money in their bank account. Whatever they earn goes into renovating their house or paying off their leases. All you guys arguing against leases can say that these people are living well outside their means, only on a much larger scale. Now, my friend's father recently had a stroke. Maybe it was because of always living on a razor's edge financially, but assuming it wasn't because of that, do you think he cares about practical investment strategies? He's obviously more concerned with enjoying his life while he's still around.

[Hans Delbruck]

Originally Posted by Xcellere

Here's an example. My best friend's father has an Enzo,Carrera GT, SLR Convertible, 599 GTB, F430 Spider, and a Bentley GTC. He leases every one of those cars. I've talked to his mother many times to know that they have practically no money in their bank account. Whatever they earn goes into renovating their house or paying off their leases.

Wow, that's amazing! I'm curious what part of town they live in.....

[EOD74]

Here's an example. My best friend's father has an Enzo,Carrera GT, SLR Convertible, 599 GTB, F430 Spider, and a Bentley GTC. He leases every one of those cars. I've talked to his mother many times to know that they have practically no money in their bank account. Whatever they earn goes into renovating their house or paying off their leases. All you guys arguing against leases can say that these people are living well outside their means, only on a much larger scale. Now, my friend's father recently had a stroke. Maybe it was because of always living on a razor's edge financially, but assuming it wasn't because of that, do you think he cares about practical investment strategies? He's obviously more concerned with enjoying his life while he's still around.

So if he dies he leaves his wife with all those financial obligations? That's classic.

[Jimmyz]

Originally Posted by asif163

The S5 at 1030/mo seems a bit high- my friend just picked one up two months ago for $895/mo- 12k miles/36mo.

The lease numbers actually got worse recently... plus I optioned it out so that it is the most expensive S5 you can order (well, only 250 less because I wanted CF trim, and not stainless steel mesh). His may have been cheaper.

Also, he could have payed tax up front... whereas 1030 a month includes tax in the payment.