Anyone have more than 2 car leases on their credit?

[wmo168]

I currently have a 135i lease from BMW for $520 a month (3 months left)
Just sign up a M3 lease for 3 years for $620 a month
and currently have a Mini Cooper lease for $397 a month with a year left.

No big deal as long as you can afford it.

[JCLARKE335i]

Agreed, I have purchased 5 vehicles paid cash for from the auction for cheap and I spend money as needed on repairs ...........why add all the extra stress ?

The Benefit No car payments....... priceless

[Werkz12]

Originally Posted by wmo168

I currently have a 135i lease from BMW for $520 a month (3 months left)
Just sign up a M3 lease for 3 years for $620 a month
and currently have a Mini Cooper lease for $397 a month with a year left.

No big deal as long as you can afford it.

M3 for $620/month? Really?
I didnt lease- purchased mine and beat the delaer up for invoice pricing, but 620/month for an M3 sounds aggresive. Is that a long term lease?

[alms211]

Originally Posted by JCLARKE335i

Agreed, I have purchased 5 vehicles paid cash for from the auction for cheap and I spend money as needed on repairs ...........why add all the extra stress ?

The Benefit No car payments....... priceless

Not a bad approach but you need to take into account the amount of cheap money out there these days (in some cases 0% for 60-72 months). You'd be a fool to use your cash when you can use someone else's money for free.

To the poster that gave the example $1.4MM house on a value of $700M -- there is a damn good chance I'd bail on it as well. However, I'd probably have to find a new line of work as I am in the commercial real estate finance business.

[CEW]

Originally Posted by BMWCali

Both myself and my mom need to lease a car in the next 9 months (both through BMW).

I hear you man. I need one of these.
http://www.nordhavn.com/models/120/

[KIS]

Originally Posted by alms211

Not a bad approach but you need to take into account the amount of cheap money out there these days (in some cases 0% for 60-72 months). You'd be a fool to use your cash when you can use someone else's money for free.

To the poster that gave the example $1.4MM house on a value of $700M -- there is a damn good chance I'd bail on it as well. However, I'd probably have to find a new line of work as I am in the commercial real estate finance business.

Clearly you're financially right to take advantage of cheap money, but there is more to human nature than finance. Without discipline, many are over extended, and like the op choose to blame others, then default, rather than honor their obligations.

[alms211]

Originally Posted by KIS

Clearly you're financially right to take advantage of cheap money, but there is more to human nature than finance. Without discipline, many are over extended, and like the op choose to blame others, then default, rather than honor their obligations.

No question about it. I wholeheartedly agree. The op would be best served as many here have said to get a reliable cheap car, rebuild credit and in a few years make the move for the M.

[Echo M3]

Originally Posted by persian54

Why?

I would personally never spent 80k on a M3.... even if I had an income of 100k per month, if you have a great residual and money factor, why waste money buying outright? Especially if you change cars often? I don't want to turn this into a lease vs buy but that's what some of you in this thread are doing..

If I wanted to keep my current life style, I wouldn't have purchased an e93 M3 as the payments would be double.
But I am able to keep my currently life style and drive an e93 M3 due to the high residual, low money factor, and good deal I got.

O
I have nothing agents you for ditching the mortgage.. hell if I had borrowed say 1.4 mil on a house that is now worth 700k I'd short sale it or let it go into foreclosure. Credit is good but credit isn't worth 700k.

/small rant..

Why is leasing a bad idea? What leasees don't seem to understand is that leasing is more than purchasing a vehicle - it is a contractual obligation. And because of that obligation, if there is ANY change in your income , you are still on the hook for those income payments.

You might be comfortable in feeling that you will always be able to pay your lease payments for all of eternity, on time. You might even make the claim that you keep aside a 'rainy day' fund (invested, in the bank, etc.) in case you have income issues in the future. If thats the case, then your decision is correct.

HOWEVER, the VAST majority of americans do NOT actually make any sort of backup. Leasees love to make the claim that they can invest their money by leasing, and make a greater return on their income than the interest rate they are paying. The reality is that Americans typically live from paycheck to paycheck, buying as many items on credit as possible, ensuring that their income just SLIGHTLY exceeds their interest payments. What happens when there is a business cycle (every 4-6 years) fluctuation, when they lose their jobs, or when their income drops? Bam - they cant make their payments, they default, and their lives are generally thrown into chaos.

What I'm trying to say is this: the fiscally prudent decision for the OP would be to save the cost of the vehicle, and then make the payment in CASH. That way, you are not abusing the system/ putting yourself in a position where you may not be able to meet your financial obligations.

As an aside - it's really disgusting to see that this attitude lives on, post-recession. You would figure that people would have learned a thing or two about prudent expenditure and planning for financial speed bumps. It's not just disgusting - it's also depressing to witness.

[osteome]

Originally Posted by pman10

HOWEVER, the VAST majority of americans do NOT actually make any sort of backup. Leasees love to make the claim that they can invest their money by leasing, and make a greater return on their income than the interest rate they are paying.

I would love to know how many leasees actually invest that "extra cash".

Not all, but some people will lease the BMW at 600 a month versus buying the Honda at 400 per month. Granted one is better than the other, but the need for gratification kicks in and the "advantage of leasing" is a powerful in terms of what you can get for the relative payment.

If one is willing to have a car payment for the rest of their life, then leasing "makes sense". I have not had a car payment since about 2006. It is amazing how much you can save up (and earned interest on) when you are are not throwing 600 to 800 dollars at a car once per month. Yeah, I had to drive the humbling car for a few years, but paying cash for the next one was nice and I appreciate it more in my mind.

Yes, we all know that cars are depreciating assets...the other bases were covered before I bought it.

[nusevad]

Originally Posted by BMWCali

Okay, I think I just learned I probably shouldn't ask a BMW board for credit advice.

Thats like going to the doctor and telling him your engine has a tick and a knock and is excessively burning oil. 9/10 your not going to get the answer your looking for.

[persian54]

Originally Posted by alms211

Not a bad approach but you need to take into account the amount of cheap money out there these days (in some cases 0% for 60-72 months). You'd be a fool to use your cash when you can use someone else's money for free.

To the poster that gave the example $1.4MM house on a value of $700M -- there is a damn good chance I'd bail on it as well. However, I'd probably have to find a new line of work as I am in the commercial real estate finance business.

You and I are on the same page .
My previous 335i that I bought was at .9% Interest. I can make more than that investing in a rather low-risk, decent paying dividend. And if an emergency arises where I need hard liquid cash I'd have it without a problem.

Originally Posted by KIS

Clearly you're financially right to take advantage of cheap money, but there is more to human nature than finance. Without discipline, many are over extended, and like the op choose to blame others, then default, rather than honor their obligations.

Very very true.

Originally Posted by pman10

Why is leasing a bad idea? What leasees don't seem to understand is that leasing is more than purchasing a vehicle - it is a contractual obligation. And because of that obligation, if there is ANY change in your income , you are still on the hook for those income payments.

You might be comfortable in feeling that you will always be able to pay your lease payments for all of eternity, on time. You might even make the claim that you keep aside a 'rainy day' fund (invested, in the bank, etc.) in case you have income issues in the future. If thats the case, then your decision is correct.

HOWEVER, the VAST majority of americans do NOT actually make any sort of backup. Leasees love to make the claim that they can invest their money by leasing, and make a greater return on their income than the interest rate they are paying. The reality is that Americans typically live from paycheck to paycheck, buying as many items on credit as possible, ensuring that their income just SLIGHTLY exceeds their interest payments. What happens when there is a business cycle (every 4-6 years) fluctuation, when they lose their jobs, or when their income drops? Bam - they cant make their payments, they default, and their lives are generally thrown into chaos.

What I'm trying to say is this: the fiscally prudent decision for the OP would be to save the cost of the vehicle, and then make the payment in CASH. That way, you are not abusing the system/ putting yourself in a position where you may not be able to meet your financial obligations.

As an aside - it's really disgusting to see that this attitude lives on, post-recession. You would figure that people would have learned a thing or two about prudent expenditure and planning for financial speed bumps. It's not just disgusting - it's also depressing to witness.

Originally Posted by osteome

I would love to know how many leasees actually invest that "extra cash".

Not all, but some people will lease the BMW at 600 a month versus buying the Honda at 400 per month. Granted one is better than the other, but the need for gratification kicks in and the "advantage of leasing" is a powerful in terms of what you can get for the relative payment.

If one is willing to have a car payment for the rest of their life, then leasing "makes sense". I have not had a car payment since about 2006. It is amazing how much you can save up (and earned interest on) when you are are not throwing 600 to 800 dollars at a car once per month. Yeah, I had to drive the humbling car for a few years, but paying cash for the next one was nice and I appreciate it more in my mind.

Yes, we all know that cars are depreciating assets...the other bases were covered before I bought it.

I agree about that most Americans do live paycheck to paycheck and leverage way too much.
To lease takes a lot of discipline...my statement above your quote also applies to your statement as well.

For me, if I were to have spent 80k on my M3 6 months ago, I wouldn't be able to put as much down as I want in the Apt. Complex I'm about to (hopefully..) buy.
Thus, keeping the cash in my decently high paying Dividend stock, which I can sell today and get the money in 3 Business days once the trade settles, is as close to liquid as you can get (versus keeping cash in an almost no interest paying savings account).

One thing extra though... even if you don't lease, and you go take on financing.. the same "if i lose my job/income" scenario applies.
One thing with buying is that you have to pay that amount and you probably can't get as much for your car as you owe

if you bought for 80k, it's worth about 65-70k now. so you just lost 10-15k in 6 months were you to sell
But if you had leased, you can find someone to take over your payments, maybe offer them an incentive of 2k and their 500 transfer fee.
This way, you are only down 2500 vs 10-15k, a huge difference.

For someone who doesn't keep cars long, IMHO, leasing is the way to go (given that residuals and money factor etc are in your favor... leasing a GTR is almost the same price as buying one... so it's pointless)

Originally Posted by alms211

No question about it. I wholeheartedly agree. The op would be best served as many here have said to get a reliable cheap car, rebuild credit and in a few years make the move for the M.

Honestly it depends... we don't know enough about his financial situation.

He may have a cashflow of 40k/month for all we know. (just saying)

but defaulted on the house on purpose (not because he couldn't afford to pay for it, but because it was financially beneficial for him to do so; see 1.4m vs 700k example i made before)

[wmo168]

Originally Posted by das144

M3 for $620/month? Really?
I didnt lease- purchased mine and beat the delaer up for invoice pricing, but 620/month for an M3 sounds aggresive. Is that a long term lease?

Actually is $580 plus 6% tax comes out to $615 a month for 36 months lease.

Search Bimmerfest and there is a thread of the M3 E93 deal going on, Mine is loaded with Nav and 19" wheels done on ED with 7 MSD. BMW loyality, but the Z4 is the deal now.

[SUB-ZERO]

Originally Posted by Wah

Do your sister (and her family) a favor and leave her out of it.

+1

[Voltigeur]

Originally Posted by Brosef

it was/is a lack of accountability and reckless spending that has America in the mess that it's in right now.

And negligent lending / securitization / mtg broking / political motivations to increase home ownership / zero savings ... and many borrowers who took on way more than they could reasonabley 'chew' based on real incomes. The blame goes across the spectrum.

BTW, think "Too Big to Fail" is on tonight on HBO (the book is very readable). Will be watching.

To OP: does seem that the 3 leases are a reach under the present circumstances - and quite understand you are not lacking means. Just a good idea to normalize one's credit.

[persian54]

Originally Posted by wmo168

Actually is $580 plus 6% tax comes out to $615 a month for 36 months lease.

Search Bimmerfest and there is a thread of the M3 E93 deal going on, Mine is loaded with Nav and 19" wheels done on ED with 7 MSD. BMW loyality, but the Z4 is the deal now.

ED really cuts things down

May I ask what you MSRP was then the ED Price?