Thank you BMW finance!!!

[Technic]

My point is that if you are planning to trade the car at around two years then a lease of two years could be a better financial proposition than the Select program just because of the lower special rates that were available. In this case, only the lease payments will be relevant as the residual value is irrelevant if you just turn the car in at the end of the 2 years term.

Just make a comparison using the www.cars.com calculator (lease vs. finance) and decide for yourself which route is better for what you are planning to do.

Originally Posted by nlpamg

Well, honestly, it sounds like this avenue is less money out of pocket than a lease and it could lend into owning the car rather than having to get a new one.

Also, my issue with leasing is that there's less flexibility in that the buyout/residual is never close to what the car is actually worth and that to get rid of it, you'd have to cover the payments or take a giant hit. I'm thinking that at the end of 5 years or 3 years with the balloon method, the hit I take isn't so bad, and that I have more freedom to trade it earlier than I would have on a lease.

For example, with my current lease, I wanted to trade it in 6 months ago, but I would have paid more to do that than what it would have cost to continue the lease. With this, I think that it might put me in a better position to trade the car in before the end of the term.

Please correct me if I'm wrong. Thanks.

[Zirenz2006]

Can this be used on 09's or on 08's only?

[Voltigeur]

Originally Posted by rickradian

I have the funds, why should I pay a down payment now when I can pay later especially with 0.9% financing. I can put the $21K in an high interest CD and collect 4-5% and come out ahead.

Yep +1

[matt beard]

Originally Posted by achenator

A real financial advisor would advise against buying a 70k car period.

Instead he would advocate financing a mutual fund of his chosing. With todays financial atmosphere, sounds lovely.

[matt beard]

Originally Posted by rickradian

~$1500 in interest.

Why should I pay $20k upfront when it's only a difference in a few hundred dollars financing. If there was no 0.9% financing this would not work out as well. But the financing rate was what was the deciding factor. Why should they have my money now when I can keep it and earn interest or dividends.

The deal you were given is an absolute no brainer. You could FDIC insure the money in an ordinary savings account and make far more than .9%. Nice work!

[duk]

this deal makes sense if

1. you have the balloon amount in some form of liquidible asset ie cash, in the OP's case 34%
2. you put that asset in higher than .9% yield CD, money market, etc and earn higher %
3. your very confident of your financial future, ie no job loss, etc

honestly though, with 3% yield in a CD for example, in 5 years you'll come out prob over 1k ahead

[slamnss]

Originally Posted by Technic

I also have to say... thanks BMW Finance!! After three days, tens of dealers from California, Texas, Georgia, NC, SC and Florida, I got a E90 Sedan MR/BB, PP/TP/USB/Sirius/Premium Audio for $500 over invoice. And ironically, within 90 minutes from my house.

The difficulty in getting a good deal in any Florida dealer was simply absurd... they still think that they will be able to sell all those M3 sitting around at MSRP some day. One dealer in Miami has 57 M3 just sitting around, at least 90% of them at $67,000+ and only after 4 phone calls they started talking about $1000 over invoice and $1100 in fees. Did not like any of them because of their color and equipment combos...

Premium Audio is simply a piece of crap, by the way, but there was no other MR/BB at that price in any dealer in Florida (I found one in California, though). Without it my payment could have been almost $25 less a month

A+ on that!!!! F.L. dealers better yet (stealers) are the worst to deal with.