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Thread: Does anybody fall for these lease deals?

  1. #1
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    Does anybody fall for these lease deals?

    Lease a well-equipped (with sunroof) 2014 328i Sedan for $189 per month plus tax for 30 months
    Several to choose from at this price.

    10% Down Payment, $699 Dealer Fee, $925 Bank Fee, 1st Payment, Tax, Tag, & State Fees
    $6,406 Total Due at Signing

    Who puts down $6500 on a leased vehicle?
    Let me get this straight... You are swapping out parts designed by hundreds of engineers that get paid thousands of dollars for something you bought at Pep Boys because your buddy who doesn't have a job told you it was 'better'?!?

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    Man I havent even put 6500 down on a car I own, much less a lease.
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    Most people don't read the fine print before they inquire about them. I get phone calls all the time about them and I have to explain the money down. Your $6406 figure also doesn't include taxes, so put on a few more thousand. Some people are desperate for a BMW no matter waght.

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    I have never considered a lease. If I can't afford it out right with money that I have on hand, I am not going to buy it.

    For that down payment you can buy a really nice e46, which seems to be the BMW of choice for people that buy one for the badge.
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    Lots and lots of people...you know this living in sofla OP

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  6. #6
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    The idea isnt to get people on those lease deals, its to get them in the door asking about cars and etc so they can rope them into a car somehow. Basically a bait n' switch

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  7. #7
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    Quote Originally Posted by BimmerBreaker View Post
    The idea isnt to get people on those lease deals, its to get them in the door asking about cars and etc so they can rope them into a car somehow. Basically a bait n' switch
    That phrase, I don't think it means what you think it means.

    Advertising that you can lease a car for $6500 down and $190 a month isn't a bait n' switch if you can go in there and put $6500 down and lease it for $190 a month. It's called advertising.

    If the customer doesn't want to put that much down, I'm sure the dealer would accomodate a deal with a higher monthly payment in lieu of the large amount down. In fact, I'm pretty sure they're expecting people to balk at the large amount down, and they then offer the larger payment with less down.

    That the low monthly payment is desgned to catch your eye doesn't make it a bait n' switch.
    Quote Originally Posted by B4SH View Post
    If anyone knows, it's this guy who knows literally nothing about everything.
    Quote Originally Posted by fcvapor05 View Post
    Do you even OT? The mean 401k around here is probably about $6, what with all the shiny cars and $1,000 watches and donations to get other members' Volvos running.


  8. #8
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    How long before we see lease deals with $10k down payment?
    Let me get this straight... You are swapping out parts designed by hundreds of engineers that get paid thousands of dollars for something you bought at Pep Boys because your buddy who doesn't have a job told you it was 'better'?!?

  9. #9
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    They get you in there with an advertisement touting a cheap lease deal (bait) but you dont notice the small text and once you get there they try to get you on a standard lease without a huge downpayment (thatd be the switch)

    Not sure if BMW does this but my old dealer used to advertise lease deals on 1-2 cars specifically (some of our 2014 Civics at $199/month!), once they sold, they would not honor the deal for any other cars... that was more of a true bait and switch, but the theory still applies to the lease deals. Or they do the classic, and I think BMW does this, "XXX Lease deal on factory equipped vehicles" but none of them are factory equipped because every car on their lot has dealer-installed tint...
    Quote Originally Posted by Critter7r View Post
    If the customer doesn't want to put that much down, I'm sure the dealer would accomodate a deal with a higher monthly payment in lieu of the large amount down. In fact, I'm pretty sure they're expecting people to balk at the large amount down, and they then offer the larger payment with less down.
    Yup. Its not a verbatim bait and switch which is why I say its "basically" a bait n switch
    Quote Originally Posted by Kevlar View Post
    How long before we see lease deals with $10k down payment?
    My local dealer has already had em...

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    It's not "basically" a bait and switch in any way. All details are disclosed in the advertisement and there are no hidden fees. You can walk in and get that exact deal if you want. If a customer wants to change the terms then that's their prerogative.

    Some people have a mental threshold for monthly payment and will put money down to achieve it. Some people get a car allowance and will put money down to get there. Some people don't want their spouse to know exactly how much the payment is....etc.

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    I imagine the same sort of individual that goes and leases a 2014 328i sedan.
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    Quote Originally Posted by Kevlar View Post
    How long before we see lease deals with $10k down payment?
    http://www.palmbeach.bentleymotors.c...r_lease_offer/

    C'mon Kev, you're not even trying.

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    Quote Originally Posted by Charlie View Post
    http://www.palmbeach.bentleymotors.c...r_lease_offer/

    C'mon Kev, you're not even trying.

    -Charlie
    Wow... just want. $2588/month w/ $17,588 due at signing. (Excludes taxes, tag, title, $689 Dealer fee and other options).
    Let me get this straight... You are swapping out parts designed by hundreds of engineers that get paid thousands of dollars for something you bought at Pep Boys because your buddy who doesn't have a job told you it was 'better'?!?

  14. #14
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    I put $4k down on my lease, but it's an employee lease, and I'm going to buy it at the end.




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    I don't think I'd want to lease even if nothing down. But if you do the math with the 7 grand down, I think the 30 payments come out to just under $450? For some people who always want to drive new, paying that every month works for them.

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    Quote Originally Posted by Kevlar View Post
    How long before we see lease deals with $10k down payment?

    You can already get them. it's called a pre-paid lease. You give them all the money up front and have no monthly payments. Then bring the car back in 24 or 36 months and do it again.
    Quote Originally Posted by B4SH View Post
    If anyone knows, it's this guy who knows literally nothing about everything.
    Quote Originally Posted by fcvapor05 View Post
    Do you even OT? The mean 401k around here is probably about $6, what with all the shiny cars and $1,000 watches and donations to get other members' Volvos running.


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    My business partner just figured this out while looking at a VW for his high school daughter that he was going to lease a Tiguan. He was under the impression that if he was going to be putting $2990 down to lease it for $189/month. It wasn't until after he test drove the car and picked out the color that they dropped the bomb on him that he was going to have to pay well over $4k up front. He (and I) don't quite understand paying so much taxes for something you're not actually buying/owning.
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    A lease is beneficial to lots of people, especially since a car is a depreciating asset. The way a lease works is you will be paying the difference between the cost of the car and the residual cost of the car over a term like 3 years. All the down payment does is buy down that lease payment, so on a 3 year $3600 down will make the payment $100 less each month. Leasing is smart on japanese cars because they hold resale value, so the car is usually worth more than the residual, leaving you in an equity position. The reason why you'd lease a BMW is because the car can depreciate below that residual amount, but thats of no importance ina lease because you can return that car and walk away. If someone did a purchase on thbat same car, and owed 40,000, and the car was worth 32,000 they would have major inequity, with the lease they can walk away. So a lease in beneficial when you want a new BMW all the time, under warranty, and you dont have to worry about inequity because you owe more than the car is worth. Plus a lease pmt is significantly lower so you can buy a more expensive car and have the same payment. If you understand leases you can understand the value. It depends on a persons budget, lifestyle, and if they want options down the road. That car can be purchased for the residual amount, dropped off, or even traded in with the residual being the payoff. LEASES ARE WORTH IT DEPENDING ON WHO IS BUYING THE CAR AND THEIR SPECIFIC SITUATION

    - - - Updated - - -

    Also those leases advertised are on a base model car, so If you want NAv ora ny other options itd be factored into the lease, another cool thing is every $1000 down on a lease lowers your monthly pmt way more than on a purchase because your only paying for half of the price of that car, well less than half, but you get it. Imagine buying a new 435i and with your $5000 down you can have a $799 pmt or the sales guy says your pmt can be $575 and you have options in 3 years to buy the car or get another brand new car with new warranty and maintenance

    - - - Updated - - -

    90% of guys in the NEW car biz lease their rigs, anybody who knows EXACTLY how it works usally will. Your credit HAS to be solid tho.

  19. #19
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    My problem is not with leasing... but with the fact that when you put $6k down on a lease and you total the car next month, you don't get that $6k back. Insurance pays out the value of the vehicle and you are back to $0.
    Let me get this straight... You are swapping out parts designed by hundreds of engineers that get paid thousands of dollars for something you bought at Pep Boys because your buddy who doesn't have a job told you it was 'better'?!?

  20. #20
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    Quote Originally Posted by e30jrosso View Post
    My business partner just figured this out while looking at a VW for his high school daughter that he was going to lease a Tiguan. He was under the impression that if he was going to be putting $2990 down to lease it for $189/month. It wasn't until after he test drove the car and picked out the color that they dropped the bomb on him that he was going to have to pay well over $4k up front. He (and I) don't quite understand paying so much taxes for something you're not actually buying/owning.
    Different states view taxes differently, some charge tax on full price other just on leased amount. But basically all you are doing with a lease is paying for the depreciation value of the vehicle while it is under your "ownership". Ownership is kind of an abstract if you are talking about lease vs loan, as in both cases you don't technically own the car. At the end of the lease you can always buy it.... you just have the option for a hassle free return.

    I leased my 2 series after going back and forth on the whole lease vs buy thing. What made me do it in the end was basically I don't see myself hanging onto any modern car more than 3-5 years. I figure 3 was a good margin. In any case whether you bought or leased it, you are out roughly the same amount of money if you get rid of it in 3 years.

    Anyways I just got fed up with an out of warranty older car being my primary vehicle. No matter how much money you dump into it, it is a losing battle. When I calculated out how much I had spend on maintenance etc over the period of 3 years came close to a car payment.

    Secondly as to someone saying buying a car outright in cash.. maybe for cars 20k and under or ones that hit their depreciation sort of bottom, but plopping 50-100k cash on a new car is pretty stupid. As someone put it... if you had the chance to buy a house that costs 350k, and would be worth 30% of its value in 5-7 years... would you buy or rent?

    But as an aside, large down payments in a lease are stupid. I only paid for the tax and registration on the car, but I got a not too bad discount on the price. Around 3400 off sticker for when most dealers wouldn't even budge 500.
    Last edited by Luftwaffe1O1; 10-22-2014 at 08:37 PM.

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  21. #21
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    I get the whole lease option and a few years ago I would have done one but I spent way too much time in the car and would have gone way over on the allowed mileage.

    I get that people like having a new car every three years but having a brand new base model car isn't important to me. I'd rather buy a late model used and even if I have a loan I'd plan to keep for 6-8 years and have at least a few years without any payments. I like the idea of working towards owning something outright (same as home ownership vs renting) and having only insurance and maint and property taxes after the loan is paid off. I know cars are depreciating assets but it's not something that just sits in your driveway, it gets tons of use while depreciating.
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  22. #22
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    Quote Originally Posted by e30jrosso View Post
    I get the whole lease option and a few years ago I would have done one but I spent way too much time in the car and would have gone way over on the allowed mileage.

    I get that people like having a new car every three years but having a brand new base model car isn't important to me. I'd rather buy a late model used and even if I have a loan I'd plan to keep for 6-8 years and have at least a few years without any payments. I like the idea of working towards owning something outright (same as home ownership vs renting) and having only insurance and maint and property taxes after the loan is paid off. I know cars are depreciating assets but it's not something that just sits in your driveway, it gets tons of use while depreciating.
    Actually leasing is better if you drive a lot of miles. Even accounting for paying for the extra miles, it can cost you less paying for the miles. Unless you put something like 100k miles on it in 3 years.

    But you can always just buy it at the end.

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    Yea I think the down payment requirements at signing are ridiculous on a lease. Pay $6500 + the monthly payment to "rent" a car for 2 years, no thanks. Then try to buy that same car from them when the lease expires, LOL watch what kind of price they came back with. You'll RUN for the door.
    Last edited by QuickSilv3r; 10-23-2014 at 02:38 PM.

  24. #24
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    Quote Originally Posted by QuickSilv3r View Post
    Yea I think the down payment requirements at signing are ridiculous on a lease. Pay $6500 + the monthly payment to "rent" a car for 2 years, no thanks. Then try to buy that same car from them when the lease expires, LOL watch what kind of price they came back with. You'll RUN for the door.
    The residual is set when you sign the lease.... the down payments are stupid. The other aspect is anything you can negotiate down ends up being essentially a down payment because the residual is based on MSRP and not the negotiated price.

    So if the car has the msrp set to 50k, and you negotiate it to 46500 and let's say plop down 2k for taxes and fees, you essentially just put down 5500.

    The advertised deals are definitely crap, but there is so much misinformation and outright wrong information about leasing on here that it is kind of funny. The purchase price at the end of the lease is the residual value and this is set by the manufacturer, so you can figure out what it is going to cost you at the end. It's not some secret value you get served at the end...

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  25. #25
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    Quote Originally Posted by Luftwaffe1O1 View Post
    The residual is set when you sign the lease.... the down payments are stupid. The other aspect is anything you can negotiate down ends up being essentially a down payment because the residual is based on MSRP and not the negotiated price.

    So if the car has the msrp set to 50k, and you negotiate it to 46500 and let's say plop down 2k for taxes and fees, you essentially just put down 5500.

    The advertised deals are definitely crap, but there is so much misinformation and outright wrong information about leasing on here that it is kind of funny. The purchase price at the end of the lease is the residual value and this is set by the manufacturer, so you can figure out what it is going to cost you at the end. It's not some secret value you get served at the end...
    As far as the down pmt its based on how much cash you put down, not MSRP or negotiated price. But the residual is based on MSRP, so its not more money down, its just less monthly based on the amount your "financing", And yes you only pay "use tax" on the amount your paying for, so on a 50k lease, with a 30k residual, your paying tax on the 20 not all up front, but in every monthly pmt, and any negotiated amount just gets subtracted over the 30 or 36 pmts. Its a good way to go if your not 100% youll keep the car forever, or if you drive 30k a year. at 15 cents a mile, thats $150 for every 1000 miles over the allowed amount, and the residual goes down the longer the lease, or the max amount miles allowed, all those factors lower your residual , but pmt goes up because you have a higher margin between price and residual.

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