2006, black on black 6mt base coupe. What's a good deal for a 3 year lease?

 

how much driveoff and msrp off car you are interested

 

Well, the MSRP on 6MT with just prem pkg is 37.3k, lets assume few things, the final negotiated price of car is 34.5k, 57% residual, MF of .002(4.8%) with no money down except 1st month/DMV/acquisition fee...the payment would be 479 plus tax for 36mos. but thats just to give you some ideas, too much variables to be excat.

 

A good deal on a lease would be NOT to lease....

 

May I ask why?

 

Because he, like most people, doesn't really understand the financial math behind a lease.

 

There's actually a guy who's trying to pass on the lease of his base coupe, black, 6mt....

If you look through the classifieds you'll find him, seems like a good deal to me.

 

Exactly! You always get a lot of ignorant posts whenever anyone starts asking about leasing.

 

basically to sum it up in a nutshell why leases are stupid, you pay money ( a good amount of money ) and in the end you have nothing to show. same reason why renting an apartment < owning a condo. etc.

neal

 

This is a typical ignorant lease comment from someone who clearly doesn't understand the financial structure of a lease. Leasing a car is very different from renting an apartment (last time I checked there wasn't an option to buy your apartment at a reduced residual value at the end of 5 years).

Basically to sum it up in a nutshell, a "lease" is equivalent to taking out a normal purchase loan over an imaginary term length that then gets paid off with one balloon payment of the residual value of the car at the end of the time period of the lease (and is paid off by "selling" the car back to the dealer for this value). This imaginary equivalent term length is typically much longer than you can get when purchasing the car, which is why the payments are lower.

Disadvantages include stipulations on the lease (like mileage restrictions), but advantages include that you only pay tax on the portion of the car that you've paid thus far, so the effective loan amount is calculated without taxes (you therefore effectively finance less up front).

Financially, you're essentially for the difference between the present value of the new vehicle and the present value of the residual at the end of the term based on the effective interest rate.

For example, for my lease terms the effective purchase term was ~84 months. If someone could take out a loan for purchasing the exact same car with an 84 month term, at the end of my lease period we would be in the exact same financial position, "owning" the exact same amount of the car.

 

So if you financed or owned a car, in the end, what do you have to show, say, after 5 years?

An old car with 70k miles that's out of warranty? And what if during the time you owned the car, you had an accident that caused major damages to your car but weren't bad enough to have it written off but enough to kill the resale value? What if you had TWO accidents and your interior was now squeaking, rattling like hell, giving you constant reminder that your car just was not the same anymore?

Everyone has his own reasons to lease a car. Some lease because they can't afford to buy. Some lease because they're car nuts and want a new car every 2 or 3 years. I used to, and still do, buy cars with cash 'cos it gives me the chance to sell it very quickly. My G35 coupe was the first car I ever leased. I leased it, because I get bored with cars easily and buy new cars every 8 or 9 months. I've bought 3 new BMW's in the last 2 years and am on my way to buy my 4th and 5th. It became like a bad addiction, dumping money into things that have no appreciating values. I was actually hoping that I would get contractually tied up with the G35 (with a lease) so I wouldn't be able to sell it so soon and once again lose more money. That plan was ruined yesterday when my salesman told me that I would be able to find someone to take over my lease. I could still keep the G35, but it just doesn't make sense for me to have an MZ4, an M5, an X5, and a G35 that I will now only drive about 5000 miles a year.