Seeking advice on Leasing a BMW

Get something else.

I'd like to purchase or lease a BMW 3 series (new) for my daughter's 17th birthday.

I too am curious about the pros and cons of leasing.

Any info from fellow forum members would be much appreciated.

Jim

quote:

Originally posted by BigH47:
Get something else.

How helpful.

Do the basic maths - is it cheaper to buy? Opportunity cost if you use own money; cost to borrow the money, less depreciation and resell value at end vs. the lease cost over the same period of time. Is insurance built into the lease? What service care do you get when compared to a straight buy? These are all factors to think about when factoring in cost. Also, do you need to make a down-payment? Are any mileage limitations built in? Are they reasonable or better what is the likelihood that you will exceed these and then what are the penalties?

What are the penalties for defaulting on lease either because you need a "better" car or because you can not meet lease costs.

Considering the car, just as a car? Are you familiar with rear wheel drive? How often do you drive in dodgy (wet or icy) weather? A BMW is a nice drive in nice weather but can be a handful when it gets wet.

You might want to consider an Audi A4 and do a straight compare / contrast. Test drive before making any decision.

Do not forget that you will be contributing to the leasing company's profit, will their profit be help you to save even more money over a DIY approach.

This is all about risk. If you do not want the risk, you can pay a bit more for somone else to take the risk for you.

If you take a lease and nothing goes wrong, ie. the car is reliable, resale values hold up well, you will have paid more than you needed to, had you bought the car yourself.

If the car has no end of problems, and the second hand car market dropps off a clif, you will have done well to lease. Its a bit like insurance, it is cheap if you have an accident, but exspensive if you never use it.

How risk averse are you?

In reality, a new BMW that is under warantee should not cost you any money, you can often get a servicing package these dayse, where you pay a bit extra up front, and then dont pay for 3 years of servicing, this might be worth looking at rather than a full lease.

If you want to change your car often, like every 2 or three years, a lease can be good, because you pays your monthly money and at the end, you hand the car back, and get another.

I bought my last car on finance (as the rate at the time from BMW was 3% which was worse than I was getting on my savings in the bank - this was 3.5 years ago). Now it is all paid for, and I have "free motoring", if it had been a lease, I would still be paying monthly charges. Fortunatly the car is still worth about 68% of its new price, so buying it was the corect thing to do.

quote:

Originally posted by i am simon 2:
Fortunatly the car is still worth about 68% of its new price, so buying it was the corect thing to do.

That's huge! What kind of car is it?

Jim,
Huwge is making a very valid point about BMW re the actual driving and if you are thinking of this for a 17year old inexperienced driver I think you should consider it very hard. They are powerful regardless of the model...compared to a normal car a 17 yr old would get, and can be a handful. Great fun in the hands of an experienced driver but a nightmare for an inexperienced one.

As far as leasing goes.....I get a very good lease deal through the NHS which covers all servicing and insurance and I know how much my car costs me every month. Any problems are fixed no questions asked (I'm drving a Skoda so have had no problems ) but it can vary from company to company. Its also not just the lease cost but company car tax too that has to be factored in.

Ryan

FFS.

Well thats useful.....

only too happy to help

quote:

Originally posted by Jay:

quote:

Originally posted by i am simon 2:
Fortunatly the car is still worth about 68% of its new price, so buying it was the corect thing to do.

That's huge! What kind of car is it?

I always take these with a pinch of salt. As I've found that these percentages can be the percentage of the purchase price that the car would sell for on a dealer forecourt and never the value that you would be given for the car should you trade it in to buy a new one.

Roy.

quote:

Originally posted by Roy Donaldson:
I always take these with a pinch of salt. As I've found that these percentages can be the percentage of the purchase price that the car would sell for on a dealer forecourt and never the value that you would be given for the car should you trade it in to buy a new one.

Roy.

My thoughts as well Roy. I'm thinking about a new car as well and the best performers appear to be in the 60% odd region after 3 years.

Jay

Fisbey,
you didn't!

I knew that. Sorry, I just get a little weary of people seemingly boasting about their wealth...

I know I don't have to read it....

I didn't take it as that....I could see why though, but if people want advice, just because its of something expensive is it any reason not to give it? If it had been about 253 pre or a 300power amp, is that any less extravagant and more worthy of advice.

This is a Naim forum....we're not talking Richer sounds!!

All the best

Ryan

Sorry...typo, it should have been 252 pre.

Each to their own I suppose....

I wish my Dad would buy me a new BMW for my birthday. I even have a driving licence.

My car is a Mini Cooper - purchased in 2003 for £14K and still worth £9.5K for a private sale second hand.

I am also amazed, but it seems to be true. When we decided to buy it, we looked at second hand, but they were only £500-£750 cheaper than new. We had to wait 8 or 10 weeks for it to be delivered, but it was nice to able to choose the exact spec we wanted.

Simon

quote:

Originally posted by i am simon 2:
My car is a Mini Cooper - purchased in 2003 for £14K and still worth £9.5K for a private sale second hand.

I am also amazed, but it seems to be true. When we decided to buy it, we looked at second hand, but they were only £500-£750 cheaper than new. We had to wait 8 or 10 weeks for it to be delivered, but it was nice to able to choose the exact spec we wanted.

Simon

You're right Simon. I just looked at the latest Mini on What Car and they expect you get back 64% after 3 years!

quote:

Originally posted by ryan_d:
Well thats useful.....

Take no notice i think was on about motorbikes - Front Fork Steering.

quote:

Fortunatly the car is still worth about 68% of its new price, so buying it was the corect thing to do.

Simon, I don't know where you obtained that statistic but if the offer is still open - bank it quick! Ignore the pricing books - go to a dealer and ask him how much he will give you against a trade in. Then again, if you wish to remain happy, don't!!

When I bought my 330D Touring, it was one year old and the dealer showed me the paperwork demonstrating the poor lady owner before me took a £10k hit in depreciation. There were many extras fitted whose value come resale is negligible.

My advice would be to sort out the best finance loan and purchase a year old model with low miles. It'll save you a packet and these cars really are well put together. I sold mine yesterday! Not sure about build quality of the latest model but I would recommend you get one of those to ensure maximum residual values when you decide to change again.

quote:

Originally posted by Right Wing:
Me and my partner fancy a new, but more likely newish BMW 3 series.

Can anyone offer any advice on this whole leasing thing, as I am totally new to it.

I am aware that BMW offer several options - I have been in to see the local dealership.

Would be grateful to hear some advice from here and not just the "advice" I got from there.

We can spare £450 a month tops, what are your thoughts.


Thanks in advance.

Peter

Peter

Any number of options - depending on your requirements - PCP (personel contract plans) are some of the most popular today - fixed £ over a 3/4 year period - sometimes with a fixed PX or car value at end. BMW are believe it or not one of the best value HP around - Audi/Merc are pretty expensive - I have not long sorted out my new PCP on my car and benmarked a lot of other companies - BMW did come up tops

Certainly for me NO build issues with the new 3 series - I did just over 100k in 3 years in my prev 320d - it never put a foot wrong - and the new 3 series is even better IMO - also this time of the year they are looking to sign a lot of new customers as new reg in September -

Work them hard and you should get the deal you want - happy shopping