I lease my e90 and e92....I work my ass off thats how i afford it.

Yes we are..........

I think you fail to understand how 0% financing works... They add the cost of interest to the price of the car up front instead of making you pay interest... It is just a marketing tool, you can be sure that they are not getting a hell of a deal when they advertise 0% financing.

Is that why you can get 0% financing, plus employee pricing, plus cash rebates? True they do price the vehicle under the assumption that it may be offered at 0% but they do that with every vehicle on the market and Im nto quite yet high enough on the chain to know the exact price breakdown, the only thing is at least with the 0% youre getting some sort of value, youre still getting free money. . The manufacturer subvents the rate to the finance company thus allowing for the 0% finance rate. In other words you buy a $50K Dodge ram youre paying 50K, its up to you wether you think its worth 50K however if youre being charged interest, then its $50K plus finance charges. There are people out there using that 0% to consolidate their credit cards as well.

I paid cash for my car, i don't think leasing is worth the money unless you can write the lease payments off on your taxes or you are getting a car allowance.

Financing is a good option as well, but its way better to get a secured line of credit on your house as it will have a lower interest rate than financing.

I afford my BMW by working and real estate investments.

Since when is your $50K Dodge ram actually 50k? Depending how you pay for it the price will be variable hence the rolling in of costs into the price of the car. Buying with cash or a line of credit will always get you a lower car price than getting 0% interest... If it is not well your dealership is robbing you blind.

There is no such thing as 0% interest what the dealership does is they calculate how much money they would make off of you at ~current lending rates over however long you are taking to pay them and they slap that cost into the price they quote you. Ex: You buy cash you pay 50k you get 0% interest you pay 55k... The same concept applies to leases etc...

Originally posted by ercchry


you are missing drug dealer in your list

I was gonna say... lol

Originally posted by boredengineer
Since when is your $50K Dodge ram actually 50k? Depending how you pay for it the price will be variable hence the rolling in of costs into the price of the car. Buying with cash or a line of credit will always get you a lower car price than getting 0% interest... If it is not well your dealership is robbing you blind.

There is no such thing as 0% interest what the dealership does is they calculate how much money they would make off of you at ~current lending rates over however long you are taking to pay them and they slap that cost into the price they quote you. Ex: You buy cash you pay 50k you get 0% interest you pay 55k... The same concept applies to leases etc...

55K when the vehicle sells for 50K? Who would pay the extra 5 grand.. the dealership has to account for that 5 grand and Im hoping whoever pays the extra 5 grand would start asking some questions. How would they just come up with an arbitrary number to determine the funds lost from offering 0%? The dealer could roll the costs you talk about into a cash or finance deal. Im not sure what deals youve seen go down but a customer comes in and writes a cheque for 50K.. he is going to get the exact same price as the guy who finances it at 0%, the dealer gets their money either way so they dont care.

my family has never leased a car for the simple reason that we jus keep the car for 10 years or so untill its seriously jus a hunk of junk and then buy a new one...I think leasing is better if u have nothing to worry about financially and u can manage your payments well...and then after managing all of that u can jus give away your car and jus go start all over again.

ITs just too much work in my eyes...plus i dont want restrictions on what i can do with a car that IM PAYING FOR. I want to do what i want, when i want to.

Oh yeh, really? Every year? Please tell me.

Some really good info on leasing/financing and hopefully it'll clear up a lot of misconceptions.

I've never paid for a car in cash,

1. I don't have that kind of money sitting around
2. Even if I did, so many other ways of making that lump sum grow into so much more

Some people are so proud of paying $50K cash for the car and then going on about how paying interest is for the dumb, that annoys me LOL

If your income easily supports a car payment, why pay in full upfront?

Oh yeah, is anyone going to post "My parents bought it for me'?

Nothing wrong with that except most of you are only going to jump on them saying they are spoiled rich kids blah blah blah etc.

I paid for my Bimmer (when I had it) by working away in my family's Chinese restaurant. Tomorrow will mark the start of year 13 in this place. I've paid my dues haha

Originally posted by max_boost


If your income easily supports a car payment, why pay in full upfront?

Cause its more fun handing the salesman a big fat cheque...LOL.

Well not every year. The last 2 years for sure.

Well lets hear it???

Originally posted by 89coupe


Cause its more fun handing the salesman a big fat cheque...LOL.

And in the meantime, a smart investor could double that dollar amount rather than dump it into a depreciating asset.

Dividend mutual funds have averaged over 12% the last decade.

Originally posted by 89coupe


Cause its more fun handing the salesman a big fat cheque...LOL.

It would be way cooler if it was cash! haha

I tried paying for it with my Visa Travel Gold, I figured buy a car, get a free trip...LOL...but they said no.

BMW actually let me pay the entire amount on Visa ( i get 1% cash back), but my limit wasn't high enough, so i paid my entire limit on Visa and then the rest in a cheque

My old man bought me mine. Free cars FTW, thats how real ballas roll hahahaha.

haha well there are never any guarantees but the performance has averaged out pretty well.

http://www.globefund.com/servlet/Pa....gf.02270155444

14.45% yearly average since inception!

Originally posted by 89coupe


I tried paying for it with my Visa Travel Gold, I figured buy a car, get a free trip...LOL...but they said no.

If you were willing to pay the extra 2% fee associated with processing a VISA, maybe they would have let you

which dealer?

Calgary BMW only let me pay $5K

BMW gallery would let me put the whole balance, they let my parents pay for their car entirely on Visa, i have since raised my limit for my next BMW!

Originally posted by bg_27
BMW gallery would let me put the whole balance, they let my parents pay for their car entirely on Visa, i have since raised my limit for my next BMW!

Seems kind of odd since the dealers have to pay a percentage of that.

Maybe they were hosing your parents and yourself and charging you a premium...LOL

Unless things have changed, if you read the service agreement that a business signs with VISA, businesses are technically not allowed to limit how much customers pay using a credit card.

I'm sure they are if they are giving you a price below MSRP.

I doubt they legitimately can turn down your card but they have every right to use it as a bargaining chip

ie: "I can give it to you for 50,000 if you pay cash or cheque, 52,000 if you want to use a credit card"

They would have control of the deal they broker so they can set the terms that they want

yah some places (ie high end jewlery stores) give you a Visa/Mastercard price, or take 2% off for cash, but BMW it was gonna be the same price either way. At Acura when i bought my old car they only let me put $10,000 on Visa

They can only give you a discount for cash. They cannot charge you more for using a credit card. Those are the service agreement terms they signed with the CC company. Don't talk about how you are paying until all the numbers are finalized.

yah, when i went to BMW, i negotiate my price with the sales associate, and then when i talked to the business manager to pick up the car i asked if i could do CC, and thats when they agreed, so it was a couple months after i got my price that i even mentioned a CC.

Thanks for posting that.. It's valuable information. I'm looking to buy a 1er come end of 2008. I had always thought of a lease as "renting" from the dealer.. and why would I do that. But the post makes an extremely good argument.

What I'm really curious about is whether or not those numbers/math hold true. From my (limited) experience with dealerships, I have found that one's original calculations mean little after the paperwork is all said and done.

On topic.. I can't pay for mine yet.. but plan on paying for it through a job in the oil and gas industry (geology).

To answer the original OPs question:

We own one beemer; 2005 X3 outright and are financing our 2007 335I. We're not drug dealers, nor do we accept "gifts" from family. Just a young couple with no kids that works damn hard to pay for what we have.

A

LMAO @ people buying cars for cash...I'm sorry, but I'd rather be SMART and make my money work for me by investing in things that will MAKE not LOSE money.

Ballers bragging that they write fat cheques or pay by Visa...that just shows that you don't have the sense to make MORE money with your money, it doesn't tell me you are loaded.

Lease/Finance FTMFW.

i paid my car using a home secured line of credit, the interest rate on my line of credit at the time was half of what BMW was giving for lease or financing (and is still lower interest rate than BMW today). I paid as much with my visa as my limit allowed (for the 1% cashback), and then paid it off with the line of credit.

The line of credit gives you the flexibility to pay as little as only the interest that month or as much as you want. Most people that say they paid with cash is borrowed from something like a line of credit anyways.

speaking of line of credit, what is the highest limit someone got with their LOC that is unsecure?

an unsecured line of credit limit depends on income, net worth etc. Along with the unsecured line of credit is higher minimum monthly payments and higher interest rates.

That depends on the Lease/Finance rate doesn't it?

Wow I started this topic and look at where it's gone! Thanks for the tips guys in the near future. I don't know what I want to do with my 320i keep it or sell it.... but I guess I have no choice but to keep it until I can afford to work my butt off and get a new car.

Steve

LOL yes if the lease rate is 18% pay cash.

Hmmm I don't think I can afford a bimmer making $35k a year... with mortgage payments up the ass!!

and I don't think I can make much more with a Business Management diploma/degree w.e...