I have a friend who is going to lease a BMW costing $45,000 for $375 a month with $6,000 down. Is this good?

Question

Is the money down good? Too much?

Answer 1

Leases are NEVER good. They get you in every way, with the mileage, at the end of your lease when it runs out there's a big fee, and then the thing that sucks is that you NEVER own it! He'd have to come up with a balloon payment at the end.

If he has $6,000 down, why not just buy it? It'll be better in the long run and then if he ever wanted to sell it he'd get a lot of his money back vs. leasing it -- NEVER get any back.

I know a lot of people who end up "upside down" on their leases.

Answer 2

I think it is "good", but for how long?

Consider that price if the car were purchased. It would be paid off completely in 8 1/2 years. So, any amount of possession less than that time (minus depreciation) would be a plus.

Also, consider that Lessors demand that you insure the vehicle with full coverage during the entire lease agreement, so the insurance will be as high as possible during that lease period.

There will be stipulations, such as how much mileage you can put on the vehicle until the lease is complete. Any mileage over the allotted amount will cost your friend (usually around 35 cents a mile).

The car must also be in excellent condition when the lease agreement ends, and your friend is responsible for all repairs prior to releasing the vehicle back to the Lessor.

Would your friend like to purchase the car? A lease agreement works well, because if your friend doesn't have the money up front, then the money can be saved along the months during the lease period, and rendered at the end of the lease agreement.

So, leasing is both good and bad. Paying $375/mo. for a $45,000 vehicle is very good - especially a BMW because almost nothing major will go wrong with the car, and it is covered by the warranty.

Answer 3

no anything that costs 375 a month and needs 6000 down requires a deed not some garbage hauling automobile, and this is a lease? how about i put some beamer roundels on a clean 2 series volvo and sell it to your friend for 2,500 us dollars cash?at least they will be able to reach their destination safely and won't have to waste a half hour reading a book on how to play the mediocre radio [plus 2 series cars are invisible to police and it is always more rewarding to drive a slow car fast than it is to drive a fast car slow]

Answer 4

it all depends how much your friend drives it cause if you go over a certain mile limit per year or month you have to pay more and every month theres interest and tax on the car so you may just want to save the money then buy the car don't do the lease

Answer 5

First, there isn't really enough info here. You need to know the residual, the length and see what interest rate you are paying to make any type judgment.

That being said, I can tell you that is absolutely a horrible way to buy a car.
NEVER PUT MONEY DOWN ON A LEASE!!!!
Doing so is just throwing money a way.
BMW offers what they call multiple security deposits. That is the only way you should ever put money down. You absolutely need to check into that option instead of putting $6000 down. $6000 down is absolutely insane.

Answer 6

NO!!! This friend will gain $6,000 immediately, but that is not enough for a BMW. Plus if it is going to be $375 a month, then it won't be until 104 years from now until its paid for. What your friend should do is make it a $10,000 down payment and $500 a month. That would still make it be paid off 70 years from now.

Answer 7

I actually have a Boxer/Rotweiler 6 month old domestic dog and he could do the splendid same element, any time he's left unattended he gets into something yet i could anticipate that from any canines, I even have 2 different small canines and heaven forbid you leave something out because of the fact once you come back it heavily isn't there. it incredibly is basically a canines element i think of. of path, my Boxer easily has an abundance of capability and he LOVES human beings, he's extremely linked to me so it incredibly is hard to instruct him to relax down and entertain himself with toys or chewies while i'm abode yet in my opionin it incredibly is an superb bond. different than that i could advise what I do, as quickly as I leave he is going in his cage, project solved, no trashing, no potty injuries, and the cats are not being chased :) as quickly as i'm getting abode he is going out returned to potty then comes interior and each little thing is going returned to his happy bouncy self :)

Answer 8

that's impossible to say with the info you provided. A 328 or 335 can be 45k, an x3 can be 45k, a z4 can be 45k, a 528 can be right around there as well as an x5. They all have different lease deals.

Answer 9

Well, the monthly payment seems reasonable, but there are other terms that could kill you at the end of the lease, so you don't really have enough info.

Answer 10

Unless you can write off the lease it is always better to purchase than to lease.