First time leasing / owning BMW

Auricom · 11-08-2021, 10:20 AM

Quote:

Originally Posted by KingSlayerNYC

Quote:

Originally Posted by taek

~$850 is about what came out when I punched in your purchase price, terms, and a ~$23k drive off in NY in a lease calculator. The biggest point of consideration will be a .00181 MF.

MF for X6s is around the .00096 to .00111 range. I would go the the Edmunds forums for 2022 BMW X6 Lease Deals and post your model, lease terms, and zip code and they'll give you the MF you should be looking for.

But if your credit is that bad, maybe there isn't much to be done. But overall, this is a pretty terrible lease deal. You're paying ~$53k to use an $80k car for 3 years with no equity. And that's if everything goes well. If you get into an accident in the first month and the car is a total, you're out that $23k and have to start a new lease.

Is it a terrible deal because of the MF or the fact I have to do the pre payment?

The later, which was the point I attempted to convey in my previous post.

Auricom · 11-08-2021, 10:31 AM

Quote:

Originally Posted by KingSlayerNYC

Quote:

Originally Posted by Auricom

You're having to use $15K cash as a down payment that will lower the LTV on a lease to within BMWFS lending limits given your credit score.

Not to come off abrasive, but if you are in this credit tier, you need to dig your way out over time by making a ton of good credit decisions along the way. Putting $15K required down payment to get approved on a $82K vehicle isn't. 51% residual value doesn't help and you're better off considering a 3 Series (57% 3YR/12K) or X3/4 (55% 3YR/12K) with MSRP less than 60K.

You'll also need to adjust your expectations of what is a realistic vehicle you can drive in the mean time. Given current market conditions and low credit score, leasing is more expensive than financing a lower MSRP vehicle through a credit union.

Notes:
LTV - loan-to-value ratio is a number lenders use to determine how much risk they're taking on with a secured loan. It measures the relationship between the loan amount and the market value of the asset securing the loan:

LTV = (Amount owed on the loan ÷ Appraised value of asset) × 100

When an LTV ratio is greater than 100%, a borrower is considered "underwater" on the loan

To lower your LTV:

1. Make a sizable down payment
2. Set your sights on a more affordable target

Money is not a problem at all. I can even finance or buy it cash but that's not worth it as there's no point setting back funds I can use otherwise while leasing the car.

Now the pay upfront isn't a choice. I just have to do it because I wasn't getting approved otherwise.

However, I came here because overall I do wish to lease and would like any help when it comes to leasing as I've never leased before.

For what it's worth., and correct me if I'm wrong, there shouldn't be too much of an drastic difference between a Tier 1 MF and a 0.00181 ?

Emphasis on the word drastic.

Actually paying upfront is a choice
Don't lease a $82K vehicle

You just contradicted your point by throwing away $15K to get qualified on lease. Goal of leasing is not to put any money down.

Smart approach and to build equity is you should use that money to finance a vehicle with a lower MSRP.

Linkinvoid · 11-07-2023, 07:31 AM

While there are various perspectives on down payments and leasing, it's essential to find what works best for your unique situation.
Leasing an $82K vehicle might come with its own set of financial factors, and it's fantastic that you're exploring your options. As for the Tier 1 MF versus 0.00181 difference, it might not be too drastic, but it's always a good idea to weigh the pros and cons.
Ultimately, the goal is to make a choice that aligns with your financial goals and preferences. If you're still looking for leasing insights or have questions about financial matters, you might find it helpful to check out Mortgage Broker in Ipswich. They specialize in financial advice and could provide valuable insights tailored to your needs.

11-07-2023, 07:31 AM	#25
Linkinvoid Registered 0 Rep 1 Posts Drives: bmw Join Date: Nov 2023 Location: usa iTrader: (0)	While there are various perspectives on down payments and leasing, it's essential to find what works best for your unique situation. Leasing an $82K vehicle might come with its own set of financial factors, and it's fantastic that you're exploring your options. As for the Tier 1 MF versus 0.00181 difference, it might not be too drastic, but it's always a good idea to weigh the pros and cons. Ultimately, the goal is to make a choice that aligns with your financial goals and preferences. If you're still looking for leasing insights or have questions about financial matters, you might find it helpful to check out Mortgage Broker in Ipswich. They specialize in financial advice and could provide valuable insights tailored to your needs. Last edited by Linkinvoid; 11-26-2023 at 04:36 PM..
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