Advice on 4X4 lease and types.
#31
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Joined: Jan 2006
Location: Okanagan region
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Car costs $50k. I have $50k in the bank, earning 2% a year. I leave it there, take the dealer offer of 0% finance. A (diminishing) proportion of my $50k stays in the bank, earning interest, while I'm driving around in my $50k car for a few hundred $ per month. Simples.


#32










Joined: Aug 2005
Posts: 14,227












It depends on how the dealer is incentivised doesn't it. I was offered a bigger discount for taking 0% finance than they were willing to give for cash. I actually wanted to pay cash, but it didn't make any sense to do so. This was a while ago now though and the credit environment is different today.

#33










Joined: Sep 2008
Posts: 12,830












I borrow the money from the manufacturer at 0% and invest my money that I would have used to pay cash for the vehicle. If I can get 2.5% return on my money (which I can right now), even after tax I am ahead of the game.

#34










Joined: Sep 2008
Posts: 12,830












I have managed to get both a discount and dealer financing at 0%. It is all about the math and each individual, some make it work, some don't. Some even pay the ridiculous 'documentation fees' charged by a dealer.

#35
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But your vehicle is depreciating rapidly so either way you are losing money as a vehicle is just a rapidly depreciating asset. Take the 50K, spend 5K cash on a half decent used vehicle and bank the 45K and then bank the monthly payments that you would have been paying - wouldnt that be the best way to go?

#36

But your vehicle is depreciating rapidly so either way you are losing money as a vehicle is just a rapidly depreciating asset. Take the 50K, spend 5K cash on a half decent used vehicle and bank the 45K and then bank the monthly payments that you would have been paying - wouldnt that be the best way to go?


#37










Joined: Sep 2008
Posts: 12,830












But your vehicle is depreciating rapidly so either way you are losing money as a vehicle is just a rapidly depreciating asset. Take the 50K, spend 5K cash on a half decent used vehicle and bank the 45K and then bank the monthly payments that you would have been paying - wouldnt that be the best way to go?
A half decent used vehicle is closer to $10k.
Someone changing new cars every three years is sinking money into a hole. I have an old VW, cost me $10k new, excluding running costs, which occur whatever, it has cost me around $500 a year so far.
My pick up is newer, but I will hang on to it for as long as it is going.

#38
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Joined: Feb 2013
Location: Manchester, UK
Posts: 58


But your vehicle is depreciating rapidly so either way you are losing money as a vehicle is just a rapidly depreciating asset. Take the 50K, spend 5K cash on a half decent used vehicle and bank the 45K and then bank the monthly payments that you would have been paying - wouldnt that be the best way to go?

#39
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Joined: Jun 2011
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No it's what we wanted to put down because we wanted the payments under $500 a month.
I would have to look at the paperwork but it was worth the sale price of a brand new CX5. He got a ton of stuff thrown in - that stuff the paint under your car to stop corrosion, to come back and get winter tires at trade price and a brilliant warranty which living in Alberta we wanted peace of mind. You can't be doing with your car breaking down in minus 30!

#40
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My apologies, i thought you came on here to let everyone know that you are buying a BMW that you cant afford. If you can afford it then why are you financing it ?? Was just trying to offer some advice. Even the founder of Ikea runs around in an old Volvo.

#41
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Joined: Feb 2013
Location: Manchester, UK
Posts: 58


Abdolute bananas. You clearly haven't read my original post or other contributors post before sticking your nose into something you have absolutely no clue on. I did warn against people like you, do I give a monkeys what the owner of IKEA drive? WTF I mean what's that got to do with me for heaven sake? Get a life will ya!

#42
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Joined: Jul 2012
Posts: 9,379












I just want to post something to annoy the OP who I find intensely irritating and full of it. But that would be wrong so instead I will comfort myself with the thought of his Beemer dancing in the snow.

#43










Joined: Aug 2005
Posts: 14,227












Abdolute bananas. You clearly haven't read my original post or other contributors post before sticking your nose into something you have absolutely no clue on. I did warn against people like you, do I give a monkeys what the owner of IKEA drive? WTF I mean what's that got to do with me for heaven sake? Get a life will ya!

#45
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With the risk of getting into an argument (which I don't do on the internet - can't be bothered - or in real life actually...)
Aren't BMW's rear wheel drive?
Do they have the capacity to change to All Wheel Drive?
If not OP I would reconsider.... it's lethal out here when there is snow on the ground. Good winter tires are a must. I see people spinning around in the school car park and with my trusty Mazda tank I am in and out no spinning every time. I do have good winter tires tho.
Aren't BMW's rear wheel drive?
Do they have the capacity to change to All Wheel Drive?
If not OP I would reconsider.... it's lethal out here when there is snow on the ground. Good winter tires are a must. I see people spinning around in the school car park and with my trusty Mazda tank I am in and out no spinning every time. I do have good winter tires tho.
