@jrmalvarez wrote:
Hello All,
i am looking into leasing a new 2020 BMW 330i. I have never leased a car before and wanted to know any tips or experiences that you have had with BMW. I get bored of things fast so i dont really see the point in me buying a car as i would just end up trading it in about 3 years anyways.
i started to do some research and i read somewhere that you can purchase more miles during the lease term and they could potentially be cheaper than if you paid for those overage miles when returning the car. At the end of the lease, what forms of payment do they take for any fees that may charge? Cash? Debit/Credit?
I also read something about there are tiers to interest in which they can charge you but it didnt really make sense to me.
Are there certain times throughout the year that lease deals are better?
I currently work about 14 miles from home so over 3 years i drive about 21,000 miles to work. I think currently theyre offering 30k for 36 months. so i would have to be rather frugral with the little buffer room that i have.
Any advice or clarification is welcomed!
My current experian score is 735 but thats with balances. i am waiting for my score to update as i just paid off 4 credit cards in full so my score should be much higher in the next month or so.
My annual income is 65k.
If this is your first BMW lease, a few things to expect:
- You will have the option to purchase additional miles during part of the lease. If you think you're going to overshoot your mileage, do it before you turn it in for a cheaper rate. It is cheaper to do before turn-in.
- Unless you plan on rolling into another BMW (or buying this one) immediately at the end of the lease, expect to pay some termination fees and replacement/repair costs on the car. It's not bad, usually $1,000-$3,000, mostly for things like tires. How they accept the fees varies from dealer to dealer, but unless you have a lot of additional costs they'll likely be willing to take it all on a card.
- They're almost always running a promotion on financing, because at the end of the day you're still giving them money for a depreciating asset. They're making their money on the car; the lease money factor is just icing on the cake. There are tiers, but the top tier is in the high 6's for FICO. BMW will approve just about anyone with a pulse.
I've done two leases with BMW in the past, and I will never do them again. My first one came out to costing over $1/mile, and my second one was just a smidge under that. They're not good deals unless you get an insane residual (>85%), which is rare especially on a 3 year lease. Leases are basically seed cars for the dealership's CPO inventory in 3 years, so they'll lease you a $50,000 car for $15,000-$20,000 then sell it to someone in 3 years for $30,000-$35,000. If you bought for $50,000, you can always trade in in 3 years and probably still get around $30,000 for the trade-in, even with the scratches and tires they made the lessees pay for.
