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      01-08-2020, 10:30 AM   #1
Cjames2018
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Need Some Advice On Leasing (first time young buyer)

Hi guys, I have a very odd situation, and I need some advice and guidance. I am only 19, and I would like to make some better decisions.

I have a 2015 BMW 328i now, and I made an online servicing appointment. I then got a call, asking me to get an appraisal and then trade in my car. I went in to do that, and the dealer mentioned leasing.

The thing that sucks, but it was the "price to pay" at the time, is that I'm in negative equity with my. Current car, because I didn't have enough credit, down payment, and income for my first financing. The dealer mapped out a sample of what I would be paying to lease a 2020 330i. Can anyone give me advice on what to do, for lower payments, and tips for how to go about it? Btw, I'm okay with trading my car in with the dealer. My parents are also going to negotiate for me, but any advice on that?

I will also special order the car, because I want the standard white color, the M sport design, and the convenience package ideally (MSRP $47,335 with destination). I almost have $11,000.
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      01-08-2020, 10:37 AM   #2
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Originally Posted by Cjames2018 View Post
Hi guys, I have a very odd situation, and I need some advice and guidance. I am only 19, and I would like to make some better decisions.

I have a 2015 BMW 328i now, and I made an online servicing appointment. I then got a call, asking me to get an appraisal and then trade in my car. I went in to do that, and the dealer mentioned leasing.

The thing that sucks, but it was the "price to pay" at the time, is that I'm in negative equity with my. Current car, because I didn't have enough credit, down payment, and income for my first financing. The dealer mapped out a sample of what I would be paying to lease a 2020 330i. Can anyone give me advice on what to do, for lower payments, and tips for how to go about it? Btw, I'm okay with trading my car in with the dealer. My parents are also going to negotiate for me, but any advice on that?

I will also special order the car, because I want the standard white color, the M sport design, and the convenience package ideally (MSRP $47,335 with destination). I almost have $11,000.
uh don't trade your car to the dealer. I'm not sure what kind of lease rates you'll get since you're 19 and probably basically have no credit.

at least take your car to CarMax / carvana etc you'll get more than a trade in. not sure why you'd have to order a white 330i with basic options that is pretty common and most dealers will have dozens of cars with those options.
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      01-08-2020, 10:42 AM   #3
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Originally Posted by Cjames2018 View Post
Hi guys, I have a very odd situation, and I need some advice and guidance. I am only 19, and I would like to make some better decisions.

I have a 2015 BMW 328i now, and I made an online servicing appointment. I then got a call, asking me to get an appraisal and then trade in my car. I went in to do that, and the dealer mentioned leasing.

The thing that sucks, but it was the "price to pay" at the time, is that I'm in negative equity with my. Current car, because I didn't have enough credit, down payment, and income for my first financing. The dealer mapped out a sample of what I would be paying to lease a 2020 330i. Can anyone give me advice on what to do, for lower payments, and tips for how to go about it? Btw, I'm okay with trading my car in with the dealer. My parents are also going to negotiate for me, but any advice on that?

I will also special order the car, because I want the standard white color, the M sport design, and the convenience package ideally (MSRP $47,335 with destination). I almost have $11,000.
uh don't trade your car to the dealer. I'm not sure what kind of lease rates you'll get since you're 19 and probably basically have no credit.

at least take your car to CarMax / carvana etc you'll get more than a trade in. not sure why you'd have to order a white 330i with basic options that is pretty common and most dealers will have dozens of cars with those options.
I forgot to add, my credit is "fair" standing.
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      01-08-2020, 11:02 AM   #4
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A couple things here:

1. I hope you're not rolling negative equity into the lease. That's a terrible idea from a financial standpoint.
2. I would get your car appraised at a place like CarMax and make sure the BMW dealer is giving you at least what CarMax is offering you.
3. You should separate the trade in transaction from the lease. Combining the 2 together will muddy the waters and let the dealer take advantage of the confusion.
4. I would improve your credit before trying to lease a $46k BMW for $6000 down, $803/month. You should be aiming for 1% of the MSRP with $0 down, meaning $460/month.
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      01-08-2020, 11:26 AM   #5
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the lease offer they indicate $800 a month with $6000 down is horrible that is a total of over $35,000 this is a horrible lease deal. They didnt even give you a lease breakdown. That car should lease for around $400 a month with minimal down. I would try another BMW dealer. If you have a co-signer on the lease then you should get a much better deal.
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      01-08-2020, 11:39 AM   #6
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I don’t understand that deal at all.

You’re ready to trade in your car and you still have to pay $800 a month after $6000 down??? How in the world does that work?
The best idea would be for you to get the car in one of your parents’ name and you pay the monthly. I pay much much less than that with zero down for a car with a higher MSRP without any trade in.
I’m still flabbergasted at how they got $800 after $6k down! That’s almost $35k at the end of 36m for a $46k msrp car. I wonder what the SA was smoking when he gave you that “deal”. I’d laugh in his face and walk right out. 19yo or not.
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      01-08-2020, 12:55 PM   #7
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I'd save your $ for when you can actually afford it. There's plenty of nice used BMW's for sale that you can buy outright for a much lower overall cost. Once the novelty of the new car wears off you'll be stuck paying an outrageous amount for a base G20. For that amount you could lease an M3 CS.

Not to mention this vehicle won't even be unique. Save your time and $ and focus on graduating school/working and the nice cars will come in due time. Just my 2 cents bro
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      01-08-2020, 01:44 PM   #8
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You're 19 and currently own a 2015 3 Series. Most adults don't have the luxury to own such a vehicle. Don't push your financial boundaries at such a young age just to get the newest car out there. So many people do this and never recover...always playing catch-up with upside down car loans, etc.
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      01-09-2020, 07:03 AM   #9
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I'm genuinely not trying to be rude here, but I am shocked your parents are participating in this. I don't expect you to take my advice especially because I'm sure it's not what you want to hear.

This is one of the worst deals I've ever seen and it's exacerbated by the immense amount of negative equity you have.

I've seen people go into financial ruin due to their unsustainable car habits and taking on more than they could afford, rolling in negative equity every few years on a fast track to bankruptcy. Obviously I don't know your financial situation, but even if this is something you could afford, it's just a terrible financial decision on all fronts. No amount of negotiating you or your parents can do will make this not a bad deal. This is shameless predatory lending in its purest form.

I would run far from this. I would keep the 2015 3 series until you either break-even on equity or just pay it off over the long haul. When close to paying it off or breaking even on equity, I would begin researching and educating myself on leasing vs. financing, negotiation tactics, and just general financial knowledge.

There's tons of good information out there. Try leasehackr if you haven't already done so, it's a great resource for finding out the best way to get a good deal.

That's just my two cents. Ultimately it's your choice and your life, so do with this what you will. In any case I wish you luck.
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      01-10-2020, 12:10 AM   #10
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Easily one of the worst deals I have ever seen... the others here have already summed it up well for you... and try to really understand what the post above me by wtwo3 is saying, he's giving you solid advice.

You're 19... you drive a 2015 BMW, why do you want to change cars and roll over negative equity anyways? You essentially have no credit history either at your age. Stick with what you drive, you owe money on it. It's a horrible financial choice for you to get into a new one, especially at your age. Surprised your parents aren't guiding you and telling you what the others here have said. And if you have money to throw at a new BMW at 19, you should probably invest it instead for your future.

800 a month with 6k down is seriously laughable, and if you have to come here to even get guidance on this, I'd say you haven't done your research on leasing.

Just my honest advice, focus on school instead. Good luck.
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      01-10-2020, 05:08 PM   #11
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Keep your current car, try paying it off as soon as you can and do not lease anything. If your cerdit is "fair" BMWFS is not going to lease a car to you without someone else cosigning for it. You are 19, work on improving your credit. Sounds like you have no business leasing a car.
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      01-10-2020, 10:17 PM   #12
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Exclamation No no no

Run (do not walk) far away from that “deal”!

1. Keep and pay off your current car OR sell it and buy something cash; (e36 m3 sedan? E46 330i)

2. Save your money and build your credit; ( Dept. store credit cards are an easy way to do this)

3. I wouldn’t go back to that dealer at any stage of life for offering you a deal like that..(BMW Delr@y Be@ch?);

4. Familiarize yourself with various leasing sites and calculators (leasehackr is popular) for analysis;

5. Return to leasing scenario with at least a 700 (ideally 740+) FICO

My .02 cents, Good Luck!
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      01-12-2020, 08:46 PM   #13
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I think you all scared the young man, and he probably too embarrassed to respond.
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      01-12-2020, 08:54 PM   #14
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I think you all scared the young man, and he probably too embarrassed to respond.
I was just thinking that too.
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      01-12-2020, 10:07 PM   #15
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Hey OP,

You're young so time is your #1 weapon when it comes to using your money to make more money. Instead of buying a new car start buying index funds. Read this blog post:

https://www.mrmoneymustache.com/2011...-stock-market/
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      01-13-2020, 12:30 PM   #16
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I'm hoping OP is still lurking here reading and just not responding. I'll add my 2 cents as well because even though we're all a bunch of strangers on the internet, I wish I had someone to talk to with financial knowledge at that age. Looking back, I had no business getting as high of a car payment as I did at that stage in my life.

My advice? Can you wait a year? Ride out your car until next Christmas. Saturday December 26th, mark it on your calendar. Take that $6k down payment and put it in a 6 or 9mo CD. Won't earn much but it'll be something and you can't touch it. Each month from now till then, stash away the $800/mo that this lease would cost you. By December you will have just under $16k cash. Best option would be to find a 1st time home buyer's program and use that cash as a down payment on a 2 or 3 family house. Makes sense to 40y/o me but 19y/o me wouldn't want to hear that neither. So do this, on 12/26, that last week between Christmas and New Year's you can walk into any dealer that needs just a last few sales for the year. I'd be surprised if you come out paying more than $450/mo for a new 330. You probably wouldn't even have to use the whole $16k to knock out the negative equity in your current car.

P.S.: As a serial leasser myself, I have to ask, as I do other family friends your age, why lease? You should be looking at building equity at this point in life. I don't know you and perhaps you are able to write this off. But if you were my kid and determined to get a car, we'd be looking to find a dealer w/ a CPO former loaner to purchase.
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      01-13-2020, 04:28 PM   #17
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I may as well pile on. Don't be dumb. It's that simple. You can see what others paying for their 330i on this sub-forum and should know that's not a good deal.

I know what it's like to have the new car itch so bad it hurts. When I was in my early 20s having new Acuras when most of my peers were still getting used cars kept me from being able to facilitate other aspects of my life. In order to do so I ended up having to step down to a Civic and then a 4cyl Accord before my income started to catch up to my aspirations.

As others have pointed out, you already have a car nicer than most adults in this country, hell, the world. Chill out and work on that credit score which will pay dividends later. What you should do, and you can do it cheaper than what they list above is: replace the tires, brakes, get the dents removed (PDR), and get it professionally detailed. Your car will look and drive like new. Maybe add wheels or an exhaust if you still need something more to keep you interested but don't blow all that savings on a crap deal.

Think of it this way: you'd be paying a large balance for a car you don't own and can't drive while only borrowing another.
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      01-13-2020, 04:57 PM   #18
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Quote:
Originally Posted by alex2364 View Post
A couple things here:

1. I hope you're not rolling negative equity into the lease. That's a terrible idea from a financial standpoint.
2. I would get your car appraised at a place like CarMax and make sure the BMW dealer is giving you at least what CarMax is offering you.
3. You should separate the trade in transaction from the lease. Combining the 2 together will muddy the waters and let the dealer take advantage of the confusion.
4. I would improve your credit before trying to lease a $46k BMW for $6000 down, $803/month. You should be aiming for 1% of the MSRP with $0 down, meaning $460/month.
Thank you!
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      01-13-2020, 08:26 PM   #19
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May get a better deal used or CPO. Perhaps a private seller
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      01-13-2020, 09:22 PM   #20
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Quote:
Originally Posted by Cjames2018 View Post
Quote:
Originally Posted by alex2364 View Post
A couple things here:

1. I hope you're not rolling negative equity into the lease. That's a terrible idea from a financial standpoint.
2. I would get your car appraised at a place like CarMax and make sure the BMW dealer is giving you at least what CarMax is offering you.
3. You should separate the trade in transaction from the lease. Combining the 2 together will muddy the waters and let the dealer take advantage of the confusion.
4. I would improve your credit before trying to lease a $46k BMW for $6000 down, $803/month. You should be aiming for 1% of the MSRP with $0 down, meaning $460/month.
Thank you!
Cherry picked the one neutral comment in here and responded to that. Figures. I was the same way when I was that age, couldn't tell me shit
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      01-13-2020, 09:59 PM   #21
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Quote:
Originally Posted by Gdiddy23 View Post
Quote:
Originally Posted by Cjames2018 View Post
Quote:
Originally Posted by alex2364 View Post
A couple things here:

1. I hope you're not rolling negative equity into the lease. That's a terrible idea from a financial standpoint.
2. I would get your car appraised at a place like CarMax and make sure the BMW dealer is giving you at least what CarMax is offering you.
3. You should separate the trade in transaction from the lease. Combining the 2 together will muddy the waters and let the dealer take advantage of the confusion.
4. I would improve your credit before trying to lease a $46k BMW for $6000 down, $803/month. You should be aiming for 1% of the MSRP with $0 down, meaning $460/month.
Thank you!
Cherry picked the one neutral comment in here and responded to that. Figures. I was the same way when I was that age, couldn't tell me shit
It's not that, haha. Everyone have really great advice, I'm really thankful for it. The forum limits how much I can respond and I don't have time to wait. I did thoroughly read everyone's response and I am very appreciative that people took the time to give their opinion. I can't be upset for something I asked for, and I'm happy people responded!!
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      01-13-2020, 10:09 PM   #22
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Quote:
Originally Posted by Gdiddy23 View Post
Quote:
Originally Posted by Cjames2018 View Post
Quote:
Originally Posted by alex2364 View Post
A couple things here:

1. I hope you're not rolling negative equity into the lease. That's a terrible idea from a financial standpoint.
2. I would get your car appraised at a place like CarMax and make sure the BMW dealer is giving you at least what CarMax is offering you.
3. You should separate the trade in transaction from the lease. Combining the 2 together will muddy the waters and let the dealer take advantage of the confusion.
4. I would improve your credit before trying to lease a $46k BMW for $6000 down, $803/month. You should be aiming for 1% of the MSRP with $0 down, meaning $460/month.
Thank you!
Cherry picked the one neutral comment in here and responded to that. Figures. I was the same way when I was that age, couldn't tell me shit
Lol sounds about right. At 19 you want to be the 'cool kid' and get all the females at school or college or whatever and just gota have the latest and most expensive shit you can get.
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