BMW Leasing

[chairman]

Has anyone tried this? I checked their website and parang ok eh. You lease the car for 3 years, kasama na maintenace and registration... Tax deductible pa... Is this a good option instead of buying the car? After 3 years may option ka to buy the car, extend the lease or just get a new one.... What do you guys think?

[albert_b]

Hmmm magkano ba kailangan dito? :-D wala lang hehe nangangarap ;-)

yung tax deduction para sa company 'yon 'di ba? Not personal tax?

[wren]

i used to lease kasi sa linya ng work ko, i needed newer, dependable cars. okay lang naman ang leasing, mas mura pa monthly mo, and like you said, most of the time, kasama na rin yung maintenance. mas mahal nga lang ang insurance kasi required kang bumili ng mataas na coverage. limitado ka rin sa mileage (usually 12K-15K miles a year). if you go over the limit, mahal ang patong, around 50 cents per mile. tsaka isa pa, you're monthly payments will never end if you keep leasing.

[albert_b]

really? mas mura monthly?! Magkano ba? :-D

[mazdamazda]

IMO... kung company vehicle, ok lang since booked as an expense yung vehicle lease/rental - which in turn lowers your net income and lowers your corporate tax.

you can also claim the expense as a non-capital input tax.

[rpdcruz]

leasing is 'almost' like renting the car. You don't own it. You have the option to purchase it after the 3 year period but grabe, expect to pay an arm and a leg for a 3-yr old used car (and they wont hold the unit forever for you either if you are scrounging around for the cash). If you cant afford it after 3 years, sayang lang all your monthly payments. You will get back zero cents to the peso tsk tsk. Better to just go the traditional method and save up for it or go thru bank financing. At least in this method, if you need the cash, you can sell the car even if its depreciated and can get back a sizeable portion of what you have paid.

agree... un lang catch pag naglelease ka taas din pay ng insurance. just like EQAddict said if ever u'll need cash pwede mo idispose unit as opposed with leasing.

[empy]

leasing is 'almost' like renting the car. You don't own it. You have the option to purchase it after the 3 year period but grabe, expect to pay an arm and a leg for a 3-yr old used car (and they wont hold the unit forever for you either if you are scrounging around for the cash). If you cant afford it after 3 years, sayang lang all your monthly payments. You will get back zero cents to the peso tsk tsk. Better to just go the traditional method and save up for it or go thru bank financing. At least in this method, if you need the cash, you can sell the car even if its depreciated and can get back a sizeable portion of what you have paid.

yep...but this is why you shouldn't buy the car after the lease term. leasing is really for people who want a new car every 3 years, and don't mind trading perpetual debt for lower payments. if you plan on buying the car after the lease term, better buy it outright at the start and save yourself the finance charges.

[ale828]

Yes, plus the fact that the leased car will always be CASA maintained and be in excellent condition with no worries for maintaince and stuff. Am i right? The downside is that i don't think you can modify the car unless its done in the casa.

[wren]

Yes, plus the fact that the leased car will always be CASA maintained and be in excellent condition with no worries for maintaince and stuff. Am i right? The downside is that i don't think you can modify the car unless its done in the casa.

Yep, tsaka the car is under warranty the whole time you have it, so wala kang babayaran sa repairs if something goes wrong with it. plus they give you a free loaner car while they fix the leased car. Regarding mods, pwede rin, pero make sure you save the stock parts, so you can put them back when you return the car at the end of the lease. and it's also smart to have mods that you can transfer from one car to the next, kagaya ng amps, HU, etc., para di sayang yung pera mo.

M54 nicely summed up what leasing is all about. just don't get too attached to the car and look at the bright side of it...you'll have a brand new premium automobile worry free every 3 years, yun nga lang, di titigil and monthly payments mo.

[ryan]

How much are the 3-yr lease rates here (like a 3-series for example)? When you compute it, is it just like buying a BMW now and then reselling it 3yrs later w/ depreciation or much much more?

[CLAVEL3699]

saan ba pwede maglease?

hehehehe nangarap at mga magkano?

[oldblue]

ako madali ako magsawa, mukang ok yan ah. sana meron din 3 year leasing period a cellphone hehehe

[red_wagen]

Just to compare...
I'm leasing my car right now. It was a CPO. Sticker was $38k but i got it for $32k, it had 4k miles on it, loaded except NAV and xenons. $355/mo for 42 months. I didn't put any money down, just inception fees (security deposit, 1st month payment, et al). If I go over 12k miles/year it's 0.20/mile. Factory maintenance is standard, 50k/4 years. Since my car is a CPO I'm covered for another 2 years/50k miles for a total coverage of 6 years/100k miles. At the end of the lease (2/07) I can continue to lease it at the same price, buy it for $19k (residual value) or finance and pay the same monthly or return it and get a new car. Although as someone pointed out, I don't actually own the vehicle, it's value is going down as I'm using it so that after the lease is up the market value has come down to a level where I can purchase it outright if I choose to or I can go on to the next car. I look at it as having more options plus I don't have to put a lot of money up front. I just wish I had gotten a stick then I would be keeping this car for sure. Oh btw you can mod a leased car, you just have to return it back to stock before returning it
Good luck...

[theveed]

Oh, leasing is a VERRRRYYYY shady proposition by the dealers... i strongly suggest you search the web for car leasing articles as the US consumers have had decades of experiences with this kind of setup and a lot of loopholes have been discovered and "fine print" issues that makes leasing a hassle for the uneducated customer.

I honestly think asking us (folks here who never leased one locally) won't give you the real score of leasing automobiles.

Leasing is just another term for renting. So that's basically what you're doing.

[ale828]

Yes but leasing may be a good idea for pinoys. I was told that the monthly payments for leasing is cheaper than buying it outright. So for the monthly payments for purchase of lets say a toyota corolla you could already be leasing a BMW 3 series. You may not own it in the end but the prestige and enjoyment you get while you have the car may be worth it. Plus you get to trade it in for a newer model if your lease is up.

[empy]

here's a point of reference for you guys. i was debating to trade in my 330ci for a new M3 a year or so ago and here's what i was quoted:

finance: $1,100 a month for 5 years with 20% (about $10k) down
lease: $800 a month for 3 years with zero down. forgot what the residual value was.

sticker price was about $52k.

[orly_andico]

BMW philippines is really doing all they can to grab a bigger share of the market.
imagine, they are now offering 10% down and 7 years to pay, in-house financing! of course that ends up costing an arm, a leg, and one left nut.

but it now opens up the idea of owning a BMW to people who would probably have gone for a top-tier 2.0L car in the past (because someone who can afford a 2.4L car like a camry or accord, can definitely afford a Bimmer even at the old financing rates).

i guess BMW philippines was looking at the 10,000+ Altis'es sold by TMPI in 2005 and thought, "i want some of that!"

[empy]

BMW philippines is really doing all they can to grab a bigger share of the market.
imagine, they are now offering 10% down and 7 years to pay, in-house financing! of course that ends up costing an arm, a leg, and one left nut.

do you know what interest rate they are offering with that loan? i bet that if you added up the finance charges over those 7 years, they would add up to be close to the price of the car!

[theveed]

You may not own it in the end but the prestige and enjoyment you get while you have the car may be worth it

Then there's no "worth" is there since it's only an expense and you don't get any asset out of it.

In addition, you don't get to "trade it in" for a new model, you get a new lease term. How can you trade something in that isn't yours to begin with?

All I'm saying is that there are a lot of loopholes in the lease agreement that I'm sure people here will not see since walang experience ang Filipino market. The age-old "normal wear and tear" issue will give you a lot of headaches when your lease term is due.

[red_wagen]

Then there's no "worth" is there since it's only an expense and you don't get any asset out of it.

In addition, you don't get to "trade it in" for a new model, you get a new lease term. How can you trade something in that isn't yours to begin with?

All I'm saying is that there are a lot of loopholes in the lease agreement that I'm sure people here will not see since walang experience ang Filipino market. The age-old "normal wear and tear" issue will give you a lot of headaches when your lease term is due.

What he is talking about is the driving enjoyment. It is something intangible. It is worth something to different drivers. Some value it more than others. This is the reason why some people are perfectly content driving a Civic while other people won't compromise. WRT "normal wear and tear", it is put in words in the lease contract. Stay within the guidelines and you're ok.