[nutsngum]

Hi All

I'm getting ready to pull the trigger on my first BMW, an M235i.

I'm thinking of getting it via lease, and was wondering if anyone had any tips going into the discussion.

- Tips for structuring the agreement/negotiation
- Things to look out for to avoid excess charges upon return of the vehicle

Thanks!

[Transfer]

Make sure you have a solid understanding of how lease calculations work and what the current money factor and residuals are. Leases are a great option but it's very easy to get a bit ripped off given how complicated they are.

[Rekla]

ridewithg.com

[Cyberdemon]

Right, unless you completely understand how the different elements of the lease work it's very easy for dealers to make a deal look better on paper.

For my wife's first lease, I did not do my homework. One dealer offered her a car at a lower monthly rate, but they messed with the negative equity on her existing car + total cash up front. We went to another dealer and "negotiated" a lower monthly payment but at the end of it when we compared the total amount owed the higher payment was the better deal due to a better trade in value and less cash up front. My wife was thrilled her payment was under her "magic number" but in the long run it was foolish.

As far as structuring the lease, avoid down payments/cap cost reductions. They lower your monthly payment but expose you to greater risk if the car is totaled (you will not get that money back).

And regarding damages when turning the car back in, if you take good care of your car it should not be a huge issue. There is some damage waiver built into the lease structure. If you live in a rough area of the city where parking is difficult and door dings, blown out tires, etc are all problematic then leasing may not be the cheaper alternative vs financing.