[Technocrat]

Originally Posted by vineethvazhayil

The monthly rates on the 3 series etc for lease are usually for 36 months and 10000 miles a year. There are penalties for breaking the lease (at which time you may have to buy and sell the car or find a buyer who can buy the car off the leasing company)because you are bound by contract to make the entire 36 monthly payments. So while it may sound attractive, it maybe not a good option overall because it can turn out to be more expensive than you think if you ever have to break the lease. PM me if you want to understand the lease breakage bit a little better, I have done it once.

Why not share it here for everyone's benefit

[amitoj]

Originally Posted by vineethvazhayil

since you are in California, you don't have to get through a tough winter.

Tell me about it
I have a free flow filter lying in my car's trunk that i have not yet fitted just because it is so cold here!

[vineethvazhayil]

Originally Posted by Technocrat

Why not share it here for everyone's benefit

Hehe.. Alright, that is actually not a bad idea either.
I leased a 2010 VW Jetta TDI in June 2010 when I had zilch credit history. I got a 15k miles a year lease for 30 months at 380$ a month for a fully loaded car with DSG and Navi and Sunroof and everything else.

I had to leave the US on a personal emergency in November 2011 after having gone through half the lease. I went back to the local VW dealer to ask for a buying out the lease. His valuation of the car was 1500$ dollars below what the leasing company (VW Credit) was quoting for the car. What it meant to me was I and the dealer would together buy out the car and I make an additional payment of 1500$ at that time. Unsatisfied with my options, I went and asked a couple of other folks. I was in a hurry and had roughly a week to wind up everything before heading back. Carmax offered me a price around 300$ less than the asking price from the leasing company for the car and I took that offer making a loss of 300$ in the process.

To dwell a little more into the economics, when you sign up for the lease, what you are also agreeing to are the payoff quote calculations for the car based on your monthly payment. For eg., if you have a 300$ a month lease on a 25k selling price car, your payoff quote after 10 months maybe very close to 22k. However, the market value of the car would be more like 21k or less considering new car depreciation etc. At that time, if you would like to sell the car, you will very likely make a loss of 1k dollars or more. So if BMW offers you a 350$ a month lease on a 45k$ car for 3 years and you want to get out of the lease after half the lease your payoff quote would be very likely around 37k$ but the market value of the car after 18 months is likely to be 32-33k or even lesser. So if you end up in the market trying to buy out the lease, your losses could be in to several thousand dollars.

However there is also another option to get out of a lease, by transferring your lease onto some one else. Not all manufacturers support this option. In case they do, you have to find the person to transfer to, pay a lease transfer fee, the new person has to be credit approved for taking over the remainder of the lease. Not an easy option by any means.

If you are not constrained on how long you will stay here and perhaps your company is paying for your leases, this is an excellent option. Also, for people who want to change cars often, leasing is again a very good option. You are however, responsible for all damage and excess wear and tear for the car at the end of the lease period. Typically lease return cars end up in the dealer lots as certified pre owned as they expect regular dealer maintenance and upkeep for all leased cars.

So, in summary, unless you are very sure about your tenure here, I would always suggest to stay away from leases.
Disclaimer: This is my recommendation based on my personal experience. You may feel differently about it

[kraft.wagen]

Originally Posted by sids911

Great! Thanks Kraft.Wagen - sent you a PM since my accommodation plans sound similar to yours!

I guess I will stay away from Lease - thats what I did last time and thats what i'll probably do this time too! The only thing that attracts is the monthly rates they mention for Beemers etc.!

Cool. Sadly, Lease is a hassle for us here.

Originally Posted by vineethvazhayil

Hehe.. Alright, that is actually not a bad idea either.
.......
So, in summary, unless you are very sure about your tenure here, I would always suggest to stay away from leases.
Disclaimer: This is my recommendation based on my personal experience. You may feel differently about it

Thanks for sharing Vineeth. Indeed for most of us on visa here in the US is a pain to lease car, though the options sound intriguing. Even though I have not leased a car here, I have always felt that its the best if a company is paying our car payments or I'd rather pay the money and own the car.

Also I think we cannot make any mods on the car right? Say if I want to fix a Sub woofer or something

[vineethvazhayil]

Originally Posted by kraft.wagen

Also I think we cannot make any mods on the car right? Say if I want to fix a Sub woofer or something

AFAIK, you cannot make any performance mods to a leased car. It is usually spelled out in the lease agreement. However, if you intend to purchase the car after the lease, you are free to do anything with the car, I guess.

[aah78]

Originally Posted by vineethvazhayil

AFAIK, you cannot make any performance mods to a leased car. It is usually spelled out in the lease agreement. However, if you intend to purchase the car after the lease, you are free to do anything with the car, I guess.

You can modify your leased car.
You just have to return it in stock form.

This is a big reason piggyback performance mods are popular. They can be easily reversed.

Actually people do modify suspension, brakes, etc & reverse the mods before getting out of the lease.

@sids911. The attractive monthly rates will come in with a sizeable downpayment & will depend on your credit rating.

[kraft.wagen]

Originally Posted by aah78

You can modify your leased car.
You just have to return it in stock form.

This is a big reason piggyback performance mods are popular. They can be easily reversed.

Actually people do modify suspension, brakes, etc & reverse the mods before getting out of the lease.

@sids911. The attractive monthly rates will come in with a sizeable downpayment & will depend on your credit rating.

Interesting, but wont changing parts void warranty? Say for eg. when you lease a new BMW it comes with warranty that covers any maintenance, will it still hold good if I had a modded shock or brakes?

[aah78]

Originally Posted by kraft.wagen

Interesting, but wont changing parts void warranty? Say for eg. when you lease a new BMW it comes with warranty that covers any maintenance, will it still hold good if I had a modded shock or brakes?

If you install aftermarket parts eg, shocks & brakes, then they will void your warranty for the shocks & brakes but the engine, transmission, etc. warranty still remains.
Of course, this also depends on how mod-friendly your dealer is.

[Jomz]

Originally Posted by vineethvazhayil

However there is also another option to get out of a lease, by transferring your lease onto some one else. Not all manufacturers support this option. In case they do, you have to find the person to transfer to, pay a lease transfer fee, the new person has to be credit approved for taking over the remainder of the lease. Not an easy option by any means.

Another option is to take over somebody's lease as told be Vinneth in the previuos post.

You can find quite a few here

http://www.leasetrader.com/

Taking over a lease passes the down payment cost and lease transfer fees to the soul who desperately wants to get out of his lease.

For a car like BMW, you have the option of buying more miles, to avoid going over the limit. I think it is $0.5 per mile or so. So If you plan to do a coast to coast trip, you could buy 2000 miles from BMW in addition to your lease. Any unused additional miles can be refunded from BMW (at a lower price)

I don't think leasing is a bad option, but needs to be used carefully.

[vineethvazhayil]

Originally Posted by Jomz

I don't think leasing is a bad option, but needs to be used carefully.

Yes, I agree, leasing may not be a bad option, especially considering you get a brand spanking new car to drive at a fraction of the monthly cost that you may incur if buying the car outright. But if you can read the finer points in the agreement and decide based on your own particular situation in terms of duration of stay etc. , you will be ok.
There are other lease transfer listings - like swapalease.com. I just didn't have the time to go behind all that when I had to get out of a lease.
This country allows you to get big brash cars and operate them at a fraction of the cost of the same in most of the world. So while you are at it, I would definitely say - enjoy it

[aah78]

Just bought my car a gift.
Getting installed in the shop.

I know it looks messy in the box but I'm sure it'll look a little better on the car.

BMW Performance Suspension.

[amitoj]

Niiiiice!

I also did something to my car today. Will post more details once i have driven it a little longer than just a test drive.

[chevelle]

Just 3 days to go for the ultimate C7 reveal. I can't wait. Can you??

[vineethvazhayil]

Originally Posted by chevelle

Just 3 days to go for the ultimate C7 reveal. I can't wait. Can you??

Indeed! It could define the affordable American sports car again! The Viper is far over the top and not for everyone's consumption!

[chevelle]

Originally Posted by vineethvazhayil

Indeed! It could define the affordable American sports car again! The Viper is far over the top and not for everyone's consumption!

I am excited to see what new is in store. From the looks of it, the interior and engine will redefine performance in this segment.

Did you recently check motortrend? ZR1 which ends its production this year was all over the new Viper GTS. It makes for a great comparo. Do check it out.