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Canadian Lease
has anyone in Canada found better lease rates/residual/monthly payments for the 2006 330i than those offered through BMW?
| | Reply » Canadian Lease |
Most of the independent lease companies would have rates that could better the 6.95% offered by BMW Canada (I have heard mid to high 5%'s being common), but :
1) I am not sure that they would be willing to give you a residual as strong as BMW's 62%, expecially as you add options. For example, a 2006 325i with metallic, premium package and auto would be 46400 MSRP before freight/PDI. Based on 62% residual, the residual for 24km/yr is $28768.00 on 36 mos.
Compare that to the July Black Book Residual Guide (which a lot of the independents use as a resource) of 23500 + 900 for auto+500 for sunroof = 24,900 and the rate savings would not be anywhere near enough to offset the residual difference.
2) If you do end up with a strong third party residual, chances are that it will be an open ended lease. Most independents will make you guarantee the residual (and hence any difference between it and fair market value at lease maturity)
3) All BMW Canada Financial Services leases also have gap protection. If your vehicle is involved in a major accident and written off, you are not responsible for the shortfall if the insurance payout is less than the outstanding balance on the car
4) After six months in a BMWFS contract, you qualify for a 0.5% reduction on any subsequent BMWFS contracts (eg. a second vehicle, or another one at maturity.....)
Just my .02
| | Reply » Canadian Lease |
very helpful- thanks. My independent lease source says the 62% residual is higher than the wholesale value wat the end of the lease so BMW eats the difference at the end of the lease. The lease source says your analysis is correct in that even at lower finance rates with a more realisitc residual you will not do as well as the BMW offering. Source also says to be sure that car is in perfect condition at the end of the lease or BMW will hit you for all kinds of charges.
Anyone have this experience at the end of a BMW lease?
| | Reply » Canadian Lease |
Perfect condition is probably an over statement. For instance, the tires can be essentially at the wear bar (within 3 mm IIRC). The BMW FS lease agreement has the definitions on it for excess wear and tear, and they are no more or less aggressive than any of the other manufacturers. You can get a copy from your local retailer to read before signing.
The independents don't care as much about condition at the end because their leases most of the time are open ended, and you are responsible for buying out the lease. If you bring back the vehicle with excess wear (eg. cracked windshield), they just deduct that from the fair market value and charge it to you in the difference from your residual.
If you pay out either the independent or BMWFS, put a million km on it, scratch it dent it, burn it, and they don't care, because they have gotten their money, and the vehicle disposal issue is your responsibility, not theirs.....
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Canadian Lease