Leasing a Bimmer...1st timer help

hulk7280 said:
 
If thats true then a house isnt an asset because you dont own it..
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I think I understand @eiddyfouw, I think it just became too confusing 

The house is an asset because you've financed a purchase via the equity you put in and the mortgage you took out; think of it like as your personal balance sheet (assets: house; liabilities: mortgage; equity: equity); as your pay down your mortgage your equity ultimately equal your assets.

Leasing a car is not an asset because you do not own it and it does not show up on your personal balance sheet, rather its flows through your personal income statement via an operating lease payments. The reason people and companies decide to lease vs. buy is because they do not want to take the depreciation expense or deal with the residual value of the asset.  
 
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RUNYC said:
 
I think I understand @eiddyfouw, I think it just became too confusing 

The house is an asset because you've financed a purchase via the equity you put in and the mortgage you took out; think of it like as your personal balance sheet (assets: house; liabilities: mortgage; equity: equity); as your pay down your mortgage your equity ultimately equal your assets.

Leasing a car is not an asset because you do not own it and it does not show up on your personal balance sheet, rather its flows through your personal income statement via an operating lease payments. The reason people and companies decide to lease vs. buy is because they do not want to take the depreciation expense or deal with the residual value of the asset.  
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obviosly if your leasing a car it is no longer an asset, but if your financing a car it is.. because as you say your paying down a loan on the car and buidling equity in the car.. for example i have a 2008 bmw 535i.. fully paid off.. I could easly sell that car for 20k right now.... if you have something worth 20k, i would say thats an asset.  
 
That looks like an awesome car to drive. I forget what the OG question was but go for it if you got it mayne. :pimp:
 
NT sure do love to manage other people's money :lol:

Get that BMW and join the club whoadie.
 
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would cop if i was single and had no kids..lol, but now i gotta get a lexus rx350 for the wife.
 
Your selling a car you owned out right to lease a lower end BMW ....smh

Why would you want a $400 plus car payment every month ?

I would recommend keeping your car , stacking the $400 plus a month you would have spent and flip it.

That way, you would have the money to at least put down a good down payment and your monthly payment would be less or you can just buy one out right.



Think like a hustler and stop thinking like a customer .... don't make monthly payments on things like cars if you don't have too , its a compete waste of flipping/investing money
 
Nikekidwonder said:
Why would you want a $400 plus car payment every month ?




Think like a hustler and stop thinking like a customer .... don't make monthly payments on things like cars if you don't have too , its a compete waste of flipping/investing money
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Maybe because he earns his money and deserves to spend it on whatever he wants.
 
Nikekidwonder said:
Your selling a car you owned out right to lease a lower end BMW ....smh

Why would you want a $400 plus car payment every month ?

I would recommend keeping your car , stacking the $400 plus a month you would have spent and flip it.

That way, you would have the money to at least put down a good down payment and your monthly payment would be less or you can just buy one out right.



Think like a hustler and stop thinking like a customer .... don't make monthly payments on things like cars if you don't have too , its a compete waste of flipping/investing money
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what if he's not trying to flip the money, though
 
If dudes want to BMW's then let them buy BMW's. And an m235i sport is not "entry level".
 
Nikekidwonder said:
Your selling a car you owned out right to lease a lower end BMW ....smh

Why would you want a $400 plus car payment every month ?

I would recommend keeping your car , stacking the $400 plus a month you would have spent and flip it.

That way, you would have the money to at least put down a good down payment and your monthly payment would be less or you can just buy one out right.



Think like a hustler and stop thinking like a customer .... don't make monthly payments on things like cars if you don't have too , its a compete waste of flipping/investing money
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"Think like a hustler" :lol:

NTlogic
 
Lol @ strangers on a forum thinking they can provide real financial advice on someone's income they know nothing about. Just answer the question at hand and keep it moving.
 
Leasing ehhhhh I wouldn't do it but ay u getting a bimmer so by all means welcome to da gang :pimp:


And dude up there is right a lot of ya are confusing assets for investments :lol:
 
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Th3RealF0lkBlu3s said:
Lol @ strangers on a forum thinking they can provide real financial advice on someone's income they know nothing about. Just answer the question at hand and keep it moving.
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Then like I said before, why bring the question to this forum? I'm sure there are leasing forums out there with more information
 
oidreez said:
Th3RealF0lkBlu3s said:
Lol @ strangers on a forum thinking they can provide real financial advice on someone's income they know nothing about. Just answer the question at hand and keep it moving.
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Then like I said before, why bring the question to this forum? I'm sure there are leasing forums out there with more information
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Yeah, the question could have been asked in another forum, but it was asked here. Why should that be an issue?
 
Th3RealF0lkBlu3s said:
oidreez said:
Th3RealF0lkBlu3s said:
Lol @ strangers on a forum thinking they can provide real financial advice on someone's income they know nothing about. Just answer the question at hand and keep it moving.
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Then like I said before, why bring the question to this forum? I'm sure there are leasing forums out there with more information
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Yeah, the question could have been asked in another forum, but it was asked here. Why should that be an issue?
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What I'm saying is he has to take the good with the bad. He already saw the other lease thread and how that one is going.
 
"Are you....spending your money on something you like? Who does that? And coming to a forum to ask questions? What do you think this is? You gotta invest, b.  Flip that money into some headphones or something.  I mean it's not guaranteed that they'll sell but you get the picture."

/nt
 
DipsetGeneral said:
Damn, that 535i up there looks sick
eek.gif
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The blue whip?

Thats a 2 series...
 
JPEG said:
A lease calculation is based on a two part formula: Depreciation + Interest.

To determine the depreciation portion of your car lease payment, you need to know four things about the car: the MSRP, the Capitalized cost (the amount to agreed to pay for the car), the lease terms, and the residual value.

On cars.com I looked up the 2dr cpe m235i and the MSRP on a 36 month lease would amount to 46,875, with a residual of 49%... (46,875 * .49) = 22,968.75

The depreciation amount is simply the difference between the cost you agreed upon and the residual value. Lets say you agreed to pay 45,000 even, your residual value would be 22,050. Divided over 36 months you would pay 612.5 monthly.

Interest payment would be: (MSRP + Residual Value) * Money Factor. (46,875 + 22,968) * 0.00134 = 93.58

Interest portion of payment - 93.58
Depreciation portion of payment - 612.50
Monthly lease payment - 706.08

Of course this is without a down payment, no cash due at signing, and not including other fees.

The money factor is to be determined by the bank, which the dealership will have available to you. I just used that one which was provided on cars.com along with the MSRP and residual %, these numbers will vary depending on the dealership.
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This is spot on and excellent info here, also some advice would be to check your state taxes on leasing rates

im in illinois, chicago to be exact and we are one of if not the least friendly lease states especially city of chicago in which they impose a separate lease tax on top of state tax

Most states will make you pay sales tax on the residual value of the car, if you use the above formula it would be on 22,968. for example we will say the tax rate is 10% which would make taxes 2296 dollars, or about 63 dollars a month on a 36 month lease. but in illinois they make you pay taxes on the full MSRP or agreed selling price of the car , which drastically raises your payments because you're now rolling in nearly 4600 dollars in taxes into your monthly payment, which is now become an additional 126 dollars a month on top the residual value, doc, dmv and what other dealer fees you get hit with

check up on your state and county tax on lease before making your choice. in some cases like illinois its better to finance through bmw FS with a low rate and cut your losses after 3 years.

also since you're doing bmw, i know they offer MSDs (multiple security deposits) which are used to lower your money factor (interest rate) only catch is that if you happen to total your car during the lease, the deposits are forfeited.

good luck
 
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