# 2 or 3 year lease?



## Candurin (Mar 24, 2008)

Well... Here goes my first post:

Looking to lease a 335xi sedan (playing it safe due to NJ weather).

If I use the lease calculator (awesome tool BTW!), my monthly payments on a 2 year would be $495 and $625 on a 3 year (granted, this is assuming I get the price I want, MF, etc).

It seems as though only the residual is the only factor that changes in a 2 year to a 3 year lease (71% > 61%).

So, why wouldn't I want to take a two year lease? Even if I run over by a few thousand miles (which I can purchase 4 months prior to lease end), I would still be well within the warranty period.

Am I missing something or is a 2 year lease a much better deal than a 3 year (I've searched, read, researched, searched again and then some)?

Thanks for the help (and the INCREDIBLE wealth of information on bimmerfest)!


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## chrischeung (Sep 1, 2002)

Run a search - this has been discussed multiple times.


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## villajoe (May 14, 2006)

Normally a shorter lease term means a higher payment...


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## travel4B (Dec 1, 2005)

You just have to run the numbers in a spreadsheet and see what your lease payments would be on a 2 year vs. 3 year contract. Most times a 3 year lease is less but there are exceptions. It's the case with me as well. I am a little surprised that the difference you found is that large, though. Have you double-checked your figures with a couple different lease calculators or spreadsheets?


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## beatmstrj (Jan 10, 2008)

I think there might be an error in the calculations or something, like maybe you dont have the right residual, or the number of payments isnt right. The numbers on a 335 2/3 year lease should probably be within about $50 of each other.


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## Candurin (Mar 24, 2008)

Ugh... Totally embarassed. I didn't change the lease period to 24 months from 36 months :banghead:

Oh well... 

Even though the payments are very close, wouldn't the 24 month be a better deal i.e. no new tires, no risk of exceeding warranty coverage (in theory), etc.?


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## travel4B (Dec 1, 2005)

The tires issue as well as more frequent BMWCCA rebates are two sometimes overlooked benefits of shorter leases.


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## Orient330iNYC (Jul 30, 2002)

Candurin said:


> Ugh... Totally embarassed. I didn't change the lease period to 24 months from 36 months :banghead:
> 
> Oh well...
> 
> Even though the payments are very close, wouldn't the 24 month be a better deal i.e. no new tires, no risk of exceeding warranty coverage (in theory), etc.?


i've been thinking about this one too.
if you have the sport package, a 2 year lease would mean you wouldn't have to change the tires. for the rears, thats about 600-700 right there.


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## edizon (Jan 17, 2008)

travel4B said:


> The tires issue as well as more frequent BMWCCA rebates are two sometimes overlooked benefits of shorter leases.


+1 :thumbup:


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## bmwlover143 (Mar 26, 2008)

*Did I get a Good Deal ? 335xi Coupe*

Hello I wanted to get input on this deal I got from you guys.

Base MSRP $42,600 
Montego Blue Metallic $475 
Coral Red/Black Dakota Leather $0 
Brushed Aluminum trim $0 
Cold Weather Package $600 
Premium Package $2,550 
Sport Package $400 
• 18" Light-alloy wheels Star Spoke (style189) with mixed run-flat perf. tires 
$600 
Sports leather steering wheel with paddle shifters $100 
STEPTRONIC automatic transmission $1,275 
Active Cruise Control $2,400 
Comfort Access system $500 
Navigation system $2,100 
Power rear sunshade $350 
Satellite radio $595 
Park Distance Control (rear only) $350 
Destination & Handling: $775 
Total MSRP as Built $55,670

24 month lease , 10,000 miles a year (20,000 total) for 2 years 
$0 down 
$0 out of pocket
$0 everything
absolutly nothing down $0000

$815 per month flat

is it a good deal ? :dunno:


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## travel4B (Dec 1, 2005)

bmwlover143 said:


> Hello I wanted to get input on this deal I got from you guys.
> 
> Base MSRP $42,600
> Montego Blue Metallic $475
> ...


How could you really know if it's a good deal with so little information? What's the invoice price, cap cost, MF, acquisition fee, dealer-added fees, etc.?

I thing you can be sure of is that dealers love a customer that doesn't ask those questions. There are excellent stickies on this forum that amount to a great Leasing 101. You might want to take the time to do a little research.


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## bmwlover143 (Mar 26, 2008)

*good deal ?*

invoice price is $53,500
no added fees 
no acquisition fee
no dealer added fees
Zip $0 
$815 a month for 24months absolutly nothing else down

is it a good deal ?


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## travel4B (Dec 1, 2005)

bmwlover143 said:


> invoice price is $53,500
> no added fees
> no acquisition fee
> no dealer added fees
> ...


Did you happen to notice that there is about a $2K spread between the invoice and MSRP figures you give but that the difference between invoice and MSRP on a _base _ 335xi coupe is around $3500?

You can lead a horse to water..........

One more time - do yourself a favor and spend some time educating yourself about leasing. It's all right here for you. Otherwise, I'm sure you'll get the deal you deserve. :tsk:


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## archrenov8 (Feb 5, 2007)

I think you also need to factor in what you want to lease two or three years out. If it would be roughly the same model, is that model due to be updated in a two or three year cycle, because that, in my book, would be more of a gating factor than whether I have to buy a set of tires.


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## bmwlover143 (Mar 26, 2008)

hey travelb4 i just wanted to know if its a good deal or not, no need to get pissy. do you beleive its a good deal from what you see, thats all ?


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## edizon (Jan 17, 2008)

bmwlover143 said:


> hey travelb4 i just wanted to know if its a good deal or not, no need to get pissy. do you beleive its a good deal from what you see, thats all ?


A good deal for who? You or the dealer?
I think he gave you very good advice.


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## Malfatto (Dec 4, 2007)

bmwlover143 said:


> hey travelb4 i just wanted to know if its a good deal or not, no need to get pissy. do you beleive its a good deal from what you see, thats all ?


#1: No its not a good deal.

#2: Read the leasing sticky posts at the top to find out why.

They helped me immensly when I first started leasing.


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## travel4B (Dec 1, 2005)

Malfatto said:


> #2: Read the leasing sticky posts at the top to find out why.


I'm getting the feeling that's not something bmwlover143 is interested in bothering to do. But maybe I'm just being "pissy" again.


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## Malfatto (Dec 4, 2007)

travel4B said:


> I'm getting the feeling that's not something bmwlover143 is interested in bothering to do.


Me too. But I think taking a half hour to read the posts, in order to save a few thousand dollars, is a good idea. Maybe its just me??? :dunno:


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## edizon (Jan 17, 2008)

I think we all need to learn how to control our emotions during the negotiation process. That's why having a buddy with you and setting a game plan before going in seems to work more often than not.


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