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BTW, I know it's very odd. I have no idea how long those lease subsidizers can keep the charade up.
Long time. They make money on the lease and make money when they auction the car off to the dealers. look at the price of CPO cars!
I thought he mentioned to look at what owners were saying on yahoo auto. I looked and saw a virtually perfect rating for the X Type wagon...based on 9 owners. The other 4 cars I looked up also had perfect ratings on yahoo autos (based on far more reviews). My take is that those owner reviews aren't worth much if virtually every car is rated perfectly...seems like owners (or dealers) are just going on there to try to make their choice look good. If every car gets a perfect rating there does it really help in seeing the differences between cars?
You do? Ummm, does that mean that you like something "Sporty Looking", as in all show and maybe some go too? Sounds like an Acura TL will fit the bill perfectly.
Best Regards,
Shipo
"I just bought a used 2004 XLR with 10,000 miles (old rich guy owned it, never drove it much). I have to say it is a great vehicle to drive, much better than my Honda S2000 I traded in. And everybody loves it, I receive lots of positive comments on it. While I will miss my S2000, the XLR has quickly become the favorite vehicle in the family!"
I do so enjoy reading posts from folks who enjoy their cars! No matter the make or model...
'21 Dark Blue/Black Audi A7 PHEV (mine); '22 White/Beige BMW X3 (hers); '20 Estoril Blue/Oyster BMW M240xi 'Vert (Ours, read: hers in 'vert weather; mine during Nor'easters...)
The only big hitch with leasing new cars one after another is that I live in a state where excise tax is based on MSRP, which is way out of wack with how little these cars are really usually transacted for. A car at $277/mo lease should correspond to a real money market price of $18k or so not $34k! My excise tax bill under current tax code is nearly double what it should be.
Absolutely, and the best of both worlds is lease-to-own. BMW's lease deals on 3-series are so attractive that everyone should lease even if he/she intends to buy. Current money factor with 7 MSD for 328i is 0.00076(0.00125 - 0.00007*7) which is equivalent to an interest rate of 1.8%. Whether you pay cash or finance, an estimated 4% interest rate difference on a $40k car for 3 year would be around $3,800 (not $4,800 because the depreciated portion of car cost has been repaid through lease payment). If you purchase the car at lease-end, it is like you are getting additional $3,800 discount; if you return the car at lease end, not only do you save $3,800 in interest, you also save, say, 7% of sales tax on the residual value -- another $1,700 or so. The cost of the $5,500 potential saving? $625 lease acquisition fee plus approx. $500 "lost interest" of your 7 MSD.
On the surface of it 5% + 2.5% is no big deal, not much more than the 7% in CA, but the real difference is that the 5% and 7% are assessed on payments, in other words the total tax base over the two years is only 13% of the car's MSRP (depreciated value, interest is negligible in these subsidized leases), whereas the tax base of the 2.5% excise tax is 150% of MSRP in the same two years.
BMW is known to have aggressive lease terms and I have not done a direct comparison. But my personal money factor is 3.5% (I can margin borrow at 6% and the interest is effectively tax deductable from my other investment earnings). That is not the case for many or most people, but I know of others who took out home equity loans at 5.5%-6.5% that were fully tax deductable interest.
In the case of my 911, I compared the best lease deal I could get to my own "self financed" purchase deal and the difference was enormous - to the tune of $21,000 over 48 months. I am sure the difference would be a closer with a 335i, but i'm willing to bet that for those that can effectively borrow at an after tax rate of under 4%, it still is more expensive to lease than buy. There is no voodoo in leasing economics - you are adding another party to the equation and they need to make money. Unless they can give me funds at under 4%, they will be making it at my expense - even without their little acquisition and dispositon fees.
- $28,415 ED invoice for base 328i sedan 6MT no option
- $1,000 dealer profit + $625 lease fee
- zero cap cost reduction
- single security deposit
- 2 yr / 12k miles lease
- MF .00125 + 0.0003 for ED
- 73% residual
The payment for the above should be in the neighborhood of $330 before tax ($355 with 7.75% sales tax). March price may have gone up a tick.
Agreed.
Lots of number crunching to me. How can you buy ANY car, let alone a ELLPS, when all you do is consider the expense/opportunity cost? A nice/any car is obviously not an investment, but short of giving the wife the boot and finding some young thang to roll around with, these cars provide the kind of pleasure putting a price tag on is low on the list (at least mine).
I agree with Blue - find the car you like and want, and then figure out how to pay for it, but don't worry about all the pennies.
BMWFS' money factor on most 3ers is under 4% (2 or 3 years lease term), with max MSD can be under 2%.
I like the design of the IS250. I like the Intelligent Key and the Start/Stop button.
I don't think anyone has ever explained how Acura's TL can even be considered as an ELLPS.
Well, Acura has to be a luxury brand in the first place, right? Let's assume it is.
Then there is the matter that an ELLPS must be the brand's entry level sedan, right? And there's the rub: the TSX is. The TL is NOT Acura's entry level sedan.
How come every other brand has to play by the rules except Acura?
Hmmmmmmmm...?
Automobile Magazine says: The TSX sedan is easily the finest in the Acura range and a credible rival to Audi's A4, Mercedes-Benz's C-class, and, yes, even BMW's 3-series.
Maybe this should be fixed by eliminating the TL and replacing it the the TSX.
Interesting - maybe you or blueguy can explain how they can afford to do that in the long term. I suspect their own cost of funds is in the 5% range. So either they are lowballing residual values, giving less of a discount to MSRP on leased cars, bumping fees, or some other method. I doubt they are operated as a "loss center" (vs. profit center) for BMW, but who knows with those wacky Germans.
Or perhaps it's the "Euro carry trade" or subprime lending scheme that has yet to be uncovered by Wall Street.
P.S. Porsche's lease rates are a lot less friendly. Money factor of around 7.4%. And if you would like to pick up the car at the factory, they'll charge you $3k+ for that priviledge rather than give you a fat discount. Coming, going and in-between, they know "there is no substitute" and price it accordingly.
The fact of the matter is that on a feature for your dollar basis several cars in this class are better than the 3 series. If people chose to pay more to get less because they refuse to drive anything other than the 3 series that is their choice. Plenty of people buy cars that are poor value proposition because of brand image, some subjective "feel" that is probably more illusion than fact, brand loyalty, etc.
The site is pretty thorough and more useful than other conventional pricing sites.
If "reliability is not a big factor" to you personally, why did in your original post list the X Type's reliability as a selling point? In fact, it sounded like the strongest selling point you listed. Just from memory (so I apologize in advance if I leave something out) you said it was quick, good handling, had reliability second only to Lexus, and came standard with AWD, a 3.0 V6, and leather. Every car in this segment could be called quick, many are quicker than the X Type...every car in this segment has been called "good handling" by someone...even you seem to have conceded the "second only to Lexus" false statement...AWD is an important option to some, but hardly unique to the X Type...a 3.0 V6 is bigger (maybe better) than what is in some, smaller (maybe worse) than others...and every car in this segment has leather as an option, only BMW doesn't make it standard. So the "second only to Lexus in reliability" statement really stood out to me, and is NOT TRUE.
Buying a car based on something other than statistics and logic is fine, just don't try to convince people they should buy an unreliable car because it is has "reliabilty second only to Lexus" based on the 2 you have owned. By the way, I see that you aren't defending that quote.
And nice strawman argument, you sound like a troll. I never said that you shouldn't test drive cars....never said statistics would tell you everything. But as a statistician (actuary really, but quite similar) I will tell you while a test drive is absolutely essential (in my opinion) in choosing a car, a 15 minute test drive will NOT tell you anything about a car's reliability unless the car happens to break down on you...and a sample size of 2 cars will NOT tell you anything about a car's reliability (other than the fact that the auto maker CAN make at least 2 reliable cars).
As a former senior engineer with GM would you have tested only 2 cars coming off of an assembly line and deemed that enough to tell you everything was kosher? At your fortune 75 auto parts supplier would you only test 2 of your parts to be sure they work? Would you tell the people who buy your auto parts not to worry about the part's reliability because you guys have a warranty...if the part is defective and leaves them stranded they can always return it for another part? I'm guessing that both GM and your current employer do massive amounts of testing and worry constantly about quality/reliabilty of their products.
To be fair, the more technically sophisticated these cars get, the challenge increases with respect to reliability. Statistics are one thing to measure but when you become part of those statistics, reality bites. Repeat offenses build and perceptions are firmed and are quite hard to change.
So, we tend to rate auto providers by past experience. For now, ALL of the U.S. mfg's are in rebuild mode and it is even more critical to be wary of their offerings. It will be difficult to manage for the foreseeable future.
Regards,
OW
Actually I agree with you Joe, but not in the way you're thinking.
I believe that the entire "ELLPS Segment" has changed since this thread was created many moons ago. In 2002, the cars that were in this class were the E46, C-Class, A4, TL (Gen 3), IS300. These cars averaged about 200 HP and were, I believe, in a different class than the current breed. When the TSX came out in 2003, it compared very favorably to the 325i, C-Class, and A4 1.8T in size, HP, features, and performance.
The cars listed here now, on the other hand, are pushing 300 HP, are loaded with features, and are softer and heavier - more like the mid-level luxury cars from 5 years ago (E39, M35, A6). This segment is no longer "entry-level" if you ask me.
I believe the ELLPS segment we have here should remain "as is" because it is so well established, but a new class of cars is on the horizon - the "up-and-comers" as I like to call them.
The UAC segment is basically the "new" ELLPS segment and includes cars such as the TSX, A3, and (soon to be sold here) BMW 1-Series. This is a group of cars sold by a "luxury marque" that appeals to younger, up-and-coming professionals who want sporty luxury, but aren't ready to spend $40,000 on a car. The UAC segment offers less performance and fewer features than the ELLPS segment, yet more prestige and sportier dynamics than a CamCord (exactly what this segment used to be).
I once was a customer in the ELLPS segment, and I am still a passionate follower of this class of cars - even though they no longer appeal to me as a potential purchase anymore. They have grown too "midsize" for my tastes. Today, I would sooner purchase an RX-8 or a used E46 than one of these overweight leviathans.
Precisely my thoughts; the class has outgrown itself and the replacement class is much more at what ELLPS really is.
Of course, that may have something to do with the smaller, lighter (well, somewhat), nimbler, and more driving-oriented the new class is...
The problem is, you're placing YOUR PERSONAL VALUES into the equation. If you define "luxury" as feature content, "performance" as 0-60 acceleration time, and "value" as most features for the dollar, then let's declare the G35 the winner and close this discussion.
Fortunately, there are as many definitions of luxury, performance, and value as there are people on the planet (well, almost anyways).
Is the G35 the best ELLPS value here because it has 18" wheels, HID's, leather seats, memory settings, 300HP, and RWD, for only $33,000? For some it is.
But if all that mattered was features for the dollar, then Porsche would be out of business tomorrow.
How is a 911S worth $80,000 when you can buy a 400HP Corvette loaded with SELECTIVE RIDE CONTROL, DUAL ROOF PACKAGE, CASHMERE SEATING WITH EMBROIDERED FLAGS EMBLEM, and ONSTAR for only $50,000?!?!
Some folks like the feel of cashmere on their tushy, and some folks like to drive.
Midsize ruins it for me. ELLPS were compact sedans, not behemoth midsizers. Not sure what's entry level or performance oriented about driving a massive vehicle.
Me too. Entirely.
Sure, many on here differ completely in their stance on a lot of the cars we critique here. But to me what we consider ELLPS on here are vastly different from the GS350. Some on here would argue (and they are entitled to do so) that some (if not most) of the ELLPS are not true performers. But when every car on that list above has above avg acceleration, above avg handling, and above avg braking they should all be considered above avg performers. I think that's an extremely reasonable statement.
I find the GS350 to be more refined than the cars in the ELLPS class. And that's not a bad thing. It's a gorgeous car inside and out. It's very comfortable. It's got a boatload of creature comforts at your fingertips. And it's got outstanding acceleration. But from there to me it's handling and braking lag the avg of this class and that takes it's fun to drive factor down a bit from the avg ELLPS. Which is not to say the car is entirely not fun to drive.
If the car fits your needs (as it did my fiance's) and you can afford it then go for it. Enjoy it and tell us about it after you've taken delivery of it.
How dare you make a post that is so reasonable that nobody can argue about it! ;-)
Best Regards,
Shipo
Good to hear from you. Unfortunately, I can't offer much of an opinion since I have not driven the new GS. Friend of mine is seriously considering one (GS450h, I think), but he and his wife are far more interested in luxury than a sporty drive. He currently has a 1999 +/- GS300 that, although pretty slow and soft by current standards, has been absolutely bulletproof and still looks nice. For him, the new GS would be a big jump up in driving pleasure, without giving up the Lexus luxury they have become accustomed to.
Only thing I might suggest if you are jumping up to the GS price range and size, and are O.K. with RWD, would be to investigate the new 535i. I don't know if/when it will be available, but it would be the sporty alternative to the GS. Edmunds doesn't have much info, but I saw some pricing info posted in another forum. Buying or leasing a BMW through ED makes them a lot more price competitive than most people realize, if you are up for going through the process.
Good luck and keep in touch.
Shipping is handled by BMW. Your car's transportation cost is the same as if you picked up in the USA - $775 now, was $95. You pick up the car at the ED center, which is two blocks from a train stop so it's an easy walk. From there you can go directly to the re-delivery drop off a a few miles away or you can drive around Europe and drop off at a variety of locations. The car is shipped with the rest of the new BMWs heading to the USA. When your car arrives your dealer will PDI it as if it were new and call you to come get your new/old car.
Length of trip varies. If you're on the east coast it's pretty common to get the car in 3, 4 weeks tops. Mine took 6 weeks to get to San Diego.
Yup, got mine in something like one day less than four weeks. ;-)
Best Regards,
Shipo
-The buyer still pays the destination charges regardless of whether the car is sourced via ED or domestically.
-You still need to involve your local dealership in the ordering process. That said, to them ED orders are like "Found Money" as ED cars don't come out of their allocation but do count toward gaining future allocations.
-All of the paperwork shy of a few bits that are signed at delivery are signed at your local dealership.
-As a general rule, you cannot use a proxy to fetch your car. Said another way, if you ain't one of the owners, you ain't gittin' the car. The only exception to this rule that I've ever heard about was for folks who couldn't or wouldn't travel shortly after the WTC attack.
Best Regards,
Shipo
Dealership is totally involved and they make about $1000-1200 profit simply for filing paperwork and PDI'ing your car. Plus any backend on the MF and/or loan. The order doesn't come out of allocations, so they make money but don't lose a sale.
Additionally, if you lease BMW pays the second month of the lease while the car is in shipment.
Do you actually sign all the paperwork over there as you take delivery?
Sign for just about everything in the US. When you take delivery they have you sign off a few more docs but I recall most of those were related to insurance and such over there.
I wonder if it's possible to not even go over there to get the vehicle. If you could handle all the paperwork via email and scanned copies and then hire a proxy to get the car to you or give someone power of attorney over there to do it for you.
No. You provide a copy of your passport when you order the car. They will release the car to the person with that passport.
This program has been around for decades.
If I didn't need a back seat, I would buy a coupe or a roadster!
The Jaguar X-type is definitely an ELLPS. I wouldn't buy one. It's a rebadged Ford Mondeo. However, one can call the TL/TSX rebadged Accords and the A4 a reskinned Jetta as well. The X-type AFAIK even has RWD. Its top engine is lacking in HP compared to most cars in this segment. However, it's definitely an ELLPS. You can kick every Acura out of every luxury discussion before arguing that Jaguar isn't a luxury brand.
My main complaint about the X-type isn't the performance or the reliability, but that it lacks the "Ooooh. That's nice!" British styling that other English makes have (every other Jaguar, Aston Martin, Bentley, Rolls, Lotus, Mini and even Land Rover).
A4 and a Jetta do not share a chassis, drivetrain or really much of anything beyond a 2.0T that's mounted differently (one is longitudinal, the other horizontal). Not sure where you got that the A4 is a Jetta. That's utter balderdash.