Thread: disposition fee
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Old 09-17-2010, 08:40 AM
brandonw brandonw is offline
Officially Welcomed to the 'Fest
Location: Atlanta, GA
 
Join Date: Feb 2008
Posts: 236
Mein Auto: 2008 X5 4.8i
Quote:
Originally Posted by tunafish View Post
Yeah, I find the dealer's nickel-and-diming tactics (is $1150 a nickel or dime?...dunno) in these lease deals annoying. I was told that the initiation fee was because I had not leased with BMW before. Maybe I could have avoided the disposition fee if I leased again. But you have to ask yourself, what is so profitable about this scheme that you are given these incentives for renewing your lease over and over? Is it the interest (cleverly renamed money factor - shades of Orwell!), or forced brand loyalty, or the constant supply of lightly-used cars for resale, or all of the above. I was also peeved that I had to put $2K worth of tires on this thing just before I turned it in.
OH NO!!! You put new tires on yourself? That's never the way to go. It will always cost you more. When you turn your car in, you can have BMW charge you (as they did for the scratches you had). Run flats are a steal at only $250/ea regardless of size. All regular tires are I think only $150/ea

Quote:
Originally Posted by chrischeung View Post
I disagree. Leasing is the way to go if you always like to rotate your cars, or if you like to maintain your cash flow.
I agree as well. If you are indeed one of those who wants a new car every few years, you be crazy to purchase (unless you have wads of cash that you don't car about loosing). But on the flip side as far as paperwork and financing details, if you are not good at it, don't understand it (or rather choose not to) or don't want to understand all the ins an outs of the multitude of fees, formulas and calculations, then purchasing is indeed the better way to. Leasing paperwork is pretty full on disclosure. There is just lots of see, connect and understand. All fees are disclosed. What is not, is the dealers actual profit. That's for them to know and for you to negotiate a deal that you are comfortable with, prior to signing.
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