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Hey Carl B - you have most of it right except..... (archive)

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Posted by HenryW on October 23, 2000 at 13:00:48:

In Reply to: BMW financial services-collection of morons! posted by JoeZaf on October 23, 2000 at 08:44:31:


In the case of lease where the purchase of the vehicle at end of term is contracted as the lesser of the presumed Fair Market Value (FMV) or the real FMV and you have a real FMV that is significantly lower than the original presumed FMV. You may find that the high residual value assumption can provide a very low monthly lease and you then couple that with a low buyout you may have been out of pocket no more than if you paid cash up front on best price.

You also get a positve impact due to time payments (your year five dollar is worth less than your year one dollar). While the scenario is rare it is possible, and warrants a look at delivery of car. If you think the odds are in your favor it may be worth it. It did happen to me.



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