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15 May 2013

BMW PH explains why FlexiLease could be the best way to own a brand new BMW

Words by Christopher Kho
 
bmw flexilease2
It was only a few weeks ago when the Asian Carmakers Corporation (ACC), the official importer and distributor of BMW in the Philippines, introduced their newest ownership program called FlexiLease.
 
ACC describes it as “an operating lease program that offers flexibility for companies and individuals who want to experience sheer driving pleasure at the most convenient way possible.” It does this by offering “low initial cash-out and monthly rates and drive a brand new BMW vehicle every two or three years depending on the lease term applied for.”
 
But seriously, is it really better than paying cash outright? Think about it, after paying two or three years in lease, you don't get to keep the car. That left us with the question: “What's the point?” Thankfully, ACC Marketing Manager Karl Magsuci took time off from his busy schedule to explain to us how FlexiLease really works.
 
Money Matters
To avail of this program, a individual or corporate customer has to pay (1) minimal 10% deposit and (2) operating lease for 24 or 36 month terms, depending which one you choose. ACC claims that you can enjoy the full benefits of a brand-new BMW at half the cost with FlexiLease. Sounds too good to be true, right? Well, it does begin to make sense when you punch in the numbers.
 
Let's use a brand new 116i as an example, which in this case, we'll lease for three (3) years and is currently listed at P2,290,000.
 
Through FlexiLease, one has to pay a P229,000 deposit and a lease rate of P44,980/month for 36 months. That sums up to P1,848,280 after a three-year period. Then, you have three options at the end of every lease term: (1) return the car and use the deposit to begin a new lease term for another brand new BMW, (2) re-new the lease contract for another term, or simply, (3) end the lease term and return the car. So technically, the deposit doesn't really count because you can get it back one way or another, meaning the total cash out only amounts to P1,619,280 for the three-year lease.
 
If you were to pay cash, you would have shelled out the full P2,290,000. Then, you could probably sell your three-year old BMW for around P1,000,000. That sums up to about P1,290,000 (not considering inflation of course), which on paper comes out cheaper, right?
 
Here's where it gets tricky.
 
Do consider that FlexiLease's lease rate is inclusive of Comprehensive Insurance, LTO Registration, and BMW Standard Maintenance Services - all of which are not included if you buy cash. Okay, LTO Registration may be given as a freebie, but our conservative estimate puts Comprehensive Insurance at around P180,000 for three years. Don't even ask us how much the BMW Standard Maintenance Services costs, because we all know that it normally costs an arm and a leg.
 
FlexiLease Benefits
As it stands, acquiring a brand-new BMW through FlexiLease will probably cost you as much, if not less, than if you were to pay for it outright. But you do have to consider the benefits of worry-free ownership with FlexiLease. Not only do you deal with only one entity for leasing, insurance, and maintenance, but the price is also fixed throughout the lease term. Plus, you won't have to go through the trouble of finding a suitable buyer for your three-year old BMW. And those are things you can't put a price on.
 
But wait! There's more!
 
ACC is pleased to announced a special introductory offering for FlexiLease. With this limited offer, BMW customers can acquire the three-year lease term with a 50% discount on the 1st year's monthly lease rate. Yes, owning a brand-new 116i can cost at low as P22,490/month. But do note that the FlexiLease program is applicable for ALL BMW models, including the X-Series and M models.
 
With everything considered, is FlexiLease really better? If you were to ask me, I'd say yes, especially for those who always prefer driving the latest all-new model. It also works well for expats who will only stay in the country for two or three years.
 
For more info and questions, visit www.bmwflexilease.com.