Wednesday, April 26, 2006

Buy A Condo, Get A Beemer

In yesterday's article, I mentioned the slowdown in the real estate market. The Washington Post published the following item in the article "Developer Hopes to Get Mileage from BMW Offer" (reproduced in its entirety):
"Forget about free plasma TVs, gift cards or upgraded cabinets. What about that free BMW Z4 Roadster that just popped up in ads for a new Fairfax County condo?

"'Ask how to receive a FREE BMW Z4 Roadster or 325i,*' says the ad in newspapers and on the Web for Legato Corner, a six-building complex being built near Fair Oaks Mall by Texas developer Fairfield Residential LLC.

"Builders are using more incentives in a softening market, but a car is a rarity. It's 'definitely different, and much more eye-catching than just saying 'no condo fees for a year,"' said Tim Liu of condo guide DClofts.com.

"But hold your horsepower. Developers of the 202-unit complex aren't actually giving away the $38,000-and-up sports car or its $32,000-and-up four-door cousin. Buyers of two- or three-bedroom units get a free two-year car lease, according to a sales representative who said she was not authorized to comment publicly. Two-bedrooms start at $356,900 and three-bedrooms at $408,900, according to the complex's Web site.

"While that's not quite the same as getting a Beamer, it's nothing to be sniffed at. BMWs lease for around $400 a month for 30 or 36 months, with a $2,500 down payment plus taxes and tags, said Alberto Zamorano, a salesman at VOB BMW in Rockville.

"No word on whether Legato Corner's sales have gone into overdrive. Sales staff members deferred questions to marketing company McWilliams/Ballard, which did not return calls seeking comment."
Go here to see the ad for yourself.

I guess it boils down to this: spend money you don't have to get a free lease on a car you can't afford.

19 Comments:

At 4/26/2006 9:58 AM, Blogger American Crusader said...

The advertising is a little deceptive but I wish we were offered the free use of a B&W sports car for two years when we bought our new place. And in Somers, $408,000 doesn't buy you much. In fact, I don't think I've seen anything in this area for under 450,000.

 
At 4/26/2006 10:26 AM, Blogger Mr. Ducky said...

A 32 grand spiff to live in Texass?

They better sweeten the pot. Anyway, if you aren't paying cash for the condo the capital appreciation is going to crawl over the next couple decades and the car will be long gone.

 
At 4/26/2006 11:01 AM, Blogger nanc said...

no thanks - beemers clash with my personality. i'm more of a vintage mercedes kind of gal. if i had my druthers anyway.

 
At 4/26/2006 11:12 AM, Blogger WomanHonorThyself said...

VaRoooooooom!!

 
At 4/26/2006 11:22 AM, Anonymous Anonymous said...

What a deal! I wish I had the financial acumen it takes to finance a two-year car lease over thirty years....

-FJ

 
At 4/26/2006 12:22 PM, Blogger Brooke said...

You don't have a yard with a condo. Dealbreaker.

 
At 4/26/2006 3:27 PM, Blogger Mr. Ducky said...

Farmer, don't tell me you lease. Bad move, very bad.

 
At 4/26/2006 6:36 PM, Anonymous Anonymous said...

I only lease what I need, but have no desire to buy...

-FJ

 
At 4/26/2006 7:43 PM, Blogger MissingLink said...

B&W?
Naah. Too ostentatious.
Gimme a Peugeot 206 GTI anytime.

 
At 4/26/2006 8:44 PM, Blogger Always On Watch said...

I wonder if anybody is falling for this "free" Beemer?

 
At 4/27/2006 1:17 AM, Blogger Mr. Beamish the Instablepundit said...

Why don't they ever give away Bradley Fighting Vehicles with these offers?

 
At 4/27/2006 8:45 AM, Anonymous Anonymous said...

...or an SSBN?

-FJ

 
At 4/27/2006 10:17 AM, Blogger American Crusader said...

"They better sweeten the pot. Anyway, if you aren't paying cash for the condo the capital appreciation is going to crawl over the next couple decades and the car will be long gone."

No shit...we put half down and hope to make double mortgage payments.

 
At 4/28/2006 11:13 AM, Blogger Mr. Ducky said...

Smart move Crusader. You should do all right. I don't think there's going to be an inexpensive way to draw out equity for a while but the interest only mortgage crowd is in for some pain.

 
At 4/28/2006 11:25 AM, Blogger Always On Watch said...

Duck,
I wonder what the stats are on the interest-only crowd?

 
At 4/28/2006 1:32 PM, Blogger Mr. Ducky said...

Well if the Fed doesn't make it "one more and over" I think they are going to get hit with some speculative hurt.

 
At 4/28/2006 4:29 PM, Blogger Always On Watch said...

Duck,
I don't know if you read the WaPo on a regular basis, though you've occasionally mentioned an article therein from time to time. Recently, there was one on the damage which speculation in the real-estate market is already causing. The article focused on the people angle as opposed to a wider damage to the area's economy. But I suspect that the damage is already having consequences.

 
At 4/28/2006 5:10 PM, Blogger Mr. Ducky said...

I don't think there will be much problem for people who stayed within their means and were sane enough to know that housing couldn't appreciate at that rate for long.

It's fine if the speculators get spanked ... that's what a free market is for but it could be rough on people who couldn't be honest with themselves and see that the Fed couldn't keep giving away money for much longer.

 
At 4/30/2006 6:10 PM, Blogger Always On Watch said...

Duck,
Of course, the problem is that many people DON'T stay within their means. Furthermore, the soaring price of oil has drastically cut into that means.

For decades now, the average American hasn't been saving money. Yes, it's hard to do--our saving capability has nearly come to a complete halt because of my husband's brain surgery and resulting disability. But before that, we put away nearly 1/2 of what we made.

As to speculation, it's not just in real estate but in the stock market as well. Most have been lucky in the latter (not me--boo hoo!), but I "feel" a crash coming. Samwich knows better than I, of course, when it comes to investing.

 

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