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BMW 3-Series (E90 E92) Forum
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To lease or buy out?
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01-04-2009, 12:45 AM | #1 |
Justin Herass
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To lease or buy out?
Ive never leased a car before and dont know a whole lot about it, but ive been considering buying my next whip through a lease. I read on here that a lot of guys have leased their cars instead of buying it with monthly payments.
What exactly are the pros/cons of leasing a car over buying it straight out with cash? ( so no payments, no interest) Say i have enough money in my pocket to straight out buy the car, would it be in my best interest to just lease the car instead? With depreciation and such, all i really lose is my lease payments right? that is assuming i dont buy out the car at the end of my lease. Im assuming this is a pro since you can take your money and go and get a new car again... Is the amount you would pay on a lease usually less then the depreciation of the car if you had owned it? What about mods? can i mod a leased car as long as i return it to stock when the lease is up? Also, can you only lease a new car? Last edited by Spoolin335; 01-04-2009 at 01:08 AM.. |
01-04-2009, 12:56 AM | #2 |
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In most cases buying a car with cash is best. No debt, no contract, no payments, and you *own* the car. Generally speaking, leases are only beneficial if 1) you can write off a large portion of the payments as a business expense (check w/ your accountant), 2) you are going to put low miles on the car (under your allowed mileage stated in the lease). Just because a lot of people here lease, doesn't mean it's a good idea.
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01-04-2009, 01:15 AM | #3 |
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also, it depends on how often you want to buy a new car. if you plan on keeping the car for a long period of time, then leasing is not the smartest option. typically leases are good for short term usage, becuase then you dont have to deal with the depreciation of the car. however, if oyu plan on leasing long term (say 3+ years) then even though you get lower payments a month, you are now paying extra on the car, interest and such, which means overall you paid more.
on the other side, leasing removes much of the headache of ownership since the responsibility of maintenance falls on the leasing company. you need to actually crunch numbers and find out which one is right for you. i dont remember where, but you can find online how to do lease or buy equations in finance to figure out which option looks good |
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01-04-2009, 01:52 AM | #4 |
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01-04-2009, 02:08 AM | #5 | |
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01-04-2009, 11:34 AM | #7 |
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Again, the fact that a lease is coming to an end, is a chance to exit. imho it's not the same as having a rent-controlled apt. in which case you want to keep it, because you are paying below mkt. value each month. The way I see a lease again is like a roulette wheel--the fact that it's hit red the last 8X doesn't have anything to do with the 9th spin. Same with a lease. The fact that you made 36 payments is not the same as if you had paid 36 times to a loan.
Sure, an overgeneralization, but imho buying what is within your means is better than leasing more car. Those who said they "invested" the monthly difference in stocks and real estate have really burned themselves. The unfortunate thing is they gave this advice out and some listened The way to break out of this lease mentality is to imagine driving a 4, 5, 6 y.o. car. If it can't be a BMW, then a Nissan, Honda, Acura, etc. and etc. |
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01-04-2009, 11:45 AM | #8 |
Justin Herass
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thanks for the good info guys, i have a few more questions.
what about body damage, like normal wear and tear. what if i have a few small nicks/scratches from parking lots and such... how finicky are the dealers when returning the car. would i have to remove tint aswell? |
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01-04-2009, 01:14 PM | #9 | |
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