Loan vs. Lease

zendenwolf · 12-06-2006, 11:05 AM

What do you guys think about leasing vs. doing a 60month loan? I have never been a big fan of leasing but here is the break down on how long i keep cars.

From 2003-05 i had a Camry and then got rid of it for an Acura TL which i put 4k down on and now i want to get rid of my 2005 Acura for a new bmw. Basically what i am trying to say is i guess i am throwing money away doing this.

Is leasing a car for 3yrs for my habit of getting rid of cars every two years a better solution than doing 60months?

James

sixspeedsam · 12-06-2006, 11:51 AM

All depends on your situation. If you're changing cars every couple years ... then yes, leasing seems like a better option for you. I fall into the camp of wanting a new car every year (anyone want to take over my lease? I need a 335

.

I've both leased and owned, and I've been lucky cause I have yet to be upside down on a deal yet. I've even sold leased cars to Carmax without any trouble and pocketed a little $$$. All dependent on the car, residuals, etc. But in the end leasing seems like the better option for ME.

Flyingfart · 12-06-2006, 11:57 AM

60mo loan is quite a long time, unless Im really getting something I like and know that I would keep llike a Prosche Carrera GT I'd do a 60mo lease, for regular cars .. I'd do a 24mo lease

edspilot · 12-07-2006, 10:11 AM

Pay cash & be done with it. Best & cheapest way to go.

The only reason to not to pay cash is because you are running it thru a business/lease for tax reasons.

If you can not pay cash,,, then you can not afford it.

Sorry if that hurts the "finance world" but, the "finance world" is not looking out for you.

Pick another car and Pay Cash,,, until you can pay cash for the BMW.

Dean

ase2dais · 12-07-2006, 11:25 AM

Dean... you are so mean I need to put you on a leash

zendenwolf · 12-07-2006, 11:34 AM

That sounds good but i dont have that type of cash, being a new home buyer in Nothern VA even condos are 450k

I was shocked that I got pre-approved for a loan for a 335i. Now i need to decide what options i want.......

E_92 · 01-12-2007, 05:12 PM

this is what i did with my 335i:

I got a three year lease, so after three years in case I don't want the car anymore I will get another one (maybe the new M3). But if I still want it, I will just buy it from BMW Financial through a loan. This way the residual value would have gone down enough to make my monthly payments for the loan.

rmorin49 · 01-13-2007, 02:11 PM

E_92, I am thinking of doing the same with my E93. I know it is cheapest to pay cash but I'd like to keep the cash in an interest bearing account and then decide at the end of the lease if I want to keep the car and buy it or start over again.

BuckJon · 01-13-2007, 02:31 PM

Quote:

Originally Posted by edspilot

Pay cash & be done with it. Best & cheapest way to go.

The only reason to not to pay cash is because you are running it thru a business/lease for tax reasons.

If you can not pay cash,,, then you can not afford it.

Sorry if that hurts the "finance world" but, the "finance world" is not looking out for you.

Pick another car and Pay Cash,,, until you can pay cash for the BMW.

Dean

I'd agree with you on everything else people buy except cars and houses. Oh yeah and college!!!

12-06-2006, 11:05 AM	#1
zendenwolf Newbie 11 Rep 19 Posts Drives: AcuraTL 2005 Join Date: Nov 2006 Location: Stone, Ridge VA iTrader: (0)	Loan vs. Lease What do you guys think about leasing vs. doing a 60month loan? I have never been a big fan of leasing but here is the break down on how long i keep cars. From 2003-05 i had a Camry and then got rid of it for an Acura TL which i put 4k down on and now i want to get rid of my 2005 Acura for a new bmw. Basically what i am trying to say is i guess i am throwing money away doing this. Is leasing a car for 3yrs for my habit of getting rid of cars every two years a better solution than doing 60months? James
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12-06-2006, 11:51 AM	#2
sixspeedsam I'd Rather Be Apexing... 44 Rep 589 Posts Drives: 330i Join Date: Jun 2006 Location: VA iTrader: (0)	All depends on your situation. If you're changing cars every couple years ... then yes, leasing seems like a better option for you. I fall into the camp of wanting a new car every year (anyone want to take over my lease? I need a 335 . I've both leased and owned, and I've been lucky cause I have yet to be upside down on a deal yet. I've even sold leased cars to Carmax without any trouble and pocketed a little $$$. All dependent on the car, residuals, etc. But in the end leasing seems like the better option for ME.
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12-06-2006, 11:57 AM	#3
Flyingfart Just as when I found my car, they changed it. 18 Rep 408 Posts Drives: e90-330i Join Date: Mar 2006 Location: Where the Sun dont shine iTrader: (0)	60mo loan is quite a long time, unless Im really getting something I like and know that I would keep llike a Prosche Carrera GT I'd do a 60mo lease, for regular cars .. I'd do a 24mo lease
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12-07-2006, 10:11 AM	#4
edspilot Private First Class 7 Rep 145 Posts Drives: Looking Join Date: Jun 2006 Location: WV iTrader: (0)	Pay Cash it's Cheaper Pay cash & be done with it. Best & cheapest way to go. The only reason to not to pay cash is because you are running it thru a business/lease for tax reasons. If you can not pay cash,,, then you can not afford it. Sorry if that hurts the "finance world" but, the "finance world" is not looking out for you. Pick another car and Pay Cash,,, until you can pay cash for the BMW. Dean __________________ 2012 535i xDrive Citation Bravo Jet Past: 1976 C-182 Past: 2005 R22 Beta II Past: 2006 330i
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12-07-2006, 11:25 AM	#5
ase2dais //Mdicted 347 Rep 9,988 Posts Drives: a Cop Magnet Join Date: Sep 2005 Location: 495 Ring iTrader: (18) Garage List 2009 e92 M3 DCT CF ... [10.00] 2015 S-Works Roubaix [0.00] 2013 Trek Madone 5.9 [9.50] 2012 Scott - CR1-Pro [10.00] 2008 e92 M3 6MT (Up ... [10.00] 2002 e46 M3 Cabriol ... [7.00] 2006 e90-325i (DD) [7.00] 2002 e39 M5 (retired) [9.50]	Dean... you are so mean I need to put you on a leash __________________ Oo\(lll)'(lll)/oO : 2009-e92 ///M3 SpaceGry DCT CF Rf/Trim ZTP ZPP ZCW Sat/PrmSd : \_lOOl___lOOl_/<< Clickies
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12-07-2006, 11:34 AM	#6
zendenwolf Newbie 11 Rep 19 Posts Drives: AcuraTL 2005 Join Date: Nov 2006 Location: Stone, Ridge VA iTrader: (0)	Well That sounds good but i dont have that type of cash, being a new home buyer in Nothern VA even condos are 450k I was shocked that I got pre-approved for a loan for a 335i. Now i need to decide what options i want.......
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01-12-2007, 05:12 PM	#7
E_92 New Member 0 Rep 6 Posts Drives: E92 Space Gray Met w/ Red int Join Date: Jan 2007 Location: VA/DC USA iTrader: (0)	this is what i did with my 335i: I got a three year lease, so after three years in case I don't want the car anymore I will get another one (maybe the new M3). But if I still want it, I will just buy it from BMW Financial through a loan. This way the residual value would have gone down enough to make my monthly payments for the loan.
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01-13-2007, 02:11 PM	#8
rmorin49 Major 53 Rep 1,162 Posts Drives: 11 335d/10 Z4 s30i Join Date: Nov 2006 Location: Hagerstown, MD iTrader: (1)	E_92, I am thinking of doing the same with my E93. I know it is cheapest to pay cash but I'd like to keep the cash in an interest bearing account and then decide at the end of the lease if I want to keep the car and buy it or start over again. __________________ Colonel (Retired), US Army/Hagerstown, MD 2016 518ixdrive/MSport AW/Ivory White ED-01-10 2010 Z4s30i AW/Beige/Burl/ 6MT/SP/PP/CWP/NAV/ipod/USB/CA (retired) 2011 335d BS/Oyster/PP/CWP/NAV/ipod/USB(Daily Driver) 30+ mpg(retired)
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