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Originally Posted by Artdnj
Question for any experienced finance people...is it better to lease then purchase at residual or finance directly at purchase? I always lease but think I may purchase as I may keep the vehicle longer than usual. If its a wash I guess leasing provides some sort of greater option after 3 years.
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Depends- mf and APRs are pretty close right now. On the lease, remember you're paying a fee to the trust that's taking down your lease (called the 'acquisition fee'). On terming out, your long the right to buy the car at the residual (or turn in the keys)... but you can certainly negotiate lower (or for better pricing on extended warranties). Generally, BMW is axed to convert leases to purchases (particularly for vintages w/ inflated residuals, like an intro year). So if you think you can do better than the residual at lease end AND think that rates (should you finance) 3y forward will be similar to what they are today (I wouldn't bank on this one)... then leasing may be the way to go. That said, if you think there's a remote chance you'll want to unwind the lease early, just buy it.