Quote:
Originally Posted by GhostyM
It seems you don't know the values of leasing..
I'll give you a good example of a BMW lease that I did a few years ago which saved me THOUSANDS.. just because I leased.
I leased a Z4 35is in 2011. I leased it for $389 a month. ZERO down. 24 payments and I returned it and that was that..
Total out of pocket: $9,330 + insurance and gas
Financing the same car would have cost about $1,000+ a month and that's at 72 months.. why? Because it was $72,xxx MSRP.
Now do you want to know what happened after 2 years of leasing?
I owed like 59k on the car because I had already gotten like 3k off MSRP.
The market value was 41k with 26,000 miles.
I avoided paying $17-$18,000 in value because BMW was pushing the leases so aggressively.
Imagine if I had financed.. $69,000 at 72 months with zero down @ 3.89% is about $1,100.. minus the $120 in interest, you'd be left with $1,000 being taken off principal. 24 months x 1,000 = $24,000.
$69,000 - $24,000= $45,000
So not only would I have been paying MUCH MUCH MUCH more a month for financing, I also get footed a "Hey, your car is worth less than what you owe after two years"
So will I lease if it's FINANCIALLY SMART.. Absolutely.
I don't understand people who want to own an out of warranty german vehicle anyway. It's prone to breaking and you know it.
tldr;
Leasing cost: $9,330 + gas/insurance
Financing cost: $27,000 (interest included) + $4,000 (negative eq.) = $31,000 + gas/insurance.
Worth of same said Z4 35is these days. $19k on a good day.
So basically I could have been driving new cars and enjoying them immensely for pennies on the dollar relatively or buy a car, pay a LOT more than it's worth to me... get it out of warranty (let's not get into how much it'll bore you driving 50k miles in a Z4 for 5-6 years).
Yeah.. no thanks. Financing a car is dumb if leasing is an open option.
Finance if you truly want to keep it forever but just realize.. one day that car is a POS after 100k miles (whatever car it is).
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This is the mentality I have.
In a nutshell, I've learned:
Only buy cars that you plan on keeping for a looooong time or may turn into a future project.