Leasing X5: Any tips?

[chrisny]

Originally Posted by Shaw

at the least, you own your car...

Not until the end of your financing period

It's an age old argument that will never die. If you get any tax breaks for your vehicle (self-employed, etc), you get a better write-off for a lease. If you want a new car every 2 - 3 years, leasing wins every time. The only reason not to lease is if you want the car longer than the lease term or are worried you'll want to bail before 2 years are up (yes, you can get out of a lease once you hit the point where the car is worth the buyout, or use the pull ahead, I've done it 3 times between those 2 options).

[chrisny]

Originally Posted by ddavtian

There is no right or wrong way. For many people, including myself, leasing is a better option. You have bought and traded 4 in 4 years. I have had 5 leases in 9 years. At the end your previous 3 cars are gone (assuming you have your 4th car now), my previous leases are gone. What matters is how much did you pay for your rides through financing vs. what you'd pay through leasing. You bought a new car, took the depreciation, then sold it. Car is gone, you have no equity. I leased the car, returned it, no equity, but I paid lower monthly payment compared to purchasing. For the same monthly payment, lease allows me to drive more car than financing does.

Well said.

[Shaw]

Originally Posted by ddavtian

There is no right or wrong way. For many people, including myself, leasing is a better option. You have bought and traded 4 in 4 years. I have had 5 leases in 9 years. At the end your previous 3 cars are gone (assuming you have your 4th car now), my previous leases are gone. What matters is how much did you pay for your rides through financing vs. what you'd pay through leasing. You bought a new car, took the depreciation, then sold it. Car is gone, you have no equity. I leased the car, returned it, no equity, but I paid lower monthly payment compared to purchasing. For the same monthly payment, lease allows me to drive more car than financing does.

I agree that there's no right of wrong in fin. vs leas.
however in my case, my equity went up every time I sold my car...because don't forget that the depreciation formula is significantly lower if you are to sell the car in the street vs. trading it through the dealership. I used my X3 for 2.5 years and I sold it for 85% of the original price...with the tax savings on top, I managed to lose sooo little...then I poured that equity into the next vehicle.
also the fact that the monthly installments, (minus interest of course)...adds to your equity...so essentially, the car sold wasn't totally gone...I had additional equity as a result...