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Old 11-27-2012, 06:45 AM
boltjaM3s boltjaM3s is offline
Location: USA
Join Date: Nov 2009
Posts: 9,049
Mein Auto: BMW M428i
Originally Posted by Chris90 View Post
You're comparing BJ's $48k MSRP car lease which probably includes a $3k discount, to a $50k MSRP cash purchase with no discount? Put in $45k as the purchase price, and fix the way low trade-in value to $7k. I just saved the cash buyer $9000 right there.

BJ's math only works if you fudge it.
BJ's math needs no fudging. The concept in one simple sentence:

"Instead of giving BMW $50,000 for a depreciating asset worth $3,000 in 10 years, you keep that $50,000, invest it, and turn it into an appreciating asset worth $10,000 in 10 years."

That $7,000 difference in what you did with that $50,000 makes the variance between the buying decision and the leasing decision very small, means a lot of people are suffering in old BMW's when they don't need to be.