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Old 01-14-2013, 05:43 AM
KLC KLC is offline
Officially Welcomed to the 'Fest
Location: SE PA
Join Date: Oct 2012
Posts: 530
Mein Auto: '13 335i Sport
Originally Posted by PK2348 View Post
You are not very good in finance either. First of all, you paid more, but bmw also gave you few cars instead of just one. Second, you paid more because you're paying interest. becasue in essense you borrowed the purchase price from the bmw financial, and you pay them back in monthly payments and then at the end by returning the car. It's a fairly simple amortization schedule if you're familiar with it. When your lease is over BMW owns your car and most likely has to sell at a car auction at whatever it brings in. They would much rather get a check from you upfront for the full purchase price. The interest built in to your payments also reflects the risk of the car overdepreciating when the lease is over. So you paid BMW to retain the risk of ownership. Anytime financial risk can be eliminated is good for business, as it removes uncertainty. Long term reliability and long term owners are important as it has direct effect on what they get for the car when your lease is over.
You basically just agreed with BJ. His whole point is leasing is more expensive. You pay a premium to get into a brand new car every 3 years and never worry about a car out of warranty. Yes, you end up paying more in interest, and you always have a car payment -- that's the premium.
ED - 5/13/2013
PCD - 7/17/2013

2013 335i Sport Line PPK | Alpine White/Coral Red | ZDH | ZCW | 2TB | ZTP | ZPP | 508+3AG | 5AC
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