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Old 02-14-2013, 01:55 AM
PeterC4 PeterC4 is offline
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Location: Toronto
 
Join Date: Mar 2011
Posts: 955
Mein Auto: 535xi,328xiC
Quote:
Originally Posted by Popoemt View Post
I'm not getting these arguments pro or con either way? When it comes down to it with a lease, isn't it ultimately cheaper to lease a car? For example, over a 9 year period, with an average $1,000 lease payment, you would spend $108,000 and get 3 new cars out of it (with no money for warranty repairs/maintenance, etc), if you purchase you get the car outright for $100k, stay in it for 3 years, and go back to the dealer, most likely your dropping at least another 20-30k to buy a new car with trade in value built in? Times that out over 9 years (trading the purchased car in every 3 years), you're paying near the same, but fronting all the money instead of keeping it in pocket?? Maybe I'm simplifying this way too much?

I just read an article someone posted in the 7 forum that linked to an article from Edmunds that had this in it:

Retained Value
Our Imperial Blue Metallic BMW 750i rolled into the Inside Line test garage with a price tag of $90,870. It left one year later, down 23 percent in value according to Edmunds' TMV® Calculator. This equates to a price of $69,607 for a private-party sale.


It seems depreciation (after 3 years) in a purchased car would almost kill the idea of buying v. leasing? Si o no?

On another side note, this is me trying to figure out the benefits of leasing/purchasing as I am ready to buy/lease, and thinking the leasing is better, would love to have people offer advice/pointers on this thought process...
It does depend on the economics...very low residuals in some cars make it less attractive to lease. In Canada, the combination you use would not be likely. For example a 535xi well equipped is like $72K to buy net of discounts and $1,200 to lease (all pre-tax but including PDI and freight). The other issue is lifestyle, cash flow. Some professionals who make high six figures and are in cyclical businesses like investment banking or commercial real estate are cash buyers because they need to have flexibility and certainty around having their cars. Others drive the heck out of them, with excessive mileage and a lease just doesn't work. In your example above, it all depends on those payments, which is dependant upon the interest rate and residual. But overall I tend to agree with you. If you can keep the lease deals favourable, you are always driving a new car under warranty. For some people it's the only way to go. For others they want certainty and the fewest monthly payment commitments possible, particularly as they enter retirement age. I had an Acura TL that I bought and as it got a little older it got shared between my two teenage kids who used it to go to university and get around. By the time it was going onto it's 9th year it had been in at least 5 different fender benders, my wife had scraped the side of a car on an underground garage pillar, it had over 100,000 miles on it and it had been well used. It was generally reliable, and outside of changing tires and going to the body shop often, it was a pretty good car. It cost me around $40,000 or so to buy. In that case, I felt I got my money out of it.
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2012 535xi M-Sport, Carbon Black, Cinnamon-Alum Hex, Exec Pack, Tech Pack, HUD, Damper Control, BMW Apps, Heated Rear Seats

Last edited by PeterC4; 02-14-2013 at 02:34 AM.
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