Not too many are arguing that buying a new car every 3 years is a huge financial win when compared to leasing for 3 years- though it still works out that buying is a better financial deal even though BMW offers better lease rates than many others. The reason is that the greatest yearly depreciation occurs in the first 3 years. BMW wants the consumer to pay for this and turn around and sell the same car again in 3 years to someone else. This is a multiple win for BMW. They want to sell more cars, have people buy (lease them, but you're actually paying rent) a new car every 3 years instead of every nine years- 300% gain in new car sales. Since they're selling the car again when it's 3 years old they make a nice profit on the sale of the used same car too. JD Power and Consumer Reports numbers increase because people are reviewing newer cars. If someone has an issue BMW covers it under the maintenance agreement, so this inflates buyer satisfaction as well.
I love the 4 year/50,000 mile maintenance agreement that comes with purchasing or leasing a new car. It's great to know that my oil changes was part of the deal. Please don't be so naive to think that this was done for any other reason, but to lease and sell more cars. Even though local dealer charges $150 for an oil change, it's a very small net expense for BMW corporate.
Guys, BMW knows that many people want a shiny new car every 3 years. Just know that you're paying for that priviledge- BMW isn't doing you any financial favors by offering "great lease deals". They're just making it more enticing to rent (lease) a new BMW versus the competition. BMW is selling (leasing) 3 times as many cars compared to the person that buys and holds the car for 9 years. AND selling the car twice and profitting twice (at end of 3 year lease the second time by selling it as a Certified used vehicle).
The other thing that leasing allows is for some people to buy a car they couldn't normally afford. The issue is if the consumer continues leasing some are always renting a car they couldn't normally afford. The cycle continues and BMW leases (rents) cars to some people who normally couldn't afford to own the vehicle. This helps to achieve their goal of selling more cars.
I think this is a sophisticated crowd and know there's no free lunch. So whether the numbers work out to $200/month more, or $800/month more (please don't believe the "only $50/month" BS, know you're paying for the priviledge of renting a new car every 3 years. It's shiny, has a new car smell, the latest technology and it feels good, and feels really good for many, to have a new car more often. Celebrate it! Convince your wife it makes more financial sense.
That said, leasing can make financial sense for someone who owns their own business. The only true exception.
For some people who know they'll be driving 10,000 miles per year- very small number, so make sure this is true it makes more sense to lease. Some others that drive 12,000-15,000 miles/year. People who take care of their cars: every scratch, acorn dimple, dent, discolorization on the exterior of the car has potential to be your financial responsibility to fix or pay a fine to BMW. It's hugely expensive to lease for the over 20,000 miles/year crowd.
Since BMW has the 4 year/50,000 mile maintenance covered, you only pay for tires, wipers, brakes and a few other things- certainly peace of mind regarding major mechanical issues.
Now, since the largest % of depreciation occurs in the first 3 years, it stands to reason that buying a 3 year old car and hanging onto to it for many years is the best financial decision. The one exception is if you buy a lemon or even a lime. There is a risk when buying- one can still purchase an extended warranty and that would cover some of the years. However, if you don't buy a bad car it's irrefutable that it's the best strictly financial move to hang onto to it for years. CarFax is a great tool to uncover some bad apples out there.
Buying a brand new car and hanging onto it for many years is the second best financial move.
Leasing is still the worst of the three- speaking strictly financially.
I hate the "tying up money" argument for leasing. Interest rates are so low, and what percentage amongst us would be investing the money that would've been used on a down payment or outright buy?