[HunkyMunky]

I first appologize for ANOTHER LEASE vs Buy question!

Car: 2002 325ci, black saphire metalic, Leather, moonroof, power seats. Purchase price 33,825 with taxes, title, reg 36,645.

Option 1: Purchase with 10k down, Fianace 26k at 5.59% for 60 months payment would be $500 mth

Option 2: Lease 36 months 15k miles a year, $510 a month
Residual = 59% buy back at $20349
money factor= .0025
$0 down except for taxes, bank fee, and sec dep=appr. $2600

Other factors to consider:
1) If I lease I would keep the 10k down payment I would have used in the purchase invested earning interest on it.

2)I do like driving a new vehicle every few years and would most likely trade-in after 3-4 years if purchased

3)I would most likely drive closer to 18k miles year.

Can someone good with numbers PLEASE HELP! I'M GOING NUTS!
Take a look at these figure and either leave a post or email me at [email protected].

Any advice would be GREATLY appreciated!
MAC

 

[Ben Chou]

Comparing numbers like you are sort of like comparing apples and oranges. Leasing and Buying are different beasts. Leasing has it's advantages. You get to drive a new car every couple of years. but you pay more for it and you always have a car payment. If you are able to write off a lease payment then this makes leasing more attractive.

On the other hand, buying give you the freedom to no have to worry about mileage driven every year, once you pay the car off, then you own it. It is possible to add mileage to a lease. That is what I did, I have a 18K a year lease on my 330ci. I know that I have a tendency to drive more so I pre-payed (rolled into my payment extra mileage.) If I don't use the mileage above 15K then BMW will refund my money to me at the end of my lease, albeit without interest of course.

If you can't write off your lease payment then I might suggest you go down the finance route. Put the 10K down and buy the car. If after, three or four years, you want to get another, sell it. BMW hold their values pretty well and if you take care of it then it should be no problem.

Did I confuse you more or help out? If you are going to lease, make sure you know EXACTLY what you want to do, or else it will cost you a lot of money at the end of your lease.

 

[Technic]

I leased my 330i after finanancing all my previous cars (10) because, like you I like to have a new car every three to four years. After doing the math, the lease is the way to go for me . I do not have to plunk down too much money down, I am not driving as much as I used to do and I can get another new BMW when this lease is over. The modifications that I do to the car are with original BMW parts that I can remove so that is another plus. I am extremely picky and clean with all my cars, so the wear and tear scare at the end of the lease is a non-issue for me.

You need to decide yourself what is convenient to you based of what you do.