BimmerFest BMW Forum banner
1 - 4 of 4 Posts

·
Registered
Joined
·
837 Posts
Discussion Starter · #1 ·
I am not sure I understand what the fundamental difference is between a lease and the owner's choice option. In either case, you are paying only for the estimated depreciation of the car for the term, and in both cases, you get to buy or not buy the car at the end. What am I missing?
 

·
Loving my car.
Joined
·
267 Posts
Stevarino said:
I am not sure I understand what the fundamental difference is between a lease and the owner's choice option. In either case, you are paying only for the estimated depreciation of the car for the term, and in both cases, you get to buy or not buy the car at the end. What am I missing?
There are better explanations out there, searching archives may work out better than my answer, but:

Basically, owner's choice only exists for those in certain states with funny laws. I think Texas is one of those places, but I am not sure. I know Connecticut is not, and I think California is not either.

Owner's choice is basically a lease but the title is in your name instead of the bank's. With a lease, you are granted power of attorney, with owner's choice that isn't necessary.

You may want to check your state's laws regarding leasing.

When it comes down to it, you probably want to lease rather than go with owner's choice.
 

·
Registered
Joined
·
480 Posts
Leasing doesn't afford you the flixibility of Owners choice but that is not always a bad thing. With leasing the precious post is right, the title is not in your name. With owners choice it is. This is good for if you want to sell the car at the end of your lease. This is the reason why: If the title is not in your name you end up having to pay taxes on the car when you go to get the title in your name after BMW releases the lien. Then when you sell the car, the buyer has to pay tax on the car another time. If the title is in your name, you don't have to pay tax on the car only the buyer does.

Owners Choice essentially gives you a little lower of a payment at the expense of your residual. The boost the residual a little and make your payement slightly less. Also you lose your security deposit when on a lease you get it back. Hope this helps.
 

·
Registered
Joined
·
2,291 Posts
Stevarino said:
I am not sure I understand what the fundamental difference is between a lease and the owner's choice option. In either case, you are paying only for the estimated depreciation of the car for the term, and in both cases, you get to buy or not buy the car at the end. What am I missing?
In Texas there are tax liabilities for leased cars. Owner's choice gets rid of that tax liability. This is how I understand it, I have never leased a car.
 
1 - 4 of 4 Posts
Top