leasing a new vs. owning a used

1750 Views 8 Replies 6 Participants Last post by johnlew, Jun 21, 2002

lint

Discussion Starter · Jun 16, 2002

I bought a 330Ci last year (MY 2001). I put quite a lot down and termed a 60 month loan.. now, I'm a software engineer, and needless to say things haven't been good at work - there's no hope of a raise anytime soon, and it's entirely possible that a pay cut is not too far away.

Now, I did the math and figured out that I can sell off my car and pay back the loan, and have a bit of cash left over to lease a 2002 330. Of course, after 36 months I won't own it like I'd have owned my 2001, but I'd drop down the monthly payments by almost $250.

I've never leased a car before - this actually was the first new car I ever got. From a $$$ saving standpoint, is this a good idea to look into? Are there any caveats? I'm not going to mod a car, own *or* lease, so that isn't an issue. This may be a dumb question, but can you order a car (options/paint/etc) that you're going to lease?

Also, it'd be nice to get into a new(er) 330 anyway. 330s from early last year lacked some of the later 2001 330's options. (HK, for one). :dunno:

I'm at a loss.

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AF

· #6 · Jun 20, 2002

Lint . . . if you are concerned about the future of your job or salary then you should not go out and lease a new $40,000 BMW

This will only lead you into more debt and in a lease you are not going to be able to bail out if things go wrong without spending a lot of $$$.

Please try to think logically about this and get yourself a less expensive new car or even better a 2-3 yr old used car where the old owner takes the big depreciation hit.

You will have a bmw again in the future when you are in a more comfortable position but right now I really feel from your post that the smart move would be better then the emotional move.

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AF

· #8 · Jun 21, 2002

lint said:
That's a really good point that I plain forgot about! I'm not really concerned right at the moment about the money situation - I was looking for a way to trim down the monthy payment a bit. The money's there, but I was looking for more cash in pocket.

But, for what it's worth, why put myself in a position where, if I decide in a couple years to quit my job and travel and that I don't want a car anymore (hey, I'm young and still have wings), I'd rather be paying to own than be locked into a lease agreement.. having the ability to dump the car at a moment's notice is worth it.

It all comes back to money.. is it worth the extra $150-200 a month to know that should something really bad happen, I have a car that is worth cash? Hmmm..

Good point . . . plus you already took the major hit in depreciation which is the first year or two . . . Buying a new car, that big depreciation hit starts all over again.

I especially agree with what you said about the ability to dump a car at a moments notice . . . this is the main reason I buy my cars (plus I hate car payments anyway)

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