2005 M3 or 135i lease?

[dmvsw]

We all know the mystique and sexiness behind the "M" badge and what it represents and all that. And believe me, I am a HUGE ///M fan and searched for over half a year to purchase a preowned E46, but there was always some catch to every car I found. After researching, the fact of the matter is that the 135i is better in almost every way (on paper):

- similar speed
- free maintenance
- styling is all preference but most of us would agree that E46 M3 trumps most cars on the road on the looks comparison. but I do like how the E82 looks.
- smoother ride
- exclusivity (M3s are a dime a dozen in Houston)
- newer technology
- similar storage space
- best of all, you can customize the new car to how you want, assuming you purchase/lease a new 135
- 1.9 APR financing, plus I got the car for under invoice

All the reasons above, and more, are why I chose to purchase the 135i. Just my .02

[Angry3]

Originally Posted by JHZR2

A lease is generally a poor way to go - you pay for all the depreciation and use, but show nothing for it in the end.

Now, if you are concerned about the HPFP being a liability without a solution, perhaps a lease is smart, since you can turn the car back in and not worry about long-term issues.

That aside, buying a car will mean that it is yours, and after 3 years, the money spent goes into something that is still yours. After 3 years on a lease, you have nothing to show. The M3 won't have depreciated much...

And when you purchase a car and go to sell it after 3 or 4 years, you've spent considerably more money on payments, interest, and taxes on the full selling price of the car than someone who leased for that period. But you're right, you will have something to show for it, namely a worn, likely dated and out of warranty car that's worth a small fraction of its purchase price and that must be marketed and sold.

Sensible people understand that leasing makes sense for some people in some situations. I could have purchased my 135i, but I'm at a point in my life where I want to have a different car every few years, and with a heavily subsidized lease with an inflated residual and a ~0.8% interest rate purchasing was not the smart financial move. If I want to keep the car after 3 years, I just buy it out. If it's worth less than the buyout, I renegotiate the buyout amount or hand it back. If I want or need to get rid of it before the term is up I market and assign the lease to someone else. Since I'm not much into modding, there was no downside.

And as far as this idea of not "owning" the car with a lease, if you borrow money to buy a car you don't really "own" anything until the loan and lien are satisfied. I realize some folks don't like the idea of not having a title with their name on it, but in reality what difference does it make? Personally, I'm just fine having a car "owned" by the BMW Vehicle Trust that I have the only set of keys to.

The biggest problem with leasing right now is that BMWFS has pretty much done away with the great leasing terms that they had in the past and is pushing buyers into financing to mitigate their risk. If I was purchasing a 1 right now, I would probably buy it. But their are still people who can and should consider leasing. That decision is all a matter of numbers, planned usage, and risk tolerance, and is one that everyone could probably make more confidently if they weren't exposed to the "buying is always dumb" or "leasing is generally dumb" type posts that always seem to surface in these threads.

Oh, and to answer the OP's question, it depends on which car you like better, and whether you like to spend money up front with a new BMW or on the back end in the significant repair and maintenance expense that you will have with an out of warranty M3.

[cagekicker]

m3

[mtla4]

Go with the M3. I don't understand when people say that the maintenance is expensive. Well find a local Bmw guru and your set. I found a guy that has been working on bimmers since 1972 and he charges 70$/hour vs 120$/hour for the stealership. You'll end up with no loaner but the guy knows the stuff. There are plenty of guys like that around.