[MG_2006325i_KG]

lease or own

[wws341234]

dang I think I'm the only guy who leased my car here.....

[Redguy]

I use the BMW select scheme through the dealer - a bit like leasing. I take it they have this scheme worldwide?

[h_curtis]

Originally Posted by ZuerstBMW

Depends....If your a person that doesnt keep a car for more than 2 or 3 years, I would lease. If you want to keep the car for a while, I would buy. Its stupid to buy if you dont plan on keeping the car long because you just end up losing money when go to trade or sell, by leasing you elminate this and just turn it back in and you get a fresh new start.

If you were to do the math you are always ahead if you buy a car than lease. You have to sell the car when you buy another one, but the reasons leases exist is for people that are stretching to buy a car. Or if people don't want to deal with anything.

[TECENG]

Originally Posted by h_curtis

If you were to do the math you are always ahead if you buy a car than lease. You have to sell the car when you buy another one, but the reasons leases exist is for people that are stretching to buy a car. Or if people don't want to deal with anything.

or for those that can take advantage of a really good business write-off. There are many reasons to lease...not just the two you mention

[Hawkshaw]

Own...

Assuming you take good care of it, BMW's hold their value so well that you're bound to be able to sell it for more than what the dealer would have quoted you for a residual value on a lease. So, assuming you can afford it, I think that buying is actually the cheaper way to go.

To get my 330i, I'm selling my 2002 Acura RSX Type-S. Paid $31,000 (canadian) for it, selling it 4 years later for $22,900. so I paid $8,100 to drive it for 4 years (42,500 km's). A lease residual value over 4 years would have been $16,000 or so, so I would have paid $15,000 to drive it for the same four year period if I had leased it. Again, this will only work if you have a car that holds it's value well, you take good care of it, and you can afford the higher monthly payments associated with buying. The fact that I'm a low mileage driver helps too!

[JamieA]

I selected "Lease" but it isn't a lease, and I don't own it either. Work buys the car, I pay money every year from my pre-tax salary, they pay all running costs, maintenance and insurance, and at the end I buy it if I want for "Red Book wholesale" value, otherwise I walk away and leave the car with them... But, I have exclusive use of the vehicle, and the whole deal is cheaper than leasing... but then again my company do things differently.

The deal saves me $15,000 in tax each year, so I am a happy boy, would rather drive a BMW than give money to the tax office.

My personal opinion:

I guess how people finance their cars really depends on their personal circumstances and financial goals. I don't think there is any right or wrong answer here. Tax incentives in Australia make leasing for company cars more attractive.

In any instance, leasing reduces the cash flow commitments (over other purchase methods), and with the equity market and professionally managed market-linked managed funds doing 20%pa the past 2+ years, this opportunity cost adds to the value of leasing. So even if I had the money to buy the car outright sitting in the bank, I think there are better ways to use that cash right now, than sinking it into a car...

My professional opinion:

Working in the Funds Management industry, I can only urge people to get professional advice that relates to their own personal circumstances before making any financial decision like this, especially if you are unsure about how to structure financing. Making one based on the advice of this forum would be folly.