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Originally Posted by B_2_B_P
I really don't know where you get your facts...  ...sorry just wanted to do that because it looks so funny. |
I knew someone would bring up the "leasing is stupid" argument. Always happens. Under the right circumstances, it works and can be more beneficial. There's nothing wrong with it.
"Spending money on something that isn't yours" is a worthless argument. Making payments or paying cash to buy/finance a car is essentially the same thing. Sure, the car is "yours" while you own it, but once you sell it, what's the difference? It doesn't matter who "owns" the car, someone who gets a good deal leasing will almost always end up losing less money over 3 years than someone who bought the car new... and all that's with a car that had an average residual/money factor. Cars with better residuals/MFs like the 1 series will save you money money when leasing.
For example, my previous lease (2007 SLK280.) I paid 600/mo for it at no down at 48,990msrp reduced to 46,000. 600x36 = 21,600 in lease payments. If I were to buy the car cash, for example, I would have paid 46,000 cash. After 3 years, the car's KBB Value is roughly 24,000. I remember passing by my local MB Dealer and seeing an identical '07 SLK280 with 25,000 miles selling for 23,899. My car had 35,500 miles at lease return so I would have to sell it for less money. In this example, I wouldn't have spent any more money leasing than paying cash and selling after 3 years.
If I were to finance that same car, factor in interest rates and I would have lost more money than leasing.
Now you really want to talk about being financially smart, don't buy a new car.
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My 1er sold for 26,000~ stock. 1. BMW's retain value pretty darn well where I'm from (Cali). 2. Leasing is for people that don't know anything about cars. I'm not saying I'm an expert but I love learning how to mod and fix up new toys. 3. Your missing out on great lessons, one of which is learning how to take care of your stuff. 4. How does it feel to know you are already turning corporate?
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1. Residual value affects the lease deal too. The better the resale, the lower the payments. Often in leases, manufactures make up a higher residual to offer a lower payment as incentive. Since residual is determined at the start of a lease, you're essentially locked into a certain value and are not gambling with how the car will hold it's value after 3 years. The 1 series has one of the highest residual values of any lease deal I've seen at 64% after 3 years making it a very good car to lease.
2. You can "mod and fix up" a leased car. My SLK had suspension work, wheels, tires, mods4cars roof module, etc. Just remove it and sell it at the end of the lease just like you would on a car that you own. My brother's previous leased car had headers, exhaust, intake, suspension, wheels, race seats, carbon lip, etc, etc. No problems with lease return after selling his parts. With his Z4 M Coupe, he returned the car with H&R Coil overs on it, they re-installed the stock suspension at the dealership and they didn't even charge him for it.
3. Taking care of the car yourself has nothing to do with whether you lease or buy. You can do that either way. Most people who buy or finance would still let the dealership work on the car. Just because someone leases, doesn't mean they don't take care or work on their own car.
4. It feels good to know what I'm doing.