1 Year into 48 month financing--should I trade in for a lease?
Last February I purchased a 2009 335i xDrive Coupe for about 31k. I put down about 7k and financed the rest for 48 months at about 2.75%. I currently owe about $19.5k on the car.
The factory warranty just expired, but I do have two years of CPO coverage.
Here is the kicker, my wife has indicated, in no uncertain terms, that when we have kids (probably in the next 1-2 years) that I WILL be getting a four door car. I like the new F30s alot and was thinking about getting a 328 or 335 sedan when I trade mine in.
I stopped by the dealership just to browse and they talked with me a little about leasing options. In general terms, they offered $5k cash for my car and I would drive off in a 2013 328i with a 3 year lease (no money down I assume).
The problem I am struggling with is this--my car is financed out beyond the period in which I will have it (3 years left on financing, but baby will probably come before then). I worry about the time after CPO expires as well. Thus, I will never get to enjoy owning the car free and clear.
Given that I will be saddled with a car payment for the foreseeable future, would I be better off trading my car in now, while it is in CPO period and presumably has more value, and taking the lease offer? I am not familiar enough with the relevant economics of leasing vs buying, but I have heard that leasing may be a better deal if you keep the car for only a few years, but buying comes out cheaper if you keep it for longer and can enjoy owning the car free and clear for a while. Given that my situation will preclude me from owning the 335 outright (not that I would necessarily want to, given the warranty situation), would I be better off leasing now.