Quote:
Originally Posted by usher93
Paying cash up front is a great option if you can but let's face it how many people have that kind of coin. The auto industry would not be functioning if people waited to buy cars with cash only. And your car would be three times as much due to supply and demand
To answer the lease vs buy. I've done both and really the rates are not that different. The nice thing about a lease though is that If you have lemon or your car has been through an accident or two you don't have to be stuck with it.
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That may be the case if you are looking to buy a $50k brand new BMW. I don't have that kind of coin myself which is why I do not buy new (that plus no reason to take that depreciation hit). I'm pretty sure everyone on this forum can afford to buy a car in cash, maybe not a BMW but they can surely find a car they can afford. I use to buy new though, because I had to have a black or grey car and I had to have all the tech gadgets and it had to be in mint condition and the lastest model. I clearly remember telling people I would NEVER drive any car that wasn't black or grey. I would NEVER drive a ragtop and no way would I EVER drive a red car (unless it was a Ferrari).
Now I drive a RED Z4 ragtop. And you know what I realized? It doesn't matter. I love my Z probably more than any car I've owned. It is something that I honestly wish I would of followed (in all aspects of my financial life) a long time ago. Believe me I still get tempted by nice new cars from time to time (the new M6 is gorgeous) however by sticking to the cash rule I keep myself out of trouble. The older I get the easier it's becoming to be content.
Anyways soapbox over. In regards to lease vs finance one other aspect to consider is the mileage restrictions on leasing. If you don't drive a lot then it's not an issue, but if you are like me and rake in the miles then it's an additional cost to consider.