[luckystrike]

sorry for being naive, but leasing seems to be popular i the US, we have some leasing options here in vienna but it seeems not that popular, just wondering How leasing works? do you still have to pay for the insurance? is it better than buying the car?

[NJjustin]

1. of course you still have to pay insurance
2. lower monthly payments, less money due at signing, new car every 3 years. those are my reasons for leasing. i dont care what anyone says.

[cdheaven]

i agree with justin. especially the lower monthy payment things. if i wanted to own a car, i would be driving a 20k gti or something. but thanks to the beauty of leasing, i get to pretend i have more money then i really do and drive a bmw!
i do know that there are some STATES in the US were leasing is not practical, due to different tax structers, and other reasons, so im sure there are other countries where its not practical either. if leasing isnt popular where you live, this might be why. look into it

[peter07043]

I like to own and not worry about how many miles I drive or being nickeled and dimed at lease end for nicks and dings. BMW's also have great resale value, and having some equity in the car is a nice feeling. I also like the feeling that the care belongs to ME, not the leasing company.

[carjon]

Agree with all the above reasons. I don't remember seeing recent statistics but used to be the majority of US BMW, MB, Audi, etc. were leased. High value for these cars at the end of lease term means you really can enjoy more car for the money.

However, once you are into leasing it is tough to get out of it since you no longer have a car to trade in.

I think it is popular in US for all cars now because it seems as if you are paying less - but then you get less (no car at end). A lot of people I know exceed their mileage allowance and then are just rolling over more and more costs. If you don't fit the leasing profile (mileage, keeping car maintained and in great shape) it isn't the way to go.

[dzenno]

Get to deduct the car on my corporate taxes

[DoubleL]

As the famous quote goes. Lease what depreciates, buy what appreciates.

[brian32e]

Originally Posted by dzenno

Get to deduct the car on my corporate taxes

that's pretty much the only reason I'd lease a car. You don't want to lease a car because:

* The selling price is usually MSRP. Many dealers hide this value from you, diverting your attention to low monthly payments.
* Fees to get in, fees to get out. Usually have Dealer Acquisition fees near $700 to get in the car lease, $400 disposition fees at end of the car lease
* High insurance costs. Leasing companies usually require you to purchase minimum insurance policies of $300,000, more than most people normally buy
* Lemon laws don't cover leases in some states. Example: Illinois Lemon Law applies only to new cars, not used car sales or leases
* Long-term cost of leasing is more than the cost of buying: Back to back leasing always costs more than buying because of all the fees
* Mileage limits. Leases limit you to 12000 miles/year, some are 10,000 miles. Many people end up owing thousands in mileage penalties at the end.
* Excess wear and tear clauses: They often nit pick when you bring the car back, finding ways to keep your "refundable security deposit" for excess wear and tear
* Accidents may trigger early termination: Your lease is "terminated," and you're obligated to pay off the lease. Insurance covers damages, but not lease payoff.

[selm]

Originally Posted by DoubleL

As the famous quote goes. Lease what depreciates, buy what appreciates.

Makes sense to me. A lower monthly payment due to leasing will free up cash flow and allow me to buy appreciating assets more easily.

[SteveMD]

New car every 3 or 4 years, no worries about warranty or maintenance (on a BMW anyway), a lot of car for not much scratch.

I'm on my umpteenth lease and have NEVER had a problem being 'nickled and dimed' for my security deposit.

Ideal for those who can write it off OR get a car allowance. My wife gets $500/mo. Do you lease a 330i with ZSP or buy a Malibu?

Downside - unless you fully understand leasing and can calculate in an instant on the back of an envelope, you will be nailed! Guaranteed.

[jflecha]

I'm not sure how much this would help but you can go the the US BMW site: http://www.bmwusa.com/ and plug in the numbers for a lease then a purchase on the car with options and get some idea on the difference.

[dtelle]

If you got the cash, it will be always cheaper to buy rather to lease the car.
At least in Europe, Leasing rates are not always the lowest.

In my case i financed the car with a 2.8% rate . After 4 years the car is mine for a cost less than 2000 euros (i paid cash 15%).

I had no problem to lease a small car (as second car), but in all case i would rather own my BMW

[CnoteMD]

Originally Posted by luckystrike

sorry for being naive, but leasing seems to be popular i the US, we have some leasing options here in vienna but it seeems not that popular, just wondering How leasing works? do you still have to pay for the insurance? is it better than buying the car?

There are several reasons why leasing is popular in the US.
-Less money down at delivery (and sometimes, no money down).
-Ability to change cars often without the hassle of trade-ins or selling your car.
-Lower monthly payments.
-most leases include GAP insurance (covers the difference between the appraised value and the payoff amount of the car should it be totalled in an accident).
-the milage allowances are adjustable (simply choose the milage you want at the begining of the lease to avoid paying penalties).

However one must keep in mind thier financial situation before taking on a lease. There is no equity built into a lease, so after the specified lease term you turn the car in with nothing to show for your payments. However, if the car is leased by a business/corporation the payment can become a tax write-off.

I think that many of the people who lease cars have sound financial reasons for doing so (I have even leased in the past). However, there are always those few individuals who incorrectly stereotype those who lease as people who really can't afford the car.

[abc]

Originally Posted by CnoteMD

There are several reasons why leasing is popular in the US.
-Less money down at delivery (and sometimes, no money down).
-Ability to change cars often without the hassle of trade-ins or selling your car.
-Lower monthly payments.
-most leases include GAP insurance (covers the difference between the appraised value and the payoff amount of the car should it be totalled in an accident).
-the milage allowances are adjustable (simply choose the milage you want at the begining of the lease to avoid paying penalties).

However one must keep in mind thier financial situation before taking on a lease. There is no equity built into a lease, so after the specified lease term you turn the car in with nothing to show for your payments. However, if the car is leased by a business/corporation the payment can become a tax write-off.

I think that many of the people who lease cars have sound financial reasons for doing so (I have even leased in the past). However, there are always those few individuals who incorrectly stereotype those who lease as people who really can't afford the car.

hmm how many of you leasers have personal businesses that you leased a BMW???