E90Post
 


Extreme Powerhouse
 
BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > New & Preowned BMW Ordering / Pricing / Tracking Information Forum (including European Delivery) > Why Not Own?



Reply
 
Thread Tools Search this Thread
      01-19-2010, 10:00 PM   #1
lopealle
Resident Black Guy
lopealle's Avatar
Zimbabwe
251
Rep
2,302
Posts

Drives: Lion
Join Date: May 2009
Location: Federal Way, WA

iTrader: (2)

Garage List
2006 M5  [10.00]
Why Not Own?

Hey guys i been reading this forum for a long time and i noticed that alot of you guys lease the vehicles and then turn them back for a new car. Why not just buy the car out? If you end up leasing another car the money you spent you could have paid off the first car. im not really up on how these things work so it would be great to know. i was planning on buying out my 2008 335xi at the end of the lease but the way you guys do it here make it seem like its a bad idea.
Appreciate 0
      01-19-2010, 10:33 PM   #2
stooken
Brigadier General
United_States
184
Rep
4,244
Posts

Drives: E70 X5
Join Date: Apr 2007
Location: NOR*CAL

iTrader: (2)

I highly doubt you'd "pay off" that financed car in 2-3 years which is a regular lease term. It provides the option of getting out of a car after your term is up at no penalty and into a new one.

Is it like renting a car? Sort of but if you financed a car for 60 months and bought a new car every 3-4 years, that's pretty much the same as "renting". You'll always have a car payment until you stick to 1 car.
__________________
2010 E92 BSM 335i | M-Sport | ST Coils | Linea Corse Lemans | Cobb AP | BMS DCI | Cyba Tips
Appreciate 0
      01-19-2010, 10:35 PM   #3
Johndong888
John
Johndong888's Avatar
United_States
74
Rep
885
Posts

Drives: '12 M3, '18 S560, '16 G63
Join Date: Feb 2008
Location: Cherry Hill, NJ

iTrader: (9)

There are quite a few reasons that make leasing an attractive option to many. First, the usage of the car during the lease term is tax deductible if you own your own company. This drops the car payment nicely. Another reason could be maintenance/warranty issues. Some hate the idea of owning the car without warranty. Finally, what's not to like about a new car every 2-3 years. I'm sure there are other points i missed but these are the general points.

Nothing wrong with buying a used car. I definitely would not call it a 'bad idea'
__________________

Current - 2012 AW/FR E92 M3 | 2014 AW X5 | 2015 MB S550 | 2016 RR V8 (White FTW)
Mods - BPMTune Stg1/Servo, Euro Visors & Side Mirror, IND Gloss Blk Pkg, OEM Perf. CF Trim/Spoiler, Grills, Lights, Pedals, Umnitza V4 AE, ModeCarbon GTS V1, 19" HRE P40
Sold - 2008 BSM/Black E92 335i
Appreciate 0
      01-19-2010, 10:36 PM   #4
HPIA4v2
Major
254
Rep
1,391
Posts

Drives: F80, F86
Join Date: May 2007
Location: Washington

iTrader: (3)

Quote:
Originally Posted by lopealle View Post
Hey guys i been reading this forum for a long time and i noticed that alot of you guys lease the vehicles and then turn them back for a new car. Why not just buy the car out? If you end up leasing another car the money you spent you could have paid off the first car. im not really up on how these things work so it would be great to know. i was planning on buying out my 2008 335xi at the end of the lease but the way you guys do it here make it seem like its a bad idea.
no right/wrong answer but if you think you are happy with the car for a long time, I'll say buy it. Look back at your own tendency, are you the kind a guy who got tempted when a new styling comes out etc. How about maintenance of the car pass 4/50000 miles? can you do most the work yourself? At the end it's your call, no one knows your financial situation accurately.
Appreciate 0
      01-20-2010, 11:07 AM   #5
burberry
Caffeine Addict
United_States
46
Rep
1,987
Posts

Drives: E93 M3
Join Date: Nov 2009
Location: Brooklyn, NY

iTrader: (3)

Quote:
Originally Posted by HPIA4v2 View Post
no right/wrong answer but if you think you are happy with the car for a long time, I'll say buy it. Look back at your own tendency, are you the kind a guy who got tempted when a new styling comes out etc. How about maintenance of the car pass 4/50000 miles? can you do most the work yourself? At the end it's your call, no one knows your financial situation accurately.
good point. but on the long run, you're losing more money on leasing. imo.
__________________
'07 E90 335xi ► '09 E90 335i ► '08 E93 M3 ► ???
Appreciate 0
      01-21-2010, 07:57 AM   #6
jeveryday
Colonel
jeveryday's Avatar
United_States
80
Rep
2,335
Posts

Drives: 2012 535i xDrive
Join Date: Oct 2007
Location: Long Island, New York

iTrader: (6)

I lease because I like a new car every 2 to 3 years. Plus from what i've seen most car problems kick in after 3 or 4 years and I really do not have the patience for that, so I lease. However, the biggest mistake ive done was putting down alot on a lease, never again. I learned my lesson.
Appreciate 0
      01-21-2010, 09:52 AM   #7
Alan l.
Major General
Alan l.'s Avatar
5279
Rep
8,742
Posts

Drives: 2020 F95 X5M Competition
Join Date: Jun 2009
Location: United States

iTrader: (9)

I tend to change cars every 4-5 years max so leasing makes more sense for me. Leasing allows me to get into a new car every couple of years without me dealing with the hassle of trying to sell my current one or have to worry about fixing a car out of warranty. I use to have a lot more time wrenching my car in the garage all weekend long but my time is more valuable now (lack of free time) so the last thing i want to do is spend the only two days i have off under a hood. If you change cars every 4-5 years right when you are about done paying it off....its sorta the same thing as leasing. Either way you will still have a monthly payment to be made.
__________________
Appreciate 0
      01-21-2010, 10:02 AM   #8
Jeff@TopGearSolutions
Jeff@TopGearSolutions's Avatar
United_States
3441
Rep
79,212
Posts

Drives: C6 Z06, 09 335i, 10 335xi
Join Date: Dec 2008
Location: www.TopGearSolutions.com

iTrader: (37)

It all depends on your situation. Due to my previous job, if I leased the car, I would be over my mileage all the time, and paying penalty's. So it made sense to finance.

I still plan on getting a new car in 3 years, but at the end of the day between leasing or financing in 3 years, with the excess mileage charge turned out to almost break even.

So I rather own the car, mod it, do what I want cause its my car, instead of worrying about sticking to the terms of a lease, mileage restrictions, keeping the car factory etc

Its all preference and based on the situation at hand, there isnt really a "wrong answer".

Some people who lease run into situations where they term is up, but they want to keep the car, and they get raped on the buy out. similarly, they may run into financially difficulties with their credit and cant get into a similar car anymore and you end up with a peguot or something LOL

Where as you might have just wanted to keep up with payments and atleast stay in your nice.

Pros and cons each way. Just need to weigh out what is important to you.

I couldnt justify spending excess of $27,000 in 3 years , and have so many restrictions of a lease term. I pay same amount for my finance in 3 years and I own the car. (its just how the deal worked out for me).
Appreciate 0
      01-21-2010, 10:11 AM   #9
ellipsis212
Colonel
ellipsis212's Avatar
1615
Rep
2,160
Posts

Drives: 2017 M3
Join Date: Jun 2009
Location: RVA

iTrader: (5)

Garage List
2018 BMW M3  [0.00]
Quote:
Originally Posted by Alan l. View Post
If you change cars every 4-5 years right when you are about done paying it off....its sorta the same thing as leasing. Either way you will still have a monthly payment to be made.
True, but if you end up owning the car after 4 years you can theoretically get back a good amount of what you paid to own it by selling it. I wonder if you win out by just paying the depreciation (lease) or the value (own) if you sell after gaining ownership. Guess it depends on the car and its condition...

Anyway, I'm planning to keep my car for a long time so I'm buying but now I wonder when temptation will creep in on those new models
Appreciate 0
      01-21-2010, 11:18 AM   #10
lopealle
Resident Black Guy
lopealle's Avatar
Zimbabwe
251
Rep
2,302
Posts

Drives: Lion
Join Date: May 2009
Location: Federal Way, WA

iTrader: (2)

Garage List
2006 M5  [10.00]
Quote:
Originally Posted by JPSlick View Post
It all depends on your situation. Due to my previous job, if I leased the car, I would be over my mileage all the time, and paying penalty's. So it made sense to finance.

I still plan on getting a new car in 3 years, but at the end of the day between leasing or financing in 3 years, with the excess mileage charge turned out to almost break even.

So I rather own the car, mod it, do what I want cause its my car, instead of worrying about sticking to the terms of a lease, mileage restrictions, keeping the car factory etc

Its all preference and based on the situation at hand, there isnt really a "wrong answer".

Some people who lease run into situations where they term is up, but they want to keep the car, and they get raped on the buy out. similarly, they may run into financially difficulties with their credit and cant get into a similar car anymore and you end up with a peguot or something LOL

Where as you might have just wanted to keep up with payments and atleast stay in your nice.

Pros and cons each way. Just need to weigh out what is important to you.

I couldnt justify spending excess of $27,000 in 3 years , and have so many restrictions of a lease term. I pay same amount for my finance in 3 years and I own the car. (its just how the deal worked out for me).

no i feel like i got screwed by my dealer or maybe i didnt ( i dont know) . when i was ordering my car my credit score was like 734. which seems pretty high to me.when i tried to finance the car i was told that i didnt qualify but i was able to lease. maybe its my lack of knowledge but it doesnt make any since to me. so the salesmen told me that i had to lease the car first to see i could make the payments and then after that i would be able to buy the car at the end of the contract. i really feel like i got played for some reason. i understand how you couldnt spend 27k in 3 years and not be able to mod. but me myself i dont do any heavey modding anyway (i guess because i cant afford to do all that) but the salesman other excuse was that because i went from a car that i had payments of $415 and now i pay almost $800 that they weren't sure about that also. so my next question did i get screwed over or am i paranoid? i was tol that i would still owe. 32k atthe end of my lease which back then didnt seem bad.
Appreciate 0
      01-21-2010, 11:25 AM   #11
Jeff@TopGearSolutions
Jeff@TopGearSolutions's Avatar
United_States
3441
Rep
79,212
Posts

Drives: C6 Z06, 09 335i, 10 335xi
Join Date: Dec 2008
Location: www.TopGearSolutions.com

iTrader: (37)

Quote:
Originally Posted by lopealle View Post
no i feel like i got screwed by my dealer or maybe i didnt ( i dont know) . when i was ordering my car my credit score was like 734. which seems pretty high to me.when i tried to finance the car i was told that i didnt qualify but i was able to lease. maybe its my lack of knowledge but it doesnt make any since to me. so the salesmen told me that i had to lease the car first to see i could make the payments and then after that i would be able to buy the car at the end of the contract. i really feel like i got played for some reason. i understand how you couldnt spend 27k in 3 years and not be able to mod. but me myself i dont do any heavey modding anyway (i guess because i cant afford to do all that) but the salesman other excuse was that because i went from a car that i had payments of $415 and now i pay almost $800 that they weren't sure about that also. so my next question did i get screwed over or am i paranoid? i was tol that i would still owe. 32k atthe end of my lease which back then didnt seem bad.

You did get played it sounds like. Not just on the car pricing, but that whole you dont qualify for finance but you can for leasing.

I think it is 750+ credit that guarantees most approvals for credit. Maybe you didnt qualify for BMW financial, so you could have went to a bank of your choice for a loan. However they tried that crap with me, then said I had an 800+ credit score. So im like yea thats funny, give me the loan A -Holes.


However we would need more details.

List price of the car? Down payment? did you pay taxes up front.

Lot of factors. $800 lease payments? WTF? Also what was the money factor of the lease?

More I think about it, sounds like they took the traditional money factor to calculate your lease, and raised it their advantage. Or you just didnt put that much down on the car.
Appreciate 0
      01-21-2010, 11:43 AM   #12
kgb1637
Lieutenant Colonel
kgb1637's Avatar
United_States
21
Rep
1,519
Posts

Drives: RS5
Join Date: Sep 2008
Location: Baltimore, MD

iTrader: (0)

It all depends on what you want. I looked at it from a financial standpoint, the car is a depreciating asset, why would I want to own an asset that is losing money. I lease, I stay under my miles, turn it back in, and in 3 years I get a new car. I will pay about $21k over three years, that car is going to lose that or more in value in that time, therefore I'm paying that loss over three years and thats it.
__________________
Retired - '08 E90 335i Sparkling Graphite/Gray Dakota Leather, ZSP, ZCW, ZPP, Navi, ipod, Sat
Appreciate 0
      01-21-2010, 11:44 AM   #13
lopealle
Resident Black Guy
lopealle's Avatar
Zimbabwe
251
Rep
2,302
Posts

Drives: Lion
Join Date: May 2009
Location: Federal Way, WA

iTrader: (2)

Garage List
2006 M5  [10.00]
Quote:
Originally Posted by JPSlick View Post
You did get played it sounds like. Not just on the car pricing, but that whole you dont qualify for finance but you can for leasing.

I think it is 750+ credit that guarantees most approvals for credit. Maybe you didnt qualify for BMW financial, so you could have went to a bank of your choice for a loan. However they tried that crap with me, then said I had an 800+ credit score. So im like yea thats funny, give me the loan A -Holes.


However we would need more details.

List price of the car? Down payment? did you pay taxes up front.

Lot of factors. $800 lease payments? WTF? Also what was the money factor of the lease?

More I think about it, sounds like they took the traditional money factor to calculate your lease, and raised it their advantage. Or you just didnt put that much down on the car.

well for the lease the ytold me i didnt have to put anything down. i just pay the deposit for the ordering of te car. the car came out to $50k even. all i ppaid was $1300 down just for ordering the car thats it. do you think i should refinance? i heard that can work in some people favor sometimes. i didnt think about any other banks. i was young and dumb at the time. im still kind of dumb now. lol
Appreciate 0
      01-21-2010, 11:57 AM   #14
Jeff@TopGearSolutions
Jeff@TopGearSolutions's Avatar
United_States
3441
Rep
79,212
Posts

Drives: C6 Z06, 09 335i, 10 335xi
Join Date: Dec 2008
Location: www.TopGearSolutions.com

iTrader: (37)

Quote:
Originally Posted by lopealle View Post
well for the lease the ytold me i didnt have to put anything down. i just pay the deposit for the ordering of te car. the car came out to $50k even. all i ppaid was $1300 down just for ordering the car thats it. do you think i should refinance? i heard that can work in some people favor sometimes. i didnt think about any other banks. i was young and dumb at the time. im still kind of dumb now. lol
Well you didnt put anything down, so that is potentially why you're paying a lot. (some cars, especially the sportier BMW's dont "lease well".)

What that means is, lets say the car is 40K. You can lease it with X down for $600 a month.

Now, lets say you get a Lexus, its 40K too, you put the same down, and it might only be $550 a month.

These are just arbitrary numbers to get the point across that you can lease a similarly priced vehicle, with the same down, for totally different prices.

With financing, its straight up, how much is the loan, how much is the interest, how much did you put down, and that is how much your paying.

No gimmiks, no money factors, no tiers( BMW doesnt use tiers BTW usually japanese cars). ETC


I was able to order my car and get $3k+ taken off the sticker price though.

At the end of the day you need to do the math. can you re-finance a car you never financed though? I think you answered your own question.

Another reason I dont like leasing, your stuck in the lease and less you can find someone to take it over. So now your potentially stuck in this lease and you rather buy the car outright? but cant?

IDK... best bet is to call the dealer and find out what you can work out if anything.

Financing a car, I can get rid of it 3 hours after I bought it. (take a huge loss yes) but just the fact that I can do what I want is what I look for.
Appreciate 0
      01-21-2010, 12:34 PM   #15
huyner328
Former N54 Fanatic
83
Rep
1,927
Posts

Drives: Slow
Join Date: Nov 2009
Location: NoVA

iTrader: (8)

Garage List
Quote:
Originally Posted by JPSlick View Post
With financing, its straight up, how much is the loan, how much is the interest, how much did you put down, and that is how much your paying.
+1. I like to enjoy my car without having to think about limitations on mileage.
__________________
Appreciate 0
      01-21-2010, 12:39 PM   #16
Jeff@TopGearSolutions
Jeff@TopGearSolutions's Avatar
United_States
3441
Rep
79,212
Posts

Drives: C6 Z06, 09 335i, 10 335xi
Join Date: Dec 2008
Location: www.TopGearSolutions.com

iTrader: (37)

Quote:
Originally Posted by huyner328 View Post
+1. I like to enjoy my car without having to think about limitations on mileage.
Ironically I put less then 8K miles on my car in one year. Thanks to a job change and a winter beater. So that philosophy wasnt as much needed now compared to the time of purchase.

However, that just goes to show, things change, financially, geographically, economically, etc So you need to factor those into your deciscion.

We can only make the best deciscions using the given information we have at the time....
Appreciate 0
      01-21-2010, 07:05 PM   #17
jopa489
Major General
United_States
122
Rep
6,594
Posts

Drives: Anything with Wheels
Join Date: Mar 2009
Location: USA

iTrader: (9)

Quote:
Originally Posted by kgb1637 View Post
It all depends on what you want. I looked at it from a financial standpoint, the car is a depreciating asset, why would I want to own an asset that is losing money. I lease, I stay under my miles, turn it back in, and in 3 years I get a new car. I will pay about $21k over three years, that car is going to lose that or more in value in that time, therefore I'm paying that loss over three years and thats it.
That about sums up my opinion. I will be over miles, but completely expected to be and I (mentally) factored that in.

Lease depreciating assets, buy appreciating assets.
__________________

X7 LCI // Incoming
C7 ZR1 ZTK // Sebring + TRX // Hydro + Raptor Gen1 Roush // Tuxedo
Appreciate 0
      01-21-2010, 07:46 PM   #18
lopealle
Resident Black Guy
lopealle's Avatar
Zimbabwe
251
Rep
2,302
Posts

Drives: Lion
Join Date: May 2009
Location: Federal Way, WA

iTrader: (2)

Garage List
2006 M5  [10.00]
well because i knew i was gonna go over miles i already knew i was gonna buy the car. and the salesmen said thats ok. go figure right lol. but man i feel like an ass. i wish i would have knew more about this stuff before buying my. well my wife bought it as a christmas gift. but yea we should have done more research. shame on us. live and learn right
Appreciate 0
      01-21-2010, 08:35 PM   #19
jopa489
Major General
United_States
122
Rep
6,594
Posts

Drives: Anything with Wheels
Join Date: Mar 2009
Location: USA

iTrader: (9)

Quote:
Originally Posted by lopealle View Post
well because i knew i was gonna go over miles i already knew i was gonna buy the car. and the salesmen said thats ok. go figure right lol. but man i feel like an ass. i wish i would have knew more about this stuff before buying my. well my wife bought it as a christmas gift. but yea we should have done more research. shame on us. live and learn right
Don't sweat it, man. What's done is done - just enjoy the car!
__________________

X7 LCI // Incoming
C7 ZR1 ZTK // Sebring + TRX // Hydro + Raptor Gen1 Roush // Tuxedo
Appreciate 0
      01-21-2010, 09:16 PM   #20
JakeN5
Second Lieutenant
United_States
6
Rep
257
Posts

Drives: e90 328i LCI
Join Date: Sep 2009
Location: SoCal

iTrader: (0)

Owner here. I've owned every car I bought and keep it for a long time. I enjoy owning more than 1 car at all times, but more than anything else there's a certain sense of satisfaction about ownership and being able to tell people your possessions are paid for. If it breaks down, and all cars do eventually, repairment expense usually doesn't run higher than the monthly lease payment anyway and cars don't break down every month, so over the long run you still win from a financial standpoint.
Appreciate 0
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 12:19 AM.




e90post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST