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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > General E90 Sedan / E91 Wagon / E92 Coupe / E93 Cabrio > Leasing vs. Purchasing -- I think I just switched to the leasing side...



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      05-23-2011, 03:02 PM   #89
saeyedoc
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Originally Posted by dfwsig View Post
Unless you lease in Texas where you pay sales tax on the total price of the car, not the lease!
If you lease another car from the same manufacturer at the end of your lease, no sales tax at all in Texas. There's some kind of loophole the manufacturer's use for this. Something about shuffling values from another car in their fleet. I was told this by both the BMW and Porsche dealers here in the last few months.
The other problem with leasing in TX is you have to pay sales tax again if you buy out at the end of the lease since the title changes hands. I found some weird loophole regarding that, has to do with paying less than market value at buy out time, but haven't heard back from a BMW SA how that works.
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      05-23-2011, 03:03 PM   #90
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Originally Posted by Never-Enough View Post
Not a lot down? Depends on the car you are after. I tried to lease a new 335 & they all wanted over $7k down. That makes leasing that car a stupid idea.
Never put money down on a leased car, if you total it, you lose it all.
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      05-23-2011, 03:10 PM   #91
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Originally Posted by saeyedoc View Post
Never put money down on a leased car, if you total it, you lose it all.
Most leases require $ down, sir.

Also, unless you want a stupid high payment, you put $ down
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      05-23-2011, 03:38 PM   #92
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Originally Posted by Never-Enough View Post
Most leases require $ down, sir.

Also, unless you want a stupid high payment, you put $ down
Wrong. I'm going to lease an 80k Porsche, no money down. You put money down and total it on the way home, you are out all of that money. If you want to make your payments lower, put the cash in a savings account and use money from there to make part of your payments. They may require YOU to put money down if your credit is not good, sir.
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      05-23-2011, 03:47 PM   #93
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Originally Posted by saeyedoc View Post
Wrong. I'm going to lease an 80k Porsche, no money down. You put money down and total it on the way home, you are out all of that money. If you want to make your payments lower, put the cash in a savings account and use money from there to make part of your payments. They may require YOU to put money down if your credit is not good, sir.
You're leasing an $80k car. You clearly have mroe $ than you need so the payment is not an issue for you.

Apples to oranges, man.

Now my credit is bad? Ok LOL
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      05-23-2011, 04:15 PM   #94
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Multiple security deposits.
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      05-23-2011, 05:14 PM   #95
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Originally Posted by Never-Enough View Post
You're leasing an $80k car. You clearly have mroe $ than you need so the payment is not an issue for you.

Apples to oranges, man.

Now my credit is bad? Ok LOL
It's not really apples to oranges. A lease is a lease, if you have the money to put down to make your payments to a level you are comfortable with, then you can just stick that money in an account and use it to make part of your payments. That way if you total your car, you still have that cash to do it again.
Multiple security deposits are a good way to lower your overall costs, but that money is still tied up for the lease period.
As far as your credit goes, if it is good, they will not require you to put any money down.
I've done this a bunch of times and am just starting to really understand some of the nuances of leasing.
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      05-23-2011, 05:27 PM   #96
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Originally Posted by saeyedoc View Post
Never put money down on a leased car, if you total it, you lose it all.
This. I'm not sure why Never-Enough is saying that dealers required money down on a lease? I violated my own "never put money down on a lease" rule this time though, only because my sales-guy adroitly pointed out that if I put something like $100 down, it altered my monthly just enough that it lowered my MSD exposure (since they round up to the nearest $50 increment).
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      05-23-2011, 11:27 PM   #97
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Listen to Suzi Orman no leases

It like renting a car with a long string on it that can be yanked at any time and is attached to a bunch of lawyers and dead weights.
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      05-24-2011, 12:34 AM   #98
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I think of things as being simple. If you have the money, don't want to have a car payment every month, and want to mod it/do with it what you please. Then buy the frickin' car!

If you like to drive a new car every three years, don't have $40k in the bank to spend on a car, and don't plan on keeping your car for more than a few years then lease.

Haha there are no clear cut answers to the lease vs. buy question. Every car depreciates in value, you will lose money whether you buy or lease, and you will pay out money whether you buy or lease. It cost's money to live, eat, and even sleep! Money makes the world and the tires on your bimmer go round'...
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      05-24-2011, 10:04 AM   #99
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Originally Posted by BMW4Life2112 View Post
I think of things as being simple. If you have the money, don't want to have a car payment every month, and want to mod it/do with it what you please. Then buy the frickin' car!

If you like to drive a new car every three years, don't have $40k in the bank to spend on a car, and don't plan on keeping your car for more than a few years then lease.

Haha there are no clear cut answers to the lease vs. buy question. Every car depreciates in value, you will lose money whether you buy or lease, and you will pay out money whether you buy or lease. It cost's money to live, eat, and even sleep! Money makes the world and the tires on your bimmer go round'...
Exactly. There is also a thing called opportunity cost. If you tie up $60,000 in a depreciating asset then you don't have it available to earn money in the market etc. Your costs are fixed for 3 or 4 year lease. There are endless pros and cons to leasing/buying.
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      05-24-2011, 11:17 AM   #100
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Exactly. There is also a thing called opportunity cost. If you tie up $60,000 in a depreciating asset then you don't have it available to earn money in the market etc. Your costs are fixed for 3 or 4 year lease. There are endless pros and cons to leasing/buying.
Yes, you raise a good point. Having putting your money to work for you is important as it take money to make money. Personally, I have always bought my car's instead of leasing them, but I can understand why someone would lease. Who know's, maybe I will become a lessee in the future because like you were talking about it is a depreciating asset and the moment you drive the car off the lot the value depreciates. There was a friend of mine in Vancouver, Canada that told me he always bought pre-owned car's instead of brand new cars. He would have his local Mercedes dealership call him when they had a nice car come in for a good price. I think this is a good strategy because by buying a car that is two or three years old you cut out the extreme value drop that occurs within the first two to three years of an expensive vehicles existence.

Whatever anyone choose's to do will be fine. Make sure to enjoy the car because in the end if you drive a nice BMW you are truly lucky.
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      05-24-2011, 12:26 PM   #101
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The amount of DERP in this thread is astounding with people talking about feelings and such... There is only one right question to ask. After 3 years, which choice results in me having more money in my pocket? Forget how leasing or buying "makes you feel", just grab a sheet of paper, a calculator, and take three minutes to do the damn math.

Depending on your mileage, finance rates, incentives, and lease residuals, the answer actually does vary. In my experience if you want a new car every three years, it is almost always financially better to purchase and resell the car (even if you just trade it in at the dealer)... However there ARE occasionally fantastic lease deals with unrealistically high residuals that make sense.
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      05-26-2011, 08:12 PM   #102
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If you put money down on your lease and your car gets total, wouldnt the insurance payment be more then what you owe so you get some of the down payment back?


an extreme example: lets say you put 30k down(full lease prepayment) on a 50k lease and it gets totaled 2 months after you leave the dealership, the car has to be still worth around 40k, wouldnt the insurance payout be around that amount?
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      05-27-2011, 11:07 AM   #103
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Originally Posted by evodz View Post
If you put money down on your lease and your car gets total, wouldnt the insurance payment be more then what you owe so you get some of the down payment back?


an extreme example: lets say you put 30k down(full lease prepayment) on a 50k lease and it gets totaled 2 months after you leave the dealership, the car has to be still worth around 40k, wouldnt the insurance payout be around that amount?
The problem is that the insurance company pays off the leasing company, not you. You're stuck for whatever you already paid. Maybe it works differently on a pre-paid lease, you'd have to look at the contract.
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      05-27-2011, 11:33 AM   #104
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One other benefit to leasing is the amount of tax you pay on the car. You are only paying tax on the amount you use (depreciation). If you finance, you are paying tax on the entire value of the car. In a state like California, 9.5% on a $50k+ car is not cheap.
Really? How does that work? I'm moving to the Bay Area later this year (or more realistically early next year as I have not sold my house).

I bought my 335is and financed through BMW at 0.9%. It's hard to see how a lease can beat that. But then I never ran the numbers. Leasing never made sense to me as I typically keep my cars a long time.

I just sold my 1997 Lexus SC300 coupe after 14 years of trouble-free driving. I don't think my Bimmer will match that.
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      05-27-2011, 12:36 PM   #105
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Really? How does that work? I'm moving to the Bay Area later this year (or more realistically early next year as I have not sold my house).
In California you pay sales tax on the price of the car if it is a purchase (not a lease). So if you buy a $50,000 car the sales tax is 9.5% (San Francisco sales tax rate) of the whole $50,000.

If you lease in California the only sales tax you pay is 9.5% of the monthly lease payment.

Neither of these includes DMV registration which is based on the sale price of the car in either case. Using the $50,000 example, registration will be $674.

Example below from this calculator.

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      05-27-2011, 12:55 PM   #106
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The problem is that the insurance company pays off the leasing company, not you. You're stuck for whatever you already paid. Maybe it works differently on a pre-paid lease, you'd have to look at the contract.
They give you what they feel the car si worth. That may or may not be more than you owe. There's no way to tell unless it happens to you. Unless you pay MSRp or some dumb price for it, I bet you still come out ahead so the $ down on lease = bad 100% of the time is stupid & false.
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