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      04-10-2012, 07:25 PM   #23
John 070
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Think of it this way, our financial markets are efficient. eBay is efficient. When we get a mortgage, we dot our i's and cross our t's. Any terms are unfair in the above scenarios, we walk away and do nothing. And then there's leasing, where lots of fees are paid (doc fees, property tax on property someone else owns, maintenance, mileage). That's the opposite of an efficient and fair exchange.
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      04-10-2012, 07:27 PM   #24
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No leasing here
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      04-10-2012, 07:33 PM   #25
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It like renting a car with a string attached to it.

You can only drive it so far without additional costs you have
to return it with nearly new tires and you can't modify it in any way .
Also I since people no they are returning it only the minimum gets
done to maintain it for the long run.
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      04-10-2012, 07:34 PM   #26
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Quote:
Originally Posted by Taipei-TT View Post
Great post. Leasing is only available as corporate leases here, so I am not too familiar with them.

Wouldn't another downside of leasing be changes in cash flow? For instance, if you finance a car and your income changes during the finance period to a point where you can no longer afford the payments, you could sell the car. In as lease, however, you have a fixed payment until the term ends. What happens if people can no longer afford those payments? I'm assuming they recover the car and then still pursue the entire amount outstanding under the lease contract. Is that correct?
This risk isn't any greater with leasing than it is with financing. Either one would allow you to end up with a car where you owe more than it's worth -- though of course the optimal strategy for leasing (making the smallest down payment possible) makes it more likely you'll end up in that situation under a lease than under a responsible financing strategy, where you hopefully put enough down to stay ahead of depreciation (or at the very least buy gap insurance).

Still, you can indeed trade a lease car in, although obviously if the remaining balance + buyout is more than the car is worth, you'll be paying someone to take it off your hands.
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      04-10-2012, 07:38 PM   #27
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Originally Posted by John 070 View Post
What if you don't have enough cash to get the monthly payment to a reasonable amount you don't want to save, and you don't want to wait, yet you have to have a new car? It doesn't have to be a BMW, people lease Hyundais and Kias. A lease is perfect in the above scenario.
I would say that if you don't have enough cash for a good down payment, don't want to save money to get it, don't want to wait, but have to have a new car, then you don't "have" to have a new car. Something's gotta give. Like I said, leasing will technically indulge this scenario, but it's foolish because a) it's irresponsible, and b) it's more expensive in the long haul. It's like people who rent forever because they don't want to come up with the down payment for a mortgage. Except for a very small number of areas, owning is always cheaper than renting in the long term. Renting definitely has its benefits, but long-term savings is not one of them. Same with leasing.
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      04-10-2012, 08:05 PM   #28
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I can think of a couple of scenarios that might make leasing the smart choice for some people, but I prefer to own my vehicles. Sure, I have a higher monthly car payment, but my car is paid off (or nearly so) and I have the title in hand before most leases are up. This also ensures that I almost always have enough equity in my car that I could trade it in or sell it at any time if I felt so inclined, without worrying about taking a huge financial hit.
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      04-10-2012, 08:19 PM   #29
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Quote:
Originally Posted by jphughan View Post
I would say that if you don't have enough cash for a good down payment, don't want to save money to get it, don't want to wait, but have to have a new car, then you don't "have" to have a new car. Something's gotta give. Like I said, leasing will technically indulge this scenario, but it's foolish because a) it's irresponsible, and b) it's more expensive in the long haul. It's like people who rent forever because they don't want to come up with the down payment for a mortgage. Except for a very small number of areas, owning is always cheaper than renting in the long term. Renting definitely has its benefits, but long-term savings is not one of them. Same with leasing.
I agree, some people don't care. I posted on my other forum where the car costs nearly 70k--there are some who don't even plan on maxing their 401k at 17k--they said they don't have enough money to do that. Yet they drive a car that discounted is in the 60's....leasing to the rescue!

Is it impressive to have a new car every 3 years? I would say no, because either you lease, or you buy, and either way, getting a new car is a total waste of money. To do it that often is even worse.

Hey, I want to drive a 911. I could lease one today, not a big problem. But I'd rather save up for it, could even take 10 years realistically, because three are so many other things that need to come first...
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      04-10-2012, 10:23 PM   #30
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Some of the responses to this thread are great. Others appear to be just like someone who heard "leasing is bad" and made that a motto to let others know without even thinking about it themselves.

It all depends on personal preference, finances, priorities and expectation from a car. In the end, financing and leasing result in quite similar outcomes.

So please, do your research and understand what a lease is before sharing your wisdom with others.

To OP: might be useful to include a poll in this thread related to lease, finance or one lump sum cash payment. Nice way to verify the 50% figure in BMW research. Not sure if you can do that now though.
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      04-10-2012, 10:47 PM   #31
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No. I drive my cars. I drive them a lot.
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      04-10-2012, 10:56 PM   #32
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I don't think I will ever lease a car.
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      04-10-2012, 11:34 PM   #33
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WOW…….I feel sorry for a lot of people out there!!!!!!
I guess it goes back to; its not what you know but who you know, and who your letting screw you over!
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      04-10-2012, 11:50 PM   #34
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I put all the miles I want on my cars “leases” (32k over limit) with no penalties!

My last BMW I leased was in September 2011; decided I wanted something deferent so I ordered a 2012 335IS and returned the 2011 with no penalties!!

I like the fact that I can get something new or deferent anytime I want, whenever I want, and not be stuck with whatever for 5 years!!!
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      04-11-2012, 06:41 AM   #35
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Quote:
Originally Posted by Rotweil View Post
I put all the miles I want on my cars “leases” (32k over limit) with no penalties!

My last BMW I leased was in September 2011; decided I wanted something deferent so I ordered a 2012 335IS and returned the 2011 with no penalties!!

I like the fact that I can get something new or deferent anytime I want, whenever I want, and not be stuck with whatever for 5 years!!!
so why did you start "lease take over" thread?
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      04-11-2012, 06:54 AM   #36
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I like leasing. Yes you have a payment ( i have a2012 335is) but you also have no headache with maintenance etc. and lets face it, after 3 years you'll itch to get something different. I love cars and I'm fortunate to have the disposable income for the lease. Next generation M3 is coming next.
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      04-11-2012, 07:02 AM   #37
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^ yes, lease is for people with disposable income and also for people that can't really afford a car to begin with.

millionaires I know usually lease cars. people that don't want to waste money usually buy used.
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      04-11-2012, 07:05 AM   #38
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I finance, pay down the car below retail/trade in value..Trade it in, and ensure they are giving me what's worth, and finance another car. I go through cars every 6months -a year. :-[

Only ONCE have I been upside down on trade-in...and yes, that was for a Ford Mustang (don't hate).
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      04-11-2012, 07:31 AM   #39
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I was 23 when I got my FOURTH vehicle (this 2011 335).. and I already want another one now. I lease because I dont want to be tied down to car. I like to just walk away and start over.

I personally dont like the idea of having the same car for years and years.


Like I said, I've had my car 8 months and already am building my next one online. Im young though, in ten years I could settle into a car but right now leasing is the best option for me.
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      04-11-2012, 07:44 AM   #40
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Quote:
Originally Posted by Kolyan2k View Post
^ yes, lease is for people with disposable income and also for people that can't really afford a car to begin with.

millionaires I know usually lease cars. people that don't want to waste money usually buy used.
So, leasing is for people who can afford a car?
Thanks for the enlightening me. tough crowd out there.
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      04-11-2012, 07:45 AM   #41
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I lease and it's a great way to have piece of mind
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      04-11-2012, 07:50 AM   #42
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Miles doesn't matter unless you hand the car in and don't get a new one. I always put the minimum number of miles (which is 8k with BMW uk) - even though I do 15k
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      04-11-2012, 07:54 AM   #43
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I lease and it's a great way to have piece of mind
I am with you on that!!
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      04-11-2012, 08:02 AM   #44
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It's a mostly interesting discussion in here on the pros and cons of leasing in the US.

US consumers have it made. Cheapest prices for cars to begin with, and you can lease/finance to a level where it's possible to be "upside-down" on an asset that only depreciates.

Here, as I said, no leases for consumers. As a foreigner, I had to pay 100% cash as I doubt I could convince a Taiwanese bank to take a chance. But my Taiwan friends here who finance their cars still have to come up with about 33% for a downpayment and a "long" finance period is 36 months. Under these conditions, the used car market would have to crater for the buyer to have negative equity even as the car depreciates rapidly over the first two years.

Ahhhh...what I would do for a 335is for $477 a month! **jealous**!
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