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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 > How many of you lease your BMW?



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      04-10-2012, 05:10 PM   #1
Aggression
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How many of you lease your BMW?

BMWNA's website says 50% of all BMWs are leased, so that must be many of you all on here.

As I approach the end of my warranty on my 335i in December, I was debating selling the car and then leasing. I use the logic of being able to have a new car every 2-3 years, not have to worry about maintenance, and I won’t have a problem with the mileage limits as I don’t drive much at all (less than 10,000 miles a year). I’m 26 years old and financially stable to buy, but I’m weighing my options for going the lease route- as I have yet to keep a car longer than 3 years anyways.

Anyone else on here Lease? If so, what are your pros and cons of it? Do any of you regret it out side of the mileage aspect?

All input is welcome and appriciated!
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      04-10-2012, 05:16 PM   #2
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Because I have cars that are paid off, I tend to trade them in to buy new cars. I hate putting $10k-$15k worth of car that I OWN into a down payment on a lease. Rubs me the wrong way.

So, my buying cycle continues.
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      04-10-2012, 05:32 PM   #3
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I pay for my cars out right and own them...none of that lien holder crap. I don't like put money on material things I do not own.
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      04-10-2012, 05:54 PM   #4
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dont lease its a waste of money.. ur basically throwing ur cash away.
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      04-10-2012, 05:59 PM   #5
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I used to, until I realised what a complete waste of money it really was. Besides the fact i wanted to be able to do whatever the hell I wanted to it without worrying about "putting it back to stock" at some point.
I guess the biggest reason is because I wanted to be able to say I OWN a BMW 335 convertible- has a nice ring to it ;-)
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      04-10-2012, 06:00 PM   #6
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Finance and pay off here
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      04-10-2012, 06:04 PM   #7
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I wouldn't consider a lease. Too many restrictions and they would charge me thousands for all the dings and dents I put on my cars.
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      04-10-2012, 06:04 PM   #8
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leasing is the right option for some people. If you are definitely going to switch cars every 2-3 years, then there can be a value placed on the hassles of selling your car for a fair price on craigslist. Leasing will likely be more financially favorable than buying outright then trading it in at a dealer towards a new car as well.

That being said... I own my vehicle... but I also bought used. And that will open a whole other can of worms
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      04-10-2012, 06:06 PM   #9
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I own mine now, but I have leased before. It's a weird feeling. Half of it you are relieved because it's not your car, so depreciation and things like that are gone when you trade it in. (Even though you sort of do pay for it)

The other half feels that you never really "own" the car, and you don't really get an attachment to it.

I drive more than 20k miles or so a year, so leasing isn't as viable. If I drove 10-12k, I'd consider it more as the lease rates are pretty attractive on BMWs.
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      04-10-2012, 06:07 PM   #10
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I purchased outright. Leasing has it's upsides, but you never truly own it. If I had a leased car I think it'd feel like I was always borrowing my dad's car. That being said, a lot of people that lease can deduct it from their taxes. Once I graduate I'll be able to do something similar and will probably switch to leasing at that point.
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      04-10-2012, 06:17 PM   #11
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When there are promotions, leasing can be a good idea. I had my E46 on lease...this E90 is bought.

Right now I am looking for small car for my teenager.... I can lease a Civic 48mo / 60000 miles for about 215$/mo all net. Even if I buy it, it won' cost significantly less over 6-7 years.
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      04-10-2012, 06:18 PM   #12
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lease is good for some people, but most people I know simply don't have money to buy or finance a car, lease is cheaper and so they lease
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      04-10-2012, 06:43 PM   #13
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Leasing is ok as long as you understand it, know when it can be useful, and you're aware of the drawbacks and pitfalls.

The benefits of leasing are that you're always in a relatively new car, always under factory warranty, and making a smaller payment for the privilege. If you plan to switch cars frequently anyway, leasing means you won't have to worry about getting a fair value for a trade-in all the time; the residual value is always fixed upfront. Also, if you get into an accident, you just have to get it repaired, but the diminished value is the dealer's problem when you turn it in. If you're ok with the mileage restrictions and carry a level of insurance that would be acceptable on a lease anyway (if you don't, you should regardless), then it might be good for you. But make no mistake, leasing is definitely the more expensive way to own a car overall because you'll always have a car payment and you're paying to keep getting new cars and use them during their highest depreciation period, whereas if you finance a car, if you keep it after it's paid off you can drive it debt-free for a while.

You just have to decide whether those benefits of leasing are worth the higher cost over time of "serial leasing". I leased my first car out of college because I wanted to keep the payments low in the short term (since I was at my lowest income period) with the understanding that it would cost me more overall. I later bought that car out, and since then have traded it in for my M3.

If you do decide to lease, I would caution you about a few things:

1) Take a look at any tax implications that leasing may have for your state. Some states make it favorable to lease if you meet certain criteria, others make it more painful.

2) Don't add a penny more than is necessary on your down payment. Yes, down payments can be nice because they lower your monthly payment, but the risk is that if you total your car, insurance will only pay the remaining balance on the lease, NOT the car's market value -- so if you drop $10K upfront and wreck your car 2 blocks away from the dealer on your way home, you'll never see that cash again.

3) Don't trade in a car in which you have substantial equity in order to get a lease. It's tempting because if you have a decent trade-in you can lease a really nice car for peanuts, but it's an illusion because you're paying a ton of money in the form of a car you own just to rent something for a few years -- and once those few years of low payments are over, you either have to walk away with no car at all, lease again, or come up with a bunch of cash to buy out a lease.

4) Unless you're just starting out in the working world, don't lease a car just because you can't afford to finance it. Like I said, the numbers look cheaper, but it's more expensive overall, and that kind of behavior is partly why the economy is the way it is these days. There are definitely legitimate reasons to lease, but people who lease cars they wouldn't be able to afford otherwise are making a mistake IMHO.
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Last edited by jphughan; 04-10-2012 at 07:46 PM.
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      04-10-2012, 06:48 PM   #14
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^^
Very well said. And with that being said, I prefer to finance, build equity into something I OWN which retains value that I can trade in for a newer car in the future.
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      04-10-2012, 06:49 PM   #15
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never, would rather drive junk that I own
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      04-10-2012, 07:03 PM   #16
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when I leased, I was under impression I can't keep it in the garage since I am paying for it, but now I own it, I could store it in winter and save mileage.
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      04-10-2012, 07:05 PM   #17
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Quote:
Originally Posted by jphughan View Post
Leasing is ok as long as you understand it, know when it can be useful, and you're aware of the drawbacks and pitfalls.
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?
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      04-10-2012, 07:09 PM   #18
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Quote:
Originally Posted by E90_boostjunky View Post
dont lease its a waste of money.. ur basically throwing ur cash away.
How do you figure that. Leasing is an alternate means of finance. Buying a $50k car and having it worth $30k after 3 yrs is no different than leasing the same car with the same residual. Either way you are out $20k. not to mention if the car is a lemon, its in a major accident and you want to get rid of it after repairs. Or you are like a lot of people who think they will drive it to the ground only to find themselves trading up in 3-5 yrs still stuck in the payment cycle with little or no equity. And no matter what people say a lower monthly payment feels good.

I for one was in the Lessing is for suckers camp but I can't imagine getting an expensive car any other way as I don't like the idea of plunking down 15 to 20k to get a similar payment. I'll keep my money in the bank at the end of the day we r driving the same car. But everyone's situation is different and always do what makes you comfortable and suits your unique situation.
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      04-10-2012, 07:10 PM   #19
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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?
u can sell lease contract.
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      04-10-2012, 07:18 PM   #20
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Originally Posted by E90_boostjunky View Post
dont lease its a waste of money.. ur basically throwing ur cash away.
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.
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      04-10-2012, 07:19 PM   #21
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u can sell lease contract.
Thanks Kolyan2k...I had not thought of that. Would that come at discount relative to the amount outstanding on the contract?

I would assume most lease sales would be made because of financial distress, but even if the person works at Instagram and now wants to get a Ferrari, there still is not a very good incentive to take the remaining portion of a lease at face value. (No freedom to choose the color/spec etc and taking on liabilities for hidden problems when returning the car.)
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      04-10-2012, 07:20 PM   #22
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Originally Posted by mundo74 View Post
How do you figure that. Leasing is an alternate means of finance. Buying a $50k car and having it worth $30k after 3 yrs is no different than leasing the same car with the same residual. Either way you are out $20k. not to mention if the car is a lemon, its in a major accident and you want to get rid of it after repairs. Or you are like a lot of people who think they will drive it to the ground only to find themselves trading up in 3-5 yrs still stuck in the payment cycle with little or no equity. And no matter what people say a lower monthly payment feels good.

I for one was in the Lessing is for suckers camp but I can't imagine getting an expensive car any other way as I don't like the idea of plunking down 15 to 20k to get a similar payment. I'll keep my money in the bank at the end of the day we r driving the same car. But everyone's situation is different and always do what makes you comfortable and suits your unique situation.
u are throwing cash away if you lease or buy new vs buying or financing used. but financing used can cost more then leasing new. lots of people dont look at anything but monthly payment and low = good for them. looking at lease deals now and you can get brand new 335i coupe for $470 bucks....my used and cheaper E46 M3 was more then that, but in 1 year of ownership I actually made money on it.

this is my 3rd car that i pretty much pay cash for. i just dont feel comfortable with monthly payments anymore....maybe because of my job insecurity....dont know, I just prefer to own my car and not worry about payments, miles driven, etc. My wife's car is also paid in full. Its a Honda Civic, but I would rather have paid in full Civic then leased BMW.

Last edited by Kolyan2k; 04-10-2012 at 07:36 PM.
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