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      09-09-2012, 10:30 PM   #23
phx08
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Drives: MKV Jetta
Join Date: Sep 2006
Location: PA

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Quote:
Originally Posted by Kaitain View Post
So your going to lease this car, with identical payments on a 328 per month to me, and I am buying mine. At the end of 3 years, I still have a little over 2 years of payments, burt you have nothing but an empty wallet to show for your car. How does this make sense? Unless something drastic happens to BMW's value, I will have more value left in my car then what I will owe. I guess this is why I own cars, rather then have a dealer tell me I am getting a good deal while shoving it in from behind. No Thank you.


Really depends on personal preference and financial choices. There is no right answer to "buying is better" or "leasing is better". Both sides can argue valid points.

If the below is appealing to you, leasing may be attractive. If not...buy the car.
  • Lower Monthly Payments from a cash flow standpoint. You only pay for depreciation during the term, monthly payments are 30%-60% lower than equivalent car loans.
  • Fewer Maintenance Headaches. If your lease term coincides with the manufacturer's warranty, major repairs are covered by the warranty
  • Lower Up-Front Cash Outlay. Supposedly. Car leases should require little or no down payment, but some dealers require $2000-$7000 down. You can walk out if you don't like it
  • Just walk away at the end. Closed end leases have no hassle at the end. You turn in the car, pay an end of lease disposition fee, and walk away

Short term - Leasing is cheaper, there is of course an equilibrium that is reached. But long term financing is cheaper with the assumption that you keep the car after the 5 -year mark. At which point an individual who would have leased would be coming up on two new leased vehicles for the price that you paid for yours (Lets assume $40,000 Vehicle - You finance and pay $40,000+ Interest, assuming you financed a portion. Where as for the same car a lease after 3-years would have been ~ $19,000 in payments. Lets say you lease another vehicle at around the same price point/ deal after the 3rd year. After 6 years you have paid $38,000...of course you have nothing to "show" for that money. But when are cars ever good investments?)

Last edited by phx08; 09-09-2012 at 10:40 PM.
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