Loan vs Lease vs Own

[HPIA4v2]

LOL, I like it when he says...."flease money" as if "fleeced"

I think at the end, you can slice it anyway you want, we are dealing with depreciating asset. So logical calculator would be, buy a junker drive it until the wheels fall off. But come on, no one NEED a BMW, they WANT BMW. so throw away the calculator already.

[CRtoE92]

Originally Posted by Draper

But we all know only poor people lease. 'Owners' are the only true M-thusiasts.

This is one of the most ignorant comments ive seen on bimmerpost

Many executive leases their car for tax reduction purpose

But simply with lease and purchase you cant judge their wealthiness since they both have cons and pros

It all varies per personal preferences, lease rate, apr and many more

[RickFLM4]

Originally Posted by CRtoE92

This is one of the most ignorant comments ive seen on bimmerpost

Many executive leases their car for tax reduction purpose

But simply with lease and purchase you cant judge their wealthiness since they both have cons and pros

It all varies per personal preferences, lease rate, apr and many more

Pretty sure he was joking...

[TonySCV]

I like driving new cars. I don't like owning depreciating assets. Leasing is for me.

Of course BMW is making some money on the transaction. I'm also saving money in sales tax since I live in a State where sales tax is only charged on the payment of the lease and not the entire cost of the vehicle. I also like the flexibility of putting my car up on LeaseTrader if I want out.

Everyone's different. Do what is best for you and your situation.

[mperfct]

I've watched that Dave Ramsey video before. I agree with him mostly. The dealer is indeed there to make money. By that logic, you should only buy cars from individuals. Most individuals sell a car and try to minimize personal fiscal loss, not necessarily turn a profit.

However, Dave isn't giving weight to the fact that some of the time, a car will break. And break badly. Buying a new car (leased or purchased) absolves you of that maintenance cost. Same for CPO. That is something a dealer provides, that may account for some of the premium associated with buying from a dealer. No individual that I've ever heard of will insure the mechanical soundness of a vehicle.

There's a half dozen ways to buy a car. None of them are truly financially intelligent (these are quickly depreciating liabilities) but you can inform yourself of the different acquisition methods and learn the risks of each, and then figure out what makes the most sense for your situation.

Once you do that, you are free to get sideways around every corner possible.

[damnitBobby]

While I've never leased a car myself, I don't think there is anything wrong with leasing. And I can certainly see why a lot of people choose to lease.

[GrussGott]

Originally Posted by Snappy Phoenix

Nuff said.......

Yes, if you're a consumer that finds new information and/or financial benefit from this guy's advice.

No, if you're skilled in financial engineering, need to be more granular with risk management, and/or are managing a high level of complexity, then none of this applies.


Said differently, if you'd consider calling this guy for advice, then you might be best off taking it.

[Thor2j]

I leased an m5 in 2015 from golffr and david. Did ED and they gave me a good deal. ED cost me $150 as I flew for free and spent 24 hrs there. I pay without tax 818/mo for an Msrp of 102,000. After 3 years the car is going to be lucky to be worth 55000. I'll be out less then 30k. I saved at least 12k by leasing.

[KevinM]

Originally Posted by damnitBobby

While I've never leased a car myself, I don't think there is anything wrong with leasing. And I can certainly see why a lot of people choose to lease.

Not that there's anything wrong with that...

I get a kick out of these discussions. Everyone's situation is so different. Depending on your particular situation, it is possible of screw yourself financially with almost any option.

The only thing I won't debate is that from a strictly value proposition, purchasing a well-maintained 3-year old car with cash (assuming you've got the reserves) and keeping it forever is the best option. I've done that when it suited the situation the best and I've done a number of other types of transactions when it did not.

[GrussGott]

Originally Posted by KevinM

Everyone's situation is so different.

Funny thing about this thread that just occurred to me ...

So over the years, we've gotten down to one car as we don't drive much: Weekly I sport drive and we run errands, but other than that we don't need a car for much (back in our suburban lifestyle days we had 3 vehicles! an A4, my S4, and a suburban).

So now we only have the one car that we lease but about once a month we need to rent a car...

So yesterday we had tickets to see a comedian at a place 2 hours north so we decided to make a picnic day out of it, went up early to beat traffic, etc, and were going to stay overnight but ultimately decided not too. For these kinds of things we always rent a mid-SUV; yesterday it happened to be a Buick Envision. eh. We usually use points but we'll pay if that's a better deal ... which yesterday it was, total price was ~$100.

Which means that our brand new SUV costs us about $500-$1000/yr including insurance.

Anyway, the point is, no ownership of anything here: we lease AND we rent!

[Thescout13]

Originally Posted by GrussGott

Funny thing about this thread that just occurred to me ...

So over the years, we've gotten down to one car as we don't drive much: Weekly I sport drive and we run errands, but other than that we don't need a car for much (back in our suburban lifestyle days we had 3 vehicles! an A4, my S4, and a suburban).

So now we only have the one car that we lease but about once a month we need to rent a car...

So yesterday we had tickets to see a comedian at a place 2 hours north so we decided to make a picnic day out of it, went up early to beat traffic, etc, and were going to stay overnight but ultimately decided not too. For these kinds of things we always rent a mid-SUV; yesterday it happened to be a Buick Envision. eh. We usually use points but we'll pay if that's a better deal ... which yesterday it was, total price was ~$100.

Which means that our brand new SUV costs us about $500-$1000/yr including insurance.

Anyway, the point is, no ownership of anything here: we lease AND we rent!

I knew you were my spirit animal for a reason. We are down in your neck of the woods today walking around and soaking up the beauty, dont know why you would ever leave this place. Hahaha.

[Aaaaaaaaa]

Originally Posted by Thescout13

I knew you were my spirit animal for a reason. We are down in your neck of the woods today walking around and soaking up the beauty, dont know why you would ever leave this place. Hahaha.

Where is this

[Thescout13]

Originally Posted by pheerlx

Where is this

Newport Beach area

[guarnibl]

Originally Posted by mperfct

I've watched that Dave Ramsey video before. I agree with him mostly. The dealer is indeed there to make money. By that logic, you should only buy cars from individuals. Most individuals sell a car and try to minimize personal fiscal loss, not necessarily turn a profit.

However, Dave isn't giving weight to the fact that some of the time, a car will break. And break badly. Buying a new car (leased or purchased) absolves you of that maintenance cost. Same for CPO. That is something a dealer provides, that may account for some of the premium associated with buying from a dealer. No individual that I've ever heard of will insure the mechanical soundness of a vehicle.

There's a half dozen ways to buy a car. None of them are truly financially intelligent (these are quickly depreciating liabilities) but you can inform yourself of the different acquisition methods and learn the risks of each, and then figure out what makes the most sense for your situation.

Once you do that, you are free to get sideways around every corner possible.

Agreed. I just bought my CPO spyder and while I did see some private party - they were all asking as much or more ( in most cases more ) than dealers. Porsche GT cars are weird. But anyhow -- there was at least $5k in value from buying it from the dealer that I wouldn't get over private party. CPO warranty, new tires all around, new chin spoiler, annual service. This basically erased the tax advantage I'd get from a private seller and made the transaction way easier.

[Mike991M4]

I lease a cayenne for my powdercoating business. its all paid for with pre tax dollars. makes much more sense than depreciating it.

[allinon72]

Business leasing is a whole different animal and really shouldn't be in the same conversation as consumer leasing. Leasing for personal use rarely makes financial sense, but it allows people to get into cars that they probably have no business being in quite honestly. The common saying is that leasing makes sense if you get a new car every few years...as if someone can't simply...stop doing that. Regardless, we live in a free country and that's why it's called personal finance.

[GrussGott]

Originally Posted by allinon72

Leasing for personal use rarely makes financial sense, but it allows people to get into cars that they probably have no business being in quite honestly. The common saying is that leasing makes sense if you get a new car every few years...as if someone can't simply...stop doing that. Regardless, we live in a free country and that's why it's called personal finance.

Geezus dude there are like 5 posts just in this thread describing why that's utter bullshit

[allinon72]

Originally Posted by GrussGott

Geezus dude there are like 5 posts just in this thread describing why that's utter bullshit

You are ignoring major factors, like down payments, lease terms, mileage and other usage penalties (that almost always happen).

Agree to disagree.

[RickFLM4]

Originally Posted by allinon72

You are ignoring major factors, like down payments, lease terms, mileage and other usage penalties (that almost always happen).

Agree to disagree.

Yeah, agree to disagree because there's no sense explaining it again if your mind is made up.

[GrussGott]

Originally Posted by allinon72

You are ignoring major factors, like down payments, lease terms, mileage and other usage penalties (that almost always happen).

Agree to disagree.

Ha, well, there's no "disagree", you are simply wrong when you say it "rarely" makes sense. That's like saying it rarely makes sense for someone to order a chicken sandwich. Further, we're talking about fucking M4 here, not a prius, and an M-car never "makes sense" for anyone.

For me leasing always makes sense - there's no way I want to be saddled with owning a depreciating ill-liquid asset in our current economy, but that's how I manage risk, i.e., let BMWFS take it on rather than me. plus I'm beating the shit outa this thing. For you, you're willing to bear that risk. Totally cool.

Hyperbole is always wrong.

[Aaaaaaaaa]

Living on the coasts makes no financial sense either but hey everyone wants to right?

[GrussGott]

Originally Posted by pheerlx

Living on the coasts makes no financial sense either but hey everyone wants to right?

No doubt - I love it here, but as soon as we don't need to be here we're heading somewhere cheaper.