Quote:
Originally Posted by DS_BMW
How do you manage that without being in the hole from every car?
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If you switch cars frequently you are going to be in the hole either way. This way you are in a much smaller hole. The trick is to buy right up front to minimize it as much as possible. I will use my old M5 as an example
Purchase
Sticker $100K
Negotiated price $90K
Tax $7500 @8.25%
Total $97.5K
Lease
Sticker $100K
Negotiated Price $90K
Payment $1100
Tax $90/month
Sell after 12 months and you just saved over $6K. Sell after 3 years which is a normal lease term and you saved $3K. Break even on the tax is about 80 months which I doubt most people here keep a car that long.
My personal opinion is that buying cars is a losing proposition, leasing just makes it less painful. I have looked at the math a lot and it just doesn't make much sense to buy cars especially BMW's since their leasing is so aggressive.