Leasing

[SMURFDADDY]

Often the residual value can fluctuate outside the market value range. Not saying it's a guaranteed hedge against depreciation, but in the case of my 2013 Mini Cooper I saved my ass by leasing as the new model came out in 2014.

For those who are super conscious about LCI impacting their car's value, this is why I suggest leasing as the better alternative. Just my opinion

[JoeFromPA]

This is why 3 year leases are important. Because if you buy your car, you are stuck with it FOREVER.

[JoeFromPA]

Originally Posted by SMURFDADDY

Often the residual value can fluctuate outside the market value range. Not saying it's a guaranteed hedge against depreciation, but in the case of my 2013 Mini Cooper I saved my ass by leasing as the new model came out in 2014.

For those who are super conscious about LCI impacting their car's value, this is why I suggest leasing as the better alternative. Just my opinion

Leasing guarantees that you pay a fixed depreciation rate at dealership trade-in levels, which is pretty much a bet on the worst possible outcome. You are also contractually locked into paying for a very specific amount of miles on your vehicle - drive less and you overpaid, drive more and you overpay. And of course contractually locked into needing your vehicle to meet certain condition upon turn-in that, if you do not meet, can be very detrimental to your wallet if the dealership determines you need to pay for those re-conditioning aspects.

It is a pain in the arse to trade your vehicle during the lease and you have a very specific timeframe to which your next vehicle needs to be delivered upon - if you want to wait 3 months at that time for something else, that'll be an issue.

You have to pay lease specific fees which seem to be made up out of wholecloth and aren't there when you buy. In many states, you pay extra sales tax on a lease.

...

But yeah, besides that, it's really a better value for your money. It really protects you.

...

There are real reasons for SOME people to lease, and there are real convenience factors for some people to pay extra by leasing. But let's call a spade a spade.

[SMURFDADDY]

Originally Posted by JoeFromPA

Leasing guarantees that you pay a fixed depreciation rate at dealership trade-in levels, which is pretty much a bet on the worst possible outcome. You are also contractually locked into paying for a very specific amount of miles on your vehicle - drive less and you overpaid, drive more and you overpay. And of course contractually locked into needing your vehicle to meet certain condition upon turn-in that, if you do not meet, can be very detrimental to your wallet if the dealership determines you need to pay for those re-conditioning aspects.

It is a pain in the arse to trade your vehicle during the lease and you have a very specific timeframe to which your next vehicle needs to be delivered upon - if you want to wait 3 months at that time for something else, that'll be an issue.

You have to pay lease specific fees which seem to be made up out of wholecloth and aren't there when you buy. In many states, you pay extra sales tax on a lease.

...

But yeah, besides that, it's really a better value for your money. It really protects you.

...

There are real reasons for SOME people to lease, and there are real convenience factors for some people to pay extra by leasing. But let's call a spade a spade.

It's all in the contract when you sign it. The disposition fee is non-applicable if you get into another BMW. If you don't treat your car like shit, you don't need to worry about incurring any fees. It benefits those who (obviously) enjoy driving a new car every 24-36 months, and also benefits those who absolutely need to have the newest tail lights on their car

As far as the fixed depreciation goes, yes, you're locked in at a residual value that is predetermined by ALG. I personally will never buy a car unless I plan on either keeping it forever, or unless I know that there will be a drastic spike in equity within the vehicles usable life. I certainly will never outright buy a modern BMW that has a rapidly approaching expiration date on it's tech. Pay for the portion you use, and throw the keys back and move on your merry way.

Again, these are purely MY OPPINIONS. I also happen to work at an OEM, within Sales Planning and specialize in analyzing SALES/LEASE programs. But what do I know...

[SMURFDADDY]

Here are a few fun stats from January just in case anybody was wondering.

Type of Sale Lease (%): M3 - 46.4% | M4 - 55.5%

Type of Sale Purchase (%):M3 - 53.6% | M4 44.5%

[MFNATIK]

Leasing is just more practical if you want to stay current but flexible if you want to keep long term as well. It really is a win/win b/c it takes all the risk off of the consumer. Whats not to like?

[rubber_ducky]

Originally Posted by JoeFromPA

This is why 3 year leases are important. Because if you buy your car, you are stuck with it FOREVER.

By my buying my car, I didn't realize that i gave up the right to sell it, there by being stuck with it forever. Like a tattoo, it sounds like I'll never be able to get rid of it.

[JoeFromPA]

Originally Posted by rubber_ducky

By my buying my car, I didn't realize that i gave up the right to sell it, there by being stuck with it forever. Like a tattoo, it sounds like I'll never be able to get rid of it.

Says no one ever...?

Sarcasm seems to have forgotten to bite you in this instance