Help me decide to either lease or finance

moneymike713 · 10-15-2007, 04:20 PM

I am getting my 335i in the first week of November. It had a selling price of 48,500. I love the car but I know that 3 years is the perfect length for me to keep a car and after that I will want something new. With nothing down but Taxes/fees and a Security Deposit that you get back at the end of the lease (lowers MF) my monthly payment will be in the low 600's (Keep in mind this car is montego blue, with premium,sport,nav,CA,Heated Seats, ipod Adapter, pretty much fully loaded) now my CA said I would have to put like 25,000 down on a finance to get the payments to like 520 a month, so it would probaly be like 12,000 down to get the payments to like 700 a month. I am unsure what to do the leasing seems attractive but I just dont like the idea of having nothing to show for it in the end.

Gig103 · 10-15-2007, 04:44 PM

If you are able to stay within the mileage term, and know you like new cars, then you fit the criteria for a lease. Another bonus to leasing is that you are always covered under warranty, and with BMW, maintenance.

You say that you "don't like the idea of having nothing to show for it in the end." But since the car will depreciate whether you own it, or lease it, you've "lost" that same equity in the car (the higher payments for the first 3 years, that is).

Also - if you actually have $12k to put down, invest that money instead. At 4.5% APY, in 3 years that money earns you about $1700. If you have a 10% APY mutual fund or other investment, you are looking at $4k in potential earnings, and *still* the original $12000 for whatever else you may use it for.

Joonsup · 10-15-2007, 05:24 PM

The thing about leasing that attracts some people is that fact they after their term is up, you have a way out if you decide you want a different car and if you REALLY love that same car after 3 years, you can purchase it, granted you'll pay a little more overall compared to financing it from the beginning. But lower monthly payments while you get to "test" out the car for a few years seems like something to consider as long as you don't go over the allotted mileage

10-15-2007, 04:20 PM	#1
moneymike713 Second Lieutenant 22 Rep 208 Posts Drives: Montego 335 Join Date: Sep 2007 Location: NY iTrader: (0)	Help me decide to either lease or finance I am getting my 335i in the first week of November. It had a selling price of 48,500. I love the car but I know that 3 years is the perfect length for me to keep a car and after that I will want something new. With nothing down but Taxes/fees and a Security Deposit that you get back at the end of the lease (lowers MF) my monthly payment will be in the low 600's (Keep in mind this car is montego blue, with premium,sport,nav,CA,Heated Seats, ipod Adapter, pretty much fully loaded) now my CA said I would have to put like 25,000 down on a finance to get the payments to like 520 a month, so it would probaly be like 12,000 down to get the payments to like 700 a month. I am unsure what to do the leasing seems attractive but I just dont like the idea of having nothing to show for it in the end.
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10-15-2007, 04:44 PM	#2
Gig103 Major 70 Rep 1,324 Posts Drives: 2014 Tesla P85D Join Date: Aug 2007 Location: Gilbert, AZ iTrader: (1)	If you are able to stay within the mileage term, and know you like new cars, then you fit the criteria for a lease. Another bonus to leasing is that you are always covered under warranty, and with BMW, maintenance. You say that you "don't like the idea of having nothing to show for it in the end." But since the car will depreciate whether you own it, or lease it, you've "lost" that same equity in the car (the higher payments for the first 3 years, that is). Also - if you actually have $12k to put down, invest that money instead. At 4.5% APY, in 3 years that money earns you about $1700. If you have a 10% APY mutual fund or other investment, you are looking at $4k in potential earnings, and still the original $12000 for whatever else you may use it for. __________________ Was: 2008 335xi sedan 6MT Black Sapphire Metallic Is: 2014 Tesla P85D (Blue Metallic) Wife's: 2013 Infiniti G37 S sedan 6MT, Black
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10-15-2007, 05:24 PM	#3
Joonsup Lieutenant General 322 Rep 17,316 Posts Drives: E92 M3, E30 325i Join Date: Sep 2007 Location: Bay Area iTrader: (8) Garage List 2008 BMW M3 [9.50]	The thing about leasing that attracts some people is that fact they after their term is up, you have a way out if you decide you want a different car and if you REALLY love that same car after 3 years, you can purchase it, granted you'll pay a little more overall compared to financing it from the beginning. But lower monthly payments while you get to "test" out the car for a few years seems like something to consider as long as you don't go over the allotted mileage
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