Finance vs. Lease vs. BMW Select

[stlcity]

Originally Posted by iMpower

I am still researching the topic and looking at the pros and cons of leasing vs. financing.

Will have to go to the dealer and talk to their financial department.

Looking at the payment difference:

Lease for 36mo at 15,000 mi - $1,704/month

Finance for 60mo at 3.9% - $1,890/month

BMW Select for 36mo - $1,684/month

BMW Select for 60mo - $1,391/month

I'm still not quite sold on the BMW Select idea and will have to talk to the dealer about it.

Looking at the payment difference for the lease vs. finance it's roughly $200 difference a month, so I don't really think it's a valid reason/excuse to lease the car to "save some money". Anybody who can pay $1,700/month can certainly pay $1,900/month, and I don't think it'd be a deciding factor for them.

I'm definitely still undecided on the route to go, as I can't see a clear advantage of one over the other.

I was confused too when I went ahead with the deal. Leasing might not offer too much of advantage interms of monthly payments.

The problem though is if u get unlucky after the warranty is done: u will be responsible for expensive out of pocket repairs. With the lease: U can drop it off at the dealer and wash your hands off....Other advantage is U can drive a new car every 3years.

That being said I bought the truck because I was off the same mindset as U: always owned and drove cars until they would not drive anymore. That attitude is fine I guess when it comes to most Japnese cars since maintainance wont cost much. With the German ones: its another story....

Now looking back: I think I would have probably leased it if I have to do it over.

Only other aspect to think off is: if U are the sort of person that likes to mod the car with aftermarket stuff, buying maybe a better option??

[iMpower]

Well, I just came back from the dealer where I spent a good half an hour getting educated by the financial director.

Here is what I learned:

1. Most people lease very expensive cars, because they get a new car every 3 to 4 years

2. It is cheaper to lease the car as the monthly difference does come together

3. In 7 years my dealer only did one BMW Select, so this option is out

4. He recommends leasing anything expensive as you will inevitably lose $ on the purchase

5. Another reason not to buy is because I would likely get a new X5M in 3 to 4 years

So.... I think I've pretty much sealed the idea of leasing the car! What a weight off the shoulders!

Thank you all for everyone's input

[iMpower]

Now that I decided on the lease I do have a question.

What is the best term to go with?

[JDM-20L]

Having recently been investigating this for an XM too, I gotta say man leasing is cheap in the US compared to here!

I think I am going to finance/buy it because a lease is so expensive here AND the fact that come the end of term you have the equity of the vehicle value (provided no residual) to use as contribution towards the next car (trade in), thus bringing down the mount financed (next time), there's just too much of a gap between leasing and buying here which leaves more than enough for maintenance!

Obviously this is a variable between everyones circumstances.

I think if I were to lease I'd want the end of term to line up with LCI and/or new model release.

[jspdr]

Had some experience from working for financing @ BMW dealer a while back, just like to add my commend. Do the opposite from the financial director.
1. Most people lease very expensive cars, because they get a new car every 3 to 4 years
You can do this on a purchase contract.

2. It is cheaper to lease the car as the monthly difference does come together
Not necessary true. Cheaper because you commit to pay only a certain % of the vehicle value.
3. In 7 years my dealer only did one BMW Select, so this option is out
You don't know if it's true or it's a selling point.
4. He recommends leasing anything expensive as you will inevitably lose $ on the purchase
Lose money regardless. He recommended you because he/dealer will make a whole lot more.
5. Another reason not to buy is because I would likely get a new X5M in 3 to 4 years
You can do this w/purchase, by trade it in.

Regardless of your decision, one thing we know for sure is that you're going to enjoy the Ultimate Driving Machine. Good Luck

[iMpower]

So, basically you're saying that if I want to keep the car for 3 to 4 years, I'd be better off buying it?

[iMpower]

Another question about leasing:

Will I be able to use the BMW CCA $1,000 discount if I lease?

[iMpower]

I am also not planning on modifying my car if I lease it.

Does window tinting count as "modifying"?

[jspdr]

I am saying regardless, a lease contract is more expensive than a purchase one. You can compare it with the same terms between the two, including Cap Cost, purchase price and the residual value. That is the reason why all the dealers push it hard to sell the lease instead of purchase. If you really concern about maintenance cost after 4year/50k miles, there are options like extended maintenance program, or trade it in after 4 years. If you are not going to put high miles to it and will be in great shape, most likely you will get higher trade in value. It is just my opinion.
I am not sure about window tinting. You can ask the tinting shop to match the percentage of tint from the back windows.

[iMpower]

Well, dang it!
I was all settled on the lease idea and now I am doubting myself again!