[ThatKrazyPolak]

Hi all,

So I currently have a 2015 228xi that’s paid off, 58K miles as of now. I’m out of warranty and I need to decide on what to do with this car in the next year. I was eyeing the G20 for next year, mainly looking at the M340i.

My issue is the 2 series was my first car, which I financed. My current situation is that I have a bit of a commute to work ( 30-40 miles). I’m asking for advice on
whether I should buy or lease? Essentially I would like the most cost effective option. I can currently get around 20K for my car through dealer trade in. I’m just kind of averse to leases since I don’t own the car but if someone could explain this to me in better detail I would appreciate it.

Thanks

[Aaaaaaaaa]

Well given it hasn't even been announced yet makes it hard to advise since we have no idea on pricing, residuals, MF etc. but in general if you can tax write off the lease, residuals are in 60% range and MF doesn't skyrocket by the time it comes out then lease probably be better. A rough general rule is that if you can get the monthly payment around 1% of MSRP with little to no money down then it's a good deal. Main benefit of leasing is that BMW is taking the risk on depreciation. Main drawback is that you don't own anything at the end but I argue that's not that big of a deal because I don't intend to own a depreciating asset out of warranty that'll just become a money pit.

[MT4life]

It will highly depend on the residuals and MF set by BMWFS.
Often times the residual is BS high number for which you will never sell that car yourself for that amount of money so if the interest rate, i.e Money Factor is low and the residual is artificially high then it makes sense to lease first because you're paying less for the car then it depreciates in real life.
In the recent years I have noticed BMWFS is not so frivolous with their estimates and set residuals close to reality like 50-52% and the MF is not a giveaway like it used to be something close to 1% converted MF to normal interest rate (x2004) so leasing is only good if you can write off and not necessarily getting more car for less $$$

[autopal]

The general rule is, lease make sense if 1) you like a new vehicle every 3 years or so, 2) your average kilometres driven 25K or less per year. The argument about not owning the car if you lease isn't a good argument, yes, after 3 years you don't own the car, but you also don't own any debt. Stop making your monthly payments and you will quickly find out you own nothing. Most people who finance a new car will finance for 60, 72 or even 84 months, so after say 3 years, the value of the car will almost certainly be less than the remaining balance on the loan. One thing I love about leasing is not have to worry about depreciation, if your owned or financed new car is in a serious accident, the depreciation will be even more severe, even if the car is repaired properly, as the accident will be a permanent entry on carfax, with a lease contract, that is not your concern. In my opinion, buying a new car only make sense if you are sure you are going to keep the car for 5 years or more
A few more pros of leasing 1)no need to buy those expensive warranties and under coat stuff that dealers like to push, 2)taxes and interest are only on the depreciation, not the entire car price

[Tuxedo]

Originally Posted by autopal

A few more pros of leasing 1)no need to buy those expensive warranties and under coat stuff that dealers like to push, 2)taxes and interest are only on the depreciation, not the entire car price

to add to this since so far the advise has been solid
if you purchase 72mo loan as a salesperson you have been sold 1 car. If you lease 36mo 20k you will be in the 73rd mo beginning your 3rd car lease.

BMW technology, safety, styling and performance updates every year. Think about how many cell phones you have had since you bought the 228? the ios software updates since you bought the 228? the days of this model will be released and stay nearly the same for the next 4yrs is gone.

lease, the basic advertised low payment big sale blowout is always a great deal. If that car has what you need get it. I don't know your budget needs to advise otherwise, lucks to you

[trey100]

There is no clear cut answer but I always lease my BMWs. At least in the past, I have been able to lease the vehicles when the residuals are a bit inflated and when combined with stacked incentives, it makes sense in my situation. I drive 15k miles a year. I find it makes more sense to lease if you drive significant miles because the residual penalty is minor (3% difference between 10k and 15k per year) compared to the hit you would take if you owned the car and drove 15k miles per year. Last thing I want is an M3 with 90k miles after 6 years. This way I return my BMWs with 45-48k miles just before I need to worry about things breaking and being out of warranty. Added benefit is that I am always driving the most current car with the latest technology and safety features. I don't worry about babying the car either.

Downside is you pay some fees with leases that you don't with purchases (acquisition fee, disposition fees) and depending on timing, you could find yourself at the end of your lease with tires that need to be replaced at your cost without you getting to use them. Same can happen for brakes.

Financially it really comes down to the current residual, money factors, and incentives going on. Without that there really is no right or wrong answer.

[alex2364]

Lease if you want a new car every 3 years. Buy if you plan on keeping it at least 6 years.

[hans007]

i always think about it like this. if i buy i'm leasing to myself. if you consider a lease well you're letting BMW or whoever take the depreciation hit, if they stupidly give you a ridiculously high residual then great. (i.e. do not lease an M2)

THat said in CA anyway you pay sales tax on the monthly lease, vs sales tax on the entire car if you buy. But you also don't pay a lease origination fee if you buy obviously which is like $900 on most of these types of cars.

When I bought my first german car (2010 audi) it had terrible residuals and I bought, and sold the car with 45k miles after 3 years and did way better than had I leased it with even 10k miles a year (let alone 15k).

I got hosed on my next car a BMW because BMW lease at the time was super subsidized.

Also another thing to note, BMW doesn't lower your residual percentage on options, and options depreciate a ton, so if you are going to lease you might as well get a ton of options. IF you are buying a pretty stripped car , or just a standard trim level pack (like audi's have different residuals depending on premium/premium plus/prestige etc) then maybe it makes no difference.

So yeah... on bmws anyway... ifyou buy a lot of options that don't resale well , lease. if you can write it off.. lease. If they are subsidizing leases insanely lease.

[otay]

It's kinda funny that we already have a lease vs buy thread in the G20 forum.

Next is: why is my exhaust only working on one side?

My 2 cents: Buy what appreciates, lease what depreciates (But that might be different if I was a 1%-er). Also would not want to buy as soon as a new model is released.

[The Automotive Enthusiast]

Originally Posted by MT4life

It will highly depend on the residuals and MF set by BMWFS.
Often times the residual is BS high number for which you will never sell that car yourself for that amount of money so if the interest rate, i.e Money Factor is low and the residual is artificially high then it makes sense to lease first because you're paying less for the car then it depreciates in real life.
In the recent years I have noticed BMWFS is not so frivolous with their estimates and set residuals close to reality like 50-52% and the MF is not a giveaway like it used to be something close to 1% converted MF to normal interest rate (x2004) so leasing is only good if you can write off and not necessarily getting more car for less $$$

Or if you just don't want to hold onto a depreciating asset.

[The Automotive Enthusiast]

Originally Posted by otay

It's kinda funny that we already have a lease vs buy thread in the G20 forum.

Next is: why is my exhaust only working on one side?

My 2 cents: Buy what appreciates, lease what depreciates (But that might be different if I was a 1%-er). Also would not want to buy as soon as a new model is released.

I think the next thread should be Civic M340i vs Non-Civic M340i.

[BMV///M3]

My lease is up 6/19. I don't think I'll be able to find a lease take over for an 18' M3 with a decent residual and MF due to the poor rates over the past year (I got mine at .00135 and 63% so I'm spoiled). So I may look to the M340i to told me over till the next M3 comes out. I'm excited about it. 385hp and the new tech sounds really nice.

[MT4life]

Originally Posted by BMV///M3

My lease is up 6/19. I don't think I'll be able to find a lease take over for an 18' M3 with a decent residual and MF due to the poor rates over the past year (I got mine at .00135 and 63% so I'm spoiled). So I may look to the M340i to told me over till the next M3 comes out. I'm excited about it. 385hp and the new tech sounds really nice.

Wow, BMW was desperate