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2019+ BMW 3 AND 4-SERIES FORUMS (G2x Generation) Ordering / Pricing / Order Tracking Forum Buy or Lease

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      10-27-2021, 10:54 PM   #1
grantj1983
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Buy or Lease

I’m picking up my 2022 M440i tomorrow and just wondering if you guys/gals are buying or leasing. Seems like as difficult as it is to get cars these days (I’ve waited 11 weeks) and as low as interest rates are, it might make more sense to Finance, especially if dealer is giving a discount off MSRP. Thoughts?

I’m seeing used 2021 ones for sale, not custom, with 8000 miles asking for more than I’m paying for my car.
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      10-28-2021, 12:06 AM   #2
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It’s a very individual thing to buy or lease.
In my case, I always buy. Main factor is I keep the car for an average of 8 years, and put little mileage on it per year. Especially now with low finance rates.
After it’s paid off, I enjoy no car payment for several years. Good luck with the pickup!
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      10-28-2021, 12:17 AM   #3
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How long do you plan to keep the car? How many miles do you drive each year? Do you own your own business?
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      10-28-2021, 07:56 AM   #4
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To me worth buying along with extended warranty. I put 15k plus miles a year and keep my cars 4 years plus.
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      10-28-2021, 08:43 AM   #5
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Just to add a thought to this as I'm going through the same question: I'm wondering if most ICE cars start to lose value more quickly in the next three to five years, due to EVs likely becoming more in demand.
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      10-28-2021, 08:57 AM   #6
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Quote:
Originally Posted by themnmd View Post
To me worth buying along with extended warranty. I put 15k plus miles a year and keep my cars 4 years plus.
TL;DR - Leasing is more expensive, but not as expensive as people think. Leasing doesn't represent less risk, it simply replaces some risk for others. Finally, don't lease as a way to afford a car you can't afford to buy.


When i leased my first car a few years ago I did the math on leasing a brand new car compared to purchasing a CPO of the same model and an extended warranty. The cost delta between buying a CPO (3 year old) model compared to leasing a brand new model twice was somewhere between $8000 and $10000 over 6 years or roughly $110 or $140 a month. If you're buying new the difference is probably much much smaller.

When i leased my wife her first car, I explained like this. She likes to get a new car every 5-6 years. We purchased a brand new Nissan Pathfinder for her in 2015. The car was fully loaded and including everything out the door the car was ~$45k out the door. Over 6 years she drove it around 45k miles and we sold it privately (more than we would have gotten on trade in) for $15k. This means that it cost her $5000 a year (6 years of ownership, $30k cost) to drive the car. I recently leased her a Mercedes SUV (granted it was a smaller vehicle) which had a sale price of around the same $45k (including taxes, title, license, etc.) and when we added in the MSD's her total cost (residualised down payment + monthly payment) is roughly $6,600 a year. So about $1600 a year more.

Regarding risk; there are a few things to consider. One is FOBO (fear of being left behind) driving a new car ensures you are always able to buy the one with the latest tech. Another risk that you no longer have with leasing is the potential for a large repair bill. You do assume a few additional risks; the chief amongst them is wear and tear costs and mileage overage costs.

One last thing to consider; if you start with a lease and decide to purchase the car that is always your right, you can't however convert a purchase to a lease in the future.
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      10-28-2021, 09:15 AM   #7
springerdrive
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Quote:
Originally Posted by jg4c View Post
In my case, I always buy. Main factor is I keep the car for an average of 8 years, and put little mileage on it per year. Especially now with low finance rates.
After it’s paid off, I enjoy no car payment for several years. Good luck with the pickup!
I resemble that remark. I've never leased- always owned, and recently sold a 2001 Acura CL-S that I drove for 21 years!

Last edited by springerdrive; 10-28-2021 at 11:05 AM.. Reason: correction
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      10-28-2021, 09:17 AM   #8
clearwaterms
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Quote:
Originally Posted by springerdrive View Post
I resemble that remark. I've never leased- always owned, and recently sold a 2021 Acura CL-S that I drove for 21 years!
you drove a 2021 Acura coupe for 21 years? Did I fall asleep for 20 years last night...
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      10-28-2021, 09:19 AM   #9
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Buy

I just ordered and paid for the G20 330e M Sport Pro Edition Saloon
XB1G 2.0i in Tanzanite Blue with Fiona Red / Black Extended
Merino Leather with a serious spec . So much easier to buy in my opinion. Should have it sometime in Feb 2022
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      10-28-2021, 09:34 AM   #10
grantj1983
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Quote:
Originally Posted by clearwaterms View Post
TL;DR - Leasing is more expensive, but not as expensive as people think. Leasing doesn't represent less risk, it simply replaces some risk for others. Finally, don't lease as a way to afford a car you can't afford to buy.


When i leased my first car a few years ago I did the math on leasing a brand new car compared to purchasing a CPO of the same model and an extended warranty. The cost delta between buying a CPO (3 year old) model compared to leasing a brand new model twice was somewhere between $8000 and $10000 over 6 years or roughly $110 or $140 a month. If you're buying new the difference is probably much much smaller.

When i leased my wife her first car, I explained like this. She likes to get a new car every 5-6 years. We purchased a brand new Nissan Pathfinder for her in 2015. The car was fully loaded and including everything out the door the car was ~$45k out the door. Over 6 years she drove it around 45k miles and we sold it privately (more than we would have gotten on trade in) for $15k. This means that it cost her $5000 a year (6 years of ownership, $30k cost) to drive the car. I recently leased her a Mercedes SUV (granted it was a smaller vehicle) which had a sale price of around the same $45k (including taxes, title, license, etc.) and when we added in the MSD's her total cost (residualised down payment + monthly payment) is roughly $6,600 a year. So about $1600 a year more.

Regarding risk; there are a few things to consider. One is FOBO (fear of being left behind) driving a new car ensures you are always able to buy the one with the latest tech. Another risk that you no longer have with leasing is the potential for a large repair bill. You do assume a few additional risks; the chief amongst them is wear and tear costs and mileage overage costs.

One last thing to consider; if you start with a lease and decide to purchase the car that is always your right, you can't however convert a purchase to a lease in the future.
This is just phenomenal info, thank you! I usually drive my cars 3-4 years but I always used to buy because I USED TO go to drive to work every day. Now I don’t, so my mileage is dropping significantly. I like a new car and the new tech, so I understand I have to pay up for that.

Also someone made a good point that I can always decide to buy the car if I lease, so I think I’m going with lease.

Will pick the car up in 3 hours and post pics!!!
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      10-28-2021, 10:15 AM   #11
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Quote:
Originally Posted by grantj1983 View Post
This is just phenomenal info, thank you! I usually drive my cars 3-4 years but I always used to buy because I USED TO go to drive to work every day. Now I don’t, so my mileage is dropping significantly. I like a new car and the new tech, so I understand I have to pay up for that.

Also someone made a good point that I can always decide to buy the car if I lease, so I think I’m going with lease.

Will pick the car up in 3 hours and post pics!!!
PLEASE, PLEASE, PLEASE spend 5 minutes and make sure you're reading the fine print on your lease contract. Leasing is inherently more complicated and leaves more opportunity for dealerships to change numbers that don't mean anything to alot of people. If you're leasing make sure you're getting the base money factor (or very very close to it) and also make sure you're paying the same price you already negotiated on the car. Just like a purchase, the interest rate and the sale price are negotiable.

Look on Edmunds.com and learn what the base residual value and money factor are for that model in your zip code. Also make sure you know what the BMW acquisition fee is, for most vehicles it's around $795 but most dealerships mark it up to $995.

Also, remember with a lease you're insurance company is only on the hook for the residual value plus unpaid rent payments. This means that if use a large cap cost reduction (down payment in lease terms) and something happens to the car (total, theft, etc.) you may not recoup those costs.

It is generally best practice to put as little money down on a lease as possible, most people advocate to put only first months payment down and bury the rest into the payment but I personally tend to pay taxes, title, license and first payment up front.
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      10-28-2021, 11:07 AM   #12
springerdrive
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Quote:
Originally Posted by clearwaterms View Post
you drove a 2021 Acura coupe for 21 years? Did I fall asleep for 20 years last night...
Oops! Corrected:

Quote:
Originally Posted by springerdrive View Post
I resemble that remark. I've never leased- always owned, and recently sold a 2001 Acura CL-S that I drove for 21 years!
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      10-28-2021, 06:03 PM   #13
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Lease. I like a new car every 2-3 years, so taking the hit on depreciation every few years by buying seems like a losing proposition.

Leasing is very confusing at first, but if you spend a few hours learning about it and playing with a calculator it becomes pretty simple to understand. BMW makes it easier by having the same MF across all their models, too. The main downside I can see is that if your car is totaled you're back at square one with no vehicle and no reimbursement from your insurance company. This happened to my wife when a drunk driver hit her last year--ended up without a vehicle for about 2 months while we waited for her X3 m40i to be built.
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      10-28-2021, 07:11 PM   #14
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this will be my 6 leased car... .. i like my cars new.. every 3 years
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