Leasing a BMW...

[alkemyst]

Exactly...if you are looking to flip a car every two years, have great credit, don't drive much and don't want to personalize your car a lease can make sense.

Also the lease vs buy game gets blown to crap once you consider buying a car that was pre-owned. You can find cars with less than 10k miles on them for a steal at times and still qualify for excellent loans (again credit is key).

The 10+ year thing is typical of the 'lease' guy trying to talk down a customer stuck in the same car for a decade+ to break even...most never keep their cars that long...

 

[fleabag]

Originally posted by: alkemyst

Originally posted by: iamwiz82

Originally posted by: fleabag
A lease only makes sense if your employer or company is using the monthly fees as a corporate tax deduction and or you're able to use it as a tax deduction, otherwise there is no point and it's a losing proposition.

Sounds like you are just regurgitating what you read on the internet.

so what is the advantage for a private individual?

Unless you can prove that the car is specifically for your job, such as a door to door salesman, then there is no benefit.

 

[PricklyPete]

Originally posted by: BarneyFife
Just an update...

I ended up skipping the BMW. Had an attorney friend tell me about the expenses such as having to replace the tires when you return it. I got a great deal on a Lincoln MKZ through the ford employee discount so I went with that.

Wow...talk about jumping from one extreme to the other extreme in a segment...

 

[iamwiz82]

Originally posted by: alkemyst
Exactly...if you are looking to flip a car every two years, have great credit, don't drive much and don't want to personalize your car a lease can make sense.

Also the lease vs buy game gets blown to crap once you consider buying a car that was pre-owned. You can find cars with less than 10k miles on them for a steal at times and still qualify for excellent loans (again credit is key).

The 10+ year thing is typical of the 'lease' guy trying to talk down a customer stuck in the same car for a decade+ to break even...most never keep their cars that long...

A good lease will end up having a lower negotiated price than even a two year old model. That's the beauty of a lease, they base a majority of the price on the depreciation. If you find a car out there that is 30% off of sticker and the residual after 2 years is 70% you will pay next to nothing for it.

 

[Arkaign]

Originally posted by: dirtboy

Originally posted by: iamwiz82
Lower price. A good lease will end up being a better choice versus financing unless you keep cars 10+ years. Just because some people get sucked into crappy leases (the thread the other day of an RX8 for $400 is an example of that) doesn't mean all people do.

Agreed. If you don't rack up the miles, and in some cases depending on how many you go over & your lease terms, if you don't care what you drive, you can get some great deals.

I saw an 08 Jetta, probably base, 15,000 miles 24 months, $199/mo + 2,000 down. So for 300 a month and 2-3 oil changes, you can drive a new car with full warranty. Probably cheaper than buying new and you don't get stuck with your crappy VW falling apart out of warranty.

Well there are truly pro and con to each side. My brother leased a Land Rover back in the 90s, and got really hit hard, because he drives a LOT (D/FW Metro Area). He went to buying, and buying cars that retain much of their value (Acura/BMW). So it went like this for him :

Bought car 1, pay large down payment, pay large payments, paid off very early in two years, cost him $32k or so.

Took car 1, with value of 22.5k, as down payment on car 2, with cost of 33k. Paid tiny payments, paid off early in 18 months. Drove for another 6 months with no payment at all.

Took car 2, with value of 20.5k, as down payment on car 3, with cost of 33k. Paying tiny payments, looking to pay off early again.

So, the guy drives 25-35k/year. He also likes the security of being able to keep the car at a reasonable price. The big minus to the deal is the high initial cost, but the payoffs come later, when you only have to finance 10-12k on a very nice car, and you get to keep it if you choose, and you don't get nannied on miles.

 

[PricklyPete]

Originally posted by: Arkaign

Took car 1, with value of 22.5k, as down payment on car 2, with cost of 33k. Paid tiny payments, paid off early in 18 months. Drove for another 6 months with no payment at all.

That averages out to about $480 a month for 24 months on a 33k car...you definitely can work a better lease deal than that without having to put up the money for a 30K car up front for the initial purpose.

That being said...if you're going to be driving a lot of miles...leases almost never work out.

I'm not saying leasing is always the way to go...but your brothers example (minus the mileage) really isn't a case cost wise for buying a car vs. leasing.