View Poll Results: Just wondering...
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Did you lease or buy your E60?
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Originally Posted by RedSoxFan' post='235937' date='Feb 6 2006, 05:39 PM
This topic got more responses than I expected. Great debate. I personally could never make the lease numbers work for me. That's why I buy. Factors... 1. I negotiate a good purchase price. 2. I take excellent care of my cars - top resale value. 3. I keep them longer that the typical loan or lease period so it's like driving for free. 4. New cars depreciate the most the first 3 years... why 'pay' for only the most expensive years?
Think about this. If you are leasing... SOMEONE still is owning. What I mean is... Who do you think owns the car? Big business owns it. Either BMW or some lease company owns that car and is renting it to you. With that said... do you think they know what they are doing? Are they in business to lose money? Of course not. I always wonder why dealers push leasing on me. I think they like selling the car twice.
So, is BMW (with all their MBA's and accountants) smarter than they average car buyer? I think the numbers are in their favor.
Think about this. If you are leasing... SOMEONE still is owning. What I mean is... Who do you think owns the car? Big business owns it. Either BMW or some lease company owns that car and is renting it to you. With that said... do you think they know what they are doing? Are they in business to lose money? Of course not. I always wonder why dealers push leasing on me. I think they like selling the car twice.
So, is BMW (with all their MBA's and accountants) smarter than they average car buyer? I think the numbers are in their favor.
Also wondered how many of us that buy outright might do so through the assistance of traditional finance (i.e. non-lease)? Until the final payment goes in someone else "owns" the car in those cases as well - try skipping a payment and see what I mean
. As some others have said, at the end of the day, whether you lease, borrow, rent or buy there's not necessarily that much difference between them.
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Originally Posted by RedSoxFan' post='235937' date='Feb 6 2006, 08:39 PM
This topic got more responses than I expected. Great debate. I personally could never make the lease numbers work for me. That's why I buy. Factors... 1. I negotiate a good purchase price. 2. I take excellent care of my cars - top resale value. 3. I keep them longer that the typical loan or lease period so it's like driving for free. 4. New cars depreciate the most the first 3 years... why 'pay' for only the most expensive years?
Think about this. If you are leasing... SOMEONE still is owning. What I mean is... Who do you think owns the car? Big business owns it. Either BMW or some lease company owns that car and is renting it to you. With that said... do you think they know what they are doing? Are they in business to lose money? Of course not. I always wonder why dealers push leasing on me. I think they like selling the car twice.
So, is BMW (with all their MBA's and accountants) smarter than they average car buyer? I think the numbers are in their favor.
Think about this. If you are leasing... SOMEONE still is owning. What I mean is... Who do you think owns the car? Big business owns it. Either BMW or some lease company owns that car and is renting it to you. With that said... do you think they know what they are doing? Are they in business to lose money? Of course not. I always wonder why dealers push leasing on me. I think they like selling the car twice.
So, is BMW (with all their MBA's and accountants) smarter than they average car buyer? I think the numbers are in their favor.
And, right, paying cash outright is essentially the same too.
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Lease.
I've always purchased my vehicles, but as noted by my leasing brethren the money factor for 545i's was so good last summer, it made no sense to pay cash. I usually get bored within 4 years anyway.
Additionally, IMO this car will be expensive to maintain out of warranty, so I'll re-evaluate in 3 years and see how my lease experience has gone.
I've always purchased my vehicles, but as noted by my leasing brethren the money factor for 545i's was so good last summer, it made no sense to pay cash. I usually get bored within 4 years anyway.
Additionally, IMO this car will be expensive to maintain out of warranty, so I'll re-evaluate in 3 years and see how my lease experience has gone.
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Interesting how high the purchase rate is! I understood most BMW owners leased.
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Originally Posted by Znod' post='235407' date='Feb 5 2006, 08:10 PM
Assuming I understanding what your are saying, why are you so convinced that leasing can never be optimal at least for an individual? I did calculations well beyond what the standard lease calculators do and found that leasing was better for be by a worthwhile and undisputable difference--even without the benefit of tax deductibility.
Either way depreciation on cars is a lot and you lose out in the end but who knows... *shrugs* Maybe next car... will look into lease deals again.
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I like a good discussion. I'd rather take the IRS mileage rate, which is simply out of this world at present, and then own the car, and keep it, and not make a payment, and then accumulate wealth, by not paying for a car. I still haven't heard a CPA on this board say that leasing a $65,000.00 business car is prudent, and I'm not going to.
And, I might add that any prudent CPA would tell you not to buy a $65,000.00 car in the first place.
And, I might add that any prudent CPA would tell you not to buy a $65,000.00 car in the first place.
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Originally Posted by Evenflow545' post='236014' date='Feb 6 2006, 11:59 PM
I like a good discussion. I'd rather take the IRS mileage rate, which is simply out of this world at present, and then own the car, and keep it, and not make a payment, and then accumulate wealth, by not paying for a car. I still haven't heard a CPA on this board say that leasing a $65,000.00 business car is prudent, and I'm not going to.
And, I might add that any prudent CPA would tell you not to buy a $65,000.00 car in the first place.
And, I might add that any prudent CPA would tell you not to buy a $65,000.00 car in the first place.
"How would you respond if I said I am a competent CPA and that leasing can be the better alternative, given the right circumstances, for both a business and an individual without the opportunity for tax deductibility? Would you just say that I must be incompetent to claim such things? If so, then we won't get anywhere with your CPA attestation idea. Would you accept my claim that I am a competent CPA if I so claimed?"
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Lease.
The best thing you can do if want to drive BMW, I've had an almost brand new 330i ZHP with half of a cost paid in cash and after calculating $ went and sold it for good price, put money in the bank and drove out nice and brand new 530i with $2k down 15k miles per year 3 years total. Daily cost is like $20 a day who's going to rent it to you for that money, but thats not the point main reason is I drive cars for 3 years then get sick of it and change it another big factor is warranty and costly repairs in german cars. All of my other Japs are paid off and still drive like new. Another thing is owning Bimmer was pain in the ass as I would worry where I parked it so it wouldnt get dinged up and general wear concerns, now with lease I could care less about it and actualy enjoy the ride on everyday basis. Ohh and and I know it's still a waiste of money but we live once so what the hell.
Cheers, BMWN
The best thing you can do if want to drive BMW, I've had an almost brand new 330i ZHP with half of a cost paid in cash and after calculating $ went and sold it for good price, put money in the bank and drove out nice and brand new 530i with $2k down 15k miles per year 3 years total. Daily cost is like $20 a day who's going to rent it to you for that money, but thats not the point main reason is I drive cars for 3 years then get sick of it and change it another big factor is warranty and costly repairs in german cars. All of my other Japs are paid off and still drive like new. Another thing is owning Bimmer was pain in the ass as I would worry where I parked it so it wouldnt get dinged up and general wear concerns, now with lease I could care less about it and actualy enjoy the ride on everyday basis. Ohh and and I know it's still a waiste of money but we live once so what the hell.
Cheers, BMWN
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Originally Posted by MidnightRider' post='236000' date='Feb 6 2006, 11:34 PM
Interesting how high the purchase rate is! I understood most BMW owners leased.
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