View Poll Results: Do You Lease or Buy Your BMW?
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Poll: Do You Lease or Buy Your BMW?
#31
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Originally Posted by Dantheman' post='212912' date='Dec 18 2005, 02:36 PM
Never will buy a BMW...
after 36 months the warranty is over..I would never owm a BMW without it! ...with a lease ...residual value is guaranteed ..just return the keys..no wheeling dealing...no maintenance cost..and they're always promo's on interest % on leases anyway!
I say lease and get a new one every 3 years
...If you can't afford it...downgrade..you are living over your means! And the other thing I invest my money instead..i can get better returns AFTER taxes...
after 36 months the warranty is over..I would never owm a BMW without it! ...with a lease ...residual value is guaranteed ..just return the keys..no wheeling dealing...no maintenance cost..and they're always promo's on interest % on leases anyway!
I say lease and get a new one every 3 years
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#32
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My accountant informs me there is no tax advantage to leasing. For some irrational reason I just feel better owning my car. I considered leasing the 545 last summer, but the lease rates on the 550 are not so attractive now.
#33
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My Ride: 2008 535i: June 6th start build, complete June 17th, at NY Port July 5th, at dealer July 10th, took delivery Friday July 13- Plantimum Bronze/Natural Brown Leather/Light Poplar, Sport Package, Sport Auto, Active Steering, Premium Package, CWP & PDC. Dinan Performance Software 384hp & 421 ft/lbs.
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Originally Posted by Dantheman' post='212912' date='Dec 18 2005, 05:36 PM
Never will buy a BMW...
after 36 months the warranty is over..I would never owm a BMW without it! ...with a lease ...residual value is guaranteed ..just return the keys..no wheeling dealing...no maintenance cost..and they're always promo's on interest % on leases anyway!
I say lease and get a new one every 3 years
...If you can't afford it...downgrade..you are living over your means! And the other thing I invest my money instead..i can get better returns AFTER taxes...
after 36 months the warranty is over..I would never owm a BMW without it! ...with a lease ...residual value is guaranteed ..just return the keys..no wheeling dealing...no maintenance cost..and they're always promo's on interest % on leases anyway!
I say lease and get a new one every 3 years
![Tongue](https://5series.net/forums/images/smilies/imported/tongue.gif)
#34
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Never will buy a BMW...
after 36 months the warranty is over..I would never owm a BMW without it! ...with a lease ...residual value is guaranteed ..just return the keys..no wheeling dealing...no maintenance cost..and they're always promo's on interest % on leases anyway!
I say lease and get a new one every 3 years
...If you can't afford it...downgrade..you are living over your means! And the other thing I invest my money instead..i can get better returns AFTER taxes...
after 36 months the warranty is over..I would never owm a BMW without it! ...with a lease ...residual value is guaranteed ..just return the keys..no wheeling dealing...no maintenance cost..and they're always promo's on interest % on leases anyway!
I say lease and get a new one every 3 years
![Tongue](https://5series.net/forums/images/smilies/imported/tongue.gif)
[/quote]My very detailed calculations imply that what you say about leases not looking very attractive for ordinary consumers (i.e., those that can't deduct the lease payments) isn't true given a wide variety of assumptions that don't involve significant risk and given the acquisition of a series of cars. But, it is true that installment purchasing may turn out to be better for the consumer in the context of one car because of low or negative returns. As indicated, however, the idea is to come out better off by leasing over a sequence of cars.
Regardless, I doubt that we would be better off leasing many more types of items--even those that we keep for relatively short periods of time and that maintain their values reasonably well. I think much of the reason for not leasing more items, such as furniture, computers, and sound systems, is the lack of opportunity and the related inadequacy of the resale markets for these items. But, please note that I have not really thought through the reasons why we tend to not lease many more types of items--particular high-end models of things such as furniture, computers, and sound systems.
#35
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Originally Posted by pennetta' post='212843' date='Dec 18 2005, 11:58 AM
I'm not following you. You are speaking of depreciation; captial gains is appreciation. The book value is your value after depreciation, if you sell the car for more than your book value the difference between book and the price you got is appreciation or capital gains.
Are you saying if you buy a new $70k car, and your existing trade-in is worth $42k you are making payments on $112k? Are you rolling in the remaining loan balance on your original car into the new deal?
Are you saying if you buy a new $70k car, and your existing trade-in is worth $42k you are making payments on $112k? Are you rolling in the remaining loan balance on your original car into the new deal?
If I buy a new $70K car today, trade in a car for $42K, that is on my books for $60K, the $18K difference gets added to the $70K. I don't have to pay this, but as far as my books go, my $70K car is on there for $88K and I'm depreciating from that number, not $70K.
Had I sold that car outright, I would have realized an immediate $18K loss and would now be depreciating my $70K car as is.
Now take the SUV scenario where the car has been fully depreciated. Here I WANT to trade in my car - cause if I do sell it outright, I do recognize the gains - but if I trade it in, I'm free and clear (this may be your point about the IRS being flexible).
#36
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My Ride: 2005 BMW 545i, Silver Grey, Sport Package, R. Shades, Cold Pkg, Sat. Rad., Prem. Sound.
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Originally Posted by sdente' post='212185' date='Dec 16 2005, 02:16 PM
I always buy, pay cash, but never new. I look for a low miles car that is just a few months old. I also tend to buy in the mid-west where resale values are lower. In California (where I live) prices for all luxury items are higher. This year I bought a loaded 2005 545i for my wife at under $50,000. My business partner was able to get a new M5 out of Texas with less than 500 miles for almost $5,000 BELOW sticker when dealers out here want premiums of $10,000 to $20,000 above sticker. Bought a few Porshes in the last couple of years this way as well. Takes effort to do this but saves some money. I love geographic arbitrage, buy a great car in a weaker market, drive for a year, break even on the sale in California.
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