So much talk about leasing... doesn't anyone buy?
02-05-2007, 03:29 PM
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With a purchase you have a downpayment plus a self liquidating term loan. With a lease you are paying interest-only on the residual amount over the term of the lease plus a self liquidating term loan on the balance (purchase price minus residual value).
02-05-2007, 04:45 PM
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Originally Posted by tachyon' post='387849' date='Feb 5 2007, 06:25 PM
About one-half of E60s in the U.S. are leased; 25% are purchased with financing; 25% paid with cash.
Tachyon, below is a comment you posted in 10/05 for 545i buyers - interesting that 2/3 are leased.
Here's some info on the typical MY 2005 545 buyer (U.S.):
male
48 years old
married
$203,000 average annual household income
One-third of buyers have an Advanced Degree
5'10"
180 pounds
One-third of 545s are purchased / the other two-thirds leased
Average price paid for purcahsed 545 $61,500
85% have Steptronic
02-05-2007, 08:02 PM
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Originally Posted by LowOrbit' post='387851' date='Feb 5 2007, 08:45 PM
Tachyon, below is a comment you posted in 10/05 for 545i buyers - interesting that 2/3 are leased.
Here's some info on the typical MY 2005 545 buyer (U.S.):
male
48 years old
married
$203,000 average annual household income
One-third of buyers have an Advanced Degree
5'10"
180 pounds
One-third of 545s are purchased / the other two-thirds leased
Average price paid for purcahsed 545 $61,500
85% have Steptronic
Here's some info on the typical MY 2005 545 buyer (U.S.):
male
48 years old
married
$203,000 average annual household income
One-third of buyers have an Advanced Degree
5'10"
180 pounds
One-third of 545s are purchased / the other two-thirds leased
Average price paid for purcahsed 545 $61,500
85% have Steptronic
When I lease I finance the depreciation instead of financing a depreciating asset. The key is to have money sitting in some kind of appreciating asset.
As a "stockbroker" or "wealth advisor" its going to stay in stocks. Thus, while some prefer to pay cash, I prefer to keep my money in the market.
I lease one, and own one. A bit of both.
if you like to turn cars over every 3 years it makes sense. If longer, perhaps cash makes some sense.
If your leasing because it stretches your buying power but not putting money away or able to grow your net worth with that money then it might be wise to scale it down and not drive fancy wheels.
Diff stroke for diff folks!
02-06-2007, 08:04 AM
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On-Order: 2007 BMW 530i, Titanium Gray, Black Leather, Sport, Premium, Cold Weather, 6 speed manual transmission, Nav, HUD, PDC, L7, Sirius, Rear Heated Seats
When the Money Factor is .0005 and residual is 73% (24/10k) (December 530i lease rates), leasing is tough to pass up. If you put 6 Security Deposits down, you can further reduce the MF to .00008 which is only about $8 per month in finance fee on a $60k car (less than $200 over 24 months). Not too bad.
02-06-2007, 08:41 AM
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Originally Posted by nasa60' post='388030' date='Feb 6 2007, 10:04 AM
When the Money Factor is .0005 and residual is 73% (24/10k) (December 530i lease rates), leasing is tough to pass up. If you put 6 Security Deposits down, you can further reduce the MF to .00008 which is only about $8 per month in finance fee on a $60k car (less than $200 over 24 months). Not too bad.
Its tough not to take a deal where BMW is effectively knocking a couple thousand dollars off MSRP through these subsidized leases.
02-06-2007, 09:25 AM
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Here's a good source of info on the lease/buy decision: http://www.leaseguide.com/lease03.htm
Also interesting to note that high end cars/exotics that cost more than $100k are almost always leased (and people that are buying Enzos, etc. are generally not short of cash....)
Also interesting to note that high end cars/exotics that cost more than $100k are almost always leased (and people that are buying Enzos, etc. are generally not short of cash....)
02-15-2007, 12:20 PM
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Here's a great reference on lease vs. buy from the e90 site:
http://forum.e90fanatics.com/showthread.php?t=1850
http://forum.e90fanatics.com/showthread.php?t=1850
02-17-2007, 05:28 PM
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My Ride: 2004 545i SGM Steptronic Dinan CAI Dinan TB GTech Pro RR
The other side of the lease-buy equation that sways me towards buying is the mod option e.g. Dinan, wheels, tint, stereo, spoilers, fascias, etc. that go with buying. The flip side is that it's difficult to recover these expenses when it's time to trade or sell.
02-24-2007, 10:47 PM
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Originally Posted by zen' post='387794' date='Feb 5 2007, 02:44 PM
Depends if it is a business or personal expense. Cash is king and still the least expensive way to buy a car. Leasing saves one the trouble of negotiating on a trade in and makes the purchase of the next car easier.
Youre right abotu that but think about taxes also.... as soon as you drove off the lot you lost the tax...
if i paid cash for my 335i that i traded in in 3 weeks I wouldve lost another $3760..
Although there's a dmv form where you can get your taxes back if your reason to trade is legit, dont asked me how I know..haha