tachyon

According to a survey of 450 model year 2007 E60 buyers, the split was 30% purchased / 70% leased.

JSpira

Actually, as a dealer recently pointed out on Bimmerfest, leasing may work out in your favor for high mileage. You will know exactly what it will cost and you won't be stuck with a car that has lost a lot of its value due to unusually high mileage. I saw numbers going back and forth and I suppose it could make sense for some. If nothing else, it's predictable.

JSpira

From the numbers I've seen (ignoring business deductions), leasing may indeed be a less expensive option for people who change cars frequently (read: under three years). It's really just an alternative means of financing and yes, the lower payments create an illusion for some buyers that it will cost them less.

However, despite that illusion, knowledgeable buyers can still end up coming out ahead.

In conclusion, if you lease and do factory delivery, the likelihood is that you will come out ahead due to how the lease is calculated.

DBU

+2

I have never made regular car payments in my life, but have had to endure at least a dozen American made company cars over the years.

DBU

Interesting. The split here is almost reversed. Since only BMW enthusiasts hang out here, I conclude that the majority of enthusiast prefer, or are able to, buy. But why?

uglybear

I would have bought, since I keep cars I like for longer than 4 years. But I know there is going to be a new model in 2010 along with diesels and possibly hybrids, so I leased. I am planning to buy my next car.

mrfva

Care to post a link to the survey results or article? Being an analytics person, I need to see data

advancedlogic

I'm averaging 20K+/year on my car. Leasing is definately NOT an option for me

pukka

This method is closer to a lease than you think:

-The actual cost paid over the lease term is approx. 35-45% of the car (basically depreciation over the lease period) give or take depending on your annual milieage limit.

-Although you can't buy the car at any time there is a balloon payment at the end of the lease which is determined at lease signing.

-The car is registered in your name and you do pay taxes and inspection fees - just like a purchase.


The issue with lease costs are the annual mileage. Almost all manufacturers quote lease prices with 10k - 12k annual miles. If you live in and work in a major city where you don't have to drive often this could work. Live someplace where you have to drive a few miles to do just about anything and you will see that 12k per year is a joke. Based on my experiences, I would say the average annual miles on a car would be between 15k - 20k. Negotiate a lease with a 15k or 20k annual mileage limit and it definitely becomes cheaper in terms of monthly payments to own.

Even with a lower mileage limit, the cost to lease isn't too much less than to own ($100 - $200) or in other words, some people pay alomst as much to lease as I do to own. As it stands, with a lease you are paying off 35% to %45 of the cars value over 3 years compared to 100% over 5-7 years.


I too own my BMW and I'm a bit surprised to see the high percentage of those polled who also own. Every car I've owned was for at least four years. To me its not about how old your car is, but how well you take care of it. Besides - if BMW's are really as good as everyone here says they are then I should have absolutely no problem selling it when I decide to do so.

BizyB

I tend to keep my cars (on my 4th BMW) for 5 yrs or so, which is roughly in line with BMW releasing new models, so I usually buy them out right and get a better resale value selling it privately later, when it is time to get a new motor. (got another year or two to go on my current one before I change it, yepee ).