Am I crazy to Lease Vs Buy a new car? | TigerDroppings.com

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ynlvr
LSU Fan
Baton Rouge
Member since Feb 2009
893 posts

Am I crazy to Lease Vs Buy a new car?



I am looking at new BMW's and their lease program is pretty tempting. I like that I don't have to worry about maintenance costs. My wife seems to get car fever every 2-3 years. I have a fully paid '09 MKS that I can trade in and probably wind up with the lease paid up through three years. What am I missing?

I think the key is the frequency of changing out the vehicle. Unlike my wife, I tend to keep my vehicles longer so don't consider leasing. I'll also have to keep an eye on the miles. She generally drives about 12,000 miles/year. I am not sure yet if I can get a 12,000 or 0nly a 10,000 mile lease.

Thoughts?







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cwill
New Orleans Saints Fan
Member since Jan 2005
25071 posts

re: Am I crazy to Lease Vs Buy a new car?


It really does come down to what you want...My wife was the same....she drove her BMW to work and grocery/out so no mileage issues and would switch out every 2-3 years - fit her lifestyle. I on the other hand, like you drove my car everywhere, trips, etc so buying made sense and I drive cars into the ground.

Just be aware of the mileage...it shouldn't be your trip/high mileage vehicle.






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ynlvr
LSU Fan
Baton Rouge
Member since Feb 2009
893 posts

re: Am I crazy to Lease Vs Buy a new car?


Thanks cwill, confirms what I'm thinking.






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LSUtigerME
LSU Fan
Walker, LA
Member since Oct 2012
646 posts

re: Am I crazy to Lease Vs Buy a new car?


If you swap cars often (even 5/6 years can still be advantageous sometimes) and can stay close to mileage (penalties aren't usually terrible), it is actually advantageous to lease rather than buy (assuming similar incentive interest rates/money factor).

I've leased my wife's last two vehicles and have done a lot of research on it.






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Chris Farley
Maryland Fan
Regulating
Member since Sep 2009
3687 posts

re: Am I crazy to Lease Vs Buy a new car?


If you buy a BMW you still get 4 years of free maintenance. Covers everything but gas and tires.





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TheIndulger
Longwood Fan
Member since Sep 2011
10633 posts

re: Am I crazy to Lease Vs Buy a new car?


If the numbers look good, then its not crazy. Leasing isn't that terrible of an idea.





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jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4887 posts

re: Am I crazy to Lease Vs Buy a new car?


My dad is a hardcore bimmer guy and usually buys but I know he is a fan of their new leases because of the turbo on the engine in the 535/335.

He worries that it is a little unproven as far as long term reliability so the lease might be the better option if it ends up being problematic and hurting resale value.







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drewnbrla
LSU Fan
The Dark Side of the Moon
Member since Mar 2011
4177 posts

re: Am I crazy to Lease Vs Buy a new car?


quote:

I have a fully paid '09 MKS that I can trade in and probably wind up with the lease paid up through three years. What am I missing?


I would never trade in a relatively new and fully paid off car that I own to rent one from a dealership for a few months. Just my two-cents.






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lynxcat
Rutgers Fan
Member since Jan 2008
14503 posts
 Online 

re: Am I crazy to Lease Vs Buy a new car?


quote:

I would never trade in a relatively new and fully paid off car that I own to rent one from a dealership for a few months. Just my two-cents.


Sounds like his wife will be on his arse until he gets her a new car...






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StrangeBrew
LSU Fan
Salvation Army-Thanks Obama
Member since May 2009
13796 posts

re: Am I crazy to Lease Vs Buy a new car?


quote:

Sounds like his wife will be on his arse until he gets her a new car...


That is the meaning of the season, do not forget the red bow.






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Tiger in Texas
Southeastern LA Fan
Houston, Texas
Member since Sep 2004
12823 posts

re: Am I crazy to Lease Vs Buy a new car?


quote:

I would never trade in a relatively new and fully paid off car that I own to rent one


My way of thinking too...especially if the paid off car has been very liable, and let's face, if it's a car you simply love to drive & it satisfies your needs...






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smyce
LSU Fan
Lafayette, La.
Member since Sep 2007
3130 posts

re: Am I crazy to Lease Vs Buy a new car?


quote:

I would never trade in a relatively new and fully paid off car that I own to rent one from a dealership for a few months


it isn't for a "few months" unless 36 is a few.






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fishfighter
LSU Fan
Baton Rouge
Member since Apr 2008
18971 posts

re: Am I crazy to Lease Vs Buy a new car?


Throw is any dings or any small damage and they hit you hard.

These days, newer cars are getting much more mileage out of them trouble free. I would buy unless I could write it off for biz.






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Will Cover
Washington Fan
Whiskey Dick Mountain, WA
Member since Mar 2007
25060 posts

re: Am I crazy to Lease Vs Buy a new car?


Without looking, can you tell me what the money factor is on the new BMW you are interested in? Can you explain it to us without looking?

Residual?

Capitalized cost reduction?

Acquisition fee?

Disposition fee?







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MrLSU
LSU Fan
Baton Rouge
Member since Jan 2004
2054 posts

re: Am I crazy to Lease Vs Buy a new car?


Why would you throw away your equity in the car you own outright to lease a car temporarily? Buy a new or certified car with the equity you built up. You aren't playing with house money and more because you just gave it back to the auto dealer.





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Ric Flair
LSU Fan
Charlotte
Member since Oct 2005
7342 posts

re: Am I crazy to Lease Vs Buy a new car?


Do you think your wife would get "car fever" every 3 years if the MKS wasn't paid off? Although overall it isn't the best idea, maybe for the next car you purchase, you could finance for 5-6 years to delay the "car fever". That way when your wife wants a new car, you can say, "let's wait until this one is paid for, honey." Then you could take the one that's paid off, and drive it for another 4-5 years, and get her a new one. This is assuming you get a very low interest rate and buying Japanese cars (talk her into a lexus or infinity).





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ynlvr
LSU Fan
Baton Rouge
Member since Feb 2009
893 posts

re: Am I crazy to Lease Vs Buy a new car?


quote:

Will Cover


I haven't made it this far. I am just thinking ahead before meeting with the dealer. I am somewhat familiar with the deals being offered now, but I don't know how comfortable I will be with analyzing the parameters you mention on the spot. I'd have to lean on a lease analysis worksheet.






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ynlvr
LSU Fan
Baton Rouge
Member since Feb 2009
893 posts

re: Am I crazy to Lease Vs Buy a new car?


I understand the smart money play is to hang on to the original car for a longer time period to overcome the immediate depreciation. I drive a 2000 Lexus (13 years old) that I suspect I will drive another several years. Got my money's worth as it has had no major repair work required. Personally, I like to buy right and hang on.

However, assuming one can not cure the "3-year car flu" the current lease deals look promising.






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dewster
Maryland Fan
Member since Aug 2006
9095 posts

re: Am I crazy to Lease Vs Buy a new car?


quote:

"3-year car flu"


Probably one of the most financially painful sicknesses an otherwise healthy adult can have.

Might as well lease if you must have a car every three years.

I have two sturdy but unfasionable vehicles with over 100,000 miles (both made by the same company). I haven't had a car note since 2008. My biggest worry is that both will need replacement at the same time.

We are accumulating miles on the 7 year old car faster than the 5 year old car. I expect to have to replace the 7 year old car within a year or two.



This post was edited on 12/31 at 9:39 am


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drewnbrla
LSU Fan
The Dark Side of the Moon
Member since Mar 2011
4177 posts

re: Am I crazy to Lease Vs Buy a new car?


quote:

it isn't for a "few months" unless 36 is a few.


No, 36 months isn't what I'd consider a "few" but I still stand behind my opinion and would stick with the paid off car. In the end, it's your decision to make.






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