re: Want to lease a luxury car with $450 vehicle allowance, but my wife says get a used car

I have both owned and leased and have decided that my next car will be a lease since cars are depreciating assets anyway and you lease only while the vehicle is in warranty. No brainer

False. You negotiate the same as you would if you were buying a car.

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Not a chance in hell I'd buy an out of warranty used car these days.

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I drive a 20 year old Lexus. Great car. Paid-for. Liability-only insurance is $32/month. Cars are a horrible investment.

He should buy slightly used.

My wife just purchased a 2018 BMW 540i M Sport x-Drive with only 19,000 miles that came off lease with a full year of factory warranty, and loaded with every package they offer except the cold weather package (heated front seats / steering wheel). $37,500. Car was new close to $80k.

Dallas area is loaded with so many used beamers rolling off lease they are cheap.

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Also, you do build equity on leases depending on the vehicle.

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Not really. Your lease is designed so that if you drive the exact number of miles in your contract, then you are charged enough to cover the depreciation, plus a tidy profit for the carmaker. If you end up with equity, it just means that you left money on the table.

Because you paid for the full 36,000 mile usage. if you turn it in with less, you clearly overpaid. So any "equity" you think you have, was already paid for in the lease agreement.

Leases are in no way, shape, or form drawn up for the carmaker to lose money on the equity in a returned car.

And in a year you'll be out of warranty having to maintain an 80k car.