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      10-03-2011, 12:06 PM   #20
Female driving enthusiast :P

Drives: Bimmer
Join Date: Nov 2009
Location: Ontario, Canada

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Originally Posted by parham2652 View Post
that's what I was thinking of doing, but isn't it much cheaper to decide before you lease if you want to buy?
I would think that depends on the interest rate.
  • Say, interest rate with lease is lower. EDIT: lower than financing
  • EDIT: This doesn't apply if you have the cash to pay the car upfront. Paying no interest is the best thing. Unless the finance/ lease rates are pretty low and you like keeping the cash available. (Or because you can get a better return in another way, etc.)
  • Pay the lease payment on a monthly basis, which in total equates to the depreciation amount with the lower interest rate.
  • When the lease is over, you can decide if you want to keep it or buy it out.
  • If you want to buy it out, pay cash and voila, you have not spent more.
  • Key is to negotiate based on total price of car, from invoice up, regardless of method of paying for it.
  • In addition, if your car gets damaged during the lease period, you don't swallow any of the depreciation if you give it back. I may be paranoid, but this has happened to me. Then I decided to try leasing and did as I described above.

This won't work if the lease rate is not attractive though.
2013 M3 coupe (Azurite Black, Black, Piano Black)
+ miata nut (2 miatas) + Mk6 GTI 5-door hatch (our mini-SUV )

Last edited by JulieDriving; 10-03-2011 at 12:16 PM.