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      11-11-2012, 03:58 PM   #25
slicer
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Drives: '13 E92 M3
Join Date: Jan 2009
Location: San Diego, CA


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Quote:
Originally Posted by tibra1 View Post
You are willing to drop $38K+ to rent a car for 3 yrs..never understood that..Good luck
I don't know if the OP's pricing is high or low but I do know that you may want to analyze things a little deeper before assuming that leasing is always bad financial move.

When you lease you are paying for the depreciation of the car over the lease period plus an interest expense. How is that different than buying a car utilizing a loan and experiencing the same depreciation? If BMW charges you for too much depreciation then the buyout price at the end of the lease will be lower than the market value. Find a buyer or trade the car in and pocket the difference. If BMW doesn't charge you enough for depreciation then you just turn the car in. Now if you plan to keep the car long-term then there is a better argument for buying vs. leasing. I have leased cars in the past and I always take an opportunistic approach. When a manufacturer wants to move cars then they often apply incentives to the lease rates or residual prices to make the monthly lease payment low. When a car is hot, manufacturers charge high interest and payments are much higher. I have seen M3 lease rates range from $600's to $1200 depending on market conditions.
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