Quote:
Originally Posted by 745nomore
Interest rates are at an all time low. With all the government fuel economy requirements kicking in, these cars are not going to get any better. Taking a lease with pumped up residual values only keeps you in the leasing game. You pay down incredible amounts of depreciation so bmw finance can flip a great used car to the next buyer on your back and make money on your need for the latest greatest. Stop the cycle man. You can do it.
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Uh, you eat the depreciation regardless. If you purchase, you pay the depreciation between when you bought and when you sold, plus any sort of financing fees you may have acquired during the purchase. It's essentially the same, you're really just agreeing in advance how long you want the vehicle for, and getting the bonus of knowing how much the vehicle will be worth at the end. Purchasing only makes sense if you plan on keeping the car for a long time and not let anything happen to it.
For me, leasing makes sense because A) I know I'll want a new car in 5 years or less, B)I know it will cost me less to lease for 3 years vs purchase and sell/trade-in (or at least I won't accept lease deals unless this is true), and C) protects me from losing money if anything happens to the car. Most people lease expensive cars, not just to make them affordable, but because a vehicle is a horrible place to stash your cash.
Think about this, you put $70k into a vehicle, get into a $1k fender bender, and the car's value plummets to that of a new civic because it shows up on the carfax. With a lease, you or the insurance do the repairs, you turn it in at the end, and wash your hands of it. With a purchase, if you sell it later you take a bath. On the flip side, if you keep it forever, no big deal.