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      10-02-2007, 03:49 PM   #1
Los Angeles
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Lease vs. Finance

So, after contemplating on what I would like to do as far as purchasing options go, I'm torn between which one I should go with.

Since high-performance German cars are notorious for expensive maintenance and not-the-best realibility, I was wondering what many of the German car owners here do.

When purchasing the Audi/VWs, BMW/Minis, MBs and Porsches, do you guys prefer to lease your cars/SUVs, or do you prefer to finance them?


If financed, do you usually trade in another car for it, do you put down a large down payment, or both?


If leased, what's the average length of time you lease? Also, do you trade in another car for it, put down a large payment, or both?


Lastly, do many of you own the cars after the manufacturer's full-coverage warranty expires? Do you ever opt for extended warranty?
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      10-12-2007, 10:27 AM   #2
Gadgetman
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I opted to Buy with Financing

Quote:
Originally Posted by Los Angeles View Post
So, after contemplating on what I would like to do as far as purchasing options go, I'm torn between which one I should go with.
Since high-performance German cars are notorious for expensive maintenance and not-the-best realibility, I was wondering what many of the German car owners here do.
When purchasing the Audi/VWs, BMW/Minis, MBs and Porsches, do you guys prefer to lease your cars/SUVs, or do you prefer to finance them?
If financed, do you usually trade in another car for it, do you put down a large down payment, or both?
If leased, what's the average length of time you lease? Also, do you trade in another car for it, put down a large payment, or both?
Lastly, do many of you own the cars after the manufacturer's full-coverage warranty expires? Do you ever opt for extended warranty?
I would rather buy my BMW M3 because if you lease, then your limited on mileage usually 12,000 miles/year.

When I bought my expensive M3, i put about $11000 down and financed the rest through my Credit Union for 5 years which puts my monthly payment to about $826/month.

I'd never lease again. I leased a Subaru Legacy for 4 years. Sure the payments were low but I had to repaint the hood because of fading (wife got in an accident).

I still have waranty on my M3 before I'll be selling it for the new 2009 BMW E92 M3. I would extend it because the oil changes and Inspection I & II are expensive. It in the long run will be in your favor.

I hope that helps a little,
Darren
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      10-12-2007, 12:29 PM   #3
Sedan_Clan
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I love leasing, and will always favor leasing over financing.
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      10-12-2007, 03:39 PM   #4
lucid
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I prefer paying cash for the entire amount without financing or leasing. If you do the math taking every single variable into account for 4 years of ownership, paying cash usually beats leasing or financing UNLESS you have some kind of low-risk reasonable yield investment option that will give you higher yield (after taxes) for your cash than say the APR you finance at.
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      10-13-2007, 04:27 AM   #5
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Quote:
Originally Posted by lucid View Post
I prefer paying cash for the entire amount without financing or leasing. If you do the math taking every single variable into account for 4 years of ownership, paying cash usually beats leasing or financing UNLESS you have some kind of low-risk reasonable yield investment option that will give you higher yield (after taxes) for your cash than say the APR you finance at.
Yeah...I can do the math and I would finance it...with the cash left, it's quite easy to get 9%-10% investment return while the finance is ~ 6%.
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      10-13-2007, 07:44 AM   #6
lucid
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Quote:
Originally Posted by Pretender View Post
Yeah...I can do the math and I would finance it...with the cash left, it's quite easy to get 9%-10% investment return while the finance is ~ 6%.
If you know a low-risk 9%-10% yield investment, let me know. I don't. (I hope you are not referring to stocks here.)
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