A near-stripped 325i should be the new People's Car.

findtom · 01-18-2006, 12:28 PM

Quote:

Originally Posted by smellygas

Correct. If you buy new and sell used vs. leasing, you are essentialy "paying for depreciation." The reason leasing costs you more $/mile is because:
a) the initial price of the car is higher. Initial lease price is based on MSRP (or very close). People who purchase/finance are able to negotiate much better prices.
b) when it's time to sell, the car is worth the same whether you bought or leased. But when you leased, you paid depreciation based on a higher selling price. So you've paid more depreciation!
c) Your option to buy the car at the end of the lease isn't based on the market-value of your car. It's usually several thousand dollars MORE. So if you BOUGHT the car at the end of the lease, you LOSE another few thousand dollars because you've just bought a car above it's depreciated market price.
d) This is not to mention all the extra lease fees you are gouged with at the beginning and end of the lease, plus part of your security deposit, tires, etc.

SmellyGas

a) Not true in my experience. The dealer is getting paid the same $$ for the car whether the check is coming from you, or from BMW finance, or from your bank, or whatever. If anything dealers are sometimes making money/incentives for selling financing which gives them more room to deal if you're going that route.

b) See point A.

c) If you're leasing you want the end value to be as high as possible.... so I'd disagree with this point. They tend to be about right for the car. If anything they make them lower. You understand how leases are calculated, right?

d) I'm sure many car companies play games with this, but all I paid for leasing was the security deposit, which I'll hopefully get back at the end. True, you leave yourself open to being hammered at the end of the lease but I'll take my chances. I think BMW would rather my leasing experience is a pleasant one so I will continue to do it. I see many people lease BMW after BMW, so I'll assume they're reasonable about the return of it. Tire condition and dings are taken into account when you sell or trade in a car anyway.

Really, there's no point in arguing since leasing vs. purchasing depends entirely on the person. They both have their pros/cons, but the notion that all people that lease are idiots or can't afford to buy is totally false.

roppongicorolla · 01-18-2006, 12:35 PM

leasing will continue to be an attractive option for people who want to drive more car than their budgets will allow. If you're an expat with a 3 year assignment to a country where there are well paved freeways with very little law enforcement, you might consider putting your 'car allowance' toward a lease of a fine automobile that you could only dream of owning back home.

b1mmer2 · 01-18-2006, 02:20 PM

Quote:

Originally Posted by StewtheBassman

Either way it's a gamble.
My E46 was rear-ended hard and cost 10k to fix. That affected my trade-in value even though it was repaired by the BMW dealership (and a fine job he did too). That rear-ending was totally not my fault, and yet it totally cost me money. Had I been on a lease, I would not have suffered.
Either way it's a gamble.

Btw, a while ago I've been told that you can claim your "loss in car value due to accident" to an insurance company. Did anybody tried it? It seems like valid claim since insurance is being used to cover accident related expenses and in case of value loss it is an accident related expense eventho a long term one.

b1mmer2 · 01-18-2006, 02:22 PM

Quote:

Originally Posted by StewtheBassman

Threads to avoid:
RWD vs. AWD (with or without snow tires)
xDrive vs. Quattro
lease vs. purchase
E46 looks vs. E90 looks
Brooke vs. anyone else....

can anyone add to this?

what about Brooke vs E90?

DTM · 01-18-2006, 02:22 PM

Quote:

Originally Posted by stressdoc

325 Euro delivery is almost the same cost as an optioned Camry. If you have a free trip to euro via frequent flyer or whatever, it is high value any way you cut it. Given higher resale, lower maintenance, I figure I am ahead on my E46 relative to an exV6 Accord or Camry. A bargain. So much so that I feel justified (gulp) in splurging on a 335i or 328iT.

Lower maintenance? I always thought everything cost more in BMW shops. This is one of the main reasons I haven't already bought one (still deciding).

b1mmer2 · 01-18-2006, 02:28 PM

Quote:

Originally Posted by DTM

Lower maintenance? I always thought everything cost more in BMW shops. This is one of the main reasons I haven't already bought one (still deciding).

if you just follow what maintance book says you will pay nothing out of the pocket for 5 years (assuming you don't need to change tires/wheel due to weather condition in your region). Toyota as far as I know has first 3 or 4 oil changes/services for free.

StewtheBassman · 01-18-2006, 02:34 PM

Quote:

Originally Posted by b1mmer

what about Brooke vs E90?

This was covered in a thread over the weekend "sex or M5", and I voted sex.

So if it's Brooke or E90...well, I'd take Brooke and drive a Honda Si.

noflash · 01-18-2006, 06:36 PM

Quote:

Originally Posted by smellygas

Correct. If you buy new and sell used vs. leasing, you are essentialy "paying for depreciation." The reason leasing costs you more $/mile is because:
a) the initial price of the car is higher. Initial lease price is based on MSRP (or very close). People who purchase/finance are able to negotiate much better prices.
b) when it's time to sell, the car is worth the same whether you bought or leased. But when you leased, you paid depreciation based on a higher selling price. So you've paid more depreciation!
c) Your option to buy the car at the end of the lease isn't based on the market-value of your car. It's usually several thousand dollars MORE. So if you BOUGHT the car at the end of the lease, you LOSE another few thousand dollars because you've just bought a car above it's depreciated market price.
d) This is not to mention all the extra lease fees you are gouged with at the beginning and end of the lease, plus part of your security deposit, tires, etc.

SmellyGas

I paid $1000 over invoice.

No security deposit. The end of lease fee goes away if you stick with a BMW -- which seems likely.

The tires argument goes the same for selling or trading your car in.

LASTLY, for what it's worth... I have 2.5 years left on the note of our CPO 2000 323it -- which we'd love to keep forever.

So, I lease AND buy!!!!

Guess that makes me some immature hypocrite, eh??? Think I'll live older the more immature I am?

01-18-2006, 12:35 PM	#68
roppongicorolla all systems are go 2 Rep 157 Posts Drives: 325i SG SPP Join Date: Nov 2005 Location: Lake Jackson, Texas iTrader: (0)	leasing will continue to be an attractive option for people who want to drive more car than their budgets will allow. If you're an expat with a 3 year assignment to a country where there are well paved freeways with very little law enforcement, you might consider putting your 'car allowance' toward a lease of a fine automobile that you could only dream of owning back home.
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