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      08-04-2010, 08:49 PM   #1
745nomore
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Think before you lease

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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      08-04-2010, 09:37 PM   #2
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Originally Posted by 745nomore View Post
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.
M3 residuals are pretty much in line on what they will sell for. Look at a 3 yr. old M3 and see what it sells for, I bet it is above the residual that was offered. Leasing makes sense if you like to get a new car every 3 years or you can take advantage of the tax write off...I can do both, therefore, I lease.

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      08-04-2010, 09:49 PM   #3
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I lease because I own business and do lots of freelance work,- leasing for me, makes for excellent business expense and tax advantage.
At the end of lease, if I desire, I can buy this great car out at a discount

Only here in USA leasing makes a lot of sense> buying new doesn't. Just like in Real Estate, buying housing is not good-could end up in negative equity,- much cheaper to rent right now. So is auto leasing- much cheaper than buying.

When financing the car,- you don't own the car till it's paid off, but once it's paid off after 5 years> it's an old car, and you want another one.
If you bought CPO> then in few years it'll be even older car and you'll be really sick of it.

Leasing/Buying... it all comes down to how much cash you forked out VS how much the car is worth.

If I was rich, I would pay cash in full for brand new car, keep it one year and sell it before it's lost any more value, and buy new one every year! Leasing is very similar to that...
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Last edited by dimabimmer; 08-04-2010 at 10:02 PM.
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      08-04-2010, 09:53 PM   #4
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You know you can also write off the car on taxes if you own it and you have a business or are self employed.
The difference on taxes vs a business vehicle being lease vs being bought is minimal..
unless you know something I dont.
I have been writing off business vehicles that are leased and owned and its about the same tax savings.
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      08-04-2010, 09:54 PM   #5
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Leasing !!
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      08-04-2010, 10:42 PM   #6
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like I've said plenty of times, now is the time to lease these cars. Their blowing M3's out the door
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      08-04-2010, 11:32 PM   #7
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Quote:
Originally Posted by 745nomore View Post
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.
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.

Last edited by sor; 08-04-2010 at 11:40 PM.
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      08-05-2010, 12:07 AM   #8
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or lease, not give a shit, and do whatever you want
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      08-05-2010, 12:24 AM   #9
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      08-05-2010, 12:24 AM   #10
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Quote:
Originally Posted by 745nomore View Post
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.
Is this Suzie Orman?
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      08-05-2010, 12:30 AM   #11
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-

Equation depends on use/miles. If you have great credit and do a lot of miles (as we do here) then buy > lease.
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      08-05-2010, 12:43 AM   #12
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Best bet is buy used.
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      08-05-2010, 12:48 AM   #13
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tax write off.
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      08-05-2010, 01:52 AM   #14
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Quote:
Originally Posted by 745nomore View Post
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.
"pumped up residual values"? that would actually help people lease right? coz' the higher the residual, the lower the lease payment
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      08-05-2010, 02:13 AM   #15
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Buying a car is almost as dumb as the OP's post...

Never been a better time to lease an M3 or most BMW's for that matter.
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      08-05-2010, 03:17 AM   #16
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Quote:
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Buying a car is almost as dumb as the OP's post...

Never been a better time to lease an M3 or most BMW's for that matter.
exactly
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      08-05-2010, 05:40 AM   #17
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The leased vehicles come with 30 less horsepower. It's a fact. Look it up. :-)

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      08-05-2010, 05:56 AM   #18
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more than 60% of all BMWs on the road you see in America are leased......

You sir, are the one that is going against the trend.....
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      08-05-2010, 06:27 AM   #19
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Quote:
Originally Posted by buschy View Post
You know you can also write off the car on taxes if you own it and you have a business or are self employed.
The difference on taxes vs a business vehicle being lease vs being bought is minimal..
unless you know something I dont.
I have been writing off business vehicles that are leased and owned and its about the same tax savings.
Thank you. I've been wondering why no one has pointed this out. If you deduct lease payments, you even have to do a calculation to determine the effective amount of depreciation you can't deduct.
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      08-05-2010, 06:30 AM   #20
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Originally Posted by Voltigeur View Post
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Equation depends on use/miles. If you have great credit and do a lot of miles (as we do here) then buy > lease.
When I bought my M3, the lease payments on a 3 year lease were $7 month less than on the loan I ended up getting.
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      08-05-2010, 08:50 AM   #21
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Quote:
Originally Posted by 745nomore View Post
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.
Quite possibly the most shallow, error of omission laden assessment of leasing I've ever read -- and that saying something around here.
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      08-05-2010, 10:15 AM   #22
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Best is buy used with cash = no interest or finance; dodge the steep initial depreciation curve. When you lease, you will ALWAYS and forever have a monthly car payment (which I hate!).

Face it, most people lease because they can't afford to buy.
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