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INDustry distribution
View Poll Results: Purchase method poll
BMW Finance 18 29.03%
BMW Lease 25 40.32%
Third party (bank) finance 9 14.52%
Cash 10 16.13%
Voters: 62. You may not vote on this poll

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      12-17-2011, 11:35 AM   #1
Barekat
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Lease or Finance new BMW?

I'm considering a new bmw and was wondering if it's better to lease or purchase bimmers.

I've had a lease before and I found it stressful returning the car at the end of the lease.

Is bmw picky with lease returns... I'm sure we've all heard the horror stories about lease returns and huge bills for tires and 'other' damage.

Here in Ontario the lease rate and finance rate is the same. Payment amount really isn't an issue for me but moving from a reliable Japanese brand to bmw I don't know what to expect with respect to bmw reliability and repair costs after the warranty expires.
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      12-17-2011, 01:01 PM   #2
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Lease it, you protect yourself in so many ways by leasing. You never know who may run into you or cause damage to the vehicle while you own it. At least with the lease you have the built in protection if someone is careless and damages the car.
Hope that helps.
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      12-17-2011, 01:11 PM   #3
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i prefer financing because leasing feels like I'm not driving my car. Plus I hate returning a leased car because there is no protection from unfounded charges.
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      12-17-2011, 02:36 PM   #4
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If you're thinking of buying the current 3 series it would be a very bad move at this point unless you plan on keeping it for a long time...
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      12-17-2011, 03:11 PM   #5
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Do you like having a new car every 2-3 years? Do you have any business or ways to write off car expense? Do you typically drive within the allowed miles/year?

You may also want to consider what BMW calls "BMW Select Financing". Payments are similar to lease, however you actually own the car, so no limits on mileage. You have a ballon payment at the end of the term. Which you can exercise, or trade the car in at that time.

Lease returns are not stressful, especially if you get in to another vehicle from the same Manufacturer.
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      12-18-2011, 10:56 AM   #6
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One advantage of leasing a BMW is the very high residual. I compared the Z4 residual of 64% to that for Porsche (54%), Mercedes (54%, I think), and Audi (can't remember exactly, but at or below 54%). That makes a big difference in lease payments.
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      12-18-2011, 11:06 AM   #7
Barekat
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Thanks for the tip porshah.

I checked the Canadian BMW site and they refer to this type of financing as "OwnersChoice".

I think traditional financing would better suit my needs. I'll just provide a larger deposit to reduce monthly payments.

Quote:
Originally Posted by porshah View Post
Do you like having a new car every 2-3 years? Do you have any business or ways to write off car expense? Do you typically drive within the allowed miles/year?

You may also want to consider what BMW calls "BMW Select Financing". Payments are similar to lease, however you actually own the car, so no limits on mileage. You have a ballon payment at the end of the term. Which you can exercise, or trade the car in at that time.

Lease returns are not stressful, especially if you get in to another vehicle from the same Manufacturer.
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      12-19-2011, 10:26 PM   #8
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With the lease you don't care about car at all. Its like long term rental car. Its not yours - you'll return it and forget about it, so why care. And thats a good thing.

I traded in my X3 (which was leased) while buying GT and I can say the dealer wasn't picky at all.
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      12-21-2011, 07:20 AM   #9
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Hi, I just joined and wanted to offer my advice! I voted for Financing, because leasing can have many cons. When you lease you are stuck in the contract unless you can get someone to sublet. You also do not own the car, but would be responsible for its repairs and you are also limited on the miles driven.

Although if you are a small business owner or self employed leases are tax deductible. In that case I would switch my vote to leasing.
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      12-21-2011, 11:13 AM   #10
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What repairs are you talking about? BMW covers everything except tires and gas and if you're worried about the cost of tires, just return it with baldies. They charge $300/tire which is cheaper than tirerack for the tires on an M Sport BMW.

As for those who find it "stressful" to lease... there is something so soothing about being able to just toss the keys back to BMW on a car with questionable reliability rather than dealing with selling the car on your own. I've never had a stressful lease return - it's pretty cut 'n dry and spelled out in your lease agreement.
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      12-21-2011, 11:27 AM   #11
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Quote:
Originally Posted by Barekat View Post
I'm considering a new bmw and was wondering if it's better to lease or purchase bimmers.

I've had a lease before and I found it stressful returning the car at the end of the lease.

Is bmw picky with lease returns... I'm sure we've all heard the horror stories about lease returns and huge bills for tires and 'other' damage.

Here in Ontario the lease rate and finance rate is the same. Payment amount really isn't an issue for me but moving from a reliable Japanese brand to bmw I don't know what to expect with respect to bmw reliability and repair costs after the warranty expires.
Just get the full wheel and tire warranty. It covers dings/dents/ scratches to the car and covers wheels and tires. As long as your arent off roading in your car I dont see why you'd have any problems
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      12-21-2011, 11:34 AM   #12
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Unless you live in NYC or another area where potholes are a real issue, tire and wheel warranties are a total rip-off. In most cases, you would need to break two wheels and destroy two tires just to break even. It's only when you've broken a 3rd wheel of a FIFTH tire that you would be benefiting from the coverage. Also, what many people fail to realize is that even if you crack or bend a wheel, if the tire holds air they will not replace the wheel.
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      12-21-2011, 11:39 AM   #13
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Quote:
Originally Posted by KingOfJericho View Post
Unless you live in NYC or another area where potholes are a real issue, tire and wheel warranties are a total rip-off. In most cases, you would need to break two wheels and destroy two tires just to break even. It's only when you've broken a 3rd wheel of a FIFTH tire that you would be benefiting from the coverage. Also, what many people fail to realize is that even if you crack or bend a wheel, if the tire holds air they will not replace the wheel.
I disagree because a bend would alter the original comestic appearance of the wheel thus having them repair/ replace it.
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      12-21-2011, 12:00 PM   #14
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I agree with you.
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      12-21-2011, 12:00 PM   #15
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http://www.1addicts.com/forums/showt...wheel+warranty
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      12-21-2011, 12:13 PM   #16
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Quote:
Originally Posted by KingOfJericho View Post
There are different levels of coverage. He may not have had the appropriate coverage for the damage to his wheel. I know with mine, I brought mine into the dealership due to curb rash and safeguard accepted the claim and my wheel was repaired free.
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      12-21-2011, 12:20 PM   #17
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I didnt mean for this to turn into a debate about the warranty. I just wanted OP to know with the right coverage he wouldnt have to worry so much.
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      12-21-2011, 01:27 PM   #18
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I voted for Finance coz in my situation I don't have cash lying around else I would have voted for cash. You save alot of bucks if you have cash, but if you have better way to invest that money than finance is your option.
As other members are suggesting if you can add lease as expense and utilize the money you save (vs financing payments) in better way, go for Lease.

Last edited by bullet0770; 12-21-2011 at 02:09 PM.
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      12-22-2011, 12:38 AM   #19
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There are pros and cons to leasing. The biggest con is that 95% or people that lease do not have a clue what they are doing and get taken to the cleaners.

If you are going to lease, you need to be able to sit down with a pen and paper and calculate the payment yourself. You need to know the Money Factor and the residual as well as the MSRP of the car. If you can't do this, feel free to lease but you will be paying too much.

I know what I'm doing and get killer deals. My current 335i is loaded and my payment before tax is less than $600 and I put absolutely nothing down. Zero.
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      12-22-2011, 12:58 AM   #20
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I have leased 3 BMWs and had easy returns each time. A little bit of preparation goes a long way towards avoiding surprises.

You can double-check for Canada, but here BMW FS will send a third party inspector to check the car out 1-2 months before the return. BMW FS also sends out a checklist with prices for damage. So you can compare the inspection report to the checklist and see what you're in for and decide how to deal with it. For example I opted to get my front bumper repainted due to scrapes, but left the small dings unrepaired (could have gotten PDR), and my lease return bill was zero. Same eval goes for rims and tires. Some rash is allowed, bent rims are not.

Leasing is more expensive (finacing both the purhase cost and residual value), but gives you the option of walking away after the term. You can also buyout the lease anytime or transfer it. I would recommend reading up on leases to understadn the whole down payment concept and its risks. If mileage is an issue, you can always buy more prior to lease return.




Quote:
Originally Posted by Barekat View Post
I'm considering a new bmw and was wondering if it's better to lease or purchase bimmers.

I've had a lease before and I found it stressful returning the car at the end of the lease.

Is bmw picky with lease returns... I'm sure we've all heard the horror stories about lease returns and huge bills for tires and 'other' damage.

Here in Ontario the lease rate and finance rate is the same. Payment amount really isn't an issue for me but moving from a reliable Japanese brand to bmw I don't know what to expect with respect to bmw reliability and repair costs after the warranty expires.
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      12-22-2011, 06:06 AM   #21
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I don't think you should ever think of a car purchase as anything even close to "building ownership equity."
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      12-24-2011, 02:24 AM   #22
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Quote:
Originally Posted by Barekat View Post
I'm considering a new bmw and was wondering if it's better to lease or purchase bimmers.

I've had a lease before and I found it stressful returning the car at the end of the lease.

Is bmw picky with lease returns... I'm sure we've all heard the horror stories about lease returns and huge bills for tires and 'other' damage.

Here in Ontario the lease rate and finance rate is the same. Payment amount really isn't an issue for me but moving from a reliable Japanese brand to bmw I don't know what to expect with respect to bmw reliability and repair costs after the warranty expires.
Just went through the same exercise and in the end I ended up leasing. I've previously financed cars but realized unless you plan on driving it into the ground that its not a winning solution!

I also liked the Owners Choice option but in the end a car is still a depreciating asset. You can dump as much money as you want into the down payment but in the end the car is still going to be worth less when you drive it off the lot. Better to keep money in your pocket - especially if the payment isn't that bad for you to manage.

The lease does feel like 'rent' but then again if someone knocks or scratches the car - you've got nothing to worry about. They also cover all required maintenance during the term of the lease. Also pay the $1200 'forgiveness' package for when you return the car - covers up to $7k on any dings or scratches. Also waives your security deposit (last payment) which might end up adding $300 or less to your down payment for true 'piece of mind'.
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