Quote:
Originally Posted by louielouie
Quote:
Originally Posted by DrFerry
Great post and good information. It's one of the better posts I've read on the forum in ages. Leasing is just a fancy word for "renting". When you boil it all down to what leasing actually is. Except the Dealers don't want to call it "renting" because that might actually scare people into the true realization of what they're doing. In many if not all American States, the Lessee is still responsible for paying the property taxes for an asset he or she does not actually own. Riddle me that one folks. Kudos to you for the buy it and keep for 10 years philosophy and protocol. I do the same thing as well as sell privately. It's the only way to avoid the Stealer. When a Landlord rents a house or apartment he owns to a renter, the Landlord still pays the property taxes - not the renter. When a renter rents a property from a Landlord he/she signs a Lease. Car leasing is renting with the added insult of paying the property taxes for the real owner aka the bank... Clown world. We are living in the upside down..
|
Leasing is not the same. You have a buyout option to purchase the car after the lease and it accounts for what you've paid into it. You don't get that if you've been renting a house, no matter how long you've been there.
Leasing gives you flexibility that you don't have with purchasing. Someone t boned you? You're stuck with that repaired car. Where I live, it's actually quite a bit worse as CA doesn't have diminished value. Don't want the car after 3 years? Lifestyle changes? You'd have much less to worry about with a lease vs if you bought. You can just turn the car back in. |
I know this will start the firestorm. There have been lease-with option-to buy with cars, homes, and furniture, since I was a kid playing with dinosaurs in the mid-Jurassic. You ALWAYS pay more than buying cash. Always. It’s simple math. Leasing gives drivers the option to use the car 3 years and walk away to lease another. You can buy it at the end of the lease but it’s still “the full boat minus depreciation. When you finance a car for 5 years or more, hopefully the depreciation is slower than is the pay off.
The least expensive way to own a BMW is buy it with pure hard cash and keep it under warranty as long as you can. Even after the warranty expires, I can pay whatever maintenance and repair needed until it’s just easier to buy a new BMW.
I know very few people on this forum follow my thinking. Very few people follow my thinking at the local dealership.
If you keep the car after it’s paid off and save up for the next one until you have the MSRP of the next car, that releases you from the relentless car payment/lease payment forever. Again, simple math.