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      10-20-2010, 01:04 AM   #15
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Originally Posted by paixim View Post
If I understand leasing correctly, I'm just paying for depreciation over the next x years + interest rate. If I have the funds available, shouldn't I just pay for the car and save myself on the interest rate?
That's a complex question that can only be answered with an in-depth look at your finances and your car buying habits.

My wife loves a new car every 2-3 years. She makes plenty of cash, so I don't mind indulging this. She needs a reliable car too, so knowing that it's new, in warranty and low mileage is peace of mind.

I'm losing the urge for a "new" car every 2-3 years. Maybe a different car, but it need not be new, per se. I'm probably leasing my last car for a long time. I plan to buy an F10 535 or 550 in 3 years, and drive that for quite a long time, assuming it is reliable.

If you plunk tons of cash down on a car, you could be losing out on other investments. If you can use BMW's money for 4-5 years at 2-3%, why not find a way to invest yours at 5+%? You'll make money over the long haul. Some people are anti debt, and that's cool, I get it. But if you are comfortable with fixed term secured debt, why not use someone elses money?

1999 e46 328i Ti Silver / Black[retired]
2007 e90 335xi Jet Black / Black[retired]
2011 e70 X5 35d Vermillion Red / Cinnamon
2011 e92 M3 LeMans / Fox Red extended