over 90% of customers at my BMW dealer choose leasing instead of financing?

[DavyNM]

I was talking to the finance dept manager at my BMW dealership the other day. He seemed surprised that I wanted to do financing. I explained that I could get 1.79% for 60 months from my employee credit union, which was apparently better than BMW's own financing.

He went on to say that over 90% of their customers lease instead of finance. (1/3 pay cash, the other 2/3 lease or finance) I thought he was trying to push me into considering leasing, but apparent that wasn't the case. He suggest that I stick to the credit union financing, if I could get it locked in until my new car arrives in a couple of months.

Do most BMW drivers really prefer leasing over financing? Have I been doing it wrong all these years?

[afadeev]

Originally Posted by DavyNM

I was talking to the finance dept manager at my BMW dealership [...]He went on to say that over 90% of their customers lease instead of finance. (1/3 pay cash, the other 2/3 lease or finance) I thought he was trying to push me into considering leasing, but apparent that wasn't the case. He suggest that I stick to the credit union financing, if I could get it locked in until my new car arrives in a couple of months.

Do most BMW drivers really prefer leasing over financing? Have I been doing it wrong all these years?

90% of non-cash transactions being leases, or 0.9*2/3 = 60% of total transactions. Sounds reasonable.

I don't think BMW releases the averages, but I suspect that they vary by model.
My guess would be that higher risk cars (EVs) and first-time BMW purchases (X1's) are more likely to be leased than the rest.

IMHO,
a

[Westside Guy]

Originally Posted by afadeev

90% of non-cash transactions being leases, or 0.9*2/3 = 60% of total transactions. Sounds reasonable.

I don't think BMW releases the averages, but I suspect that they vary by model.
My guess would be that higher risk cars (EVs) and first-time BMW purchases (X1's) are more likely to be leased than the rest.

IMHO,
a

I totally agree with your guess about EV’s being more likely to be leased.

[pbonsalb]

Lease payments are less than finance payments so more people lease. Maybe that is the only way they can afford the car, maybe it makes sense for them because they like having a new car every 3 years, or maybe they own or work for businesses that pay the lease and deduct it. They don’t have to worry about maintenance or repairs because they don’t own after the free service or out of warranty.

I leased a car once, but normally buy new or CPO or used and finance the cost. I tend to keep cars for about 10 years so owning them makes sense. I DIY nearly all the maintenance and repairs. I also like to modify my cars and that complicates warranty issues.

I usually could pay cash but would rather preserve it and finance. We have several properties and small businesses and cannot always predict our needs. Predicting cash flow is easier than predicting irregular expenses. Others may have far more cash or have far more predictable lives and find that paying cash is better for their situation.

[Dozer324]

I leased because my last experience financing I lost a lot of money on the sale of the car. It was in an accident and had frame damage, which severely reduced its value. Compare to a car that is leased it would have been turned in after 3 years. Its resale value wouldn’t affect me at that point.

[tcphoto]

I leased two Grand Cherokees back to back more than twenty years ago, I extended one because the SUV was still in great shape and the payment was much lower than buying. This all changed in '08 when Chrysler bought Jeep, they no longer extended leases and that's when I bought my used 3 Series. I don't want to have a large monthly payment hanging over my head and would likely pay cash or put down enough to have a low monthly payment.

[pz619]

Almost all EVs will be leased (BMW specifically) if you want to take advantage of the tax incentives.

My mom leased an I4 to get the $7500 reduction. Otherwise the car would have been too expensive to qualify ($55K limit for cars).

[DrVenture]

Originally Posted by Dozer324

I leased because my last experience financing I lost a lot of money on the sale of the car. It was in an accident and had frame damage, which severely reduced its value. Compare to a car that is leased it would have been turned in after 3 years. Its resale value wouldn’t affect me at that point.

If you leased it and turned it in after such an accident, there would have been no cost to you for frame damage?

[dumptruck]

Isn’t this why Nissan is going bankrupt?

[Phillies8008]

I chose to lease because:

1) I was getting an i4, which was my first EV, and I wasn't sure how much I'd like it (spoiler, I love it). I liked the idea of being being able to wash my hands of it in three years if it didn't work out for me. We also leased a Polestar 2 for my wife, and I'm very glad that we'll be able to wash our hands of that one come the end of the lease.

2) I'm an idiot and like having a new car every three years. Strictly speaking, not as good a financial decision as buying outright, but, then, if I were only interested in the best financial decision I'd drive a Camry. Thank god that's not my only criteria.

[Phillies8008]

Originally Posted by dumptruck

Isn’t this why Nissan is going bankrupt?

Nissan's going broke because they make bad cars that they let stagnate and have had incredibly inept management for over a decade. Not a recipe for success, as it turns out.

[afadeev]

Originally Posted by pbonsalb

Lease payments are less than finance payments so more people lease. Maybe that is the only way they can afford the car, maybe it makes sense for them because they like having a new car every 3 years, or maybe they own it work for businesses that pay the lease and deduct it. They don’t have to worry about maintenance or repairs because they don’t own after the free service or out of warranty.

+1 compelling reason that should not be neglected - $7.5K EV rebate was income constrained when buying, but income limites were waived when leasing. Thus 99% of the folks shopping for EVs *had* to lease them to collect on that Federal rebate.

It got killed recently, so expect fewer EV sales and leases going forward.

a

[pbonsalb]

I think BMW’s EV sales percentage in the USA is under 4%.

[OC40]

For the 2013 335 Msport that I had (2013-2017), I financed it. BMW had something like 0.9% at the time.

My wife leased her mini s and then bought it after three years because I negotiated the heck out of the lease. The dealer was pushing a lease, so I sent him back eight times.

Currently, looking to purchase another bmw or Audi unless the dealership offers a lease option that I can’t refuse.

[afadeev]

Originally Posted by pbonsalb

I think BMW’s EV sales percentage in the USA is under 4%.

Try 24.2% globally in 2024.
17.4% in the US, though US is an ever shrinking % of total BMW Sales (down to 11.8%, Asia + China are 42.3%).

https://www.press.bmwgroup.com/globa...0total%20sales.

Leasing is a good tool, when used appropriately and in moderation.
When abused, any financial instrument can become problematic.
Same goes for medicine, food, and many other good things in life.

[eleven11]

Originally Posted by DavyNM

I explained that I could get 1.79% for 60 months from my employee credit union.

That's an amazing rate.

[pbonsalb]

Originally Posted by afadeev

Try 24.2% globally in 2024.
17.4% in the US, though US is an ever shrinking % of total BMW Sales (down to 11.8%, Asia + China are 42.3%).

https://www.press.bmwgroup.com/globa...0total%20sales.

I wrote US. Your linked document does not support your US claim. EV were not 17% of BMW US sales in any recent year or currently. More like 3-4%. Research it.

[Phillies8008]

Originally Posted by pbonsalb

I wrote US. Your linked document does not support your US claim. EV were not 17% of BMW US sales in any recent year or currently. More like 3-4%. Research it.

13.7%, actually. From BMW:

2024 total US sales: 371,346
2024 US EV sales: 50,981

[pbonsalb]

Those numbers are valid and much higher than I believed. It looks like 2025 US BMW BEV sales are on track to drop about 10,000 due to loss of rebates.

[Rocket455]

Originally Posted by Phillies8008

I chose to lease because:
...like having a new car every three years. Strictly speaking, not as good a financial decision as buying outright, but, then, if I were only interested in the best financial decision I'd drive a Camry.

100% spot-on.

[afadeev]

Originally Posted by pbonsalb

I wrote US. Your linked document does not support your US claim. EV were not 17% of BMW US sales in any recent year or currently. More like 3-4%. Research it.

For someone you doesn't provide ANY references to justify his dubious claims, you are awefully picky about clicking on links!


Here you go: BMW sold 50,981 BEVs in 2024, a 12.3% increase from the previous year. When combined with plug-in hybrid models, BMW’s electrified lineup accounted for 70,379 vehicles, or 19% of total sales.

https://www.bmwblog.com/2025/01/03/b...0dip%20in%20Q4.

[JTK44]

Originally Posted by DrVenture

If you leased it and turned it in after such an accident, there would have been no cost to you for frame damage?

Exactly and a very strong reason to lease. As long as the repairs are done with OEM parts, you are fine. If you own your are taking a big financial hit if you have an accident. By leasing you pass on the cost to the lessor.

I just leased a 2026 540i for 39 months, 10K miles per year, all taxes and fees in the lease for $900 a month. All service is covered. My only extra expense for the next 39 months will be gas and a pair of wiper blades. Everything else is covered. That gives me piece of mind.

At the end of lease if I am upside down, the buy back is higher than the value of the car, I give the car back to the dealer. The cost of depreciation is on the lessor. If I am not up side down, the residual is lower than the vale of the car so that I have equity in the car and like my car I may buy it.

Either way leasing is a win/win.

Another reason to lease is that I do not want to tie up $70,000 in a depreciating asset. I can use that $70,000 to earn money. There is an old rule in business:

Buy an appreciating asset: rent (lease) a depreciating asset.

Hope this helps