Why do so many new BMW drivers lease (most of any brand)?

[David70]

Originally Posted by SW17LS

The issue is when people can't see past their own values and their own situation and preferences. People just automatically go to the idea that any decision that isn't the decision they would have made is wrong.

Not sure what you are saying. I don't think I ever said anything is wrong, I gave my opinion on what I would do and why, same as everyone else here that gave an opinion.

I seemed to have hit a nerve because some don't like my opinion.

[Revan]

Originally Posted by David70

Not sure what you are saying. I don't think I ever said anything is wrong, I gave my opinion on what I would do and why, same as everyone else here that gave an opinion.

I seemed to have hit a nerve because some don't like my opinion.

I don't think it's any different than the people who post that they can't fathom how you could possibly earn a rate of return high enough to justify a lease and investing the rest. I could honesty care less if they think it's possible or not and if they don't think it is, no skin off my back.

[David70]

Originally Posted by Revan

I don't think it's any different than the people who post that they can't fathom how you could possibly earn a rate of return high enough to justify a lease and investing the rest. I could honesty care less if they think it's possible or not and if they don't think it is, no skin off my back.

I would never say investing it and doing better isn't possible or get mad about it.

You could have taken the money and gone to the casino or invested in some high risk stock and done massively better than the purchase, anything's possible. I haven't seen anyone say it isn't. One thing to consider when looking at potential return on anything is the amount of risk, paying something off early is a zero risk return and no taxes on what you save.

I think you are saying the constant 3-4 year lease is better than the purchase of the new car every 3-4 years and I think you can come out ahead on the lease.

[SW17LS]

Originally Posted by David70

Not sure what you are saying. I don't think I ever said anything is wrong, I gave my opinion on what I would do and why, same as everyone else here that gave an opinion.

I seemed to have hit a nerve because some don't like my opinion.

Not talking about you specifically at all, just saying what kinds of comments people make.

I couldn't possibly care less what you or anybody else chooses to drive, but for some reason some people who choose to drive used or old cars (not saying you do this) love to comment that people who buy or lease new cars "are driving cars they can't afford" etc.

[lucasb5696]

Been reading through the thread and the links but the article carseatsm5 posted doesn't seem to have anything on it anymore so probably quite outdated.

Curious if anyone's got other insights or any 2025 data on this, would be interesting to see if that 77% figure's moved at all with how rates have been, and whether it's just a BMW thing or other brands lease at similar rates too.

[DrFerry]

Originally Posted by AiredaleDad

The cost of new cars has gone up a lot in the past few years. especually with COVID and the shortage of microchips. Nowadays a brand new Kia can cost upwards of $30k.

A lot of lessees want to drive a premium luxury car they normally can't afford to buy. And they don't want to risk hidden problems they might get in a used car. Or they don't want to, or can't afford to, commit a significant amount of cash up front, since it requires only a small down payment. If you look at the statistics, the average New BMW lessee (Non corporate) driver makes less than $90K a year (Depending on model). Whereas the average New BMW Owner makes more than $130K a year (Again depending on model) For example, a fully loaded 2025 530i X-Drive runs somewhere in the mid $70K neighborhood. But you can lease one for around $6K down and pay somewhere in the neighborhood of $1000 a month depending on options. That puts them in the drivers seat of a car they could not afford to buy unless they inherited the money or won the lottery.

The 540i X-Drive M Sport Pro like I just ordered runs around $79K or more depending on options. But I buy cars and drive them for about 10 years, and never take out more than a 60 month loan, and pay around 50% up front. I also always sell my cars myself, and never trade them in, since its a rip-off. Yes, it makes it easy and convenient, because they don't have to pay to detail, or market and sell their own used car. It's a one-stop shopping at the dealership. But Dealers know how to take advantage of this and never give fair market value. Always wholesale or auction prices, and they have experts to manipulate numbers and play smoke and mirrors. People know this yet still trade in their used car because it's easier.

Also, not everyone can come up with enough cash to put down on it to keep the payments and interest reasonable on a 60 month loan. But they still want to drive a new, state of the art BMW.

And then again, a lot of people get them as a company executive lease. The employer will give them an allowance. So they, or the employer, lease the car they want, knowing they can either unload it and trade for a new one in 2-3 years, or buy out the lease if they really love it and want to keep it. And the company has foot the bill and paid the depreciation up front. They can get their own car for a lot less that way. Also at that point, they can still purchase the extended warranty and service plan since it still has manufacturer's warranty left.

My dad did that 2 or 3 times when he was an Executive VP, then Publisher for a Magazine in NYC. He would buy out the company lease, give it to his wife, and get another company car, and she would give her previous car, former lease/purchase to the next child coming of age to drive. So the whole household was driving BMW and Mercedes until they bought their first car for themselves. I, of course never got to gain from this as I was a child of his first marriage.

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..

[DrFerry]

Originally Posted by lucasb5696

Been reading through the thread and the links but the article carseatsm5 posted doesn't seem to have anything on it anymore so probably quite outdated.

Curious if anyone's got other insights or any 2025 data on this, would be interesting to see if that 77% figure's moved at all with how rates have been, and whether it's just a BMW thing or other brands lease at similar rates too.

Here y'uh go...
.
https://www.spglobal.com/ratings/en/...TML/id/3451821
.
https://www.bmwgroup.com/content/dam...Q3-2025_EN.pdf
.
https://www.experian.com/blogs/ask-e...ased-vehicles/
.
https://insideevs.com/news/727150/bm...se-percentage/
.

[Emily172013]

I had a friend years ago that would lease a Corvette. He could deduct it because he used it for his business. He said if you lease, buy it at the end of the lease and sell it, you come out OK.

[pz619]

EV lease definitely made sense, at least a year back. The only way you could get around the $55K cap for EV cars to get the $7500 rebate, was to lease.

[allinon72]

I’ve always been against leasing, never leased a single car and never seriously considered it. But I’ve come to realize that mindset is mostly just that…in my head. It would not make sense for me to lease my own vehicles based on how I use my car, but looking back, it would make sense for me to lease my wife’s car and it probably would’ve saved me a lot of money. It’s just a daily driver that she drives the piss out of for about 15k miles a year. Something I’m considering when it’s time to dump her X1.

[25 V8 IS]

Buy a Lexus. Lease a BMW (or Benz, or Audi...You get the point).

[pbonsalb]

I have leased only once, in 2008, and it was a BMW…. Normally I buy used, CPO or new. However, I tend to keep my cars for 10 years and do not feel the need to have a brand new one or to change them every 3 years. If I did, I would consider leasing as a convenience. Why buy the whole car when you really just want the first 3 years of it? Sure, sometimes you can win on the residual but you are betting against experienced BMW accountants on that and should not expect to always win.

Probably the tax benefits of leasing a car for my wife would benefit my wife more than buying since she has some small businesses. But she does not like to change cars.

[Janjohn]

Basically, BMW has to make up the cost of producing the vehicle in the first 3 to 5 years. It doesn’t matter if you pay cash, lease, or lien. It’s really nice to get a new car every 3 years but in fact you’re paying the “full boat”. If it’s a lease or a loan, it’s the full boat + interest). BMW does it best to sell the most vehicles in the most markets each and every year. As a BMW fangirl, I want BMW to succeed in every market.
If BMW wants to achieve this they have to compete with Toyota/Lexus attitude of “if you don’t buy it somebody else will’ because we’re the industry leader”. That is my summary from the financial news channel and past Accounting classes. My last new BMW was purchased in 2013. It was a delight because it looked and drove like very new until we got the new X3.

[robe033]

Because they loose so much money in depreciation

[silvermanor]

BMW loves it when you guys lease these things and get on the conveyor belt.

[louielouie]

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.

[DrFerry]

Originally Posted by louielouie

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.

House, apartment and condominium lease agreements do exist with an option to purchase and are commonly referred to as lease-option agreements, lease-purchase agreements, or "rent-to-own" contracts. These legal arrangements are used for houses, apartments, and condominiums alike.

Types of Rent-to-Own Contracts:
While they both combine a rental lease with a potential property sale, they have distinct legal differences:

Lease-Option Agreement: This gives you the right or option to buy the property when the lease expires, but you are not legally obligated to do so. If you choose not to buy, the option simply lapses.

Lease-Purchase Agreement: This legally obligates you to purchase the property at the end of the lease term. Failing to close the sale at the end can result in a breach of contract and legal penalties.

I agree that renting (leasing) a car does provide flexibility should a lifestyle change or adverse event happen. Which is the same when renting a house or an apartment; one can simply break the lease, typically incur a penalty, and then move out.

[Janjohn]

Originally Posted by louielouie

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.

[tcphoto]

I leased two Grand Cherokees in '01 and then '04, I was carrying photo gear to locations and there were incentives both leasing and with tax write-offs. All that changed when Chrysler bought them in '08 or '09. I returned the last SUV and bought my first BMW, drove it for nearly seven years and then replaced it with my current E92. I've driven it for nearly ten years and intend to drive it till it dies or is killed by one of those terrible Nashville drivers.

[Janjohn]

Originally Posted by tcphoto

I leased two Grand Cherokees in '01 and then '04, I was carrying photo gear to locations and there were incentives both leasing and with tax write-offs. All that changed when Chrysler bought them in '08 or '09. I returned the last SUV and bought my first BMW, drove it for nearly seven years and then replaced it with my current E92. I've driven it for nearly ten years and intend to drive it till it dies or is killed by one of those terrible Nashville drivers.

Exactly my point. The least expensive way to own BMWs is to keep and enjoy them a very long time. BMWs are born and bred to run for high/very high mileage. Also, no matter what my purchase options, I always compare MSRPs between models or other brands like Porsche or Mercedes. It’s so much simpler than comparing leases/finance discounts.
BTW: the crazy drivers are all over the state of Tennessee.

[FrankL]

Originally Posted by 25 V8 IS

Buy a Lexus. Lease a BMW (or Benz, or Audi...You get the point).

(In the USA) The newish V-6 twin turbo Lexus and Toyota engines in their pickups, SUVs and 4Runner are garbage. Weak power and lousy gas mileage. Major failures. Tundra guys are saying they may try Nissan pickups. I have loads of neighbors with top of the line GMC pickups which are also junk. Lots of chrome.

The best powerful Toyota Lexus engine with power 380 hp, reliability and good gas milage is in the Toyota Supra. It is a straight 6 with a single turbo.

It's called the B58. It is laughable how much better the B58 in the X5 or X7 is versus this disaster engine in the Lexus RX550. 0-60. The BMW's are almost 2 seconds faster and they get 5 mpg better.

Oh and the Sequoia is junk too. A relative had newer one and had a catastrophic engine failure. Foolishly, they bought another Sequoia because they like 3 rows of seats and they believe the Toyo-Lexus reliability lie. Their stuff is pretty bad now.

The B48 and B58 is probably more reliable than most new Lexus and Toyo powerplants now. If BMW would get rid of plastic valve covers and plastic oil pans, they would be even more reliable..

[afadeev]

Originally Posted by Janjohn

Exactly my point. The least expensive way to own BMWs is to keep and enjoy them a very long time.

As is usually the case with all generalities - it's not as simple as claimed.
For anyone still reading this thread - run your own #s for your own life's circumstances. Three will be scenarios when buying and holding for a long time is the right move (2 out of 4 cars in my garage). There will also be circumstances where leasing is the best way to go (other 2 out of 4 cars).

The Devil is in the details.
As with most interesting situations in life!

Originally Posted by Janjohn

BMWs are born and bred to run for high/very high mileage.

Case in point - good luck to anyone who owns a BMW with hot-V8 engines (N63, S63, etc). Those ones were born'n'bred to leak and self destruct by ~60-80K miles. Replacing them is ridiculously expensive as well, $20-25K with parts and especially labor. Basically, when those engines go, the cars are mechanically totaled.

YMMV,
a