There are myriad camps/perspectives on the whole financing vs leasing debate.
But what usually happens is that people twist their logic to fit the thesis they’re trying to prove. For example, ST_00 above says that financing is smarter. And basically implies not financing is a dumb move.
His biased take relies on the calculation where financing the vehicle will “only” cost $22k for the first 3 years. Basically $53k minus $31k. But he ignores the interest expense of the financing option (BMW loan financing interest rates will be around 6% APR). He also ignores the opportunity cost of capital where a loan-borrower needs to make both principal and interest payments on a loan. This is usually why financing payments are higher than similarly structured lease payments, although the higher payment becomes “equity” in the vehicle over time.
Last, He also neglects to place any value on the lease-optionality where you could easily exit the vehicle if it is underperforming or problematic during the warranty period.
At first blush, closed ended leases are complex for normal car buyers. But if you decompose the rent factor, depreciation, and option to capture value in the residual, they are great ways for someone to enjoy a new vehicle. THEN at the end of the lease that person could choose to capture the vehicle and keep driving it, or roll into a new lease with lease-loyalty benefits.
Personally, I think if you leased a vehicle then saved the monthly payment differential vs a financed/loan… then the lease is a great product to use for the first 36 months. Every person has slightly different motives to gain access to a vehicle. Once they weigh the pro’s and con’s, they can decide. It doesn’t make sense to conclude one way (loan vs lease) is “better” than the other in all instances for a given car.
I’ve written about this here… but of course my perspective is just one of many on this topic. Bottom line, I don’t think it’s as simple as “financing is better.”