What are you opinions regarding overall leasing vs buying? I was looking to lease a BMW M340i and the monthly payment would be on par with a 2017 340i model.
Taken, I know its an older model, not too much difference that I would justify the price, same engine but less refined and obviously a lease is 3 years vs 5 year auto loan
I’m approaching this as the following, if the payment per month is similar lets say within $10 of each other, used car is a CPO, you just pay 2 more years and the car is yours vs having to buy out the lease if you want to keep the car,
I guess I want to know what people would do in a similar situation
UPDATE: Real Example
2020 BMW M340i (Calculator is based off a broker here, very rough numbers) Calculator
2017 BMW 340i M Sport 31k miles $30,000 (Tax Included), 2k down, Loan Amount $513/month based on the CPO .9% APR for 60 Months
True but there are other associated costs with owning a CPO German car, especially once it is out of warranty. I hope you are not just looking at the monthly payment.
With a BMW lease, you won’t have to worry about basic maintenance such as oil changes (which are covered for 3yrs/36k miles). You won’t also have to worry about needing new brakes.
Btw, no one recommends buying out a car at the end of a lease. BMW is known to inflate residuals, and in most cases, the car will be worth much less than what the RV states.
Trust me, I hear you about buying vs leasing but don’t just look at the monthly. At the end of the day, you need to figure out what makes financial sense for you.
Well… this is a lease forum so I’m guessing most people would recommend leasing.
The reality is you’re always going to have a car payment even if you pay it off… tires, maintenance, engine, breaks, etc… typically by the time you pay a car off its worth pennies to what you paid and the maintenance costs will add up.
For instance. I leased a 60k 530xi for 400 a month 24 months. That’s $9600 after two years. So with that I could lease 3 of them in 6 years for a total of roughly 30k. Times that by 2 to get the buy price. So 12 years of leases for sale price as the MSRP…
That same BMW in 12 years will be worth almost nothing and likely cost me money with maintenance and repairs.
All valid points, I guess I should add that I’m a car enthusiast and BMW fanatic, and the fact of not owning something make sense if you are the type of person that likes change every few years
Really love this description you put together, a lot of people are VERY set in their ways about buying over leasing…
No matter what there is some sort of cost associated with a car even if you dont have an active loan, people don’t understand that…
I had a GF that was buried on her 2014 3 series and I explained to her that she could have leased it instead of owning a heavy depreciation vehicle with very costly repairs
That’s what you got from the depreciation post?!
The only question you need to ask yourself is how much money you want to lose.
If you get emotionally attached to your cars then why even talk money? It matter not.
They don’t really have the same engine despite both being under B58 family. There ARE mechanical/hardware changes for TU1 which is found in the new M340i, not just tune.
yes both B58 and the M340i is the TU1, but the mechanical difference is not that much and the exhaust manifold on the TU1 is not replaceable, so if you want to modded it heavily for high HP you are going to have a hard time.
this is a leasing message board. What do you think?