Quick question. When does it make more sense to buy vs lease? Buy is at 0% and lease is at .24% Residual value is a paltry 40%. I’m getting a huge discount off MSRP and it’s the car the wife wants.
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Gotta run the complete numbers on both. It’s more than just the interest rate that makes a difference.
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On my most expensive car purchase, less than a year in someone hit us and caused 10k worth of damage (car in front was texting and braked hard, car behind did not stop in time), I haven’t bought a car since. Not a quantitative answer but diminishing value stopped us from buying.
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The biggest thing to remember about 0% is if you don’t complete the term you don’t realize the whole benefit. Also, rates are so low right now you’re probably better taking whatever extra rebates you get in lieu of 0%. Some cars lease well, and some don’t. Lots of variables
40%, that mystery car doesn’t lease well. Oh and it’s a Jag, definitely don’t want to keep that full term on 0%, be careful on that car, probably lots of trunk money
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Maybe it’s a 48/15 lease with massive tax credits/discounts up front? Then it might lease really well
40%? Maybe an EV… like the Audi e-tron… but yes like everyone says, too many variables.
Didn’t mean to be cryptic. Yes, I-Pace EV. About $24k off MSRP. Plus $7500 rebate.
Sounds like a 2019 that isn’t leaseable anyway
Are they offering the 0% apr with 24k off? I was offered 25k off but not the 0% Apr. I was told you either get the 10k incentive or 0% apr.
Nope 2020.
And call me naive, but I don’t know what 48/15 means.
48 mth/15k miles a year lease. A reason why RV is so depressed
Why not just lease an e-tron? Deals have been pretty good (not sure if that is still the case without Costco).
Jaguar I-Pace deals have always had large discounts to compensate for the low RV values. They can barely sell them new, so most likely the resale values are going to be terrible when you go to sell it in a couple years?
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Ahh, I should have known that. Too much wine with dinner. Nope. Traditional 24/36/ or 39 month with 12k miles.
Regardless, I-Pace lease RVs have been terrible across the board. Only way they can still make them worth leasing is with huge dealer discounts and manufacturer incentives.
IMO except in a small number of exceptions, never. The rent charge on my lease is 0.74% and all the risk is on the captive. 0% interest for all the downside of owning a depreciating asset doesn’t make it any more attractive 
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That makes sense. Thanks for the succinct and simple response.
In the lease versus buy decision, it’s all down to the total cost of the lease compared to the cost of capital and depreciation with owning the car over the equivalent time period.
Of course, you can only estimate the depreciation, but looking at trends helps. Sometimes the decision is easy to make; sometimes it’s a close call.
Among the European cars I’ve leased, the total cost of the lease was always less than had I bought the car, paid sales tax on it, and sold it for market value later.
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One thing I try to convey to people when I’m explaining why leases are so powerful, is that you can get a lot more car for the money.
For example, a $60k car “financed” at 0% over 60 months is $1k a month. You can spend 5 minutes on this website and find numerous examples of 60k+ cars leasing in the $5XX range. So, in general I think your money is worth 2X when leasing AND you don’t need a down payment.
Another question to ask yourself is how much do you drive? Do you have another vehicle if you approach mileage limits on your lease?
Finally, with leasing you generally stay within the factory warranty. Any money you might save at 0% will be gone the first time something breaks on your BMW.
I by no means am an expert in this realm but I’ve spent countless hours lurking here and am confident in these statements. Let me know if you have any other questions
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That is a stupidest argument. You are completely negating equity
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If the residual value is trash that should be indicative in most cases of which way you should go.