Talk Me Into or Out of Leasing

[Euro7r]

Originally was considering getting an S2K, but still leaned towards the TSX due to being practical as a daily driver. I have been looking around at 06-08 TSX up to around two weeks ago, I am now considering getting a BMW. Reason being is that, I am still young (25) and not held down by anything (gf, family, debt etc.). I want to enjoy things before I do get held down in the future by family, paying off a mortgage etc..

My alternative from the TSX is leasing a BMW 1 series. I do not want to buy the BMW because in the long run if I decide to keep it, maintenance bills might rack up. I drive a Civic and reliability is awesome with barely any major expensive service required on it over the course of the last 8 years of ownership.

I've been getting mixed emotions in terms of leasing as some that switch cars every few years like it and some have told me, I do not own the car and it's not worth paying monthly payments for something that's not even yours in the end, unless I plan to buy it outright when my lease is up.

Any advice RS? Who here is on a lease? Much appreciated.

[PJ]

This is a question that's been beaten to death. There's no right or wrong answer, it all depends on your priorities/financial situation.
You're going to have people on both sides of the equation telling you different things.

How long do you plan on keeping the car? How much do you drive? Are you eligible for tax deductions? Planning to mod?

I used to think leasing was blasphemy. But when I learned more about it, leasing my next car actually makes more sense for my situation.

[Bender Unit]

Leasing Question again
Come On ~

There was a thread started 11 days ago discussing the same damn topic.
Also mentioned/compared BMW leasing as well

http://www.revscene.net/forums/66652...ew-luxury.html

You can find all your answer here

[belaud]

I'm on a lease, except I'm buying it out at the end.

[donjalapeno]

your a big boy.....you dont need RS to tell you what to do. Make a pros/cons list and go from there.

[LuHua]

Personally I/we went for financing since it was within our means. For leasing, I'd say the positives are that you have an easier time choosing a new car once it's out, and you get lower payments (given that you're not intending to buy out at the end). You are limited mileage wise, which shouldn't be an issue unless you are driving a LOT.

Financing: Well, I like the freedom. I can do whatever I want with the car, pretty much, and for mine depreciation isn't so much of an issue. It's nice to know that it is actually yours...

[sekin67835]

This is why i would lease:

-I want a new car every 4 years or so.
-I can use the money that i "save" to invest into something that would give me better returns
-Less maintenance cost (no need to worry about engine/transmission problems)

Here is why i would finance:

-I want to own the car at the end
-I will drive this car for<5 years
-Although it is a depreciating asset, i will still be able to sell it for "something"
-basically "commits" you into the purchase.

You also have to check out the financing and leasing rates that are given out. If i want the car at the end of the road, i would choose financing. I would only lease if i was unsure if i really want to drive that car for the next 5-10 years.

[4444]

i think its pretty sad that you envision that you have more money now than you will later - do you really think that poorly of your education/career? if so, i'm scared for you.

so, you want to blow a large chunk of your earnings now on a car vs. buying a damn nice car (TSX for a 25 year old is plenty nice), starting your savings (yes we should all be starting investing at an early age, well, if you don't want to work until death, that is).

do us all a favour - LIVE WITHIN YOUR MEANS! that'll probably mean the TSX at best

[too_slow]

I could be wrong, but the E90 has much better residual/lease rates..
Were you looking at the 128i or 135i?

[Euro7r]

Originally Posted by 4444

i think its pretty sad that you envision that you have more money now than you will later - do you really think that poorly of your education/career? if so, i'm scared for you.

so, you want to blow a large chunk of your earnings now on a car vs. buying a damn nice car (TSX for a 25 year old is plenty nice), starting your savings (yes we should all be starting investing at an early age, well, if you don't want to work until death, that is).

do us all a favour - LIVE WITHIN YOUR MEANS! that'll probably mean the TSX at best

Well, I don't have a family or any debt to be tied down with yet, hence; obviously I have more now than later. When I factor in family and kids in the future, I won't have the freedom to enjoy certain things since what I make later on will be all towards family. With high cost of living, I wouldn't spend money on a nice in the future anymore since when you have a family everything costs more.

Not sure if your trolling or not, but if I didn't have a good enough career to make a decision on getting a BMW, I wouldn't even bring it up in the first place. All I just wanted was to hear out on people's opinions for those that are already leasing.

[smoothie.]

I know what you mean by worried about not being able to in the future.

We've all pretty much been there.

I still haven't commited to a lease or a finance from a dealer, only a loan from the bank for a used car heh.

If you definitely want a new car, then leasing a bmw can be a good deal during low rates and sales, also if you account for all the free scheduled maintenance etc.

[yray]

Like what everyone said, what is your monthly budget? Leasing a 1 series is minimum $700/month right now. Two door means more insurance, you cannot short out on coverage on a lease, you might want the M package or metallic paint, which will add up to almost $1000 dollars a month. Don't forget gas money! A brand new bmw lease is a lot of money being hold up, if you can afford it then go ahead. But remember no mods, locked up on a 3/4year contract, might need the cash later on in life.

I think it would be better to buy out a car. ie: civic SI/accord/ BRZ/ Camry and get a luxury car later on.

[belaud]

you pay even more insurance because you're over 204HP or some shit like that :P

BMW's are stupid expensive to maintain, grab an audi, they have free maintenance for a year or two last time I saw their ad.

It would be $700/$1000/month if it was $0 down payment, which they will NEVER do unless your credit is ballin out of control.

[yray]

^

[belaud]

Whats with the face?

Any car in the 30k+ range is hard to maintain, I'm just saying grab the car of his choice when they're offering free maintenance in the lease years.

I'm leasing my car with a fat down payment just to pass credit check. To the OP, don't put a big down payment on the car unless you are planning to buy the car out, if you don't pass credit check with the default down payment shown in ads or whatnot ($333month for 7609 down payment), you can't afford the car.

Mods are allowed so long as they're from factory catalogue and purchased from the dealership or any "certified" shop.

I should be giving you the face.

[yray]

ICBC thinks any 2 door car is race car, so even with 2dr-100hp you will get redonk rates versus 4dr-100hp. BMW provides 4 years of free maintenance with lease/purchase anyways. BMW stopped advertising it since they've been having it for like 8+ years. If you plan on keeping a bmw after lease, you will be crying at their free maintenance plan anyways.

Would you buy all your mods from subaru? Would you get Richmond subaru to install it for you?

[Manic!]

Buy a Civic, save money, retire early.

[belaud]

ICBC difference from 2dr to 4dr isnt all that big, it depends on the model of the car too, an 04 WRX is more powerful then the 2008 civic SI, but it costs a whole tit load more to insure because of their no.1 "most stolen" car rate, as well as having one of the highest totalled loses right next to the big brother STI and civics.

By all means, grab the BMW then if they have the free maintenance for lease/financing vehicles, though wait for their year end sale or "surprise" sales.

I'm not sure how this question is asked in context if I would buy mods from Subaru, yes I would, and I already did, though I installed it myself, I've been given no flak about it either.

[Over9K]

Originally Posted by belaud

Whats with the face?

Any car in the 30k+ range is hard to maintain, I'm just saying grab the car of his choice when they're offering free maintenance in the lease years.

I'm leasing my car with a fat down payment just to pass credit check. To the OP, don't put a big down payment on the car unless you are planning to buy the car out, if you don't pass credit check with the default down payment shown in ads or whatnot ($333month for 7609 down payment), you can't afford the car.

Mods are allowed so long as they're from factory catalogue and purchased from the dealership or any "certified" shop.

I should be giving you the face.

You must be Asian.

[Ferra]

Originally Posted by Euro7r

I do not own the car and it's not worth paying monthly payments for something that's not even yours in the end, unless I plan to buy it outright when my lease is up.

I have heard this advice/comment so many times, and I think it is one of the dumbest mentality people have about leasing.
Whether you own or lease the car, you are ultimately paying for its depreciation.

Originally Posted by yray

Like what everyone said, what is your monthly budget? Leasing a 1 series is minimum $700/month right now.

pretty sure you can lease a 128i at $500-600/month tax incl. with little to no money down...

FYI, leasing rate is 3.99% while finance rate is 0.9% on the 1 series right now, so it might makes more sense to finance if you could afford the monthly payment.


My general advice on leasing is, if the lease & finance interest rate are both low and similar, go with lease.
Take for example, if someone offer 0% finance/lease rate for 36 months, there is absolutely no reason to go with finance.

[originalhypa]

When I was 19 I leased a new Prelude. My total monthly costs equaled close to 40% of my net paycheck. Add the cost of gas, insurance, and nice smelling air fresheners, and it was a given that I was going to be the designated driver. Mainly because I couldn't afford to get drunk.

Fast forward 1.5 years, and I want to move into my own place, but can't because I don't have enough income to afford it. Once I gave back the lease, I was back into a 10 year old civic. But I was happy to have the freedom to do what I wanted.

You're young and your priorities may be one way now. But you could very well be in a different place in life in the future. Don't lock into long term commitments before you know what you want out of life. You have a long time ahead to enjoy the fruits of your labor.

[highres604]

If your lease payment will be similar to what your finance payment will be, then you can go either way. I would not lease if the payment is too high.

Leasing is awesome for people that like new shit all the time.

[dark0821]

Or people who opwill use the lease car as their "company" car... There fore can use the payments as tax write offs...

Like realtors or insurance brokers...

[tiger_handheld]

OP what are your reasons for wanting to Lease?

[yray]

Originally Posted by Ferra

FYI, leasing rate is 3.99% while finance rate is 0.9% on the 1 series right now, so it might makes more sense to finance if you could afford the monthly payment.

.

40k 128i @688 with 4.6k down; I doubt op would buy base model and black/white non metallic paint.