Quote:
Originally Posted by ejm3
... but if you just want a fun toy like a Z4 for a few years and won't put many miles on it then it makes sense. ...
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+1 This!
I have a small fleet of cars i OWN (joking ... but are 6 cars too many for 1 person?), but had the itch for a roadster. There's no way I want the G29 after 3 years, so paying $17k in lease payments (all-in cost for 36 months) was much better than paying $60k + 6.625% NJ Sales Tax, and hoping to get back $43k when I was ready to sell it in 3 years.
There's a snowball's chance in hell of having a 3 year residual of 72% ... so for me, the decision to lease my toy was an very easy one. Lease all day long. I negotiated a deep discount on a vehicle on the lot (my first ever BMW I have not done P1 order), combined BMW NA incentives with my lease negotiation, and leased for a low-mile lease (10k annually). I have 2k on the odometer since Aug 2020, so I'm surely not worried about mileage. Hell, I can likely trade-out the lease on the Z4 at a profit on lease trader when I finally give into temptation and get the M8C Convertible
Am I ashamed/embarrassed to "rent" my BMW ... nope! Am I tying to get into a car that I can't afford? Nope, could have bought it cash.
Why everyone is so worried about "what their friends may think" instead of doing what is more fiscally responsible for their usage needs and net best deal on the same vehicle for the term of "ownership"? I keep cars 2-4 years, so depending on your vehicle behavior, leasing could be the better option.
I have leased several times in the past, when the dealers are hungry for moving volume, deep sales price discounts can be had, combined with manufacturer-set artificially high residuals and artificially low money factor, when the 3 align, leasing is a no-brainer. Take my '16 F85 for example.... $115k MSRP ... $0 down, $800/month lease for 36 months. Paid $28,800 to lease the vehicle. Looked at used car prices in 2019 when I returned the lease, X5Ms optioned the same way were selling for $60k at best. If I paid $100k for it new out the door and bought instead of leased, I would have been out an additional $11.5k compared to leasing when i got rid of it 3 years later!
Be smart and keep an open mind and evaluate all of your options. "Renting" your next car may be a wiser option. If you keep cars for long periods (5+ years), then leasing becomes much less attractive. I wish I had the will power to resist the "next best thing"! More power to you ... I would be a richer man if I had self control