[drummerlauw]

Does anyone here facing a dilemma of rather being "forced" to buy a new BMW instead of leasing it, because of the high-driving-mileage situation?

Given the amount of mileage i drive to work everyday, I'm somewhat forced to buy rather than lease. Moving closer to work is not an option unfortunately.

[EJL]

Originally Posted by drummerlauw

Does anyone here facing a dilemma of rather being "forced" to buy a new BMW instead of leasing it, because of the high-driving-mileage situation?

Given the amount of mileage i drive to work everyday, I'm somewhat forced to buy rather than lease. Moving closer to work is not an option unfortunately.

Every 10k miles extra adds 1600 (or about 45 dollars a month for a 3 year lease) at the .16 overage charge if you buy before lease ends. How many miles do you drive a year?

[NightWriter]

Originally Posted by drummerlauw

Does anyone here facing a dilemma of rather being "forced" to buy a new BMW instead of leasing it, because of the high-driving-mileage situation?

Given the amount of mileage i drive to work everyday, I'm somewhat forced to buy rather than lease. Moving closer to work is not an option unfortunately.

Leasing isn't for everyone, and if you drive significantly more than 15k miles/year, then you're not a good candidate. If you want to simulate the same type of arrangement, buy the car and sell it back at the end of 36 months. Rinse and repeat, but it will likely not be favorable financially. If you want to avoid the big depreciation hit, then you can find a good 3 year-old CPO, which should be a fair amount cheaper (both upfront and overall).

[drummerlauw]

Originally Posted by EJL

Every 10k miles extra adds 1600 (or about 45 dollars a month for a 3 year lease) at the .16 overage charge if you buy before lease ends. How many miles do you drive a year?

About 19000 miles/ year.

19000-15000 miles = 4000 miles extra
4000x.16 = $640 extra/ year
$640x3 years lease term = $1920 total extra money at the end of lease.

Hmm, I wonder if that's cheaper than buying.

[DFW_M]

Originally Posted by drummerlauw

Does anyone here facing a dilemma of rather being "forced" to buy a new BMW instead of leasing it, because of the high-driving-mileage situation?

Given the amount of mileage i drive to work everyday, I'm somewhat forced to buy rather than lease. Moving closer to work is not an option unfortunately.

Word "BMW" should be taken out as it applies to EVERY lease out there. By the way, it is possible to have an 18k/yr lease with the BMW. Ask the dealer.

[SamS]

What's so bad about buying? For sure you can get a better interest rate vs. a lease.

[EJL]

Originally Posted by SamS

What's so bad about buying? For sure you can get a better interest rate vs. a lease.

There is nothing bad about buying, but BMW typically inflates the lease residuals to encourage leasing. For me, leasing makes more sense as I drive well under 10k a year. The lease residuals for a 10k lease are usually 62-65%. 3 series with about 30k miles seem to be worth about 54-55% of MSRP. Since I usually get the new car itch well before 3 years, its actually significantly cheaper to lease than it is to buy and resell in a couple years. Now if you plan on keeping a car for 7-10 years, it can be cheaper to buy (before taking into account maintenance, repairs, etc).

[EJL]

Originally Posted by drummerlauw

About 19000 miles/ year.

19000-15000 miles = 4000 miles extra
4000x.16 = $640 extra/ year
$640x3 years lease term = $1920 total extra money at the end of lease.

Hmm, I wonder if that's cheaper than buying.

So 54 dollars a month more tacked on to the 3 year lease payment. Not too bad. And you'll always be in a car with maintenance and warranty included.

[sarafil]

Originally Posted by drummerlauw

About 19000 miles/ year.

19000-15000 miles = 4000 miles extra
4000x.16 = $640 extra/ year
$640x3 years lease term = $1920 total extra money at the end of lease.

Hmm, I wonder if that's cheaper than buying.

I did about 22k miles per year on my last two leases. Bought some extra miles along the way at $0.16 per mile. If you sit and do the math, it's not that bad of a deal. If you buy and try to sell in a few years, you'll take the hit on resale value for high mileage. The extra mile charge on the lease is actually a pretty good value in most cases.

[BMW in NE]

Originally Posted by EJL

So 54 dollars a month more tacked on to the 3 year lease payment. Not too bad. And you'll always be in a car with maintenance and warranty included.

Don't forget Pull Ahead If he were to do a 15k/year lease and use pull ahead at the 2.5 year mark he would only have driven about 47,500 miles. At turn in he would only be charged for the excess over 45k.. so just 2500 miles @ .16/mile. ($400 in mileage charges)

[Crashnbrn5]

Originally Posted by drummerlauw

Does anyone here facing a dilemma of rather being "forced" to buy a new BMW instead of leasing it, because of the high-driving-mileage situation?

Given the amount of mileage i drive to work everyday, I'm somewhat forced to buy rather than lease. Moving closer to work is not an option unfortunately.

All the lease heads above me are absolutely correct, it is cheaper even at 17-20k a year, plus that warranty is OH so good. I'm on my 3rd BMW lease about to be on my 4th in November. That best play is getting the lease for 15k a year the absolute cheapest. A 60k car can be had for under 630 a month with about 3,000 out of pocket for 15k a year. Then as others suggest you buy as you go at .16 cents per mile. (which I hope they leave it here and not raise it) OR you can ask the dealer for a 18k a year lease, don't ask for 19 though, just in case you stay under.

[drummerlauw]

Originally Posted by Crashnbrn5

All the lease heads above me are absolutely correct, it is cheaper even at 17-20k a year, plus that warranty is OH so good. I'm on my 3rd BMW lease about to be on my 4th in November. That best play is getting the lease for 15k a year the absolute cheapest. A 60k car can be had for under 630 a month with about 3,000 out of pocket for 15k a year. Then as others suggest you buy as you go at .16 cents per mile. (which I hope they leave it here and not raise it) OR you can ask the dealer for a 18k a year lease, don't ask for 19 though, just in case you stay under.

I saw a calculation about Leasing vs. Buying of specifically 328i, and it basically tells that if you want to make buying "cheaper" than leasing, you have to keep the car for at least 6 years before selling it. At the other hand, if you keep leasing vehicles for more than 2 terms (6 years), than Buying is actually becoming a little bit cheaper.

https://www.cartelligent.com/blog/bu...e-bmw-3-series

Some people say that if you own a company, leasing is also good because you get a tax break? Because I guess you can put the vehicle as your company's property?

[EJL]

Originally Posted by drummerlauw

I saw a calculation about Leasing vs. Buying of specifically 328i, and it basically tells that if you want to make buying "cheaper" than leasing, you have to keep the car for at least 6 years before selling it. At the other hand, if you keep leasing vehicles for more than 2 terms (6 years), than Buying is actually becoming a little bit cheaper.

https://www.cartelligent.com/blog/bu...e-bmw-3-series

Some people say that if you own a company, leasing is also good because you get a tax break? Because I guess you can put the vehicle as your company's property?

Thats before taking into account MSDs, the risks of diminished value from getting into a crash, etc. I don't think I could stay in a car 6-9 years. Get bored too fast.

[drummerlauw]

what about buying the car after lease period is over? is it worse than buying the car from the first place?

[EJL]

Originally Posted by drummerlauw

what about buying the car after lease period is over? is it worse than buying the car from the first place?

If you buy it at the end of the lease at the residual value, yes it'll be worse than buying it up front (in my case by about 1700 dollars compared to a 72 month loan). Nothing is stopping you from negotiating the buy out at the end of the lease with the dealer. Since the actual value will be a lot less than the residual, they may be open to selling you the car for significantly less. If you do pull off such a deal, it'd actually be cheaper to lease then buy compared to a traditional loan. However, in this scenario, all the risk is assumed by BMWUSA, not you. Don't get the deal you want? Walk away. Car gets rear ended and has diminished value? Walk away. Decide you don't want the car anymore before lease is up? Go to swapalease.