[micknugget]

Here's how I figure out whether to buy or lease:

For Lease:

Add up the lease payments plus down payment.

$400/mo X 36 mos = $14,400 + 2400 = $16,800 (3 Years)

Consider lower payment than buying and a new car every 3 years but if you go over mileage or have excessive wear and tear it can cost you.

Buying:

Take the initial cost of the car and then remove the trade in or resale value and then divide by 4 (buying and keeping at least 4 years (free maint. period)).

$45,000 - $27,000 = $18,000. (4 years)

With buying the payments are higher and you own the car longer but you don't have the same penalties for high mileage, excessive wear, and of course the longer you own it the better a deal it becomes as the rate of depreciation lessens each year.

Because BMWs hold their value so well, I always buy but that's just me.