10-16-2018, 09:02 AM | #68 |
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The lease vs. buy question is very complicated and depends on a number of factors, including personal preference so I think we can all agree that no one can make a general statement that one is better than the other in all cases.
While it's true that you are effectively paying for the depreciation in a lease, I tend to think of it as a hedge against future fluctuations in the used car market. With a lease you get a fixed residual (i.e., a fixed value of the car after X months and Y miles). Buying a car leaves you at the mercy of the market at the time of sale or trade in so the market value may be higher or lower vs. the residual of a lease. For example, my 2015 F15 lease had a residual of 59%. Given the introduction of the new model and other factors, if I had purchased the car there's no way I would be able to recover 59% of the original value right now. That's just one factor and you could write a treatise on this topic analyzing all the different variables. One last point — what people do with their own money is none of my business. I knew a guy once that put $20K down on a car he was financing for 0% interest when he had $15K of other loans at 9% interest. Terrible decision from an objective financial standpoint but it made him feel better to have a lower monthly payment on his car. |
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10-16-2018, 09:07 AM | #69 | |
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10-16-2018, 11:41 AM | #70 |
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10-16-2018, 11:50 AM | #71 |
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I suppose that's the evolving value proposition. The residual values erode and people get their used cars cheaper. They just have to plan on a slightly longer to-do list with them.
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10-16-2018, 12:34 PM | #72 | |||
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10-16-2018, 01:45 PM | #73 |
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A 3-year old BMW needs to be babied. If and when it breaks, getting them fixed is an astronomical expense.
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10-16-2018, 02:33 PM | #74 | ||||
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10-16-2018, 04:30 PM | #75 |
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I think the most engine wear occurs when the engine in running. So, when I went out to dinner last night, when I really could have stayed home, I unnecessarily imposed wear on my engine. Also, I've had to rethink the entire comfort/luxury/performance thing. I could have spent $15k instead of $90k, and then I can drive around slowly, and uncomfortably and not worry about wear and tear, because I could just buy a new one every year and still be money ahead. I'm also now rethinking spending all those days at the track, using 2 full tanks of gas per day, imposing a lot of wear on my M3 engine, not to mention the brakes, tires, suspension, transmission, etc. Just thinking about it fills me full of regret.
No, not really. My (sarcastic) point is, I'm not too concerned about any supposed added wear on the engine due to remote start. It's a convenience/luxury that I'm going to happily use. I will use it in the winter when my X5 is parked at work, outside, in a secure parking area and it's 15 degrees at 6am when I get off work. I will use it in the summer when it's 105 degrees when I get off work at 6pm. My current X5 is well on it's way to 5 years of trouble free service, and I expect my next X5, even with remote start, will give me 5 or 6 years of trouble free use. I think stating that long warm-ups cause more wear on the engine, while maybe true, is really splitting hairs and the chance it will actually result in a breakdown is miniscule. In the overall scheme of things, if that's something that you are truly worried about, maybe don't spend 90 thousand dollars on a vehicle.
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10-16-2018, 05:06 PM | #77 | |
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Be realistic in your approach to this. How long do you honestly think people hold onto cars? If 50-60% of the cars that BMW sells are leased and only driven three years, BMW isn't going to build a car that lasts 200,000 trouble free miles. They will build a good car that will last 10 years probably 100,000 miles which they do. Doing proper maintenance will get you there. After that, the car is probably pretty old anyway. |
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10-16-2018, 05:12 PM | #78 | |
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10-16-2018, 05:48 PM | #80 |
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10-16-2018, 06:50 PM | #81 | |
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The fact that it's a tax write-off if you have your own business is icing on the cake. My humble opinion. |
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10-16-2018, 07:06 PM | #82 | |
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10-16-2018, 07:29 PM | #83 |
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True. Repeatedly surfing new cars every three years (whether purchased or leased) and you are always experiencing max depreciation and max excise tax. Keeping them longer and you’re paying lower excise tax and seeing slowing depreciation...BUT, could also be seeing higher maintenance costs depending on durability/quality/efficiency.
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10-16-2018, 07:59 PM | #84 |
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I would get a new car every 2-3 years so I'm in depreciation hell no matter what. Leasing saves me taxes because I only pay tax on the depreciated portion and not the full value of the car. So, for me leasing is better and buying might be better for someone else.
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10-16-2018, 10:18 PM | #85 | |
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10-17-2018, 03:16 PM | #86 |
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Agreed. Had this on a RRS and it was superb! Starting from the house or the office was the real benefit.
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10-17-2018, 07:13 PM | #87 |
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One that buys a car, doesn't baby it, and is still happy with it 10 years later? OK. Yeah, I would think most car companies would be happy with that. I would think most consumers would be happy with that.
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