[Marty in NY]

Originally Posted by Tenac

So we will keep the X3 for the 6 year warranty

Hey Tenac, how did you get a 6 yr warranty on your X3? I thought it was 4 yrs like the X5, no?

[Tenac]

Originally Posted by Marty in NY

Hey Tenac, how did you get a 6 yr warranty on your X3? I thought it was 4 yrs like the X5, no?

When we bought last March 2019 they had a really good deal when financing with BMW, so we jumped on it but both are covered for 6yrs. Just double checked it is a BMW extended for both was 4500. So if we do turn in before then we get prorated.

[Marty in NY]

Originally Posted by Tenac

When we bought last March 2019 they had a really good deal when financing with BMW, so we jumped on it but both are covered for 6yrs. Just double checked it is a BMW extended for both was 4500. So if we do turn in before then we get prorated.

Ah so, ok, you paid for an extended warranty, gotcha, you had me excited there for a minute, thought there was a way to get a 6 yr factory warranty. When my wife sold her VW diesel back to VW during dieselgate, WV increased their warranty on new cars to 6 yrs so she bought a GTi...I was thinking it was a deal like that. Thanks for the details.

[sygazelle]

Originally Posted by TestnDoc

Lease. Never own a depreciating asset.

I've heard that tenet before and it makes sense for those who use the funds they didn't use buying a car to invest in an appreciating asset. Done well, the money not used for a purchase and invested wisely can yield a return that more than offsets the constant lease payments.

Sadly, some people who lease cars don't do that. For them, this tenet can get them on a never-ending cycle of lease payments with no offsetting appreciating asset to make the lease decision financially sound. Still more financially troubling are people who get more car than they can otherwise afford because lease payments are typically less than loan payments.

When a person does a 3 year lease (for example), they are paying that depreciation + interest at the very highest portion of the depreciation curve - the first 3 years. Then, they turn in that lease car and do it again and again and again, always making sure they are paying the most depreciation they can possibly pay.


Putting financial practicality aside, leasing is still a good choice for those who want/need a shiny new object, the very latest technology, or no fear of driving a car without a warranty.

[Eagl88]

To me it's always math. I'm in sales, on the road a lot, and have done 3 year leases for the past 18 years (4 BMWs, 2 Rovers, now back to BMW). When I ordered mine in January that is what I negotiated. It arrived during shutdown, when I took finally delivery in May I opted to purchase due to $2,500 rebate and 0.9% interest for 5 years. I put $0 down and the monthly payment was about $100 more than leasing, they rolled all expenses into the financing and no payment for 90 days. So I still have paid nothing out of pocket and am driving an awesome rig, 1st payment due August 21. If I sell/trade in 3 years I won't have a excess mileage fee (I avg 20k/yr, at least I used to) and should have built up equity. That's my calculus at least.

[Paladin1]

Originally Posted by sygazelle

I've heard that tenet before and it makes sense for those who use the funds they didn't use buying a car to invest in an appreciating asset. Done well, the money not used for a purchase and invested wisely can yield a return that more than offsets the constant lease payments.

Sadly, some people who lease cars don't do that. For them, this tenet can get them on a never-ending cycle of lease payments with no offsetting appreciating asset to make the lease decision financially sound. Still more financially troubling are people who get more car than they can otherwise afford because lease payments are typically less than loan payments.

When a person does a 3 year lease (for example), they are paying that depreciation + interest at the very highest portion of the depreciation curve - the first 3 years. Then, they turn in that lease car and do it again and again and again, always making sure they are paying the most depreciation they can possibly pay.


Putting financial practicality aside, leasing is still a good choice for those who want/need a shiny new object, the very latest technology, or no fear of driving a car without a warranty.

And aside from getting exactly what I want with a purchase, added to that my purchased depreciating asset (on which I owe nothing after 3 years, my typical finance), is worth 1,000,000,000,000,000,000% more than the equivalent lease at the end of that 3 years, even in its sadly depreciated state.

[wtwo3]

Originally Posted by sygazelle

Putting financial practicality aside, leasing is still a good choice for those who want/need a shiny new object, the very latest technology, or no fear of driving a car without a warranty.

I like shiny things

[sygazelle]

Originally Posted by wtwo3

I like shiny things

Reason enough!

[sygazelle]

Originally Posted by Paladin1

And aside from getting exactly what I want with a purchase, added to that my purchased depreciating asset (on which I owe nothing after 3 years, my typical finance), is worth 1,000,000,000,000,000,000% more than the equivalent lease at the end of that 3 years, even in its sadly depreciated state.

It's what happens next is why I own instead of lease. The last payment is made and the car is still virtually new, able to be driven like new for another 3 to 6 years without payment, and the handed off to family member for 5 more years of great transportation.

I still get why people lease. It's just not for me.

[Marty in NY]

Originally Posted by wtwo3

I like shiny things

Funny, like a common crow, they like shiny things too and so do I The new car smell, new buttons that do something my last car didn't do, a clean undercarriage , a chance to change internal/external colors and always being covered by a warranty are all reasons in favor of leasing.

However, I did lease a '97 528i once because I thought I would get into the leasing mode and just continue leasing for all the reasons stated above. For me, it was sweet n sour, I liked the car, though it was underpowered, I didn't like having to watch my miles or being paranoid about its condition throughout my ownership, I mean I take care of my cars for sure, but when leasing it isn't really your car and just knowing this put a damper on the whole thing but the kicker was that I liked it and when it came time to turn it in, the only thing ready for that was the contract, not me.

I knew exactly what color combo I wanted and I wanted it in a manual tranny, I scanned all dealers within a few hundred miles and no one had it. I happened to be in Scranton PA one day having lunch at Coopers Seafood restaurant and the BMW dealer is just down the street so we stopped, walked in and low and behold, there it was sitting in the showroom, the exact car I wanted, exactly! I had to have it I didn't even drive it, I just went into the SA's office and did the lease on the spot. I recall he was a little surprised at the whole thing. So when it was time to turn it in I wanted to cry and I cursed the fact that I leased it.

I guess I'm just not a leasing person, I only buy cars I really like and am not ready to end the friendship after just three years. That's really about the time the car is fully broken in and I feel like the car and me are one, I know it, I know its sounds and behavior and feel comfortable in it. Yeah, I know its just a bunch of metal and plastic, I get that and in their raw form, I would have no attachment but once assembled into a living, breathing machine that I get to command, well, that's a different story. Notice I didn't mention anything about doing the math, depreciating assets or finances, those are all too impersonal for me, I don't believe I will get a second life. I keep my cars clean because I like shiny things

and I just noticed that the split on this poll is now 50/50!

.

[wtwo3]

Originally Posted by Marty in NY

Funny, like a common crow, they like shiny things too and so do I The new car smell, new buttons that do something my last car didn't do, a clean undercarriage , a chance to change internal/external colors and always being covered by a warranty are all reasons in favor of leasing.

However, I did lease a '97 528i once because I thought I would get into the leasing mode and just continue leasing for all the reasons stated above. For me, it was sweet n sour, I liked the car, though it was underpowered, I didn't like having to watch my miles or being paranoid about its condition throughout my ownership, I mean I take care of my cars for sure, but when leasing it isn't really your car and just knowing this put a damper on the whole thing but the kicker was that I liked it and when it came time to turn it in, the only thing ready for that was the contract, not me.

I knew exactly what color combo I wanted and I wanted it in a manual tranny, I scanned all dealers within a few hundred miles and no one had it. I happened to be in Scranton PA one day having lunch at Coopers Seafood restaurant and the BMW dealer is just down the street so we stopped, walked in and low and behold, there it was sitting in the showroom, the exact car I wanted, exactly! I had to have it I didn't even drive it, I just went into the SA's office and did the lease on the spot. I recall he was a little surprised at the whole thing. So when it was time to turn it in I wanted to cry and I cursed the fact that I leased it.

I guess I'm just not a leasing person, I only buy cars I really like and am not ready to end the friendship after just three years. That's really about the time the car is fully broken in and I feel like the car and me are one, I know it, I know its sounds and behavior and feel comfortable in it. Yeah, I know its just a bunch of metal and plastic, I get that and in their raw form, I would have no attachment but once assembled into a living, breathing machine that I get to command, well, that's a different story. Notice I didn't mention anything about doing the math, depreciating assets or finances, those are all too impersonal for me, I don't believe I will get a second life. I keep my cars clean because I like shiny things

and I just noticed that the split on this poll is now 50/50!

.

This G05 and G20 are the first cars I've ever leased. I totally get what you're saying, with getting comfortable with the car and feeling like you and the car "are one".

I've had cars that I've kept for long periods of time, and ultimately (with the exception of the 2 Lexus' I owned) I just got tired of dealing with mechanical/electrical issues.

My first car, a lovely 93 maxima, the transmission completely blew out on it. My 2nd car, a 00 maxima, would randomly start shutting off at around 105k miles and nobody could figure out what was causing it (along with a handful of other issues). The IS350 and RX350 I owned were bullet proof for the full 8 and 10 years respectively and were excellent cars, but I didn't realize how incredibly outdated they were until I checked out some new cars.

The Q50 I purchased, and about 2 years into ownership is when I realized I wanted something new. It was a great car, a powerful 400 hp cruiser that was comfortable. But the tech was outdated the day it was released. And that's when I seriously looked into leasing.

I thought to myself, if I sell this Infiniti within 3 years of ownership, I will have taken a bath. If I had leased it instead, that would have been significantly more economical. And I don't see myself keeping this more than 4-5 years.

I had also been very apprehensive about purchasing non-Japanese brands because of perceived long term reliability (I know now that outside of Lexus/Toyota, Japanese cars aren't significantly more reliable than other cars long term). But with leasing, that opened up an entire world of cars I had never even bothered to consider. Now I could go up to a Land Rover dealership and not have to think, will this car die on me 2 months after warranty? It no longer worried me that the Alfa would crumble to pieces by simply turning on the air conditioning. Or that my BMW might start leaking oil if I drove over a speed bump. Or that the transmission in my Acura would start slipping because I took it above the speed limit.

Obviously I'm being facetious there, but leasing is typically cheaper than buying a car and selling it every 3-4 years. And to me, the peace of mind that comes with always driving something under warranty is not only worth the investment alone, but it opens me up to a world of cars I may otherwise not have considered simply out of fear.

[Marty in NY]

Originally Posted by wtwo3

This G05 and G20 are the first cars I've ever leased. I totally get what you're saying, with getting comfortable with the car and feeling like you and the car "are one".

I've had cars that I've kept for long periods of time, and ultimately (with the exception of the 2 Lexus' I owned) I just got tired of dealing with mechanical/electrical issues.

My first car, a lovely 93 maxima, the transmission completely blew out on it. My 2nd car, a 00 maxima, would randomly start shutting off at around 105k miles and nobody could figure out what was causing it (along with a handful of other issues). The IS350 and RX350 I owned were bullet proof for the full 8 and 10 years respectively and were excellent cars, but I didn't realize how incredibly outdated they were until I checked out some new cars.

The Q50 I purchased, and about 2 years into ownership is when I realized I wanted something new. It was a great car, a powerful 400 hp cruiser that was comfortable. But the tech was outdated the day it was released. And that's when I seriously looked into leasing.

I thought to myself, if I sell this Infiniti within 3 years of ownership, I will have taken a bath. If I had leased it instead, that would have been significantly more economical. And I don't see myself keeping this more than 4-5 years.

I had also been very apprehensive about purchasing non-Japanese brands because of perceived long term reliability (I know now that outside of Lexus/Toyota, Japanese cars aren't significantly more reliable than other cars long term). But with leasing, that opened up an entire world of cars I had never even bothered to consider. Now I could go up to a Land Rover dealership and not have to think, will this car die on me 2 months after warranty? It no longer worried me that the Alfa would crumble to pieces by simply turning on the air conditioning. Or that my BMW might start leaking oil if I drove over a speed bump. Or that the transmission in my Acura would start slipping because I took it above the speed limit.

Obviously I'm being facetious there, but leasing is typically cheaper than buying a car and selling it every 3-4 years. And to me, the peace of mind that comes with always driving something under warranty is not only worth the investment alone, but it opens me up to a world of cars I may otherwise not have considered simply out of fear.

Yup, its the difference between short and long term ownership, I'm a long term guy cause I buy what I like. Luckily for me, my wife has the same taste in cars so it makes it a lot easier.