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      10-12-2020, 03:44 PM   #1
keeva381
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Goal is to get to 100k miles on a new build - lease, buy, or both?

I owned an Audi for 9 years and didn't have many major issues. I want the driving experience of the BMW but nervous about the quality or repair cost over time. I feel like 100k miles is a safe range and helps justify the cost of a new car since you get some of the back years with lesser depreciation (as compared to year 1 and 2).

Any recommendations on buying or leasing to "start" the process of getting to 100k miles? I've seen some suggest that they always start with a lease and then make the call to purchase at the end if they are enjoying the car. I don't mind the hassle of having to sell a car if I financed, but just curious if people would recommend always start with a lease and then purchase when/if you want?
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      10-12-2020, 05:51 PM   #2
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If you know that you would like to put 100,000 miles on a car, I suppose you buy it because you either a) want it for the long term (5 or more years) or b) you drive more miles than an average driver (over 20,000 a year) and the lease limits the number of miles (or becomes extremely expensive).

My personal opinion is leasing when a) you drive less than 15,000 a year, b) you like to get the latest model every three years or so and c) you do not damage too much the car (wear and tear can be $$$)

In my case, I keep cars for a number of years so buy or finance is my preferred option.
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      10-12-2020, 05:56 PM   #3
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if you plan on keeping the car for a long time and will put a lot of miles on it I wouldn't look into leasing. Finance with a ext warranty would be better move IMO. Pay it off and be done with. However if you want to get new cars and dont drive much then yea lease can be a better move.

whatever you figure out doing and if you need a ext warranty we BLOW these out for forum members. if you are interested:
https://f30.bimmerpost.com/forums/sh....php?t=1670964

good luck on your search!
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      10-14-2020, 06:08 PM   #4
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Quote:
Originally Posted by keeva381 View Post
I've seen some suggest that they always start with a lease and then make the call to purchase at the end if they are enjoying the car.
It's a risk equation:

* Starting with a lease - full optionality, rate risk if financing is required
There are good lease rates now, and leasing de-risks you from the first 3 years in case of accident, a used-car market crash, or if you just don't like the car; i.e., it allows you a guaranteed contracted easy out no matter the circumstances ... but .... you could miss out on the good financing rates now (unless you're willing to write a check in 3 years - in that case lease is the way to go!)

* Going standard financing - fewer options, but less hassle
Financing up front now, when rates are low (0.9%), locks you in a to a pretty good rate which you could miss if you wait 3 years and still want/need to finance. If you don't mind writing a check at that point then it's better to lease. If you have to / want to finance then it might be better to lock in that low rate now.

Net-net: depends on your tolerance for rate risk, financial risk, and bureaucracy. Leasing is always the lowest risk overall, but in the case you plan to buyout and finance you'll incur rate risk and it'll be more hassle.
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      10-17-2020, 01:54 PM   #5
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i would lease then buy out. lease money factor is pretty low right now. i think it boils down to 1.9%, but that interest is only charged on the depreciation (44%-48%) of the car, not the full price of the car.

at the end of your lease, you can buyout the car if you end up liking it. less risk this way. our other car is a 2019 ford explorer sport. we planned on buying it out after the lease, but someone crashed right into the rear axle while it was parked last year. insurance did not total it out, they "repaired" it. but now the rear axle destroys tires. it just ate through a set of Pirellis in under 7k miles that would normally last 30k. we took it to ford to get fixed a few times. they can't do anything with it. this car is done, it's value is shot to s**t. but it's ford's problem now.

while this is not a common scenario, it' something to think about. when you buy out the car after leasing, you can extend the factory warranty to 7 years, 125k miles.
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      10-17-2020, 05:21 PM   #6
keeva381
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Quote:
i would lease then buy out. lease money factor is pretty low right now. i think it boils down to 1.9%, but that interest is only charged on the depreciation (44%-48%) of the car, not the full price of the car.

at the end of your lease, you can buyout the car if you end up liking it. less risk this way. our other car is a 2019 ford explorer sport. we planned on buying it out after the lease, but someone crashed right into the rear axle while it was parked last year. insurance did not total it out, they "repaired" it. but now the rear axle destroys tires. it just ate through a set of Pirellis in under 7k miles that would normally last 30k. we took it to ford to get fixed a few times. they can't do anything with it. this car is done, it's value is shot to s**t. but it's ford's problem now.

while this is not a common scenario, it' something to think about. when you buy out the car after leasing, you can extend the factory warranty to 7 years, 125k miles.
YUP - I think this is the route I'm taking. I'm still nervous/hesitant on long term quality with a BMW, and it's a lot of money to find out the hard way down the road. I'm going to lease it for the 1.9% MF and I'll have 45k miles to make a decision (3 years). And if it's to go in another direction (like back to Audi), then I just hand in the keys
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