Higher end car - buy or lease?

[snorkeldorf]

Doubtful. Credit rating is the metric used to determine interest rate.

Even if no down payment resulted in a higher money factor, how much of a difference could it be? One-quarter or one-half percent? I'd rather keep the down payment money working for me somewhere, where it will certainly earn more than 0.5%.

Not a lease expert, but I feel like I remember reading that the money factor can hide a higher interest rate. One of the reasons they list it the way they do so you have to know how to convert it.

 

[ShokWaveRider]

Not a lease expert, but I feel like I remember reading that the money factor can hide a higher interest rate. One of the reasons they list it the way they do so you have to know how to convert it.

Money Factor x 24 = Interest Rate. A well known formula.

 

[someguy]

It's possible. For example, for quite a while, there were amazing deals on the all-electric Nissan Leaf. Roughly $150/mo, 24 mo, 10K miles/year on a car stickering mid $30s. Also, for several years recently, folks were getting BMW i3 (electric, or electric plus onboard gas generator) leases in the $200-300/mo range. Some were even in the $100-200/mo using fed and state rebates. Roughly $50K MSRP.

You'd save some on fuel, as well, plus the convenience of never going to a gas station.

Obviously, this wouldn't be perfect for everyone. Not having a place to charge at night, for example.

I loved to lease when working and driving a lot of miles. I would lease a car for two years 50K miles. I never had a payment over $600 so that means I never paid more than $.29 to drive a nice new car ever two years. Now that I’m retired, I can’t imagine leasing would be a good option. I just don’t drive enough. Take a 10K annual lease. At $300 per month, that would be over $.36 per mile. You’d have to get in under $250 to get under $.30 per mile.

Of course, that also means ownership will require a lot of miles, a good trade in value and long term ownership to get the cost per mile down below $.30. To me, car cost is all about the cost per mile. That’s what I’m paying for. Of course I have to consider what level of comfort I’m willing to pay for, but the metric for comparison is cost per mile. The good thing about a lease is that your cost per mile is determined upfront.

 

[Kroeran]

BMW salesman not selling to me, conversationally mentioned that he was pushing leases for clients due to auto technology changing so rapidly going forward, depreciation and obsolescence will accelerate.

 

[someguy]

BMW salesman not selling to me, conversationally mentioned that he was pushing leases for clients due to auto technology changing so rapidly going forward, depreciation and obsolescence will accelerate.

Also, last I knew, they got standard commission regardless of direct purchase by consumer or via lessor. And a lease pretty much guarantees constant sales.

 

[dcrambler]

Just bought a very nice luxury car that is 5 years old with 34K miles. Sticker was $74K in 2016 and paid $25K. Too much depreciation first 4 years for me to pay with a new buy. One owner and excellent CARFAX.

 

[Cayman]

Just bought a very nice luxury car that is 5 years old with 34K miles. Sticker was $74K in 2016 and paid $25K. Too much depreciation first 4 years for me to pay with a new buy. One owner and excellent CARFAX.

Well done. Sounds like a nice ride for $25k.

 

[EdL3]

We’re cash buyers, that buy Lexus and hold for 10+ years. Although it makes no financial sense, we have bought our last 3 vehicles new.

EdL3

 

[Christine]

It's a ten page MS Word doc. At first glance I don't see a way to attach a file in private messages. I will look to see if this is an option.

You could upload it to Google docs and then get a share-link which you can post here. Then it will be semi-private.


Or if that is too public for you post the same link to people interested by Personal Message here on the forum.

 

[steveark]

I'd buy a used one, 2017 or 18 with 25,000 miles on it. In fact I just did, except it was a QX50 Infiniti that listed for $50K new. I paid Vroom $25K and the car is like brand new for half the price. They delivered it to me a few weeks after I wired the money. It's my new way to buy luxury performance cars. No haggle and great price and they vet the cars, only single owner, clear Carfax vehicles.

 

[someguy]

Just bought a very nice luxury car that is 5 years old with 34K miles. Sticker was $74K in 2016 and paid $25K. Too much depreciation first 4 years for me to pay with a new buy. One owner and excellent CARFAX.

Nice! That is some steep depreciation -- Cadillac or German maybe?

 

[airbornesapper]

I am a BMW nut...owned them for many years....in the past, bought two year old lease returns....with factory warranty out to 6 years...and maint to the 4 year point.

I have a 2014 X6M loaded, new price in Canada over 120K....I paid 67K 2 years old, still have it....It's babied and has been a great vehicle...year round daily driver...currently has 112,000km. An easy vehicle to maintain, and stuff I don't do myself, is completed at a trusted indy. Put a new 10.25" display in it with Apple Carplay....with the same Screen/Idrive as my wife's new BMW. All fluids were changed at 100,000KM...wont be changing it anytime soon.

Broke the mold in Feb 20 when we bought a brand new 2019 X3 M40i with -30KM, 4 years free maint...and warranty out to 6 years...$55,000 CAD for the vehicle, and 2K for the extended warranty....an Identical 2020 was $79,0000. Cheaper than leasing it!!!!

We pass our vehicles to our children.....It works for us....

All I would say is...owning any vehicle is expensive repair wise if you go to a dealer....find a good indy, one that lets you supply parts from Rock Auto etc...save a ton and have fun...