Leasing or buying a high-end car.. Pros and cons?
 

What do you think? I don’t get bored with cars and not very picky but I always hear about leasing cars and just dropping them off after term is over. Is it worth it? How do they calculate APR rate and such?

Leasing a vehicle is almost never a good idea.

leasing makes sense if you use the car for biz and will give greater tax advantages than owning, this lowers the true out-of-pocket.

leasing is really just another form of financing, but credit requirements are usually stricter.

if you drive more than 12-15K/year you will probably get hit with an excessive mileage charge upon lease return, this can negate any low payment advantage.

and if you get tired of your car and want to dump it before the lease term expires expect to get hurt in the pocketbook because usually you will have negative equity (you will be "upside down" in car lingo).

if you are the type of person who really takes care of a car and keeps it long term usually buying makes more economic sense.

and if you really want the truth, from a financial standpoint you are BEST off buying a late model luxury car with a current model sheet metal body. (certain beemers, mb, jag xk8, etc) you will get 98% of the utility, almost 100% of the prestige, and if you buy it right you and know resale values you can almost drive for free, recouping your investment every 24 months or so.

If you lease, make sure you negotiate the vehicles price down just like if you were purchasing it. Otherwise it's being financed at LIST. Negotiate the miles per year and final value also (dealer service lease-end charges).

I did that with my BMW. It's fully loaded, has EVERY option, but here's where you get fucked:

repairs

Make sure that if you put HIGH MILES like I do (and you blow through the factory warranty in like 2 years) you can afford the repairs. Two $3,000 months already.

Also factor in oil changes, etc. Sure, the BMW dealer picks my car up from my house, changes the oil, cleans the inside, washes it, tops off all my fluids, rotates my tires, then puts it back at my house .. but it's $200 to DO that!

... beware!

i won't advise it

hummm well i have bought and now i lease..but i dont drive very far ive had it a year now and just put 9,000 miles on it and i drove home to jersey last year from sofla..its fine for me but you should really consider its right for you.. see if you finance you never own your car anyway so wouldent you wanna have a small down payment and a low monthy payment for a new car but then again theres cons to!!! sooooooo just look into it more

That is very good to know - that's the type of thing that the car dealers don't tell you about - that's for sure... :Oh crap

Bmw have horrible reliability. Not surprised.

Ouch, certainly a case for purchasing the extended warranty.