[mavericksid]

Would you rather lease even if you had cash to buy the vehicle?

[BMWZ4]

Originally Posted by mavericksid

Would you rather lease even if you had cash to buy the vehicle?

Too many restrictions, at least for me. Mileage being one of them.

[metapod]

I like to buy then keep for a long time. I figure if I keep this car for 7-10 years then EVs will make more sense when I'm in the market again.

I'm not sure what the benefit of leasing is, maybe easier if you change cars every ~3 years?

[mavericksid]

Originally Posted by BMWZ4

Too many restrictions, at least for me. Mileage being one of them.

That's one of the concerns I have as well.

[mavericksid]

Originally Posted by metapod

I like to buy then keep for a long time. I figure if I keep this car for 7-10 years then EVs will make more sense when I'm in the market again.

I'm not sure what the benefit of leasing is, maybe easier if you change cars every ~3 years?

Makes sense. EV is probably a way to go in next 5-7 years.

[timesone]

I like to buy more freedom and flexibility to do what I want as the sole owner

Some of my friends lease as they can write off their payments for business tax purposes

[FlashMonkey929]

I lease, because of my business. More tax write offs (significantly more), and benefit from a new car every 3 years. My mileage is pretty consistent at about 10K miles every year so it works out for me. Plus I have more than one car, so the X1 only ever sees business use. If you’re not using it for business, are into modding, and/or drive a lot more than the mileage allows, financing or buying outright is usually the better route.

[SpaceSilver.X1]

Originally Posted by timesone

I like to buy more freedom and flexibility to do what I want as the sole owner

Some of my friends lease as they can write off their payments for business tax purposes

my realtor friend use to get a new Hummer H2 every couple of years. it was a business expense that got written off. when Hummer was no more, she switched to leasing Mercedes GLE.

[rounderman]

As always it depends, leasing is another form of financing. Tax considerations aside, when you lease you put the risk of declining value of the car on the lessor (BMW) , you avoid any loss if the car is totaled during the lease period. When interest rates were low, borrowing was practically free, now the opportunity cost of investing the cash elsewhere should be reviewed. Leasing also puts changes in technology leading to financial loss or FOMO again on the lessor. There is definitely a cost to offloading these risks. I leased my X2 mostly for perceived technology risk and some financial risk, turns out I won since the residual was much lower than actual value so I bought it out a lease end. I really like my car so I can live with some aspects of older tech.

In the end do what helps you sleep better at night, none of us on the internet can truly analyze your particular situation. In the end you drive the car, not the deal. If you are happy with however you aquire the car, that is all that matters.
So lots of choices, good luck enjoy the new ride

[Tomduck]

In the UK with current leasing rates it’s much more beneficial to buy, I worked out over 4 years and 32k total contract miles you save at least £6-8k. I used to lease but lease rates have since gone up dramatically. Of course if you don’t easily have the spare cash then leasing may be the only realistic way, which is why so many people still do so.

[Kosymodo]

Originally Posted by Tomduck

In the UK with current leasing rates it’s much more beneficial to buy, I worked out over 4 years and 32k total contract miles you save at least £6-8k. I used to lease but lease rates have since gone up dramatically. Of course if you don’t easily have the spare cash then leasing may be the only realistic way, which is why so many people still do so.

Taking this on a bit of a UK-specific tangent, but if you can lease via salary sacrifice, it's a no-brainer to do so. Lease prices this way are far lower then buying. My lease (inc insurance, replacement tyres, road tax, routine servicing and maintenance, and RAC breakdown cover) is roughly 2/3rds the cost of financing it (without the extras mentioned above)

[Tomduck]

If you’re getting as a “company car” then agreed it’s a different ball game, but if it’s your own cash and a personal purchase (not relating to a company scheme of any kind like salary sacrifice) then putting the cash down is best at the moment.

[markronnie]

When I started looking at the 2023 x1 in July all the dealers I went to says 90% lease. I have never leased, I buy & don’t put much miles a year on it. So when I’m ready to trade it in I’ve received top $$$$. The car I traded in for 2024 x1 was a 2014 Mazda 3 hatchback (10years old) with just 30k miles. I got $12,200 on trade. That’s about 50% of what I paid when new.

[mavericksid]

Originally Posted by markronnie

When I started looking at the 2023 x1 in July all the dealers I went to says 90% lease. I have never leased, I buy & don’t put much miles a year on it. So when I’m ready to trade it in I’ve received top $$$$. The car I traded in for 2024 x1 was a 2014 Mazda 3 hatchback (10years old) with just 30k miles. I got $12,200 on trade. That’s about 50% of what I paid when new.

Probably bmw won't retain that kind of value?

[Tomduck]

For sure circa 90% lease as they don’t have the £40k+ to buy a car outright, the majority live on credit. Also dealers will push you to lease as they make more money if you lease.

[markronnie]

Agreed, from what I’ve read BMW’s don’t hold their value over long term as much as some other mfr’s. But after years of driving Acura’s cars & SUV’s I wanted to try something different & BMW was among top of the list.

[IAmSpeed]

Buy, always for me.

[Bam-Bam]

Maybe old-fashioned, but always buy. I learned that you first have to have the money before you can spend it.

It will be different if you can choose a company car.

[SpaceSilver.X1]

Originally Posted by markronnie

Agreed, from what I’ve read BMW’s don’t hold their value over long term as much as some other mfr’s. But after years of driving Acura’s cars & SUV’s I wanted to try something different & BMW was among top of the list.

I have zero brand loyalty. I buy whichever car fits my needs, meets my budget and makes me feel comfortable at the time I need to buy a new vehicle.

Off the top of my head, I've purchased and leased quite a few different brands over the last 40 years:

in chronological order, starting from about 1984:

Honda
Nissan
Oldsmobile
Isuzu
Rover
Citroen
Opel
Mercedes
Mercury
Volvo
Lincoln
Lincoln
Mini
Lexus (current)
Renault
Mercedes
Toyota (current)
BMW (current)

Sadly, I've never had a new Acura. Wish I bought the nice Integra that I test drove back in 1988.

[Egrunt]

With the current new car rates of 4.54% up to 36 months and 4.99% for 37 - 60 months (Navy Federal Credit Union), I will write a check for my wifes next vehicle. We keep vehicles for at least 10 years. Her current vehicle is a 2012 VW GTI Autobahn that she loves and we are now considering a new BMW X1 M35i. I have a 18 BMW M5 we purchsed new in 2018 and at the time BMW offered .9% for 60 months which I accepted and I still payed the vehicle off in 24 months.

[mktrn]

Leasing is well suited to folks who like to have a new car with the latest tech every few years, while always being under warranty. It’s definitely not for everyone, and is not considered financially wise by many, but what I’ve learned from a couple of leases now is that it suits me well.

That said, leasing can be financially terrible if you don’t get a good deal. The average deal you’ll get walking into a dealership will likely suck, unless you can negotiate at least 5% off the MSRP. Getting a discount is especially crucial to offset the currently high interest rates (in the USA). The X1 also doesn’t have the greatest lease terms right now, only $500 loyalty and $500 lease credit with a fairly high money factor (interest rate). The X3 tends to lease for around the same payment, due to better terms.

Leasehackr.com has some amazing resources and their calculator is really handy, for anyone wanting to learn more and determine whether they’re getting a good deal. They also have several lease brokers on their forum who can get you 8-10% off most vehicles, for a $500-600 broker fee.

Another plus that not all lessees are aware of, is that you may have $1,000s of equity value in your vehicle when turning it in at the end of the lease. You would have equity if your vehicle is worth more than its predetermined residual value on the used car market (say if your model is in demand and/or low mileage). That equity can be applied as a discount to a new vehicle, or paid out to you by check.