[flash3]

I am trying to decide what route to go and hoping to get input from all of you.

I was heavily leaning towards financing the car since I want to keep it long term and won't be putting tons of mileage on it (will have an add'l car for quick runs to the supermarket, drugstore etc) but of course with the financing comes a larger payment and longer term.

Where as a lease will give me a lower monthly pmt but I'll have to give up the car at the end of the lease term with what will more than likely be a BRAND NEW CAR.

So wouldn't it be wise to lease the car and then purchase it outright afterwards? Are there any benefits this way? Any input would be welcomed.

[drtdvl]

There are many different websites you can visit that will help you decide which is the best way to go.

I have owned and leased many cars and also have an X3 on order. Your suggestion to lease the car and then buy it out after is not a bad decision as it gives you a chance to check out the vehicle before plunking more money down for it. If it is problematic or you get into an accident, you just give it back at the end of the lease and you wash your hands of it. The downside - you end up paying a lot more for it.

For my X3, I have come to the decision that i will purchase the car for the following reasons:

1. I am tired of leasing my vehicles and not owning something at the end. With my past vehicles, I usually leased it for two years and then leased another new vehicle. I am planning to buy this X3 and drive it for at least five to six (maybe 7) years and then either sell it or trade it in for something else. The way I look at it, is that even after the warranty passes, the maintenance cost in years 5 and 6 have to be lower (i hope) than leasing another car.

2. The lease rate is high where I am - currently around 5.5 or 5.45%.

3. Maybe the most important point is that I can afford to buy the car right now which is helping me make the decision to buy and not lease.

Like I mentioned earlier, there is no right or wrong decision to lease. It all comes down to what you feel comfortable with and what your cash flow situation looks like and if there are any tax advantages you can use.

Lastly, the other thing you could consider is you could lease the car and then also determine what the comparable payment is for financing. If you're disciplined enough, you could put away the difference in a savings account each month and use that to help you with the lease buyout.

Hope this doesn't confuse you.

[Beyu]

Originally Posted by flash3

I am trying to decide what route to go and hoping to get input from all of you.

I was heavily leaning towards financing the car since I want to keep it long term and won't be putting tons of mileage on it (will have an add'l car for quick runs to the supermarket, drugstore etc) but of course with the financing comes a larger payment and longer term.

Either financing or leasing comes down to whatever financial situation the individual is in. If you like the vehicle, plan to keep it for a long time or have kids and generally know what the future holds then financing is the way to go. If not then you might fare better leasing as it won't lock you into the vehicle and isn't as large of financial commitment.

Where as a lease will give me a lower monthly pmt but I'll have to give up the car at the end of the lease term with what will more than likely be a BRAND NEW CAR.

I'm currently waiting for my X3 to arrive in early May and it'll be my first purchased vehicle. My two previous cars were both leased and are the only knowledge I have about cars since the E350 in my sig was my first car during high school.

Some past experiences that I have and things to consider while leasing are additional things to pay for other than the initial cost of financing or leasing. When leasing it's unlikely for someone to buy a new set of tires for their car, the continentals on both MBs were total crap. Not only did they ride harsh but were prone to damage, I had to replace the tires twice on the E350, once was out of pocket and the other covered under warranty due to it needing to be replaced within a six month period. During the two year lease for the C300 I've also replaced two tires and a rim due to it getting bent when one of the tires popped.

Another thing to consider is that you have to be extremely careful with a leased vehicle. The lease of my C300 was due on Feb. 13 and about two weeks before returning the vehicle someone in a parking lot had scraped and left a +12 inch long scratch on my rear passenger door and dented the rear fender. The cost of repair was $1500. Even when being careful you can't always trust others to do the same.

As you've mentioned at the end of the lease you'll have to give up the car and as a lease it's an awesome feeling to be able to drive a new car every two years or so.

So wouldn't it be wise to lease the car and then purchase it outright afterwards? Are there any benefits this way? Any input would be welcomed.

As drtdvl has mentioned leasing a car then buying it outright later is a pretty good idea as it lets you try out the car before making the commitment. But like he's said, it also equates to having to pay more for the vehicle than if you were to purchase it in the beginning.

Before I returned the C300 to the dealership I also contemplated buying it outright but decided not to. A few months prior to returning the vehicle the car had a coolant leak and the system had to be replaced, thankfully it was still under warranty. While I realize that any car can have a host of problems with it, buying a car then finding out it has a problem is easier to swallow then deciding to either purchase the leased car outright and hope that it won't have any more problem or to either lease another car for two years.

Hope this helps a little with your decision.

[flash3]

Originally Posted by drtdvl

1. I am tired of leasing my vehicles and not owning something at the end. With my past vehicles, I usually leased it for two years and then leased another new vehicle. I am planning to buy this X3 and drive it for at least five to six (maybe 7) years and then either sell it or trade it in for something else. The way I look at it, is that even after the warranty passes, the maintenance cost in years 5 and 6 have to be lower (i hope) than leasing another car.

That's my thinking too. I am planning to keep this long term along with my other sedan which is basically brand new (2007 Corolla <35k miles) and then use that car for everyday errands and then give it my little brother or sell it later down the line, with the x3 being my main vehicle. Then later I'll add the 5 series and use the x3 as my car for everyday errands when it's "old."

Thanks for the info!

[flash3]

Originally Posted by Beyu

Either financing or leasing comes down to whatever financial situation the individual is in. If you like the vehicle, plan to keep it for a long time or have kids and generally know what the future holds then financing is the way to go. If not then you might fare better leasing as it won't lock you into the vehicle and isn't as large of financial commitment.



I'm currently waiting for my X3 to arrive in early May and it'll be my first purchased vehicle. My two previous cars were both leased and are the only knowledge I have about cars since the E350 in my sig was my first car during high school.

Some past experiences that I have and things to consider while leasing are additional things to pay for other than the initial cost of financing or leasing. When leasing it's unlikely for someone to buy a new set of tires for their car, the continentals on both MBs were total crap. Not only did they ride harsh but were prone to damage, I had to replace the tires twice on the E350, once was out of pocket and the other covered under warranty due to it needing to be replaced within a six month period. During the two year lease for the C300 I've also replaced two tires and a rim due to it getting bent when one of the tires popped.

Another thing to consider is that you have to be extremely careful with a leased vehicle. The lease of my C300 was due on Feb. 13 and about two weeks before returning the vehicle someone in a parking lot had scraped and left a +12 inch long scratch on my rear passenger door and dented the rear fender. The cost of repair was $1500. Even when being careful you can't always trust others to do the same.

As you've mentioned at the end of the lease you'll have to give up the car and as a lease it's an awesome feeling to be able to drive a new car every two years or so.



As drtdvl has mentioned leasing a car then buying it outright later is a pretty good idea as it lets you try out the car before making the commitment. But like he's said, it also equates to having to pay more for the vehicle than if you were to purchase it in the beginning.

Before I returned the C300 to the dealership I also contemplated buying it outright but decided not to. A few months prior to returning the vehicle the car had a coolant leak and the system had to be replaced, thankfully it was still under warranty. While I realize that any car can have a host of problems with it, buying a car then finding out it has a problem is easier to swallow then deciding to either purchase the leased car outright and hope that it won't have any more problem or to either lease another car for two years.

Hope this helps a little with your decision.

First of all, thanks for the info and congrats to both of you on your x3s.

I have a few weeks before I even order my X3, as I am waiting to go home (to So Fla) and see what offers I get from there and then will bring it back up here to Charlotte and see if they can beat it.

I am leaning towards financing right now as I want to keep it as mentioned above and then eventually get a 5-series a few years down the road but one thing I read here or another thread was that you end up paying more for the car if you go the lease to buy option instead of the straight financing option.

How so?

[mtlcruisin]

Originally Posted by drtdvl

There are many different websites you can visit that will help you decide which is the best way to go.

I have owned and leased many cars and also have an X3 on order. Your suggestion to lease the car and then buy it out after is not a bad decision as it gives you a chance to check out the vehicle before plunking more money down for it. If it is problematic or you get into an accident, you just give it back at the end of the lease and you wash your hands of it. The downside - you end up paying a lot more for it.

For my X3, I have come to the decision that i will purchase the car for the following reasons:

1. I am tired of leasing my vehicles and not owning something at the end. With my past vehicles, I usually leased it for two years and then leased another new vehicle. I am planning to buy this X3 and drive it for at least five to six (maybe 7) years and then either sell it or trade it in for something else. The way I look at it, is that even after the warranty passes, the maintenance cost in years 5 and 6 have to be lower (i hope) than leasing another car.

2. The lease rate is high where I am - currently around 5.5 or 5.45%.

3. Maybe the most important point is that I can afford to buy the car right now which is helping me make the decision to buy and not lease.

Like I mentioned earlier, there is no right or wrong decision to lease. It all comes down to what you feel comfortable with and what your cash flow situation looks like and if there are any tax advantages you can use.

Lastly, the other thing you could consider is you could lease the car and then also determine what the comparable payment is for financing. If you're disciplined enough, you could put away the difference in a savings account each month and use that to help you with the lease buyout.

Hope this doesn't confuse you.

I plan on owning the car also approximately 5-6 years. Are you getting any extended warrantees? I think the salesman told me he would call me before I take ownership of the car to discuss those options but can you buy like a 2 year extended warrantee like just before the current one ends? I just don't want to be stuck without any coverage for the last 2 years or so if I plan on keeping it over 4 years.

[drtdvl]

Originally Posted by mtlbrad

I plan on owning the car also approximately 5-6 years. Are you getting any extended warrantees? I think the salesman told me he would call me before I take ownership of the car to discuss those options but can you buy like a 2 year extended warrantee like just before the current one ends? I just don't want to be stuck without any coverage for the last 2 years or so if I plan on keeping it over 4 years.

I don't know about the extended warranty as i don't have enough information about it. Many people tell me to get it because it is a BMW but I want to check if you can purchase it prior to the four year warranty expiring or if you can buy it within one year of taking possession.

Do you know what the price is for the extended warranty in Canada? Also, some of the posts in other threads indicate the BMW warranty is price negotiable and you can also buy it at other BMW dealers.

[flash3]

Originally Posted by drtdvl

I don't know about the extended warranty as i don't have enough information about it. Many people tell me to get it because it is a BMW but I want to check if you can purchase it prior to the four year warranty expiring or if you can buy it within one year of taking possession.

Do you know what the price is for the extended warranty in Canada? Also, some of the posts in other threads indicate the BMW warranty is price negotiable and you can also buy it at other BMW dealers.

This is something I am debating as well since I'm looking to purchase the car for long term keeping. But I was told that you can get it later but it might be more expensive as opposed to getting it up front, but I don't want to purchase a warranty (for 2 more years) at year 1, maybe later on.

So if you get more details, please let us all know.

[Hawkshaw]

I leased my first car, financed my last two (the last one being an E90 330i) but am leasing the X3. Just looking for something while the kids are still young and want to hand back the keys in 3-4 years, no questions asked.

It is, however, a highly personal decision with a lot of factors to consider. Best of luck.

[flash3]

Thanks for all the input but I have decided that I will finance the car and keep it outright there after. Gonna be placing my order mid-April. I still need to decide on a few options. lol