When it comes to leasing vs. buying a BMW, there are many factors to consider. Both options have their own set of pros and cons, and it can be difficult to decide which is the right choice for you.
In this blog post, we break down both leasing and financing so that you can make an informed decision about which option is best for you.
WHAT IS LEASING?
When you lease a car, you are essentially renting it from the dealership for a set period of time (usually two to four years). You will make monthly payments, but at the end of the lease, you will not own the car.
PROS OF LEASING A BMW
Leasing a BMW is a good option if you want a lower monthly payment. This is because you are paying only for the depreciation of the car during your lease, not the full purchase price.
Another advantage to leasing is that you will have a shorter-term commitment than if you were to finance a BMW.
At the end of your lease, you also have the option to purchase the BMW or lease a new one.
Leasing a BMW is usually recommended for people who drive less than 15,000 miles per year or want to change cars every few years.
CONS OF LEASING A BMW
One of the disadvantages of leasing is that you will have to pay for any damage to the car that exceeds normal wear and tear.
You will also be charged a mileage penalty if you go over the allotted miles for your lease agreement. The highest lease available from BMW is for 15,000 miles, which means you’ll likely be outside of the cutoff for free maintenance, thereby potentially increasing the wear and tear amount.
Another downside to leasing is that you never actually own the car — so you will always have a car payment.
However, at the end of your lease term, you do have the option to purchase the vehicle if you wish.
WHAT IS FINANCING/BUYING?
Financing a car means that you will take out a loan from a bank or the dealership in order to purchase your BMW. Once the loan is paid off, the car is yours.
You can also buy your BMW outright with cash if this is within your budget.
PROS OF BUYING/FINANCING A BMW
If you decide to finance your BMW, you will have to make monthly payments on your car. This will help you build equity in the car as you make payments. Once your loan is paid off, you won’t have any more monthly payments and can use that extra money for other things.
If you decide to sell your BMW later on, it will be much easier to do so because there are only two parties involved — you and the buyer. You also have the potential to make more money from selling a car that you own outright as opposed to a leased car.
CONS OF BUYING/FINANCING A BMW
The biggest downside of financing or buying a BMW is the initial cost. If you don’t have enough cash saved up, you may have to finance the entire cost of the car, which can be quite expensive.
Another downside to buying or financing a BMW is that you are responsible for all repairs and maintenance costs. This can be a real burden if your car needs a lot of work or if you start having mechanical problems.
The final downside to buying or financing a BMW is that it depreciates in value over time. This means that if you decide to sell it, you will likely get less money than you paid for it originally.
LEASING VS. BUYING A BMW: WHAT SHOULD YOU CHOOSE?
Ultimately, the decision of whether to lease or buy a BMW depends on your personal circumstances. If you have the cash to pay for the car outright, then buying may be the better option. However, if you don’t have the cash and you don’t mind making monthly payments, leasing may be the better option for you.
Whichever way you decide to go, make sure you do your research so that you can make the best decision for your needs.