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      10-11-2012, 03:07 AM   #13
wcinvest
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Drives: BMW X1 (awaiting delivery)
Join Date: Sep 2012
Location: San Francisco Bay area

Posts: 26
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Quote:
Originally Posted by Humble_Bear View Post
1) Yes, you still pay sales tax on lease payments
2) Lease is very tricky, they don't tell you the variables unlike financed purchases, they tell you the interest rate. It's very hard to know whether you are getting a good lease vs finance.
3) If you can afford it, buy it and enjoy it; life is too short and if money can buy you happiness, do it.
1) But those taxes are rather low compared to buying the car in most states since you only pay the taxes on the drop in residual value and not the full purchase price. For example in California, I would have to pay around $2700 in taxes excluding title if I bought the car over the next 3 years but with a lease, I will be paying around $1125 in taxes and the $725 bank fee.
2) On leases, via the internet you can find out all of the information that you need to know to analyze the lease such as US msrp, residual value and money factor but you have to educate yourself and learn about leasing.
3)In my situation, leasing 2 different BMWs for 3 years each will be roughly the same amount of money spent then buying one BMW for 6 years since I am a new BMW customer and in the second lease or first purchase, I will be able to have additional rebates. And perhaps get rid of the expensive Navigation if iDrive comes standard in a BMW that I want next.

I personally think the significant financial payoff for owning is in years 7-9+ if you are frugal and know what repairs/maintenance are necessary and which ones are not. And you are willing to "roll the dice" and get rid of collision/comprehensive insurance on your car when it drops below around $15,000 in value.

If you are that type of person and willing to keep the car let's say 9 years, I suspect at least 85% of the time you will come out ahead financially by perhaps around $5000-$7,000 vs someone that leased around 3 lightly optioned X1's or comparable cars during that same 9 year time period.

Going by rough estimates and todays dollars, if I lease 3 different lightly optioned BMW X1's or similar entry level BMW's via European delivery over the next 9 years and drive the cars and average of 10k per year, I would expect to pay around $36,000. And probably not even have to ever worry about any maintenance, repair or even tire replacement.

Driving 15k per year, would probably push that cost up to around 42k in todays dollars. And in driving 15k per year, one would probably have to worry about tire replacement 3 times pushing up the cost to around 44.5k

On the purchase scenario, you are obviously having to pay for repairs/maintenance after year 4.
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