I always pay cash for my cars. Let me do the exercise and see:
1) I ordered a X1 with only paddle shifters and dealer promised to give me $1000 discount, so the cost before tax would be $30665 + tax & license (8.75% + 2%?) = $32,965 OTD. I hate California's high tax!
I plan to pay cash and sell my beloved 11 Sorento V6 which I paid $23,500($3300 below MSRP) + tax = $25263 and should be able to sell privately for $20K (only 20K miles). $5263 is the cost in 21 months = $250/month less 30% tax deductions = $175/mo for driving the Sorento V6.
2) That means I will fork out $13K for the 2013 X1 and get drive for 3.5 years of free maintenance & full warranty. After 3.5 yearsw, my 2013 X1 might be worth $20K (@ 39K miles still under warranty). My expenses over the 42 months: ($32,965 - $20,000) divide by 42 months = $309/mo -30% tax break = $216/month.
3) In 2016 assume I then get a newly designed X1 for probably $35K + tax & lic = $37,625.
The difference between the new/old X1's would be $17,625. I drive another 3.5 years and sell it for $23K. The cost for driving the 2016 X1 would be ($37,625 - $23K) divide by 42 months = $348/mo - 30% tax break = $244/mo
*I keep the cars <3.5 years so all maintenance & warranty are covered.
*I am a real estate investor and agent so I get to deduct a good portion of the auto expenses against my income.
*I keep all of my cars in the garage and in pristine shape.