Why do BMWs seem to be so popular for leasing? What makes leasing a BMW more attractive than buying one outright?
BMWs are popular for leasing because you get to drive a new, luxury car with lower monthly payments compared to buying outright. Plus, you don’t have to worry about the long-term maintenance or resale value. Leasing lets you enjoy the latest model every few years without the big upfront cost. It’s a great way to drive a high-end car without the commitment of ownership. I’ve leased a BMW myself and loved it
Leasing isn’t always a bad option, despite common beliefs. I spent my career negotiating contracts and performing financial analysis. I chose to lease my first vehicle due to the incredible lease rates they offered, which were much lower than loan financing rates. Not sure if I’d like my first SUV, I did the math and found that putting my down payment money in the bank earned more interest, and I came out ahead by leasing.
However, leasing isn’t for everyone. I was willing to pay a small premium to get a new car every three years. For over twenty years, I never had a car out of warranty, and I never had to buy tires, paying only for basic maintenance.
My advice is not to lease unless the benefits match your situation, and you are committed to thoroughly understanding how leases work—terms like cap cost, money factor, and residual value. I built spreadsheets to verify dealers’ offers and develop my own. Surprisingly, I found that the dealers’ figures didn’t add up twice.
Negotiating and digging into the details isn’t for everyone. If you are looking for the simplest process, the initial lease offer from a dealer probably won’t be the best deal you can get.