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Good lease on BMW Loaner


So after listening to your advice (thank thank you by the way), I am actually looking into leasing a new BMW wagon. My local dealership has actually a demo loaner with 4000 miles on it that they would least to me for $480 a month with $3000 down for 12k miles a year and I would still have the maintanence and warranty intact to last me the term of the lease. Good deal or no?

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Only you can decide that. Frankly if I lease the monthly expense will be as low as I can find. $480.00 a month just to drive anything makes no sense to me.
If driving a BMW wagon is important to you then who else can have an opinion that matters.

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All leases are bad deals. By the end of 2 years you will have spent almost $15,000 just to rent the car. You’ll also be responsible for paying to maintain it. And if you go over the (intentionally low) allowed miles, you get to pay a per-mile upcharge for driving your car. And then they will take the car away from you and you are car-less with nothing to soften the blow of the next purchase.

At least when you buy a car you can exchange it for money when you’re done using it.

The only time leasing makes sense is when you are wealthy enough that you don’t care about 0 equity after a 2 year investment, and you want a new car every two years.


True, but if i decide to buy the wagon…my monthly payment would be $250 more each month. Therefore, $700ish a month for a car that will loss it value after a few years and then out of warranty and maintenance for year number 4 and 5, which could be costly as well. If it was any other car, I would buy as rather buy a car at $30k, but besides Subaru there are not many AWD wagon out there. Plus have an itch for a BMW wagon that i would like to scratch once in my life…

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To be clear, you asked if the lease was a good deal. It’s not. To use your numbers, at $250 more per month you’d end up paying $6,000 more over 2 years to own the car. When you sell it, think you can get more than 6 grand for a <5 year old BMW? The odds are overwhelmingly in favor of that outcome. And after 4 years when the loan is expire

All that aside, BMWs are not good deals no matter how you obtain one. Neither are Mercedes. Neither are private jets. All of those things are for people who can afford to make bad deals without significant impact to their finances. If you fall in that category, there’s nothing wrong with splurging on a bad deal, but the quintessential definition of “luxury” is “because you’re wealthy enough, you’re paying more than you need to to accomplish the task this thing is meant to accomplish.”

So, that would be 3 years/36,000 miles?

12,000 miles per year works only if you don’t drive much. That is 33 miles per day, or 48 miles per day if you only commute with it and take two weeks off where you don’t drive it.

You didn’t tell us what year the car is or how long the lease would be. Also, it seems to me that you are marking time during the lease before you buy the same car, if that is what you want to do. You end up paying more for the car if you lease now and buy later than if you buy it now.

It’s your money and you should spend it as you wish. You earned it. This deal wouldn’t work for me, and I can afford it. I probably have different priorities than you do, and that’s OK. As long as you know what you are getting into, you can do what you want.

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It doesn’t seem like a good deal to me. After paying $20,280 for a used car (assuming it’s a three-year lease), I’d expect to own it.

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Appreciate all the advice. I was actually looking into a used BMW wagon (2012 to 20140 for about $18,000 to $28,000 and under 50k miles, but people told me to worry about being out of warranty and the maintenance will be a concern. Therefore, that is why I was looking at leasing a BMW wagon loaner since i can save more cost than leasing brand new.

For example, a 2014 BMW wagon for $25k and 20k miles on it. Which i can buy for $525 a month for 60 months. However, would only have 1 year of warranty left on it. Or a 2017 loaner that has 4k miles on it, lease for $480 a month and never have to worry about maintenance or warranty…

Not sure what to do…

Are you wealthy enough that being out 20 grand with no car at the end of your lease will not hurt you? Then do whatever you want.

Do you have to watch your finances a little more closely? Then get something else.

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If that’s the case then buy a more reliable vehicle.

Edmunds estimates $9900 for maintenance and $9500 for repairs during the first 5 years of ownership for a 328i xDrive wagon. Maintenance is paid for in the first year in the estimate. Can you afford it? We looked at another BMW wagon for someone else recently. It was a couple years older and maintenance was a couple grand more for the first 5 years. These costs assume you use the dealer for all work.

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I just looked at the BMW web site and it seems that there are better leases for the 3 series wagon than $480.00 a month.
And why is someone concerned about cost even looking at this type of vehicle?

A lease payment is close to actual depreciation of vehicle. Car X is 20k new. Lease is 7k for 3yrs. Residual to buy is 13k. You rent the car. And have warranty. Can you buy the same car for 13k after 3yrs? You can probably find one with same miles for +- 1k. You do get to drive a new car for 3yrs. Is that something you value?

I had the itch to get one to. The 2011 328 I leased I went over the miles when my job changed cost me a fortune. Ended up getting a 2014 328 and it was the absolute worst car I ever owned. Run flat tires and a car that handles poorly and weak ac

I think BMW was good a while back. Never again there are so many other better choices. We have a new Subaru Outback with a six cylinder so much better.

For that money you could OWN a car. Granted, perhaps not one that your neighbors and coworkers will drool over, but my guess is that your neighbors and coworkers don’t care as much as you think they do.

Is it a good deal? Sure, if you have the money to “make it rain” at the dealership. If you’re on a budget it’s a downright scary decision. The choice is yours. But there’s no way on this earth that I’d pay $3,000 down and $480/month for a vehicle I’ll never even own. A lease is basically a rental with more restrictions.

Add me to the thundering chorus of NO. 1,000 miles per month which is only approximately 33 miles per week is a ridiculous miles limit for how much you have to pay. Add in the less than stellar reliability…forget about it. This is a money pit waiting for the next sucker to fall into it

Um, 1000 miles per month is 33 miles per day, or about 250 per week. As I said above, that isn’t generous, and the car probably wouldn’t work as a commuter unless work was very close.

It looks like that car lists for 40k, if you can keep the mileage down, maintain warranty, and don’t forget to calculate down payment into monthly cost, and you can live with it go for it, There are too many what ifs to make buying rather than leasing unattractive. If you love it and you can be comfortable go with it, life is too short to worry about a couple of grand one way or the other.

Most of the 2017’s that i’ve found around here sticker for $50,000-$60,000 depending on options. Before you start negotiating. At least at BMW Seattle.