Quote:
Originally Posted by Silber
Couple things about leasing.
First off, it's generally a best practice not put any money down as a cap cost reduction as a lease, that way you protect yourself in the event that the car is totaled.
Second, a lease absolutely carries interest, on the depreciation (and fees/taxes, if you roll those in) that you're paying over the lease term. Right now the base money factor is 0.00082, which is the equivalent of an ~1.96% APR. You can drop this down to ~1.12% by applying Multiple Security Deposits.
Finally, I personally would not lease this early as the residuals are pretty awful right now. I suppose that doesn't matter if you are going to buy the car out at the end of the deal, so that's probably a non-issue for you.
As for BMW Select, if you're planning to keep the car for the long term, this may end up being a wash vs. a lease if you're planning to buy it out at the end of the lease or refinance the baloon payment when that's due.
For what it's worth, I'd consider a long-term loan at some of the stupid-low APRs available right now if you plan on keeping it for a while.
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Agreed with all of the above. In addition, having only 10K miles/year on a DD (and a great car to drive as well) would not be ideal. I wouldn't want to be looking at my odometer every time I went out. That being said, if you have a history of under 10K miles/year, it's a moot point.