Thread: X6M pricing
View Single Post
      10-17-2012, 09:00 PM   #13
ndabunka
Private First Class
3
Rep
118
Posts

Drives: 2012 X5 35d Sport Black/Black
Join Date: Dec 2009
Location: Charlotte, NC

iTrader: (0)

Quote:
Originally Posted by jspdr View Post
It is almost always leasing is going to cost more than conventional financing. thats why dealers and salesperson pushing for lease rather than purchase.
I think the MAIN reason people lease is because it LOOKS like it cost them less as EVERY lease has a lower monthly payment than it's equivalent purchase option. Many are driving cars that they simply could not afford to make purchase payments on but they feel they can make the $150/month lower priced lease. These are the same people that never bother to dig into the ACTUAL long term costs because they say that it "doesn't matter"...to them. The fact that they could have equity in their lease after the original term is often a foreign concept.

It's good to see that some here recognize that a lease could also "save them" from owning a quickly depreciating asset but those types of valuations usually only come into play on the much longer term loans (72-84 months). If someone is buying a car and paying for it over 48 months, they aren't going to be in the negative equity position that was outlined in the post above this one. Rather, someone who puts 15% down on a purchase is (almost) always going to have some equity in their vehicle....even an M-series

It IS true that dealerships and finance teams use these perceptions to prey on their customer's emotions (rather than logic & math). Also, interest rates are more visible and easier to calculate than lease money factors
Appreciate 0