Lease or Buy a BMW? 5 Things to Consider

Jul 24, 2021

When you decide to buy a new BMW, you can look forward to the pleasure of driving a prestige vehicle. But, unless you’re in the fortunate position to pay cash, you will need to arrange a loan to buy the car. Alternatively, you could choose to lease the vehicle. There are pros and cons to both buying and leasing, but here are five things to consider when making your decision.

1. The Difference Between Buying and Leasing

When you get a loan to finance the purchase of your new car, you agree to make monthly payments for the period of the loan. At the end of the loan term, you own the car outright, so you can choose to keep it, sell it, or trade it for a new car.

Leasing a vehicle is basically like renting it for a fixed period. You agree to a two- or three-year lease deal at fixed monthly payments. When the lease ends, you can hand the car back and walk away or, if you decide to keep it, you can pay the market value for it. Your other option is to lease another new car.

2. How Many Miles You Drive

A lease deal will restrict the annual mileage you can put on the car. It typically will be capped at 10,000 to 15,000 miles a year. Additional mileage can be charged at up to 50 cents per mile, which can add up. If you want to be free to drive as often and as far as you like, buying your BMW is the best option.

3. Repair Costs

Whether you buy or lease your car, you’re responsible for regular maintenance and upkeep. But, with a leased car, you drive it during its most trouble-free years, and it usually will be covered under the manufacturer’s warranty for the duration of the lease. That means no large unexpected repair bills if anything goes wrong.

However, if you don’t keep the vehicle in good condition, you’ll face excess wear-and-tear charges when you return it. When you buy a car, you’ll have to cover the repairs once your warranty has expired. On the other hand, if you want to personalize your vehicle or add aftermarket parts, you’re free to do so with your own car.

4. Early Termination

Life happens, and a sudden change in circumstances might mean you can’t afford your monthly payments. When you buy a car, you can sell it and pay off the loan. Canceling a lease agreement can result in early termination penalties and fees, which could be thousands of dollars.

5. Always Drive a New Car

One of the main benefits of leasing your BMW is that you always get to drive a new car with the latest technology and safety features. A leased vehicle usually has lower monthly payments, so you might be able to afford a higher spec model than if you’re buying. Choosing whether buying or leasing your new BMW is right for you is an important decision. The finance experts at Valley Auto World BMW can help you make the right choice to get behind the wheel of your dream car.

Image courtesy of bmwusa.com