Buying vs. Leasing a BMW Car / SUV
One of the more important, and difficult, decisions Pittsburgh drivers need to make while shopping for a BMW is choosing whether to buy or lease. Each alternative has its advantages, but to take full advantage of them, it’s crucial that you make an honest assessment of things like your desired monthly payments, the impact of your trade-in, and even the nature of your daily commute. To assist you in your decision, BMW of Sewickley has created this list of the benefits of both buying and leasing your next BMW. We look forward to assisting you and answering any further questions you may have!
Benefits of Buying/Financing a BMW
Ownership Equity
Financing your BMW offers tremendous back-end flexibility, after building up equity in your vehicle over the course of the loan. Once you’ve paid it off, it’s 100 percent yours. Since it’s a BMW, it will continue to perform for years to come without the hassle of a car payment. Or, if you prefer, you can leverage its trade-in value towards another new vehicle. The choice is yours.
Freedom
Leases include restrictions related to mileage and after-market modifications, but when you purchase your BMW, you won’t have to worry about either of those things, as you’re the vehicle’s owner. Drive as much as you want without worrying about overage fees, and add on whichever parts and accessories you wish.
Affordable Payments
Though leasing is often the choice for those seeking the lowest possible monthly payment, financing can offer more flexibility in that regard. Loans can be tailored with various term lengths, including as short as 24 months, or as long as 84 months, allowing you to arrive at a manageable monthly payment figure. BMW of Sewickley’s finance team can walk you through the various options and help you decide.
Low Interest Rates
Savvy BMW shoppers with qualifying credit are often able to take advantage of promotional new vehicle financing rates on certain models. This can minimize one of the drawbacks of purchasing a new BMW: paying interest on the loan.
Benefits of Leasing a BMW
Lower Monthly Payments
Generally speaking, BMW lessees enjoy substantially lower monthly payments than purchasers, perhaps the most significant benefit of leasing. This is because you’re essentially only paying for your share of the vehicle’s depreciation over time, while driving it for a specific period and within a fixed mileage amount, and not for its full purchase price.
Minimal Maintenance Expenses
During the term of the lease period, your vehicle’s maintenance and repairs will typically be covered by its factory warranty, meaning that they’ll involve little or no cost to you. In tandem with lowered monthly payments, leasing can prove a financially-wise decision.
Flexibility
Leasing offers the ability to choose a different BMW model at the end of your lease period. Whatever your specific needs, that keeps you from being stuck in a vehicle you’ve outgrown. Lessees enjoy always driving a vehicle with the latest technology and features, and they’re also able to do things like change that 3-Series to an X5, should their family require more space.
No Effect on Trade
Once your BMW lease is up, you simply return the vehicle and begin all over again. There’s no need to worry about its value or ability to help you pay for your next one.
The Decision is Yours
Ultimately, there’s no universally right or wrong answer to the question of financing versus leasing a BMW, it depends entirely on the driver — you — and their goals. At BMW of Sewickley, our team of finance experts is standing by to help car shoppers in the Pittsburgh area figure out which route is best for their respective situations, and our close relationships with specialized lenders allow us to always tailor the perfect loan or lease agreement. We look forward to seeing you!
Buying or Leasing a BMW — Frequently Asked Questions
If you have a long daily commute, is it better to buy or lease?
It is important to remember that lease contracts, in most cases, have a specified mileage limit. This limit can be increased or decreased to meet your driving needs and avoid overages. However, if you’re a high-mileage driver, it will often make more sense to purchase the vehicle.
How old do you have to be to lease a car?
In order to lease a car, you have to be at least 18 years of age.
Am I able to buy my leased vehicle at the end of my contract?
Any relationship between driver and vehicle tends to form a strong bond, so it’s only natural that you’ll end up loving your BMW and not want to give it up at the end of the lease period. Good news! Your contract will contain a purchase price, and you’ll have the option to take full ownership once your contract is up. BMW of Sewickley can help you transition to a financing deal when the time comes.
Access to the most current technology and features is quite important to me. Would it be better to buy or lease my next vehicle?
One of the most notable benefits of leasing is that you’ll always have one of the newest cars on the road, with the best of what BMW has to offer. Every two or three years (in most cases), you’ll return your old lease and select a new BMW to enjoy.
Can I modify a leased vehicle?
With a leased vehicle, there are restrictions against many types of modifications. It’s important that you carefully check your lease agreement before deciding to make any sort of alteration to your BMW.
When is the best time to lease a vehicle?
Oftentimes, immediately after a model year is introduced can be a great time to lease a vehicle, since its residual value will be at its highest, possibly allowing you to save on depreciation costs. Additionally, a member of the BMW of Sewickley team can help review the current incentives and specials, which can also dictate the optimal timing.
If you have saved enough money for a large down payment, should you buy or lease?
Obviously, paying more on your loan up front will reduce both your principal and interest costs, and can often result in a monthly payment that’s comparable to that of a lease. In that case, it’s often more advantageous to purchase your new BMW.