leases, priorities, budgets (more) (archive)

Leasing may be the way to go. These days, with all but the most expensive cars, if you have a "real" job (not flipping burgers), and it's a priority for you, mmany people can find a way to lease most cars that are out there. Dealers push leases because they know that low payments = done deals. Remember, dealers don't exist to screw customers, dealers exist to sell cars and to promost the in-house finance company. If you remember that, you will always know exactly where a dealer is coming from.

If YOUR goal is to find the best way to get into a car, then the dealer can be your friend. As long as you remember that getting into a car does NOT have to include all sorts of silly dealer-installed sealers and undercoats, and you don't have to buy your insurance or anything else from the dealer's financial officer unless YOU want to (you can usually get better rates elsewhere).

With everything being equal (purchase price, down payment, number of payments to be made, etc.), you will almost always have a lower monthly payment with a lease. Setting aside monthly payments for a moment, generally the total cost of getting a car, including interest, depreciation, mileage and maintenance obligations, opportunity cost from tying up cash in a car rather than in the stock market, etc etc etc, goes like this:

(1) Cheapest is to buy for cash
(2) next cheapest is to lease
(3) most expensive is to finance with a loan

But there are variables involved, both in driver attitude, and in financial situations. Do you like to buy a car and baby it while it grows up to become a classic, or do you like new wheels every 3 years? Do you have access to specatular investment opportunities where your cash would serve you better than sinking it all into paying for a car upfront? Do you put very high mileage on your cars or otherwise use them hard, which can cost you a fortune under a lease?

It's really just a matter of personal priorities. I happen to be a *little* bit further along in my life and career than you are, but I only got my first modest little bimmer (323i, relatively stripped, link below) 4 days ago. But I have a wife, 2 kids, mortgage, law school loans, private school tuition for 2, property taxes, etc etc etc. If I were in the same career/income situation I'm in now, but single and no kids, I'd have been bimmerfied long ago.

But there are lots and lots of great cars out there that cost less than BMWs and still offer great performance. Heck, a Mustang GT will destroy any E46 off the line (wait for the M, though!). Heck, people have heard me crow about how great the lowly Ford Contour actually is. With the V6 engine and some interior options, it's a really, really great driving car. No kidding. Try one. Even a Honda Accord V6 is a great, comfortable, fast (and, IMHO, in the right color, rather attractive) cruiser.

Good luck.

: I having been eyeing the 323i for over a year now. I am in my late twenties and honestly can't afford the car yet at this point in my life. Is their anyone out their who has purchased or leased this car with an income of less than 50k per year? I was just wondering if its common for someone of this salary to stretch and get this car or if the BMW dealer is going to look at me like I'm nuts. (Obviously he will take my money!) Anyone out their honest enough to admit to doing this? What do you guys think?

Follow Ups:

sorry, here's the link (I'm a showoff.) (inside) fuselier 08:44 6/05/2000 (0)

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