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Old 01-08-2016, 02:18 PM
 
197 posts, read 160,823 times
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I have my lustful eyes on a new BMW 3 series. Mine is 4 years old and out of warranty. To lease or not?

In general terms does leasing make sense in retirement?
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Old 01-08-2016, 02:21 PM
 
Location: Sugarmill Woods , FL
6,235 posts, read 5,892,396 times
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Depends on costs of lease as well as the terms of the lease. Need to compare purchase price as well as expected resale value at the same time frame as the lease is using.
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Old 01-08-2016, 02:38 PM
 
Location: Wasilla, AK
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I have never leased because I tend to keep my vehicles for as long as is practical. Last year I sold a pickup that I'd owned for over 14 years. 12 of those years I had no payment. Most retirees do tend to keep their vehicles for a long time, so purchasing makes more sense. A couple of things about leasing. The first few years are where the greatest amount of depreciation occurs. The other thing is miles. Drive too many and you will have to pay an excess mileage fee. Drive less than the allotted miles and you're paying for miles you didn't use.
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Old 01-08-2016, 08:06 PM
 
Location: Florida
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Keep the car for at least 10 years.
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Old 01-08-2016, 08:22 PM
 
Location: Sierra Nevada Land, CA
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Four year old car. Want to get rid of it? Just follow your lust. And no, leasing a car is not financial smart long term. You make payments for three years and at the end you have nothing. As a retiree you should engage in
long term thinking. My Forester is 3.5 years old. It will be paid for in August. I will then have a $15,000 asset. And it will serve me well for another six years.

Follow your lust, but don't ask if it is a smart financial choice.
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Old 01-09-2016, 10:14 AM
 
Location: Albuquerque NM
1,656 posts, read 1,521,066 times
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Unless you or a family member works on cars, it is generally not advisable to keep a BMW much beyond the warranty period. I've read this on several forums. Even using an independent mechanic rather than the dealer, I'm spending about $2K a year on repairs for my 2007 3 series BMW and most repairs have been relatively minor. This year it cost $3K to include new tires. As I had car trouble on my recent 600 mile trip and am concerned about more costly significant repairs in the future, I'm starting to look for a new car.

I live in a state with about a 7% sales tax and will move in 2-3 years to a state with no sales tax. So I'm toying with the idea of leasing another BMW or similar city/highway car for 3 years and then buying a new car when I relocate that is more suitable for rougher terrain and a cold climate and snow (AWD).
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Old 01-09-2016, 12:52 PM
 
Location: NC Piedmont
3,911 posts, read 2,875,565 times
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We did a lease one car back. It had a payoff clause that made it make some sense as being a delayed buy that would cost about the same as an outright purchase that was financed but with an opportunity to walk away if we were unhappy with it or were no longer in a position to buy a car that expensive. 2 years into the 3 year lease, the dealer wanted it for CPO stock and made us a good deal on buying a newer model outright with the first one as a trade in. About the best you can do with a lease is come out about even IMO.
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Old 01-09-2016, 02:38 PM
 
Location: Wasilla, AK
7,227 posts, read 4,119,698 times
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Quote:
Originally Posted by ABQ2015 View Post
Unless you or a family member works on cars, it is generally not advisable to keep a BMW much beyond the warranty period. I've read this on several forums. Even using an independent mechanic rather than the dealer, I'm spending about $2K a year on repairs for my 2007 3 series BMW and most repairs have been relatively minor. This year it cost $3K to include new tires. As I had car trouble on my recent 600 mile trip and am concerned about more costly significant repairs in the future, I'm starting to look for a new car.

I live in a state with about a 7% sales tax and will move in 2-3 years to a state with no sales tax. So I'm toying with the idea of leasing another BMW or similar city/highway car for 3 years and then buying a new car when I relocate that is more suitable for rougher terrain and a cold climate and snow (AWD).

This why I buy Kia and Hyundai. My first Kia was seven years old when the timing belt failed and destroyed the engine. A new engine was installed under warranty with no money out of my pocket. Now Kia and Hyundai use timing chains, so I'm not expecting any more catastrophic engine damage. Other than that, all I do is oil changes and air and cabin filter changes, and I do all that myself. We drove our Kia Sportage from Alaska to Arizona and back without a lick of trouble. My Hyundai Sonata is loaded with technology and features you'd spend $20,000 to $30,000 more to get in a BMW. And it's so smooth and quiet at 80 mph you don't even need to turn up the radio. But pretty much everyone I know that has a European car spends lots of money on it after the warranty expires.
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Old 01-09-2016, 03:10 PM
 
Location: Out there somewhere...a traveling man.
39,522 posts, read 47,675,353 times
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Lease or buy, answers here...Leasing vs Buying a Car - Consumer Reports
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Old 01-09-2016, 03:16 PM
 
13,872 posts, read 7,381,208 times
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Quote:
Originally Posted by AlaskaErik View Post
This why I buy Kia and Hyundai. My first Kia was seven years old when the timing belt failed and destroyed the engine. A new engine was installed under warranty with no money out of my pocket. Now Kia and Hyundai use timing chains, so I'm not expecting any more catastrophic engine damage. Other than that, all I do is oil changes and air and cabin filter changes, and I do all that myself. We drove our Kia Sportage from Alaska to Arizona and back without a lick of trouble. My Hyundai Sonata is loaded with technology and features you'd spend $20,000 to $30,000 more to get in a BMW. And it's so smooth and quiet at 80 mph you don't even need to turn up the radio. But pretty much everyone I know that has a European car spends lots of money on it after the warranty expires.
I just buy the 7/100k OEM extended warranty so I don't have to drive a Kia or Hyundai.
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