Lease or Buy?
02-27-2003, 06:33 PM
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Porsche 997 C2S
Lease or Buy?
What sort of things do you consider when you make the choice between leasing or buying? Any suggestions particular to the E55 that I should know about? Thanks as always, folks.
02-27-2003, 11:30 PM
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2001 E55 & 1988 BMW M6
In making my decision, I've considered the following:
1. Liquidity: Rather than all cash, I'd like to maintain a bit of liquidity over the next 12 months, so I've decided to finance my purchase - the next question, then, lease v. bank debt.
2. Bank debt is currently expensive for used cars, much higher than current lease rates which are about 5%... If you're buying a new w211, new car bank debt (or dealer/mfgr finance) may be more competitive versus leasing and worth taking a second look. Plus with leasing I don't have to completely amortize the entire cost of the car over the term of the lease (3 or 4 years), just the difference between the price and the residual (ie. monthly payments are considerable lower by leasing).
3. Ownership objective: I'm not certain if I'm going to want to keep the w210 "forever" or if I'd like to trade into the w211 in 3 or 4 years... therefore, I have decided leasing is a better option, as I won't have to hassle with selling/trading in...
Check out leasecompare.com website to get an idea of lease rates for the e55 you're considering.
Hope this helps.
1. Liquidity: Rather than all cash, I'd like to maintain a bit of liquidity over the next 12 months, so I've decided to finance my purchase - the next question, then, lease v. bank debt.
2. Bank debt is currently expensive for used cars, much higher than current lease rates which are about 5%... If you're buying a new w211, new car bank debt (or dealer/mfgr finance) may be more competitive versus leasing and worth taking a second look. Plus with leasing I don't have to completely amortize the entire cost of the car over the term of the lease (3 or 4 years), just the difference between the price and the residual (ie. monthly payments are considerable lower by leasing).
3. Ownership objective: I'm not certain if I'm going to want to keep the w210 "forever" or if I'd like to trade into the w211 in 3 or 4 years... therefore, I have decided leasing is a better option, as I won't have to hassle with selling/trading in...
Check out leasecompare.com website to get an idea of lease rates for the e55 you're considering.
Hope this helps.
