[siriusinvestor]

The other day I was chatting with an acquaintance of mine. And we got to the discussion of cars. He starts talking about how his dad bought a new C7 Corvette. So I guess it was appropriate to ask, if he leased or bought it. He then stated it was leased. So my question is, why do people state that they bought the car, even though they leased it? I mean if you lease you technically didn't BUY the vehicle; it's like your renting the vehicle, just like you would rent an apartment or other forms or residence. I guess you could argue Leasing is a form of deception because you appear like you are driving a car that is high status but you are renting it. Leasing is another form of income for the car companies and banks, but if leasing was done away with, you could argue BMWs or Mercedes Benz would definitely be more exclusive on the roads, no?

[daveyg]

[esbezee92]

leasing just makes a lot more sense for a lot of people, with incentives its often cheaper to lease than buy, and then buy afterwards, on the other hand many people lease so they can get a new car every 2 or 3 years with out taking a huge hit, and maybe since this makes it cheaper this is what you mean by loosing exclusivity, but i think it would be stupid to pay more for something just to make it more exclusive in some way

[siriusinvestor]

Originally Posted by esbezee92

leasing just makes a lot more sense for a lot of people, with incentives its often cheaper to lease than buy, and then buy afterwards, on the other hand many people lease so they can get a new car every 2 or 3 years with out taking a huge hit, and maybe since this makes it cheaper this is what you mean by loosing exclusivity, but i think it would be stupid to pay more for something just to make it more exclusive in some way

I am not advocating for companies to carry out the doing away with leasing, since it is a cash cow, I am stating it as a hypothetical situation. I guess my question should be, if someone such as my acquaintance stated their father BOUGHT their vehicle, Do you think when someone says BOUGHT they mean the differentiation of purchased opposed to leasing, or do you assume when someone says they BOUGHT the vehicle could mean both purchased or leased, a singular meaning for the two different purchasing methods?

[BMWE90]

IMO many people are used to the term buy (bought) so when telling others about it they just say "yeah I just bought a car". Then only when asked whether they leased or bought will they tell you. While some people want to cover it up, I believe many were just using the term "bought" losely (as in they acquired/got a car).

FWIW- even when purchasing a car, the bank still owns it until all the payments have been made. So in a way it's kind of like renting it too.

[GreddyBoy858]

The reason I leased was, this is my first BMW, and I wanted to be able to just give it back at the end of the lease if I did'nt like it. Plus, I like the idea of getting a new car every two years. AND you dont ever have to worry about getting an extended warranty.. haha

[jbake]

Originally Posted by siriusinvestor

I am not advocating for companies to carry out the doing away with leasing, since it is a cash cow, I am stating it as a hypothetical situation. I guess my question should be, if someone such as my acquaintance stated their father BOUGHT their vehicle, Do you think when someone says BOUGHT they mean the differentiation of purchased opposed to leasing, or do you assume when someone says they BOUGHT the vehicle could mean both purchased or leased, a singular meaning for the two different purchasing methods?

It's only cool to pay straight cash for a car. That way you can drive your cash away as the car depreciates. Most rich people who are smart lease, so they can keep getting new cars. Most Bentleys and Rolls you see are mostly leased anyways.

Leasing is smart if it works for you. I used to always buy, I bought the Cayenne, my old 530i and other cars, just leased my first w/ the 335. I think I'm going to continue leasing now because I'm tired of trying to sell/trade in cars.

[siriusinvestor]

I will admit, I am bias becuase I was fortunate enough for my father to purchase my vehicle in cash as well. I guess because my dad advocates that leasing is a waste of money, which is why I seem to take the same perspective. Thanks you for the insights everyone.

PS - I mean if I did lease my car I would be in hot water undoubtably because my 06 330i has about 55k miles on it. Assuming I leased, wouldn't I be penalized greatly? Even assuming my lease was the high end of 15K miles a year.

[Ray]

The word "bought" in this case seems to be an acquired term for a "new acquisition." The concept of leasing is relatively new, so terminology may vary.

In a different context, if you want a cotton swab at the end of a stick, you ask for a Q-Tip. In the past, the same applied to brands such as Xerox or Kleenex. These terms are so entrenched towards a product (or in your case, an action) that it embedded as second nature.

[ik999]

It's acceptable to say 'bought' when the car is leased.

It is true that leasing allows people to acquire cars which they wouldn't be able to buy. However, many people who can afford to buy the car still choose to lease. Leasing is often a better choice because although you pay interest, less money is tied up giving you more financial freedom.

[ik999]

Originally Posted by siriusinvestor

I will admit, I am bias becuase I was fortunate enough for my father to purchase my vehicle in cash as well. I guess because my dad advocates that leasing is a waste of money, which is why I seem to take the same perspective. Thanks you for the insights everyone.

PS - I mean if I did lease my car I would be in hot water undoubtably because my 06 330i has about 55k miles on it. Assuming I leased, wouldn't I be penalized greatly? Even assuming my lease was the high end of 15K miles a year.

You can CHOOSE to take the 'low mileage option' to lower your monthly payments, but it's not mandatory. With a standard lease, there is no limit to mileage.

[Coldintake]

I think you're WAY too hung up over the wordage. Would it bother you if someone said "i'm going to my house" when really live in a condo and mean home?

[CnoteMD]

I have seen the lease vs. finance vs. purchase debate on quite a few forums and ultimately there is no simple answer. It all depends on your personal situation. Those who finance like to look at those who lease as "renters". But then again, those who pay cash like to look at those who finance as "those who really can't afford the car".

However, the reality is that some people don't feel the need to dump a significant amount of money into their car if they don't plan on keeping it long term. So, they end up financing or leasing. I have also seen the comments that those who lease are simply "renting" the car, you must also consider that even with financing, the bank owns the car until the last payment is made.

I have colleagues who make high 6 figures to almost 7 figures, but many lease their cars. Sure they could easily afford to pay cash, but they are able to claim the payment as a business expense. They find it amusing when people with a fraction of their income assume that they are "renting" because they can't afford it.

[Scarecrows25]

Originally Posted by siriusinvestor

I will admit, I am bias becuase I was fortunate enough for my father to purchase my vehicle in cash as well. I guess because my dad advocates that leasing is a waste of money, which is why I seem to take the same perspective. Thanks you for the insights everyone.

I would be curious why your dad thinks that leasing is a waste of money, and if there's anything to back up that statement.

[phantom330]

I personally would never purchase a vehicle again after leasing. It makes more sense, for me at least. If you drive a lot, want to mod your car heavily, or want to keep it a while buying is the way to go. Leasing for me makes sense because I don't care to do a bunch of mods and I like getting a new vehicle every couple years without having to worry about the value of my car dropping and having negative equity.

Really unless you buy your car with cash it really isn't yours till the lien is released on the title anyways. Technically the bank owns it. Most people never get to the point where they payoff the vehicle completely, I think the average amount of time people keep their cars is somewhere in the 39 month range. To each their own.

[phantom330]

Another point, I think paying cash for a car is a waste as well. You lose value the second you drive it off the lot. You're better to lease and let the money work for you in investments, etc, instead of throwing your cash into a depreciating asset.

[enfield]

I leased my car and a good thing I did!! Z4M Coupes are great cars but they are not selling and the prices are dropping like nuts

In addition - I am self employed and I can write of a portion of the car.

[Bimmerista]

Why don't you ask your dad to explain to you the superior logic in paying full in cash for a depreciating asset, as compared with only paying for the amount of use you make of that depreciating asset.

Once you have fully assimilated the intrinsic logic of your dad's logic, come back and try to explain it to the rest of us.

[ga-bmwdrvr]

Leasing vs "buying" depends on your intention long term. If you get a new car every few years, then leasing makes sense. I still have my first new car, a 1995 Jeep Grand Cherokee and I have kept it in excellent condition. My wife drives it daily even though we have a 2007 GC also. If my e90 lasts that long without major problems, then it was money well spent.