Should You Buy or Lease Your New BMW?

Whether you’re a veteran BMW owner or about to add your first one to your collection, there’s always one question that comes up when you head to the dealership — should you buy or lease your new BMW? Let’s take a look at the pros and cons of both purchasing options so you can make the best decision for you. 

Pros — Buying

If you’re a fan of modifying your daily driver, buying your car means that you can do just that without violating your lease agreement. You can also drive it as much as you like with no mileage restriction. Purchasing instead of leasing — especially with luxury brands like BMW — also gives you the option to acquire equity the longer you own it, which you may be able to borrow against. 

If you have the money or credit to purchase your BMW outright, buying can be a great choice. Plus, it can save you money on insurance, which offers benefits like roadside assistance and auto medical coverage. If you own your BMW for more than three years, your insurance costs tend to drop. 

Cons — Buying

Permanent ownership isn’t for everyone. If you don’t buy your car outright, you’re looking at an extended loan period. Most leases last for 36 months or three years, while purchasing loans often extend 60 months with varying interest rates. These factors mean you could end up paying quite a bit more than what the car is worth. 

It’s also more difficult to upgrade your vehicle to the newest model, so if you absolutely need to have the latest toys in your garage, buying isn’t the best decision. 

Pros — Leasing

Leasing is another option for getting your hands on a new BMW, and it has its own benefits. If you like to upgrade your car every couple of years, leasing gives you that opportunity — you can trade your current ride and switch to a new model at the end of your lease period. The BMW warranty will protect you if something goes wrong or needs maintenance. Most BMW warranties cover all necessary repairs for three years. 

If you’re not planning on keeping a BMW permanently, leasing gives you flexible possibilities for ownership. Without loan interest, you’ll pay less in the long run. 

Cons — Leasing

If you lease, you have limits on what you can do with your vehicle. You can’t make any modifications without violating your agreement, and you’re only allowed to drive a certain number of miles every year. You also need to have excellent credit to qualify. There are often a lot of fees associated with leasing, and if you run into financial hardship, it’s difficult to cancel without a negative strike on your credit. 

Making the Right Choice

Both buying and leasing have their positives and negatives. The right choice for you will depend on numerous variables, from how far you need to drive to what your income looks like. You’ll also need to consider whether you’re looking for a long-term investment or something shorter. Talk to your BMW dealer to see which selection is best for you.