Buying
Is it better to buy or lease a luxury car?
Buying is usually the better option if you plan to keep your BMW for many years, want to build equity, or drive significantly more than 15,000 miles annually. While the upfront costs are higher, the total cost of ownership drops significantly once the loan is paid off.
What makes up the total cost of buying?
The total cost of buying includes the negotiated sale price, sales tax, registration fees, interest (if financing), insurance, and long-term maintenance. You must also consider depreciation, but unlike leasing, you retain an asset that can be sold or traded later.
How does financing a BMW work?
BMW financing involves borrowing money from a lender, such as BMW Financial Services, to pay for the vehicle and repaying it in monthly installments with interest. Your Annual Percentage Rate (APR) depends on your credit history and loan term, but a larger down payment can lower your monthly costs.
What are the main benefits of buying?
Buying grants you full ownership with no mileage restrictions, allowing you to drive as much as you want without penalty. You also have the freedom to customize your BMW with aftermarket parts and will eventually enjoy payment-free driving once the loan is satisfied.
How much money should I put down?
Financial experts often recommend putting down at least 10% on a new car and 20% on a used car to secure favorable terms. A substantial down payment reduces your monthly obligation, minimizes interest paid over the life of the loan, and protects you from negative equity.
Leasing
How does a BMW lease work?
Leasing allows you to drive a brand-new BMW at BMW of Sarasota in Sarasota, FL for a set term—usually 36 months—while making payments that cover the vehicle’s depreciation during that time. At the end of the contract, you simply return the vehicle, though you often have the option to purchase it if you love it.
Is leasing cheaper than financing?
Leasing typically offers lower monthly payments and requires less cash due at signing compared to financing a purchase. However, because you are renting the vehicle for a fixed term, you do not build equity, and leasing can be more expensive long-term if you continuously lease new vehicles.
What are the mileage limits on a lease?
Most BMW leases come with annual mileage caps ranging from 10,000 to 15,000 miles per year to preserve the vehicle’s value. If you exceed these limits, you will be charged a per-mile fee at the end of the lease, making this option less ideal for high-mileage commuters.
What fees are involved in leasing?
Common lease fees include an acquisition fee, a disposition fee due at lease return, and potential charges for excess wear and tear. Visit our finance center to learn more about optional protection plans that can cover minor damages and save you money at turn-in.
Can I buy my BMW when the lease ends?
Yes, most lease agreements include a "buyout option" that allows you to purchase the vehicle for a pre-determined price at the end of the term. This can be a smart financial move if the car’s market value is higher than the buyout price or if you simply aren't ready to part with your BMW.
