Am I an idiot for going for a lease?

[KAVE23]

That is another reason why I'm leasing. The technology, pricing, and competition are evolving really quickly right now. There is a really good chance that in 3 years there will be better and cheaper options. Or maybe I'll just want a Y instead.

In that purposed scenario where we know something is coming in 2023.... Tesla offers a 2 year lease option too. It's not advertised but when you're filling out the "paperwork" after you place the deposit it's presented as an option.

All the same reasons I'm looking at the lease. In addition to avoiding local state taxes (6%), I'm also adding (or subtracting) the interest I'll make on the $60k that could be sitting in 2% savings account, since I won't be financing the purchase.

Based on my calcs, the residual value of the M3P will need to exceed 62% to just get to the same monthly cost. This seems like a really high valuation for a 3-year old vehicle.

I also live in Michigan, so leasing is another way to address the risk of not having a local dealer/service center. If service/reliability sucks, I'd only have to 'suffer' for 3 years...

 

[raptor5244]

The way I look at it is, none of us really know what the car will be worth in 3 years.

So for arguments sake, if we assume the cost to lease or own is roughly the same over 3 years then why not buy so you have more options and no anxiety with going over mileage, wear and tear, tires, lease end fees, etc. When you own, you can do whatever you want whenever you want. If I see the market turning or some new EV on the horizon I can unload the M3 in 19 months if I want. If there is something coming in 4 years I can wait 12 months for the new model. More flexibility and I can sell the car to anyone I want.

 

[Dan203]

The way I look at it is, none of us really know what the car will be worth in 3 years.

So for arguments sake, if we assume the cost to lease or own is roughly the same over 3 years then why not buy so you have more options and no anxiety with going over mileage, wear and tear, tires, lease end fees, etc. When you own, you can do whatever you want whenever you want. If I see the market turning or some new EV on the horizon I can unload the M3 in 19 months if I want. If there is something coming in 4 years I can wait 12 months for the new model. More flexibility and I can sell the car to anyone I want.

I have zero concern about going over mileage. My current car is over 3 years old and only has 19k miles on it.

 

[Petrocelli]

I have zero concern about going over mileage. My current car is over 3 years old and only has 19k miles on it.

To make a lease worth the money, the key is to get as close to the allotted mileage as possible, and even go a little over.

 

[Dan203]

To make a lease worth the money, the key is to get as close to the allotted mileage as possible, and even go a little over.

I drive as much as I drive. My last car only had 30k miles on it after 8 years.

 

[raptor5244]

I have zero concern about going over mileage. My current car is over 3 years old and only has 19k miles on it.

You should go for low mileage leases then to help save some money.

 

[Dan203]

You should go for low mileage leases then to help save some money.

10k/year is the lowest they offer. That’s what I went for.