BMW of Bel Air

Q. Should I Buy or Lease? (What are the difference between financing and leasing?)

A. When you buy, financing is available to facilitate that purchase. That loan is for the balance after any down payment or trade-in. The amount financed together with interest is paid off in full over the term of loan selected. You may, of course pay the loan off at any time, or you have the option of trading the vehicle prior to paying off by having the balance due simply deducted from the vehicle's trade allowance. If you typically keep a car for a long period (5-6 or more years) of time- Buying is the right way to go.

Leasing is a viable alternative in that it provides all of the same benefits as ownership. Leasing typically provides a lower monthly cost than financing as over the term you are paying for only that portion of the vehicle's life that you will have it for. It is like getting the trade-in value up front while providing flexibility. Much like a finance arrangement the lease can be paid off early, or if you really love and want to keep it, the vehicle can be purchased at lease-end, in a non-taxable transaction to you as the lessee. Leasing is an ideal way to acquire that new BMW for folks who enjoy and look forward to getting a new car every 3-4 years or so.

More than 50% of the BMWs acquired by our clients are under the available lease programs. In fact rates are typically so favorable that many of the individuals leasing are our clients that would just write a check for the entire purchase. It's where the sayings comes from "The Smart Money Leases", or "If it appreciate buy it, and if it depreciates-Lease it".

Q. I drive too many miles to Lease

A. This is a real fallacy. Leases are tailored around the amount of mileage that will be put on the vehicle with the lower mileage drivers paying less than a higher mileage driver since mileage is a factor in determining the value of a used vehicle. With ownership the same case prevails. The customer trading in a 3-year old car with 30,000 miles on it, will get more than a customer with the identical vehicle with 50,000 miles on it. In other words, the owner of who is the higher mileage driver will bear a greater depreciation. In the event an individual's driving habits change the lessor will typically provide a mid lease opportunity to adjust mileage.

Q. Does the Lease require a down-payment

A. While most leases are advertised with a minimal down payment ($2500 and up), this is a cap cost reduction that is a direct reduction to the monthly rental. A down-payment is not a requirement. The full price of the vehicle may be capitalized into the lease.You can event include the state taxes and tag fees if you prefer not pauing up-front.

Q. Can I purchase the vehicle at the end of the lease?

A. For those that really love their BMW and want to keep it longer, at lease-end they may purchase it from the Lessor. After the lease is up the lessor's only goal is to turn the vehicle to cash. The state of Maryland exempts the vehicle from tax in the event of such purchase based upon the fact that the Lessee either paid or included state tax in the lease at inception.

Q. Do I carry insurance ?

A. Yes, in most cases the Lessee simply transfers their insurance policy the same as if the car was being purchased. The lease requires minimum limits of liability of $100/300,000, Property Damage $50,000, Comprehensive and collision ($500 maximum deductible). These limits are not different than what the majority of people already tend to carry.

Q. What about maintenance ?

A. It is the same as if the car is purchased. The new car warranty includes $0 cost maintenance, to 50,000 miles. Extended coverage to 100,000 miles is available as well.

Sales: (877) 663-3046

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