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Why Renting a BMW is Better than Financing in Johnston

by | Aug 19, 2024 | Auto Info

Car Rental Sign Board

To rent or to buy—that becomes a potent question for people who are in the market for a new car. Of course, when we say “renting,” we mean “leasing” a car from a dealership and not the other kind of renting you do from a car rental place! If you have the cash to outright buy a brand new BMW, then this article is not for you. In this article, we will explore the advantages and disadvantages of leasing and financing a new BMW. We’re leaning toward leasing. Read on to find out why.

Why Leasing is a Better Option Than Financing

There are several practical benefits to leasing a BMW. Beamers are sophisticated, luxury cars, with a high price point. While financing and eventually owning a BMW might seem like a good idea at first, you may find leasing might gain you more financial freedom.

Lower Financial Commitment

  • Leasing: When you lease a brand new Beamer, you start off with a lower financial commitment. Most car dealerships will ask for a smaller down payment than what you would have paid if you had financed it. This also means you’ll be paying a smaller amount in sales taxes.
  • Financing: You will be paying more upfront, and your car starts depreciating in value the moment you drive off the lot with it. You alone will absorb that loss of value over time.

Lower Monthly Payments

  • Leasing: You will pay lower monthly payments when you lease because the lease payments only cover the depreciation value over the lease terms.
  • Financing: Since the monthly payments cover the depreciation of the full value of the vehicle, these payments are higher.

Flexibility and Variety

  • Leasing: You are only beholden to the lease contract for two to four years. After that, you return the car to the dealership and get your next, newest model. You get a brand-new Bimmer with the most up-to-date technology, performance, and safety enhancements.
  • Financing: When you finance, and over several years the car becomes yours, you are stuck with that car. If you love what you have, that’s great. However, if you are someone who enjoys the newest technology and loves changing things up, you may want to change the model of your BMW more often. In a financed option that becomes very expensive.

Worry-Free Maintenance

  • Leasing: While under lease, you will not need to pay for any maintenance costs because your brand-new BMW is still under the manufacturer’s warranty. This is a great plus point, as it gives you peace of mind.
  • Financing: After the manufacturer’s warranty runs out, you’re on your own with all repairs and replacements.

Some More Benefits of Leasing

  • Avoiding Resale Hassles: It’s very easy to return the leased vehicle at the end of the lease period. You do not have to worry about figuring out its resale value to sell it to a private party or trade it in to the dealership.
  • Equity Upgrades: You may even end up in an equity position. In these cases, you might be able to negotiate with the dealer to get an upgrade on your BMW. You may even be able to negotiate a discount. A brand new BMW every couple of years! Can you beat that?

Things to Consider

There are a few other things to consider. Leasing is not good for you under certain circumstances.

  • Mileage: If you know you will put on many miles on the car, then leasing is not for you. There are mileage restrictions in all leasing contracts.
  • Excessive Wear and Tear: If you know you will not be taking care of the BMW and will not be able to return the car in good condition, then don’t consider leasing.

Decisions, Decisions!

Only you know what your needs are. We are simply trying to show you the different options. For an average driver, leasing can be an excellent option to get into a brand-new BMW without too much fanfare. With leasing, you only need to complete the lease agreement, make the minimum down payment, and then drive off with a brand-new BMW today!

Protect Automotive Services Has Your Back

At Protech Automotive Services, BMW X3 Car we are here to answer your questions and concerns. Our trained and friendly staff can help you with answers to questions like these. We can definitely help you with your car repair and maintenance too! Call us or schedule an appointment. Stop by any of our locations in Rhode Island. You’ll find us in Cranston, Smithfield, East Greenwich, North Providence, Warwick, and Johnston.

* BMW X3 Car image credit goes to: Different_Brian.

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