If you’re looking to get behind the wheel of a new car, a lease gives you an opportunity to do just that. Unlike an actual car purchase, a BMW 3 Series car lease makes it possible to drive away in a new car at a significantly lower cost. Since you’re not financing a new vehicle, you won’t have to worry about breaking your budget on the car of your choice.
You also won’t have to worry about spending time at the repair shop. Not only do car leases typically end before major repairs are needed, but the cars themselves are always covered by their manufacturer warranty. This means you won’t have to worry about paying out-of-pocket for repairs.
What Does Leasing a 3 Series BMW Car Involve?
There’s plenty that goes into the car leasing process, so here are a few things you’ll need to know if you plan on leasing a car:
Your Payments Reflect the Car’s Value.
Your car’s sale price will play a significant role in how much you’ll pay each month. Choosing a less expensive car can help reduce your monthly payments.
Higher Residual Percent Saves You Money.
As a way to cover depreciation costs, residual values are automatically calculated in each monthly payment. Having a higher residual value percentage could help you lower your monthly payments.
Understand Your Set Miles.
Every car lease comes with a certain number of miles per year that can be driven at no cost. If you go over your allotted mileage, you’ll have to pay an additional fee for each mile driven over your original limit. It’s a good idea to know how many miles are included in your BMW 3 Series car lease as well as the fee amount for overages.
Expect a Disposition Fee.
At the end of your BMW 3 Series lease, you may be required to pay a disposition fee upon returning the car to the dealership. Normally set between $300 and $500, the disposition fee covers the expense of cleaning up and selling the vehicle.
Understand What Money Factor Means.
Keep in mind that your money factor and ARP are one and the same. If you want to maximize your savings, you should aim for the lowest money factor possible.
Is it Better to Lease BMW 3 Series or Buy a Car?
If you’re reading this, then chances are you’re hot on the trail of your next car. Before kicking your search into high gear, however, you’ll need to know the difference between leasing and buying and which option works best for you. When shopping for a new vehicle, it’s always best to know what you getting into before signing on the dotted line.
You Won’t Own the Car
Buying a car means it’s yours to have and to hold until you feel like selling it or trading it towards another car. Leasing, on the other hand, means that you don’t actually own the car. Think of it as a long-term rental where the rental period lasts for years instead of days or weeks. Although you’ll pay less in monthly payments, you also won’t be able to sell your vehicle.
Leasing Cuts Down Up-Front Costs
Financing a car often means making a significant down payment or putting up another vehicle as a trade towards the purchase price. With a lease, however, there’s no down payment to worry about. You’ll only have to provide a security deposit and the first most payment, as well as various fees and taxes including the acquisition fee. Of course, you have the option of putting extra money towards your down payment in order to lower your monthly payments.
No Need to Worry About Selling BMW 3 Series Car Leases
No one ever said that selling a car would be a walk in the park. After all, getting top dollar for your vehicle can be quite a challenge, especially with shrewd customers unwilling to pay high prices for used cars. Selling your car can also be difficult if you haven’t followed your maintenance schedule to the letter. With a BMW 3 Series lease, you won’t have to suffer the slings and arrows of selling your own vehicle.
After making the last payment on your leased car, your only options are to either return the vehicle or exercise your option to purchase the vehicle outright. In contrast, making the last payment on a financed car gives you complete ownership of the vehicle. You’ll receive the title to your car and be free to do as you want with the vehicle afterwards.
Why You Should Lease a 3 Series BMW
When you are in the market to purchase a new vehicle, it can be tricky to figure out whether you are wanting to buy a new car or lease one. There are many pros and cons to both choices. However, there are a variety of reasons why leasing a car is the best option for many people. A lot of people in the market for a new car might shy away from a lease because the terms and conditions may seem a bit confusing. However, they are pretty easy to understand once you take the time to learn what they mean. While leasing a car is not for everyone, below are some of the reasons why you should lease a new car instead of buying one.
No Or Low Down Payment
Oftentimes, when you go to sign for a new car lease, you won’t be required to come up with a down payment if you have good enough credit to qualify. Even if you do need to put down a down payment for your lease, the amount required will be much smaller than it would be if you were trying to buy the same type of vehicle. If you aren’t required to make a down payment, the dealership may still require you to pay the first month’s lease payment as well as the fees for the tag and registration.
Low Monthly Payments
Leasing a new vehicle compared to buying one will result in much lower monthly payments. Your payments are calculated at a portion of the vehicle’s value for the length of the lease term. Your leased car payments can typically be almost half of what your payments would be if you were buying the same vehicle. With a lease contract, you also won’t be required to pay extra each month towards the investment in the equity of the vehicle.
New Vehicles More Often
When you buy a car in cash or through financing, you will typically be stuck with that car for many years. If you do decide to trade your bought car in for a new one, you will have to worry about getting a good deal on it. When you lease a vehicle, you will get a new vehicle to drive every two or three years. You won’t have to be worried about getting stuck with the same vehicle for years on end and miss out on all the latest gadgets and technology that the newer vehicles have.
Easy Maintenance Routine
When you buy a car, you will be in charge of any maintenance and repairs outside of the warranty period. Leased car terms usually fall within the manufacturer’s warranty period. Your lease will end on most vehicles before any warranty expires. This means that when you lease vehicles, you will always have warranty to cover maintenance and mechanical issues.
When you sign a car lease, you won’t have to pay taxes on the full value of the car. You will only be required to pay a portion of the car’s value during the full lease term. The tax amount will be divided equally between all the months of your lease. When you buy a new vehicle, you will be required to pay taxes for the full amount of the car. This amount can add up.
No Fuss Selling Your Used Car
If you buy a car and end up wanting to trade it in for a newer car, it can be a long, tedious process trying to get a good deal on it. When you lease a car, all you have to do is turn in the car and sign a new lease on another vehicle. As long as you followed the lease rules over the course of your term, you will have no issues trading it in on a new leased vehicle. If you love the vehicle you were leasing, you will also be given the opportunity to purchase the car if you choose to once your lease ends.
Less Out-Of-Pocket Spending
Many people don’t like the idea of having to come up with so much money in order to purchase a new car. It can leave someone with low funds for other things they need to pay for in their financial lives. The best thing about leasing a new vehicle is that there is not much out-of-pocket costs up front, especially if you aren’t required to put a down payment on the lease. With a lease, you don’t have to worry about going broke just to get a new vehicle.
GAP Coverage Included
When you lease a new vehicle instead of buying, you will automatically get GAP coverage. This coverage can help alleviate the costs of recovering from a theft or totaling of your vehicle after what your insurance pays for. If you buy a new vehicle, you will be required to spend more money out-of-pocket to purchase GAP coverage separately.