I just checked from BMW website the longer lease term I choose, the monthly payment is higher. Why is that?
2007-03-06 10:08:08 · 4 answers · asked by Lucy 3 in Cars & Transportation ➔ Other - Cars & Transportation
First you must understand what you are paying for when you lease. You are not paying for the car itself, but for a GUESSED depreciation of the vehicle.
A shorter term lease may have lower monthly payments because the car does not have a steep depreciation rate for the first few years. That depreciation rate may be very steep for later years, which results in what you are seeing.
2007-03-06 10:30:24 · answer #1 · answered by hsueh010 7 · 1⤊ 0⤋
Sometimes manufacturers incentivize certain terms. The idea being, they assume the value of the vehicle will be the highest at the end of the term. Think about it this way, would you rather send a car to the auction that's only 3 yrs old or take a chance on a vehicle that is much older with far more wear and tear. I know it doesn't make sense, but that is why they do it. Hope this helps and Good Luck!
2007-03-06 10:13:37 · answer #2 · answered by Rhettski 4 · 0⤊ 0⤋
Your way you not in any respect construct any fairness. You pay intense pastime and in case you may't promote or refinance at balloon time you possibility a repossession. no man or woman will "assure" to purchase it decrease back at a collection fee. they could't understand what number miles you'll placed on, what the priority will be or if it will be in an coincidence. there'll be a great number of advantageous print. in case you truly opt for a clean motor vehicle each 3 years you'd be way ahead in case you conflict to purchase the first one outright and then promote or commerce each 3 years utilising the money in the route of a clean motor vehicle you'll pay off in yet another 3 years. in case you run the numbers you'll likely discover out you're extremely some thousand ahead after some trades. It also leaves you concepts because you do not opt for to do something after 3 years. What you're offering is quite akin to leasing yet relying on taxes leasing ought to finally end up being more low priced for you, truly in case you save for sponsored leases presented via the manufacturers.
2016-11-28 02:49:41 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Less resale value over the long term.
2007-03-06 10:10:30 · answer #4 · answered by nostromobb 5 · 0⤊ 1⤋