New Car Decision - help needed!

[deburn]

Hi All,

This is my first post, so please excuse any etiquette errors.

I have a 2002 325xi that is coming off lease next month. I feel the most "sensible" thing to do is to buy the car (19,500.00) and use it for a year or 2, till I can "afford" to get another BMW. The current one is paid for by my employer but they have replaced that option where they pay me x dollars a month and I can take the bus they dont care - so any savings go into my pocket.

However, and this is something I've been wrestling with for a long time, but didnt do anything about till now, I do like driving a lot and have gotten used to driving nice new cars over the last 4 years - I probably wouldnt have considered a new BMW if it werent for the fact that someone else was paying for it.

Anyway, I feel i'm rambling but the reason I'm writing is to ask if anyone has done any financial analysis on the benefits of buying my car for a total of 23k (including certification) versus leasing a new 325i! As you can see I'm trying to justify this to myself.

Also I live in Boston so I'm a little worried about driving a RWD in winter and wanted to get your opinion.

Thanks a lot!
Bernard

 

[gpoints]

Gabe's financial analysis on Cars:
Buying or Leasing a car is a bad financial decision.[joke]

Really, you need to figure out what you can/want to afford, then factor in how much the enjoyment of driving one car over another is worth $$ to you. [driving2]

But if it was me, I'd lease the new model.

 

[Big Daddy]

First Welcome! Gabe has offered some good advice, I prefer to buy rather than lease, but that is another discussion. Like Gabe says I'd go for the new model!

 

[iplayazi]

Welcome to the board

Go with your guts man. Drive the new one first before you make a decision. You will know your answer after that!

 

[deburn]

325 vs 330

Thanks all for your feedback. I AM going to get the new 3, and I am now considering the 330 as well!! That's because the 325 didnt blow me away with it's performance. Maybe I was expecting too much but I thought the extra power of the 325 would make a big difference compared with my 325 xi.

I would like some feedback on the performance of the 330 vs the 325. I know you get more than just a more powerful engine for the 6k, and I'm wondering what your opinion is.

Also does any one have any idea on lease deals for the new 3 in general and for 325 vs 330 in particular?

Thanks,
Bernard

 

[jay0]

The lease deal is not especially attractive, which surprised me after I kept hearing how high the residual would be on this new model. But when I sat down to sign the papers I was told that the residual is NOT high BECAUSE its a new model ! But I leased a 330i anyway, and I couldn't be happier. As to the performance, I didn't drive a 325, but I can tell you the 330i is very quick. I have automatic, though I would have gotten SMG if it had been available (it will be in September)
Jay

 

[deburn]

Leased 330 but still not decided!

Hi Jay,

I signed on a 330 lease yesterday, but am still wondering whether the 325 will be enough for me. In both cases I will be getting a stick.

my dealership in Boston told me the residual on the 325 was higher (which means lower monthly payments) than the 330. On the 325 it was 63% and it was 61% on the 330.

btw what is SMG? Also, i booked the same color as you did, monaco blue. The only extras I got were CWP and satellite.

Bernard

 

[jay0]

SMG is sequential manual gearbox, which is a very high-tech manual transmission with an internal computer operated clutch. Commonly seen on Formula 1 race cars and Ferraris, it has been available for a while, often on the M3. I've never driven one, but it supposedly performs identically or better than a stick, but with the advantage of having an automatic mode, when that is convenient. It apparently isn't all that popular, I really don't know why.
Jay

 

[vrgruver]

Lease is a good thing when you are running a business. I think the whole value goes stright to the good side of the books. In addition, you pay sales tax on a per lease payment basis.

Purchase. No guesswork. Guranteed outcome.

Ideally, a lease pays only the depreciation expected on the car. If it sells for 50k and you could resell it for 30k in a few years, the lease should be 20k. That is a perfect world. It is very hard to guess what the depreciation will be. Many companies lost some of their shirts when leasing was first introduced becuase they thought the vehicles would be worth more at the end of the lease.

 

[jrt67ss350]

I have driven both the 330i and the 325i both with sports package and both with 6 speed manual. I personally didn't feel that the power difference was worth anywhere near $6k.

Your best bet is to just drive the two and see what you think about the difference.

 

[deburn]

I changed my lease and I'm now getting the 325 instead of the 330. If I like the look better I would have been more inclined towards the 330 since I would keep it for longer, but I dont like the look that much, esp the rear like so many have said and dont know if I'd want to keep it past 3 years.

btw if it looked like the new 5 series i would have absolutely loved it!

Thanks for everyones input!