Should you lease or buy a BMW?

2023 BMW XM

Depending on the use of your newly purchased BMW leasing or buying it might be better in different scenarios. The most important factor that determines that is the period you are planning to use your new BMW. The sum varies from model to model but generally speaking, shorter periods of time before returning the period allow you to save expenses for maintenance costs.

When is it better to lease a BMW vehicle?

Of course, it greatly depends on the model of the car since that can drastically change the price but if you aim to use the car 3 to 4 years before you replace it, leasing is better. Let’s see what the advantages of leasing a BMW are.

You don’t need to sell the car at the end

After the three year period, you don’t need to go through all the trouble of finding a buyer for your vehicle. You can just return it and replace it with another model with a new discounted downpayment.

Lower periods save you cash

The monthly or yearly accumulated down payment on leased cars are much lower than when you’re purchasing one. Moreover, while the car is still in warranty, you don’t get to spend all that money on maintenance costs and repairs. With BMW this actually saves you a lot of trouble.

Typically BMW warranties run for 4 years, which makes it a good decision to lease a car for less than that. If you choose to lease a car for more than 4 years, that would make you run out of warranty and would eventually have to pay around $1,500 per year for maintenance.

If you run the numbers, leasing and financing a car costs the same price for some models, which means with leasing, every three years, you get to drive a new model in warranty.

When is it better to purchase a BMW vehicle?

If you are planning on purchasing a BMW and driving it for more than nine years, and sell it afterwards. For that to be profitable for you, you would have to be able to get paid for the car when you sell it for more than 4 years of maintenance, repairs and expenses. For most BMW models like X3, that would be around $10,000.

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If you decide to lease a vehicle, make sure to research the leasing policy well, since some contracts apply restrictions like not permitting you to get out of the state with the leased vehicle. Even more so, some contracts restrict the maximum mileage you can do on a vehicle per year, which will not suit all drivers.

Having all of that in mind, it is up to you to decide whether you are going to drive the BMW for a long enough period to make a profitable sell and if so, would the 10-year-old BMW cost more than $10,000? If the answer to all these questions is yes, then you can safely say that in your case it is better to purchase the vehicle.

If you easily get bored with cars and if you have a history of changing cars more often than 3 years each, then don’t make the commitment to purchase the car and go with a leased BMW instead.

Comparing Leasing vs Purchasing a BMW

There are a variety of factors your purchase might affect. Let’s take a deeper look into initial costs, ownership and payments and inform you so you can decide for yourself which suits you better.

Initial costs


In the beginning, when you lease a vehicle you often get a cap cost reduction, which might result in you saving money in comparison to when you buy. There are other initial costs like insurance, a security deposit and the first-month payment.


When you are buying a BMW you get to decide whether you want to pay the whole price upfront or pay in several payments with a loan. This way, you would be a subject of taxes, either state or government, as well as taxes on the loan and lender fees. Of course, there exist other costs like insurance, and the first month of payment and a security deposit if you use a loan.

Ownership of the vehicle


When you lease a BMW, BMW remains the owner of the vehicle and you are permitted to use the car on a lease contract until it runs out and you would have the option to either purchase the vehicle or return it.


Once the financing is completed, you will be the owner of the car when you purchase it.



The payments for leased vehicles are generally lower than for purchased ones. Strictly speaking, you are paying for the vehicle’s depreciation and not for the vehicle itself. Of course, rental charges and sales tax may apply, depending on your place of living.


These are often higher on purchased vehicles since you are paying for the entire price of the vehicle and not only for a few years of usage.

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What is the difference between leasing a car and renting a car?

Leasing a car lasts a certain period of years, for example, three years or six years, whereas you can rent a vehicle for a day or for a month. Generally, lease payments are cheaper than monthly payments to pay off a loan.

What would happen if you crash a leased BMW?

If your leased BMW gets totalled, the insurance policy of the car would usually pay for the repair or the value of the vehicle. Nevertheless, you would still be legally obliged to keep paying the monthly payments to the contract until the lease is over.

Is everyone allowed to drive my leased BMW?

Have in mind that not everyone is allowed to drive your leased car. Most lease contracts would typically include a section that states which family members are eligible to drive your newly leased vehicle. Typically, if a certain person is outside of your family circle, further permissions would be needed.

Is leasing a BMW smart?

Leasing a BMW can be a smart move if you want to save money in the short term. It is often less expensive than purchasing a new car, and it requires a smaller down payment and lower monthly payments. Additionally, leasing a BMW would also give you access to modern features that come with the newer models of the car. Furthermore, you are not responsible for any repairs or maintenance; this is covered by the warranty. All in all, leasing a BMW can be an economical choice if you are looking for reliable transportation without breaking your budget.

Is it smarter financially to lease or buy a BMW X5?

Whether it is smarter financially to lease or buy a BMW X5 depends on several factors. If you are looking for low upfront costs and monthly payments, then leasing can be a great option. Leasing typically requires a lower down payment than purchasing and the monthly payments will also be significantly lower. Additionally, you won’t need to worry about major repairs as they will generally be covered by the warranty during the lease period.

On the other hand, if you plan on keeping your car for more than 2-3 years, then buying might be the smarter financial decision. The upfront cost of purchasing a vehicle may be higher but in the long run, you’ll save money due to avoiding monthly payments and depreciation of value over time. You will also be able to customize your vehicle as you’d like and you will have more freedom to decide when to sell the car.

Do most people buy or lease BMW?

Most people choose to lease rather than buy a BMW. According to Cartelligent, around 70% of their clients choose to lease a BMW instead of buying one. Leasing can be an attractive option due to lower upfront costs and monthly payments, as well as access to modern features that come with the newer models of the car. Additionally, leased vehicles typically include a warranty that covers any major repairs. Because of these benefits, leasing has become increasingly popular among BMW customers who are looking for reliable transportation without breaking their budget.

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What are the benefits of Leasing a BMW?

One of the greatest benefits of leasing a BMW is the cost savings. Leasing typically requires a lower down payment than purchasing and the monthly payments will also be significantly lower. Additionally, you won’t need to worry about major repairs as they will generally be covered by the warranty during the lease period.

Another benefit of leasing a BMW is access to modern features. Newer models of BMWs come with state-of-the-art technology, advanced safety features, and improved fuel economy that can make your driving experience more enjoyable.

Leasing also offers greater flexibility when it comes to returning or upgrading your vehicle at the end of the lease term. You have the option to either purchase or return your vehicle, as well as the ability to upgrade to a newer model.


Advantages of leasing a BMW

The main advantage of leasing a BMW is that it allows you to drive a new car every few years without the commitment of purchasing a vehicle outright. Leasing can also be more affordable in the short term, as monthly payments are generally lower than loan payments for buying a car. However, leasing does come with certain restrictions, such as mileage limits and the need to return the car at the end of the lease term.

Advantages of buying a BMW

On the other hand, buying a BMW allows you to own the vehicle and keep it for as long as you like. While the upfront cost of buying a car may be higher, owning a vehicle can potentially save you money in the long run, as you will not have to continue making monthly payments once the loan is paid off. Additionally, buying a car gives you the freedom to modify and customize the vehicle as you see fit.

Ultimately, the decision to lease or buy a BMW will depend on your personal financial situation and driving habits. It is important to carefully consider the costs and benefits of both options before making a decision.

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Dan Gurbalov

Why do you love cars? I love the sound of most gasoline engines. I love the smell too.

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