[Red Bread]

Originally Posted by Tracus

Well, isn't open lease more detrimental since the buyer bears the risk that the asset depreciates more than was expected by the end of the lease?
Very unlikely to be in a positive position and get something back from the lessor...

Open leases, like BMW's Owners Choice allow you to either get out of a lease, or continue it with no penalty and in many states, not pay sales tax a second time.

With something like our boring af 3er with known residuals, it's nice. We'll trade the car in a few months before the lease ends, get a small amount of equity back (enough to cover TT&L) on the next thing and not worry about curbed wheels or door dings.


So for 32 or so months, we'll have less equity than if we'd purchased it with financing, but will have paid significantly less in payments and interest (same rate, lower payment.)

Obviously only works if you don't keep cars long (I own mine) but you can always roll it into traditional financing or pay off the balance if you decide you want to keep the car.