Quote:
Originally Posted by Red Bread
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.
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In my experience lease interest rate is higher always. It was never lower. Right now 3 series is at 1.9% finance and 2.9% lease. Open lease is more expensive than finance as well. There are different options for different scenarios. For me owning the car is the best choice.