Hey all - I'm currently driving a used 2009 BMW that I picked up about 7 months ago. I'm looking to unload because while I'm a car guy, this car isn't doing anything for me. I know being a car guy isn't really MMM, but I do like to indulge in some areas. Here is my question: I can get about 15k for the car, and I'll have 10k left over once I pay it off. I have two options: buy a cheap car for about 8k (including sales tax) and invest the rest (2K). Or, lease a car for approximately what my car payment is now ($270) or less, and then just take the entire 10K and invest it.
I know leases are frowned upon, but I'm having trouble numerically convincing myself that the used car is the way to go. With a lease, I will choose a car that lets me put zero down, and has maintenance included. So, for the 3 year lease term, I will be guaranteed to pay $0 in maintenance costs, while the used car could cause me any amount of trouble, even if I get something like a Civic. Leasing a new car will also provide greatly improved gas mileage over the used car I'd likely buy, reducing operating costs of the vehicle. I'd seriously consider a diesel for the mpg.
I'm trying to decide if investing much more money now and leaving it to grow long term will overtake the money I pay for the lease now. Thoughts? I'd love if someone could show me some numbers to help my decision! Thanks!