Individual Color - Lease or Purchase?

[wtwo3]

Just out of curiosity, for those of you who have ever specced your vehicles with a true individual color (One that requires approval from BMW), did you purchase your vehicle or lease? Trying to get a perspective on if people think putting in the money/effort to get an individual color warrants a longer term purchase, or if they don't really care either way since with a lease you're paying the residualized amount anyway.

[SpeedyATL]

Just my opinion as I have never ordered an individual color and I am too cheap to ever do so....

But I would be ok either way of it was a middle of the road color (dk blue, grey, red, etc), but if I went purple, orange, yellow, polka dot, etc, I'd probably lease. You can always buy at the end of the lease, so if the color is still popular and you still like it, there is always a chance to marry it. And if your tastes change, it's only cost you $2.Xk instead of $5k with a lease (I assume it residualizes like other options).

[wtwo3]

Originally Posted by SpeedyATL

Just my opinion as I have never ordered an individual color and I am too cheap to ever do so....

But I would be ok either way of it was a middle of the road color (dk blue, grey, red, etc), but if I went purple, orange, yellow, polka dot, etc, I'd probably lease. You can always buy at the end of the lease, so if the color is still popular and you still like it, there is always a chance to marry it. And if your tastes change, it's only cost you $2.Xk instead of $5k with a lease (I assume it residualizes like other options).

That's a good point. Impact on resale value is unknown with an individual color, but with a lease you're safe. I wonder if leased vehicles are less likely to get approval from BMW for individual colors?

[GOLFFRR]

Originally Posted by wtwo3

That's a good point. Impact on resale value is unknown with an individual color, but with a lease you're safe. I wonder if leased vehicles are less likely to get approval from BMW for individual colors?

there is no advantage

[adoglife2022]

Agree. No advantage

[wtwo3]

Originally Posted by GOLFFRR

there is no advantage

When you say "no advantage" do you mean to getting approved by BMW?

[GOLFFRR]

Originally Posted by wtwo3

When you say "no advantage" do you mean to getting approved by BMW?

your question was, I wonder if there was an advantage to finance over lease customers when it comes to indiv. So to answer your question there is no advantage.

[sspade]

I never realized you could custom order a Bimmer and then lease it. I always assumed if they were making you a custom build, you had to purchase.

[VChenz]

Originally Posted by wtwo3

Just out of curiosity, for those of you who have ever specced your vehicles with a true individual color (One that requires approval from BMW), did you purchase your vehicle or lease? Trying to get a perspective on if people think putting in the money/effort to get an individual color warrants a longer term purchase, or if they don't really care either way since with a lease you're paying the residualized amount anyway.

Individual colors take longer to sell vs. silver, black, grey and white. So I would recommend leasing if you don't want any issues flipping the car down the road (and by issues I mean waiting for a buyer). Individual colors are only sought after by those who want those colors, so your market is automatically smaller.

[Burrcold]

Originally Posted by GOLFFRR

your question was, I wonder if there was an advantage to finance over lease customers when it comes to indiv. So to answer your question there is no advantage.

Isn't the advantage to lease, that you aren't paying the full cost of the individual color? As well, if you can lease a fairly unique (but perhaps trendy) color, you don't have to worry about resale value down the road?

Are those not advantages to leasing an individual color vs "buying"/financing?

[GOLFFRR]

Originally Posted by Burrcold

Isn't the advantage to lease, that you aren't paying the full cost of the individual color? As well, if you can lease a fairly unique (but perhaps trendy) color, you don't have to worry about resale value down the road?

Are those not advantages to leasing an individual color vs "buying"/financing?

I took the question to mean, "is there an advantage to indiv orders being approved if you finance over lease"? My response to that is no advantage. a order is a order. If I read the question wrong I apologize.

as far as financially is there a advantage to leasing over financing goes well thats going to be different for everyone and would need to be addressed for each situation for that individual who buys the car.

[wtwo3]

Originally Posted by Burrcold

Isn't the advantage to lease, that you aren't paying the full cost of the individual color? As well, if you can lease a fairly unique (but perhaps trendy) color, you don't have to worry about resale value down the road?

Are those not advantages to leasing an individual color vs "buying"/financing?

I was more asking about if BMW is more likely to approve an individual color based on your preference of leasing or financing. (i.e. maybe they're more likely to approve an individual color if you're purchasing since it'll then be your problem to sell it once the time comes), but it seems that's not the case.

[wtwo3]

Originally Posted by sspade

I never realized you could custom order a Bimmer and then lease it. I always assumed if they were making you a custom build, you had to purchase.

Yup, I custom ordered both of my leases. It'll be hard for me to go back to buying from the lot. I love the ordering process... really feels like the car is being made for me alone (because it kind of is).

[Burrcold]

Originally Posted by GOLFFRR

I took the question to mean, "is there an advantage to indiv orders being approved if you finance over lease"? My response to that is no advantage. a order is a order. If I read the question wrong I apologize.

as far as financially is there a advantage to leasing over financing goes well thats going to be different for everyone and would need to be addressed for each situation for that individual who buys the car.

Originally Posted by wtwo3

I was more asking about if BMW is more likely to approve an individual color based on your preference of leasing or financing. (i.e. maybe they're more likely to approve an individual color if you're purchasing since it'll then be your problem to sell it once the time comes), but it seems that's not the case.

My apologies. I obviously took the question to be what's the better/lower risk path if you were to get an individual color. My bad

[sspade]

Originally Posted by wtwo3

Yup, I custom ordered both of my leases. It'll be hard for me to go back to buying from the lot. I love the ordering process... really feels like the car is being made for me alone (because it kind of is).

Unreal, thanks for sharing. I definitely agree with you although Ive never had the privilege.

One of my goals is custom ordering a vehicle for performance center delivery, even if not a particularly high spec... a custom spec nonetheless! I do feel like after going through all that... I would want to own rather than lease.

Is my old school thought process accurate in assuming that a finance from the start will always be cheaper than a lease... if lessee decided to finance said vehicle AFTER the lease term?

[wtwo3]

Originally Posted by sspade

Unreal, thanks for sharing. I definitely agree with you although Ive never had the privilege.

One of my goals is custom ordering a vehicle for performance center delivery, even if not a particularly high spec... a custom spec nonetheless! I do feel like after going through all that... I would want to own rather than lease.

Is my old school thought process accurate in assuming that a finance from the start will always be cheaper than a lease... if lessee decided to finance said vehicle AFTER the lease term?

Definitely. I'm seriously considering the performance center delivery on my next order later this year. I would have loved to do European delivery but unfortunately they canceled the program before I ever got the chance to. Maybe one day they'll bring it back....

As for your thought process.... it depends. Depends on a few factors such as residual values of the lease term, interest rates, market conditions etc.

TYPICALLY leasing first and then buying out your lease after lease term will be more expensive than simply financing the car from the get-go. But there's exceptions to that.

[wtwo3]

Originally Posted by Burrcold

My apologies. I obviously took the question to be what's the better/lower risk path if you were to get an individual color. My bad

That's definitely another angle to consider. If one was to order a crazy color, leasing would be a lower risk path so you don't have to worry about resale at some point.

[Westside Guy]

Originally Posted by SpeedyATL

Just my opinion as I have never ordered an individual color and I am too cheap to ever do so....

But I would be ok either way of it was a middle of the road color (dk blue, grey, red, etc), but if I went purple, orange, yellow, polka dot, etc, I'd probably lease. You can always buy at the end of the lease, so if the color is still popular and you still like it, there is always a chance to marry it. And if your tastes change, it's only cost you $2.Xk instead of $5k with a lease (I assume it residualizes like other options).

IMHO, you have an excellent point about leasing and selecting fringe type colors. You are limiting your exposure if you fall out of love with the color.

[heavyD^2]

Originally Posted by VChenz

Individual colors take longer to sell vs. silver, black, grey and white. So I would recommend leasing if you don't want any issues flipping the car down the road (and by issues I mean waiting for a buyer). Individual colors are only sought after by those who want those colors, so your market is automatically smaller.

I suppose it depends on the color. The problem I have seen with people that sell individual color BMW's is that they are trying to make money back on the individual paint and it will take a special buyer that's willing to pay more used just because of a color. If they sell at market value they sell just as fast as any other color providing they didn't choose an bad color as there are some bad ones.

[TurtleBoy]

Originally Posted by sspade

Is my old school thought process accurate in assuming that a finance from the start will always be cheaper than a lease... if lessee decided to finance said vehicle AFTER the lease term?

No, definitely not always but in general yes. You have to run the numbers in each specific situation to determine what would be a better from a financial point of view. While we haven't see it recently given the market but many times lease cash is offered which can be an advantage over financing. I remember a few years ago Genesis was offering fairly large lease cash incentives and nothing for financing. Back then I ran the numbers for close to 100 deals and never saw one where financing was less expensive than leasing and then purchasing.

[Westside Guy]

Originally Posted by heavyD^2

I suppose it depends on the color. The problem I have seen with people that sell individual color BMW's is that they are trying to make money back on the individual paint and it will take a special buyer that's willing to pay more used just because of a color. If they sell at market value they sell just as fast as any other color providing they didn't choose an bad color as there are some bad ones.

If it is a frozen color you might be able to command a higher price.

[ted99]

Generally speaking, one never recovers much of the cost of options upon resale. However, if you lease, you "always" recover the lease residual percentage of the options which is generally more than the blue book add-on value of the options. If I am going to obtain a heavily optioned car--by heavily optioned I mean things like paint, upholstery, special trim like carbon fiber, audio, etc.--lease is a better path if you are a person that changes a car every 3-4 years. Unless you have managed to do a private sale to another private party who really values the individual color, I doubt that you would ever recover much of the cost of an "Individual" paint option on trade. Same for a high buck audio option. If you want it and are willing to pay for it, just remember that you won't get it back on trade and so lease is the better path--unless you think the car is a multi-year "keeper".