Lauderdale: Hi I'm Lauderdale.

Kyle: And I'm Kyle.

Lauderdale: And we're the finance managers with Momentum BMW. We're here to talk about leasing versus Owner's Choice. So when you lease, the car is titled under BMW.

Kyle: And on our Owner's Choice program, the car is actually titled to you. So it's a benefit, at the end of the term if you were to buy, as if the vehicle were titled to BMW, you would have to pay taxes on the remaining portion of that vehicle a second time. Even though you've already been taxed on the full amount of the vehicle initially. With Owner's Choice, since the vehicle is titled to you, you will not be paying taxes on the remaining portion. You will just be essentially re-financing under your name again.

Lauderdale: When you lease, Gap insurance is included. So in the event that the car gets into a total loss, whatever your auto insurance company does not cover, BMW waives the difference.

Kyle: On our Owner's Choice program, Gap is not included. This is because the car is not titled to the bank. In a situation where it's a lease, the car is titled to the bank. They have some liability there so they include Gap insurance as part of their leasing cost. With our Owner's Choice program, the car is titled to you. So it is your responsibility to make sure that that Gap is covered.

Lauderdale: When you're leasing as well, if you sign up for hypothetically 10,000 to 12,000 miles per year, in the event that your driving habit has changed the next year, you always have the option to call BMW and increase your mileage at a lesser cost versus at the end of the term.

Kyle: On the Owner Choice program, your ability to add more miles before the end of the term is more limited. It is a retail contract with a balloon. Which means that you're not able to alter that contract before the end of the term. You are, however, able to purchase or rather pay for the excess mileage at the end of the term. Just not purchase it before and roll it into your remaining lease payments.

Lauderdale: Also, in a lease, an acquisition fee is charged. That's standard in all leasing.

Kyle: The Owner Choice program has no acquisition fee. So there is no fee to set up the lease with the Owner's Choice program because it is technically a retail contract with a balloon at the end of the term. On both contracts, there is what's called a "disposition fee". That is the same across the board. That is the charge that BMW charges you if you get out of the vehicle at the end of the term and do not re-up with BMW financial after that.