12-10-2018, 06:55 AM | #1 |
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Talk me thru this...
Ready to get my dream car. With the low residuals, it appears the monthly payment will hover around $2k. Assuming, that those that did not pay cash, how did you overcome the “sticker shock” (was there any)? I’m very much considering a purchase, and keeping this car for several years. Is this a bad idea for a M car, with the potential repair and maintenance costs down the road? Thank you in advance for your helpful commentary and advice.
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12-10-2018, 07:58 AM | #2 |
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I'm right there with you. These lease options are terrible. I mean I'm currently leasing a X5M that is between $400-700 less than what these M5 numbers are coming in at. Don't even think about the Comp. Can I afford it yes. Is it wife approved yes lol. I'm just having a terrible time stomaching paying $1800-2000 per month for this car. I have until Feb-Mar before my lease ends and my gut is telling me to sit and wait this thing out until then and see what happens. We can't be the only ones looking at these numbers scratching our heads. Purchasing has crossed my mind as well but those low residuals are telling us something!!
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12-10-2018, 08:30 AM | #3 |
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You're coming into a group that is clearly biased against your best interests if your finances are not clear enough to you. I don't want it to sound like a knock or criticism, other than, you're buying a luxury performance car that is an order of magnitude beyond excessive—both in the luxury, performance, and price. All of these points are frivolous in the practical sense, and there are FAR less expensive vehicles.
Everyone here will have different philosophies on personal finances and their views on spending/investing. So if you want advice on whether you should buy it or not, I would say don't do it. If it's not painfully clear to you, don't do it. If you don't like the idea of walking away from $60k for a superfluous purchase, don't do it. Think of it this way—if you knew that Facebook stock would plummet in 2 years, would you still drop 60k on it today knowing you'll lose 50% of its value in 2 years? If that fun of doing that doesn't sound more fun than keeping 60k, then don't do it. If it does, then do it |
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12-10-2018, 08:51 AM | #4 |
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The amount of joy and therapy from owning such a car is immeasurable. At any cost. Car Ownership is a predetermined costly nightmare offset by the joy(this car) and practicality of needed transportation. No one would buy stock in a predetermined downward spiral.People forget this fact: Depreciation yes,Benefits of car ownership yes.
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12-10-2018, 09:17 AM | #5 |
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I am sure someone else has ranted on this but i'll get on the soapbox for a second. Residuals dropping are the tip of the iceberg on internal combustion (ICE) only luxury items like the f90.... by that I mean over the next 6-8 years (around 2 cycles of production) there will be, at the end, very, very few mass produced ICE only vehicles. Major R&D on ICE has already essential stopped. It will be electric vs. hybrid only, followed by electric only as electric infrastructure matures and most manufacturers have a ICE phase out timeline already in place of course. The nail in the coffin will be the progressive taxation on gasoline driving petrol cost up as quickly as it can (walking a fine line to avoid civil anarchy) so as to facilitate the transition to electric. So in that context the f90 will become an expensive to operate indulgence OR one of the last examples of a classic ICE super sedan. I am hoping for the latter as I am planning of purchasing and holding for a while. But I'll be wrong. General appeal in the market will tank and that is why BMWFS is dropping residuals (and to make more coin since they have a winner on their hands for the moment). You should soon start to see lease residuals of hybrids/electric start to be advantageous over ICE only vehicles once battery storage longevity/durability is established. Also, basic economy / commuter cars will be shared / fleeted out for most of society anyway as self driving takes over, traffic integration technologies develop and then coming generations don't see any value in getting a license. Witness ford and others completely phasing out huge sections of that product line. They see the writing on the wall clearly. We will become dinosaurs.... so go forth ye wild of spirit, drive and rule the earth while you still can.
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12-10-2018, 09:32 AM | #6 |
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The feds are raising interest rates. The easy financing we all enjoyed will be a thing of the past. BMW is just thinking how hard it will be to finanace a used M5 down the road, so they see the price being low. That’s how i see it.
As for the OP, if you are having to think about the affordability then walk away. |
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12-10-2018, 09:53 AM | #7 | |
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12-10-2018, 11:30 AM | #8 |
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I'll let you in on a little secret: The non-comp package F90 M5 is fantastic. I mean it is so much better than the F10 M5 comp I previously owned. I test drove both the regular F90 and comp pack and easily went for the non-comp M5 because (1) I did not notice the difference for every day driving, (2) payments were much lower, and (3) I could go for a loaded car. Don't get me wrong, the F90 M5 comp pack is more fantastic, but not in ways I will notice (e.g., on the track). BUT, it is definitely not worth $500-$700 more per month in lease payments. For those leasing, just pickup the comp pack on your next lease cycle...Good luck!
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12-10-2018, 12:12 PM | #9 | |
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12-10-2018, 01:48 PM | #10 |
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I have another way of looking at it which I will term a "buy lease." I plunk down x number of dollars for a new BMW about every 4 years. I either trade or privately sell the previous model, the proceeds of which constitutes my down payment. Usually I plunk down a few thousand bucks in addition to keep my monthlies around $1000-1200, and I calculate what it cost me to own the last model I had by the difference in the old car purchase price and trade/private sale price. I divide that by the number of months I owned the car, and without exception I'm paying less per month in depreciation than I would be in lease costs. Of course, that capital is tied up in a depreciating asset, but the joy of driving it is more than fair compensation. I'm sure there is a flaw or two to my calculus, but I'm happy with this method.
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12-10-2018, 02:14 PM | #11 | |
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If you feel like the enjoyment of owning anything that depreciates 50% over 2 years is worth more to you than the money, then yolo! |
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12-10-2018, 02:15 PM | #12 | |
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I have looked forward every day to driving the fun vehicles I have had. These cars are so much fun. I will feel the same way when I get back into an M5. |
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12-10-2018, 09:03 PM | #13 |
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I think most of us on this forum can afford to drive an M5 via lease or purchase. Most average people will think we are insane for spending the money we do on these cars. I have been waiting for my M5 for over 2 months. In the mean time, I been driving a loaner, X3 from BMW while waiting. I can tell you right now the X3 sucks! I am just going from point a to point b, boring! I came from an Dinan stage II M3. When I get into my M car there is a good feeling you get. You get to drive fast, be connected with your car and look back at it after you park it. Fuck it, you only live once. I could give a rats ass that I loose money, at least I am having fun. Stop over analyzing it and drive a bad ass car!
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12-10-2018, 09:21 PM | #14 | |
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That said, I'm used to paying $2K plus from my last car (E63S) and the one prior to that (RS7 P). I went with the Comp because it was the car on the lot with the options I wanted. I've daily'd it for almost 5,000 miles now and I *LOVE* it... I suspect I'd love the non-Comp just/almost the same. |
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12-10-2018, 09:26 PM | #15 | |
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12-10-2018, 11:20 PM | #16 | |
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12-11-2018, 07:49 AM | #17 | |
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12-11-2018, 07:52 AM | #18 | |
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12-11-2018, 10:26 AM | #19 |
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As others have stated...make sure you are prepared to own this extremely fun to drive (vs investing and growing it). Life is short though...
As for buy vs lease. I'd highly recommend you buy. Leasing looks great and sometimes you might come out ahead of the game but you limit the ease of exit and last time I checked BMW has more people crunching numbers than we do to ensure they come out ahead. Good luck and go ENJOY it. |
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12-11-2018, 10:54 AM | #20 |
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I met this multi millionaire once. He said he never paid interest costs to anyone. He said the average person over their lifetime will pay a Financial Institution between $100,000 and $400,000 in interest. He said, "wouldn't you like to have $300,000?"
So he said he flipped it around. Instead of buying and borrowing, he saved and then bought. From a park trailer up to his million++ home, from a small car, then up. Save, then buy! Why buy then borrow? If you can't save at least 1/2 of your purchase, perhaps you shouldn't purchase it. |
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12-11-2018, 11:00 AM | #21 | |
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12-11-2018, 11:04 AM | #22 | |
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Now, if you want to have no debt for peace of mind, and because you sleep better at night knowing you are debt free, that is a different argument. But, often good debt is a wise way to maximize the value of your money. Bad debt is stuff like credit card debt and student loans, where the interest can accrue at like 8-25% annually.
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