BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BMW M5 F90 (2018+) General Forums F90 M5 General Forum    Talk me thru this...

Post Reply
 
Thread Tools Search this Thread
      12-10-2018, 06:55 AM   #1
Ryno 27
Captain
United_States
252
Rep
660
Posts

Drives: M5 Competition, X5 M50i
Join Date: Aug 2013
Location: Chicago, IL

iTrader: (0)

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.
Appreciate 0
      12-10-2018, 07:58 AM   #2
trev230
Captain
trev230's Avatar
347
Rep
600
Posts

Drives: 2022 M5C
Join Date: Sep 2013
Location: Charlotte, NC

iTrader: (0)

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!!
Appreciate 0
      12-10-2018, 08:30 AM   #3
fstezaws
Private First Class
91
Rep
159
Posts

Drives: 2020 911 S — 2022 X5 M50
Join Date: Oct 2014
Location: AZ—USA

iTrader: (0)

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
Appreciate 3
      12-10-2018, 08:51 AM   #4
MCOMP
Second Lieutenant
MCOMP's Avatar
198
Rep
292
Posts

Drives: 19' M5 Comp.
Join Date: May 2018
Location: Pembroke Pines Florida

iTrader: (1)

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.
__________________

2019 MBB/Aragon M5C
M Performance: Exhaust Tips/Pro Spoiler/Rear Diffuser. H&R 11/11 Spacers ACG Carbon Kevlar Pads XPEL Front PPF Ceramic Pro Silver 20% Tints Instagram #m5comp

Last edited by MCOMP; 12-11-2018 at 04:36 AM..
Appreciate 0
      12-10-2018, 09:17 AM   #5
northtorque
First Lieutenant
northtorque's Avatar
Canada
268
Rep
380
Posts

Drives: F90 2019
Join Date: Mar 2018
Location: Ontario

iTrader: (0)

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.
Appreciate 0
      12-10-2018, 09:32 AM   #6
norbtx
Lieutenant
norbtx's Avatar
337
Rep
578
Posts

Drives: 2019 BMW M5
Join Date: Sep 2018
Location: Houston Texas USA

iTrader: (0)

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.
Appreciate 0
      12-10-2018, 09:53 AM   #7
tcw495
Captain
tcw495's Avatar
271
Rep
668
Posts

Drives: F90 M5
Join Date: Apr 2018
Location: Potomac, MD

iTrader: (0)

Quote:
Originally Posted by norbtx View Post
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.
I disagree. I had to think about the price. It's not like I can't pay my bills because of the car, but if you love cars, you can run numbers all day long and there will always be reasons not to buy the car because there are certainly much more affordable ways to get from point A to point B. Eventually you just have to pull the trigger. This is a good one to pull the trigger on because even my wife says this is her favorite car of mine so far (and it's also the most expensive).
__________________
2021 X7
2018 F90 M5
2013 F12 M6
2005 645ci
2005 325ci
Appreciate 2
      12-10-2018, 11:30 AM   #8
SocalDude
Private
73
Rep
87
Posts

Drives: BMW M5
Join Date: Feb 2015
Location: Socal

iTrader: (0)

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!
Appreciate 2
Punitive147.00
lofrese1264.00
      12-10-2018, 12:12 PM   #9
tcw495
Captain
tcw495's Avatar
271
Rep
668
Posts

Drives: F90 M5
Join Date: Apr 2018
Location: Potomac, MD

iTrader: (0)

Quote:
Originally Posted by SocalDude View Post
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!
Or just buy all black trim pieces, and pretend it's a comp, lol. No one feels the 17 hp without a timer on.
__________________
2021 X7
2018 F90 M5
2013 F12 M6
2005 645ci
2005 325ci
Appreciate 0
      12-10-2018, 01:48 PM   #10
Gassy
Soporificist
160
Rep
327
Posts

Drives: 2019 M5- Rhodonite/Aragon
Join Date: May 2010
Location: North Carolina

iTrader: (0)

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.
__________________
2019 M5 Rhodonite Silver// 2016 M4- retired// 2011 750i- retired// 2004 740i- retired//
2001 740i- retired// 1998 M3- retired
Appreciate 0
      12-10-2018, 02:14 PM   #11
fstezaws
Private First Class
91
Rep
159
Posts

Drives: 2020 911 S — 2022 X5 M50
Join Date: Oct 2014
Location: AZ—USA

iTrader: (0)

Quote:
Originally Posted by MCOMP View Post
I don't agree with this third paragraph analogy, 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. If no benefit than your argument is valid.
Some people find no enjoyment from owning or operating vehicles. Others find enjoyment in completely unrelated purchases. I was simply trying to put the asset depreciation as the focus of the debate.

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!
Appreciate 2
MCOMP198.00
Alberta1975.00
      12-10-2018, 02:15 PM   #12
gblansten
Brigadier General
gblansten's Avatar
1913
Rep
4,171
Posts

Drives: 23 Tesla S Plaid
Join Date: Sep 2007
Location: Thick ascending limb

iTrader: (0)

Quote:
Originally Posted by MCOMP View Post
I don't agree with this third paragraph analogy, 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. If no benefit than your argument is valid.


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.
Appreciate 0
      12-10-2018, 09:03 PM   #13
M5 dude now
Private
47
Rep
67
Posts

Drives: M5 competition
Join Date: Aug 2018
Location: Corpus Christi

iTrader: (0)

Garage List
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!
Appreciate 4
MCOMP198.00
Drtjxtz160.00
Neptune71416.00
lofrese1264.00
      12-10-2018, 09:21 PM   #14
limeypride
Brigadier General
limeypride's Avatar
United_States
4419
Rep
4,109
Posts

Drives: 2022 M8 Competition GC
Join Date: Oct 2016
Location: Orlando area, FL

iTrader: (0)

Quote:
Originally Posted by SocalDude View Post
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!
I have a 2019 Comp... and I agree completely. The non-Comp is excellent and, side by side, they're tough to tell apart. Add a piggyback and HAS and you've got something that looks as good/better and is even (wayyy) faster.

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.
Appreciate 0
      12-10-2018, 09:26 PM   #15
limeypride
Brigadier General
limeypride's Avatar
United_States
4419
Rep
4,109
Posts

Drives: 2022 M8 Competition GC
Join Date: Oct 2016
Location: Orlando area, FL

iTrader: (0)

Quote:
Originally Posted by crazyclinician View Post
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!
Everyone's financial situation and comfort-level is different. Given that, and speaking only for me --> well said... and 'nuff said!
Appreciate 0
      12-10-2018, 11:20 PM   #16
tcw495
Captain
tcw495's Avatar
271
Rep
668
Posts

Drives: F90 M5
Join Date: Apr 2018
Location: Potomac, MD

iTrader: (0)

Quote:
Originally Posted by crazyclinician View Post
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!
Lol. Spot on. Love this guy.
__________________
2021 X7
2018 F90 M5
2013 F12 M6
2005 645ci
2005 325ci
Appreciate 0
      12-11-2018, 07:49 AM   #17
KDDeutschland
Private First Class
KDDeutschland's Avatar
United_States
63
Rep
129
Posts

Drives: 2018 M550i
Join Date: Sep 2018
Location: Worsbach, Germany

iTrader: (0)

Quote:
Originally Posted by Ryno 27 View Post
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.
I purchased my 19 M5 CP. I put $12k down and financed $99k at $1590 a month for 72 months. But I plan on keeping this car forever and will keep miles low and make sure it is impeccable on the inside and out. This is a once in a life time bucket list purchase for me so its worth it in my opinion. I will never pay this much or anything close to it for a car again, so this one time "splurge" is way worth it to me. But to each their own, do what makes you happy as long as you can be responsible the purchase. Also my car is fully loaded with every option except CF brakes and night vision. I got 15% for being military and i git it tax free. So i got an awesome deal which put it in my price range... barley 🤣🤣🤣
__________________
The Bishop Has Blessed You?
Appreciate 0
      12-11-2018, 07:52 AM   #18
KDDeutschland
Private First Class
KDDeutschland's Avatar
United_States
63
Rep
129
Posts

Drives: 2018 M550i
Join Date: Sep 2018
Location: Worsbach, Germany

iTrader: (0)

Quote:
Originally Posted by pet3r View Post
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
Excellent advice and I agree whole heartedly. Be responsible, if you have to think about it too hard and it gives you heartburn thinking about how to pay for it THEN DONT BUY IT. Again great advice here...
__________________
The Bishop Has Blessed You?
Appreciate 0
      12-11-2018, 10:26 AM   #19
ST3
Lieutenant
ST3's Avatar
329
Rep
533
Posts

Drives: F90 M5
Join Date: Sep 2018
Location: Connecticut

iTrader: (0)

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.
Appreciate 0
      12-11-2018, 10:54 AM   #20
scotty91ss
First Lieutenant
182
Rep
321
Posts

Drives: 19 M5, '15 X5M,'91Chev454ss
Join Date: Nov 2015
Location: Edmonton

iTrader: (0)

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.
Appreciate 0
      12-11-2018, 11:00 AM   #21
tcw495
Captain
tcw495's Avatar
271
Rep
668
Posts

Drives: F90 M5
Join Date: Apr 2018
Location: Potomac, MD

iTrader: (0)

Quote:
Originally Posted by ST3 View Post
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.
By that argument, you really shouldn't buy any car ever, because dealers are always going to come out ahead.
__________________
2021 X7
2018 F90 M5
2013 F12 M6
2005 645ci
2005 325ci
Appreciate 0
      12-11-2018, 11:04 AM   #22
tcw495
Captain
tcw495's Avatar
271
Rep
668
Posts

Drives: F90 M5
Join Date: Apr 2018
Location: Potomac, MD

iTrader: (0)

Quote:
Originally Posted by scotty91ss View Post
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.
This multimillionaire over-simplified things. Sure putting $60k down on a $120k car lowers your interest cost. But you're probably only paying somewhere under 4% in interest. That $60k in the market will usually return greater than 4%. So, maybe the multi-millionaire actually could have been a multi, multi-millionaire with a basic financial literacy course.

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.
__________________
2021 X7
2018 F90 M5
2013 F12 M6
2005 645ci
2005 325ci
Appreciate 1
Alberta1975.00
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 01:19 PM.




m5post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST