[Simon H]

Originally Posted by MCOMP

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.

Your first, and second sentence, had me hitting the reply button. You are so right with your analogy, well said that man

[Mpowernut]

One pay lease? Assuming the deals are similar in your area. BMW covers taxes and registration, and no payments for three years. If you love the car and want to keep it it's like a pay half now, pay half later option....

[Pazzo009]

Big Body M cars historically have not been holding value. To finance it, take that into considerations. Other than that, I think they may come out with stronger lease numbers after the new year.

[Mach550]

I'm going through similar mindsets after 67 days of waiting from the date of order to picking up tomorrow. Thinking about the things I could do with the money I'm putting towards this car as I haven't owned a vehicle more than the high $40k range. Just going to finish it up and enjoy the ride to get my mind right.

[ST3]

Originally Posted by tcw495

By that argument, you really shouldn't buy any car ever, because dealers are always going to come out ahead.

I was referring to BMW the manufacturer not the dealer and leasing vs buying. Sorry if I misunderstood your response. If you can show me a way to win with a lease on an M5 then I will definitely go that direction on my next car. I'm enjoying my F90 and fully aware that the enjoyment comes with the experience of driving not with thinking I've gotten a great deal or somehow outmaneuvered BMWNA.

[Stav]

Originally Posted by Ryno 27

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.

Very hard to tell if you should keep this car for several years because it really depends on what you want. Personally I like to change cars ever 1-2 years max because it gets boring and new is... new.

As far as the cost goes, as long as people can afford it, I see it as the cost of inducing some fun to routine. Bad or long day at the office? Get in and drive.

[josec70]

Originally Posted by Mach550

I'm going through similar mindsets after 67 days of waiting from the date of order to picking up tomorrow. Thinking about the things I could do with the money I'm putting towards this car as I haven't owned a vehicle more than the high $40k range. Just going to finish it up and enjoy the ride to get my mind right.

Hit the gas and all this thinking will disappear. Life's short ... enjoy. Or so I say ...

[tcw495]

Originally Posted by ST3

I was referring to BMW the manufacturer not the dealer and leasing vs buying. Sorry if I misunderstood your response. If you can show me a way to win with a lease on an M5 then I will definitely go that direction on my next car. I'm enjoying my F90 and fully aware that the enjoyment comes with the experience of driving not with thinking I've gotten a great deal or somehow outmaneuvered BMWNA.

My point was that whether we buy or lease, we're always coming out behind financially. But if you love this car and the incredible experience that comes with driving it, then on the whole we're coming out way ahead in my opinion.

[desertfox73]

Originally Posted by Mpowernut

One pay lease? Assuming the deals are similar in your area. BMW covers taxes and registration, and no payments for three years. If you love the car and want to keep it it's like a pay half now, pay half later option....

Plus it brings MF way down. I did this with a few leases and loved it.

[Hashtag_M_Rated]

I would have never leased this car at those residuals! My advice is to buy it just like I did. This car is so much fun and you'll enjoy it! M cars are pretty reliable, this is my third one.

[scotty91ss]

Originally Posted by tcw495

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.

Actually, bad debt is borrowing against any investment or product that will decrease in value.
My story is more applicable to larger purchases like houses, where your interest costs are 10s of thousands.
Still, saving and then buying is a hard concept for many to grasp.

[tcw495]

Originally Posted by scotty91ss

Actually, bad debt is borrowing against any investment or product that will decrease in value.
My story is more applicable to larger purchases like houses, where your interest costs are 10s of thousands.
Still, saving and then buying is a hard concept for many to grasp.

^ This is flat out wrong. Virtually all cars depreciate in value. But, if I borrow $100k for a car at 4% interest, that's good debt if my $100k in cash (that someone like you would've used to purchase the car in cash) is sitting in the stock market making 8% in returns.

If I paid $100k cash for the car, sure I'm not paying the 4% in interest, but I'm also not gaining 8% in my investments.

[x5man]

I see it a little different. Yes - it's M5, great car, but for 99% of the time - it's still a 5 series sedan with 600hp which you barely ever use. I wouldn't consider it as an exotic as i would consider a lambo or a Ferrari. Therefore, justifying paying so much extra is tough. Car grows on you very fast and just after 3 months of ownership a WOW factor significantly diminishes. All I'm trying to say that since it's not an exotic and with hundreds of them on dealer lots, paying a lot extra is hard to justify.

Argument about financing cost is very old. We borrow against our future wealth and pay for it. Much better to drive this car at 25 than when you are 60

[scotty91ss]

Originally Posted by tcw495

^ This is flat out wrong. Virtually all cars depreciate in value. But, if I borrow $100k for a car at 4% interest, that's good debt if my $100k in cash (that someone like you would've used to purchase the car in cash) is sitting in the stock market making 8% in returns.

If I paid $100k cash for the car, sure I'm not paying the 4% in interest, but I'm also not gaining 8% in my investments.

THAT IS BACKWARDS!
Take the $100,000 and payoff the car. You save 4% interest by not paying the bank. Then borrow $100,000 and invest. Make the 8%(sometimes) in the market and deduct the 4% interest cost on your investment loan against your income tax.
I am assuming US allows for deducting of interest cost against investments and not deducting of interest costs on your personal use vehicle.

Summarizing my original point, borrow to invest, don't borrow to consume.

[tcw495]

Originally Posted by scotty91ss

THAT IS BACKWARDS!
Take the $100,000 and payoff the car. You save 4% interest by not paying the bank. Then borrow $100,000 and invest. Make the 8%(sometimes) in the market and deduct the 4% interest cost on your investment loan against your income tax.
I am assuming US allows for deducting of interest cost against investments and not deducting of interest costs on your personal use vehicle.

Summarizing my original point, borrow to invest, don't borrow to consume.

Not sure this is really as simple as you're making it out to be. You can't just walk into a bank and say, I need $100k so I can go invest it. And if they do give you a personal loan for that amount, the rate is going to be far higher than 4%.

I guess you could borrow against a home equity line, but now you're getting into tax write off technicalities. The point is, 4% interest really isn't bad debt if you're investing the cash.

[phefner]

Some interesting, if not uninformed opinions. The rub is this... creative finance has allowed auto manufacturers to get sloppy and away with alot. Ford and GM, some of the weakest, are in survival mode. Companies like BMW, will soon be trimming their lineups too.

If you can't afford to purchase and are using the lease to "live larger" than your means; best consider CPO or another more financially appropriate vehicle. Letting someone else take the initial depreciation hit is never a bad idea. I've already seen some used M5s hit dealership lots.