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      12-27-2019, 11:33 AM   #1
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Does anyone buy / finance a M5

Just out of curiosity since most posts I see are related to lease deals. I understand in theory most people are hesitant to buy / finance due to the tech and maintenance. But I typically drive more than 10K a year, also, I like to have inherent value in something vs letting $X,XXX go every month.

Would I be foolish to finance / buy?
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      12-27-2019, 01:53 PM   #2
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Originally Posted by JCZ5 View Post
Just out of curiosity since most posts I see are related to lease deals. I understand in theory most people are hesitant to buy / finance due to the tech and maintenance. But I typically drive more than 10K a year, also, I like to have inherent value in something vs letting $X,XXX go every month.

Would I be foolish to finance / buy?
The way I see it is the money you're letting go every month is the same money it depreciates over time, so either way you're going to loose the money. I don't think an M car especially an M5 is worth keeping over 3 years.
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      12-27-2019, 02:15 PM   #3
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Originally Posted by JCZ5 View Post
Just out of curiosity since most posts I see are related to lease deals. I understand in theory most people are hesitant to buy / finance due to the tech and maintenance. But I typically drive more than 10K a year, also, I like to have inherent value in something vs letting $X,XXX go every month.

Would I be foolish to finance / buy?
The way I see it is the money you're letting go every month is the same money it depreciates over time, so either way you're going to loose the money. I don't think an M car especially an M5 is worth keeping over 3 years.
Yep, completely forgot to mention another reason to lease is the massive depreciation. So thank you for pointing that out.

However, I plan to keep the car for at least 5 years, for context. That is another reason why I'm also very interested on the M2CS. I feel the CS is a car that I can keep indefinitely. With the M5, tech and horsepower transforms so quickly, it will certainly feel dated. The CS is a "simple" analog vehicle where the certain joy of driving will always be there...minus the luxury
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      12-27-2019, 03:25 PM   #4
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Quote:
Originally Posted by JCZ5 View Post
Quote:
Originally Posted by David.J View Post
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Originally Posted by JCZ5 View Post
Just out of curiosity since most posts I see are related to lease deals. I understand in theory most people are hesitant to buy / finance due to the tech and maintenance. But I typically drive more than 10K a year, also, I like to have inherent value in something vs letting $X,XXX go every month.

Would I be foolish to finance / buy?
The way I see it is the money you're letting go every month is the same money it depreciates over time, so either way you're going to loose the money. I don't think an M car especially an M5 is worth keeping over 3 years.
Yep, completely forgot to mention another reason to lease is the massive depreciation. So thank you for pointing that out.

However, I plan to keep the car for at least 5 years, for context. That is another reason why I'm also very interested on the M2CS. I feel the CS is a car that I can keep indefinitely. With the M5, tech and horsepower transforms so quickly, it will certainly feel dated. The CS is a "simple" analog vehicle where the certain joy of driving will always be there...minus the luxury
The only way to go in my opinion is to score a deal on a CPO M5 since you plan to keep the car more than 5 years. Doesn't make any sense to purchase new. The depreciation and overall costs don't make it attractive.

If you go new, lease is the only way to go.
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      12-27-2019, 06:17 PM   #5
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Interesting thread. It is hard to economically justify a M5; no version of it is likely to appreciate, and all well – option versions in non-– oddball colors and spec are expensive.

When I was looking nationwide for several months I tried diligently to find a lightly used or 2019 M5 Comp. in a spec I wanted or could at least live with. Absolutely zero luck in all cases! Further, with people placing tunes on cars and dealers voiding warranties, there is always some risk with the used car. The owners (or dealers) of the used cars wanted so close in price to a new car that it made no sense.

The discounts available on the new, properly spec'd 2019 cars were within $5000 of the discounts available on a new 2020 car, and the 2020 car had Live Cockpit and other benefits (including being one year newer for depreciation purposes). The lease rates on the 2020 car of course were not attractive. So I just purchased (without financing) and will depreciate part of the cost for business and bite the bullet on the rest.

To be clear, the Lease Rates even on the 2019 cars were only so good. For a high sticker price car, the Monthly Lease Rate including California Taxes, could easily run $1400 on a 36/10 K lease – this is $50,400 over three years. This is a lot of cost, even if the tax deduction benefits are better with the lease.

I have only 800 miles on the car so far, but it feels like a very special vehicle. There will always be something newer and in some ways better in the future and I will keep an open mind, but it will take a spectacular vehicle to replace this one anytime soon.

Good luck in your search!
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      12-27-2019, 06:24 PM   #6
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Interesting thread. It is hard to economically justify a M5; no version of it is likely to appreciate, and all well – option versions in non-– oddball colors and spec are expensive.

When I was looking nationwide for several months I tried diligently to find a lightly used or 2019 M5 Comp. in a spec I wanted or could at least live with. Absolutely zero luck in all cases! Further, with people placing tunes on cars and dealers voiding warranties, there is always some risk with the used car. The owners (or dealers) of the used cars wanted so close in price to a new car that it made no sense.

The discounts available on the new, properly spec'd 2019 cars were within $5000 of the discounts available on a new 2020 car, and the 2020 car had Live Cockpit and other benefits (including being one year newer for depreciation purposes). The lease rates on the 2020 car of course were not attractive. So I just purchased (without financing) and will depreciate part of the cost for business and bite the bullet on the rest.

To be clear, the Lease Rates even on the 2019 cars were only so good. For a high sticker price car, the Monthly Lease Rate including California Taxes, could easily run $1400 on a 36/10 K lease – this is $50,400 over three years. This is a lot of cost, even if the tax deduction benefits are better with the lease.

I have only 800 miles on the car so far, but it feels like a very special vehicle. There will always be something newer and in some ways better in the future and I will keep an open mind, but it will take a spectacular vehicle to replace this one anytime soon.

Good luck in your search!
Thank you for your perspective. And I agree, been looking for fun and 2019s and preowned are not substantially less than the 2020s.

I'm in no rush, so maybe when May rolls around and the new face lifted M5s are released, the 2020s will be offered with greater discounts.

By the way, did you go for the M5 or M5C?
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      12-27-2019, 10:56 PM   #7
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I purchased mine. I ordered the car in August & signed the paperwork in November. Having previously owned 2 cpo M5 the warranty were only good for a couple of years. This time around I really wanted to spec to my liking. I am very happy with my decision. Also took Geico Mechanical breakdown coverage for 6yr/100k miles.
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      12-28-2019, 12:05 AM   #8
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Just to clarify: the asking prices for the used 2019s were close to the discounted prices on the new 2019s, and the prices for the 2020s sitting at dealers were not that much more than the comparable 2019s.

Do you have to ne a geico insured to buy the mechanical insurance?
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      12-28-2019, 07:55 AM   #9
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It's odd being a UK member, as we don't tend to obtain cars in the same way as our US members.

I leased (PCH) an M3 Comp £66k, 24 months, £2k down, £675 pcm. Paid for one service £500 and returned 6 months early at no cost, so a little shy of £15k ownership costs. I was offered to buy at £40k, so my £15k versus £26k depreciation was a wise move.

However...

UK M5 2019 stock sale meant I achieved a discount/contribution of £30k on a list of £100k, so £70k starting price.

Added more into the deposit, leaving a balance financed at 3.9% APR. The 5 year residual was quoted at circa £35k. Annual cost will run around £7.5k, including finance and servicing/consumables.

How that all turns out I'm unsure, but for me this was a retirement exit car and keeper, so the 'starting price' was a real draw and although I will suffer depreciation, this was negated somewhat in the day one discount.

The result for me is I have a car with reliability, performance and large worldwide dealer network, which I will own outright, with no debt and some value at the end of term. I do intend to keep it long term, but who knows...
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      12-28-2019, 02:10 PM   #10
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I purchased mine. I ordered the car in August & signed the paperwork in November. Having previously owned 2 cpo M5 the warranty were only good for a couple of years. This time around I really wanted to spec to my liking. I am very happy with my decision. Also took Geico Mechanical breakdown coverage for 6yr/100k miles.
That Geico mechanical breakdown insurance is a good deal. I had it on my old 545i.
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      12-28-2019, 02:14 PM   #11
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Do you have to ne a geico insured to buy the mechanical insurance?
The Geico Mechanical Breakdown insurance is for new cars only. It must be purchased within a very short period of time after buying the car, and you must maintain the coverage to keep it. If you stop paying for it, you can't add it back later.

It covers anything the factory warranty covers.



If you don't have Geico insurance, you can always purchase an extended warranty. But the cost of most extended warranties is more than the Geico coverage, and they typically have more exclusions than the Geico coverage.
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      12-29-2019, 04:45 PM   #12
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The only way to go in my opinion is to score a deal on a CPO M5 since you plan to keep the car more than 5 years. Doesn't make any sense to purchase new. The depreciation and overall costs don't make it attractive.

If you go new, lease is the only way to go.
Totally agree...

I financed my CPO 2016 F80; it was exactly what I was looking for...

For me it's all about the enjoyment of the vehicle and I get the best I can afford... I don't think about depreciation after I get the car. I usually end up keeping the cars for at least 5 years and I love to drive...

I do have a daily driver GTI for abuse miles, but I'm driving the M any chance I get if the weather is decent...
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      12-29-2019, 07:41 PM   #13
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I ended up buying my 2020 M5C, I also purchased the extended warranty. I plan on driving this at least 7 years.
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      01-03-2020, 12:00 PM   #14
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I don't think it makes any sense to buy over lease when the lease rates are good. Unless you plan on keeping the car a long time, even in that case though CPO is the better deal. These examples aren't on scale of the M5, but the same logic should hold true. In 2014 I leased a C300 (52k msrp) for $240 a month, 24 months. Total cost was $7,760. After turning it in, they put it on the lot for 26k! It lost 26k in value. Purchasing this would have been a huge loss. Had almost the same numbers play out on my girlfriends last 330i. On the other hand, if the car is worth more than they expected, you can buy it out and sell it on your own. I did this in college with an Acura. Had a 12k residual, I bought it out and sold it for 18k. Was 24k new. I feel like its hard to lose with a lease because you have the option to buy it or walk away at the end.
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      01-13-2020, 06:40 PM   #15
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dont know why anyone would buy this car... lease rates are too good.
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      01-13-2020, 10:30 PM   #16
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It all depends on how long you plan to keep the car, If you end up keeping it 5 years you'd be way ahead by buying instead of leasing. If you're going to get a new car every 3 years it probably makes sense to lease.
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      01-14-2020, 12:27 AM   #17
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As a business owner it's much easier to write off a lease than a purchase. If planning to keep the car it actually makes sense to lease at a low residual in order to pay off most of the car via lease payments, then buy it "cheap" at lease end.

For example, when people were writing off 100% of high end SUV leases thru their business because of Obama era legislation, they were literally asking for 100K mi/year leases in order to basically just buy the car via leasing.

I do plan to buy my car at lease end...but then again, I always say that and never do, lol. I guess we'll see!
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