[neohh]

Originally Posted by jeffscott1

Next thing you know we will be adding IRR in to the calculation. The interest loss will be similar when you consider you are 15k more out of pocket not counting the 5 to 10k down you need to put to get to a reasonable payment.

If the car is damaged or in an accident you are responsible for the loss of value to the lease company at the end of the lease.

The primary reason why people lease a car like this is because it is the only way they can afford it.

You have to consider time value of money, that's finance 101.

In any case, it's absolutely not true that people who lease this car because it is the only way they can afford it. I bought this car as pre order but I know for a fact that most people who lease it here have a lot more financial power than I do.

[windtendo]

Originally Posted by jeffscott1

The primary reason why people lease a car like this is because it is the only way they can afford it.

Wow Jeff, what an ignorant statement to make.

[neohh]

Originally Posted by jeffscott1

You are laying out more money over the 3 year period during the lease

Again, you are ignoring that the $115k you paid up front. It is not difficult to earn 4%-6% off that $115k and cover more than what they loss in lease interest. Time value of money, my friend.

[Simon H]

Originally Posted by Fireblade1000

4-6% wow, I'd be lucky to find 2% over here

Exactly Nick
Its absolutely dire. Just no point having it sat in bank, i would rather enjoy it a bit, and smile when 616 bhp hits my backside

[shellbmb]

Just take the Rock's advice: "If it drives, flies, floats or f**ks, lease it!"

[windtendo]

Originally Posted by jeffscott1

It's a matter of fact

leaseguide.com ... nice.

So a pro-leasing website is saying you can get a better car by leasing. Where to begin...

[neohh]

Originally Posted by windtendo

leaseguide.com ... nice.

So a pro-leasing website is saying you can get a better car by leasing. Where to begin...

He clearly didn't read his "fact". That article stated the first type who lease car are "People who have plenty of cash to buy a car but want to preserve it for other purposes"

[CarlosM4]

Another thread ruined by a crippled argument.

Do whatever the f... pleases you. In the end of the day it is all a f...load of numbers.

If I could lease here, I would. And NPV makes all the difference. But hey if you don't know what NPV is well do what you prefer

[Pimpsy]

Originally Posted by jeffscott1

You are laying out more money over the 3 year period during the lease

Sorry but you are completely wrong.

[Stav]

Originally Posted by jeffscott1

I see this statement all the time on this board. My math says that a 3 year lease will cost you about $60,000.00 plus any lease end penalties they hit you with. I paid 115k cash for my 135k M5 comp, 2016 M5s are selling for mid 60s, the F90 should hold its value better than the older version.
Let's say it's worth 70,000.00 with 20 to 30k miles. My cost of ownership is 45k )115k- 70k) over the 3 years. Even if I am off by 10k paying cash is still cheaper and I am not stuck in the car for 3 years.

Where are you seeing the mid 60s for 2016 M5s? There are many on cars.com for low 50s and that is without any negotiation. This is without considering the time you have to spend dealing with selling it.

The fact about the lease is that BMW is taking all the risk - saying for example than in 3 years they will be able to sell it for 60%, the residual. If the car is worth more then you can buy it and sell it yourself. I did this with my last M4.

If the value tanks though you can just walk away (or even lease transfer it much before the 3 years).

Lease is just another method of financing that comes with insurance which you pay a fee for but is minimal.

Also buying in most states you pay substantial taxes upfront where with the lease you only pay taxes on monthly payment.

Why somebody would want to tie $120k upfront when this other financing vehicle called lease is available is really beyond me - unless planning to keep it for a long long time.

[TheRealBob]

Our time on this forum would be better spent talking about our love for the car, rather than arguing the financial arrangements. You are far better off seeking the advice from experts in the field, rather than the folks here, because let's face the fact we're all nuts, and not financially prudent in blowing 120,000 or so on a big boy toy.

I do love this thing though, so f*** the money!

[olderguy]

Originally Posted by TheRealBob

Our time on this forum would be better spent talking about our love for the car, rather than arguing the financial arrangements. You are far better off seeking the advice from experts in the field, rather than the folks here, because let's face the fact we're all nuts, and not financially prudent in blowing 120,000 or so on a big boy toy.

I do love this thing though, so f*** the money!

Agree! I don't know what the difference would be between 1.9% financing and a good lease. Sometimes it doesn't matter.

[JOHNBMWM5]

USA = Lease............. Everything, but don't loose your Job or your on the street. LOL.

[///M ARMY]

What the help is going on here

[Stav]

Originally Posted by JOHNBMWM5

USA = Lease............. Everything, but don't loose your Job or your on the street. LOL.

I think you are talking about two different things - bad financial decisions of some (or many) with a financial instrument (lease) that can work really well in certain cases.

[Pimpsy]

Originally Posted by Stav

I think you are talking about two different things - bad financial decisions of some (or many) with a financial instrument (lease) that can work really well in certain cases.

I'll bolster your argument by saying that I had my accountant run every possible scenario, and even putting aside many of the other advantages of leasing, it actually costs less in terms of real dollars for me to lease the car prior to purchase.

This is because of the tax incentives associated with leasing as a business owner.

I'm not going to go into too much detail but, for many, there are many advantages to leasing compared to purchase.

Good decision making is very individualized; it has to also take into account people's varying willingness to take on risk, varying levels of opportunity cost for the outlay of cash, and many other things. There is no one size fits all answer and any assumptions to the contrary are simply foolish.

[JOHNBMWM5]

Originally Posted by Pimpsy

I'll bolster your argument by saying that I had my accountant run every possible scenario, and even putting aside many of the other advantages of leasing, it actually costs less in terms of real dollars for me to lease the car prior to purchase.

This is because of the tax incentives associated with leasing as a business owner.

I'm not going to go into too much detail but, for many, there are many advantages to leasing compared to purchase.

Good decision making is very individualized; it has to also take into account people's varying willingness to take on risk, varying levels of opportunity cost for the outlay of cash, and many other things. There is no one size fits all answer and any assumptions to the contrary are simply foolish.

YES in your case "business user" it will but not so "private" IMO.

[windtendo]

Originally Posted by Pimpsy

I'll bolster your argument by saying that I had my accountant run every possible scenario, and even putting aside many of the other advantages of leasing, it actually costs less in terms of real dollars for me to lease the car prior to purchase.

This is because of the tax incentives associated with leasing as a business owner.

I'm not going to go into too much detail but, for many, there are many advantages to leasing compared to purchase.

Good decision making is very individualized; it has to also take into account people's varying willingness to take on risk, varying levels of opportunity cost for the outlay of cash, and many other things. There is no one size fits all answer and any assumptions to the contrary are simply foolish.

You're spot on with this.

[hoffmeister]

Onepay lease can help with interest cost a little, but you are out the money (i believe) if the car gets wrecked.

I bought this car because i expect to put a ton of miles on and keep it for a while.

That said, in my experience trading in owned BMW's I have a hard time believing I would get 60k for this car in 3 years with 36k on the clock.

As clarkson said "big expensive bmws depreciate like a piano falling down a mountain".

[Stash21]

Got £23k off my M5C. Very happy with the deal and cost of ownership over the 3 years I will have it.

Early adopters who paid at or near list will take a heavy hit. But given what happened on the f10 they would have known that.

[jeffscott1]

Originally Posted by hoffmeister

Onepay lease can help with interest cost a little, but you are out the money (i believe) if the car gets wrecked.

I bought this car because i expect to put a ton of miles on and keep it for a while.

That said, in my experience trading in owned BMW's I have a hard time believing I would get 60k for this car in 3 years with 36k on the clock.

As clarkson said "big expensive bmws depreciate like a piano falling down a mountain".

Here you go, here is 2016 that stickered for 20k + less than a 2019 comp with 41k miles for 59k. The 2019 is a far superior vehicle and should hold its value a little better than the 2016. I can send links for dozens more.


United BMW

1501 Alpharetta Hwy
Alpharetta, GA 30004-0000
(5 Miles)

Sales: (678) 430-3775
Reserve Now Apply For Financing Dealer Website Carfax Report Contact Dealer Print Vehicle Details
Back to Inventory
Previous
Next
2016 BMW M5
Price: $58,995

BMW Certified M5 COMPETITION PACKAGE ! Finance as low as 1.99% Excellent Condition with Unlimited Miles CPO Warranty! CARFAX 1-Owner. M5 Sedan trim, Black Sapphire Metallic exterior and Black interior. PRICE DROP FROM $115,095, $600 below Kelley Blue Book! Heated Leather Seats, Moonroof, Nav System, Back-Up Camera, Turbo Charged Engine, BANG & OLUFSEN SOUND SYSTEM, TRANSMISSION: 7-SPEED M DOUBLE-CLUTCH..., COMPETITION PACKAGE, EXECUTIVE PACKAGE, DRIVER ASSISTANCE PLUS, Non-Smoker vehicle, Originally bought here. READ MORE!CPO BMW is now offering a more comprehensive warranty beginning in 2014 that will cover Navigation, Small Electronics, Cupholders, Headlights, and much more! This vehicle's warranty coverage has been extended, as it's now being back by BMW's 5-year/Unlimited mile protection plan! Just like before, this vehicle has been inspected by a BMW-trained technician and we're holding it to the same high standards! On top of that, we at United BMW stand All Wheel Drive, Power Liftgate, Back-Up Camera. All Wheel Drive, Power Liftgate, Back-Up Camera. behind our Certified BMW's by offering a 3-day Penske Promise that allows you the opportunity to return the vehicle within the first 3 days or 300 miles if you are not satisfied with your purchase! See dealer for additional information!OPTION PACKAGESCOMPETITION PACKAGE Wheels: 20 x 9.5 Fr & 20 x 10.5 Rr Dbl Spoke Style 601M, Tires: P265/35R20 Fr & P295/30R20 Rr Performance United BMW 3 Day Promise United BMW is proud to be the #1 volume BMW dealer in the Nation as well as the largest retailer in Penske Automotive Group. BMW of North America has awarded United BMW with it's SIXTH consecutive Center of Excellence Award! United BMW is the only BMW dealership in Georgia to win this prestigious award! Pricing analysis performed on 2/5/2019. Horsepower calculations based on trim engine configuration. Please confirm the accuracy of the included equipment by calling us prior to purchase. -
Overview
Options & Packages

Year: 2016

Make: BMW

Model: M5

Price: $58,995

Mileage: 41,211

Engine: 4.4L 8 Cylinder

Exterior Color: Black Sapphire Metallic

Interior Color: Black Extended Merino Leather

VIN: WBSFV9C59GG343200

Fuel Type: Gasoline

Stock #: RM21224

City MPG: 14

Hwy MPG: 20

Featured Options

Competition Package

Driving Assistance Plus

Executive Package

Bang & Olufsen Sound System

Tier 2

[Stav]

Originally Posted by jeffscott1

Here you go, here is 2016 that stickered for 20k + less than a 2019 comp with 41k miles for 59k. The 2019 is a far superior vehicle and should hold its value a little better than the 2016. I can send links for dozens more.

You are comparing a list price a dealer has for a car (which is still is not in mid-60s originally mentioned, the dealer can add CPO warranty to it upping the price, and can certainly be negotiated) with what we can sell or trade in.

If United BMW (and I have traded an M4 there) lists something for $58k that means they got it for probably upper $40s to $50k from whoever traded that in at the most.