01-13-2018, 11:06 PM | #1 |
New Member
21
Rep 28
Posts |
Leasing vs Purchasing new F90 M5
Hello to all M-enthusiasts.
I used to be a big fan of BMW and especially its M division. My very first car was a 1990 318is two-door with which I have so many fond memories. My last BMW was a 1998 E36 US-spec M3 and prior to that was a 1988 E30 M3 which I still regret of selling till this day. I've been away from BMW products for nearly 20 years now. During these years I'd always wanted an M5 (was lusting over the E34 M5 in college but obviously couldn't afford one back then) but always knew that someday I would eventually have to own an M5. With the recent introduction of the F90 M5 (600HP and 4WD), it got me itching again and thinking this would be "THE M5" to get after all these years. Just like with all my current and past vehicles (except the Nissan GT-R) I would like to purchase (own it out right with one check and no loans) this F90 M5. However, I remember reading some posts here on bimmerpost that purchasing a six-figure M car is not a very wise thing to do due to it's historically bad depreciation rate. So my question for you M-car aficionados and experts out there, would it be better/wiser to lease an F90 M5 then?? Please comment or advise. Thank You.
__________________
2014 Aston Martin V8 Vantage 6-spd & 2017 Range Rover V8 Supercharged 2011 Nissan GT-R /2007 Maserati Quattroporte / 2006 Maserati GranSport MC Victory 2006 Mercedes-Benz E55 AMG / 1999 Ferrari 355F1 Berlinetta / 1999 Ferrari 355F1 Spider 1997 Porsche 993 Turbo / 1995 Porsche 993 C2 / 1998 BMW E36 M3 / 1988 BMW E30 M3 |
01-14-2018, 12:15 AM | #2 | |
Private First Class
171
Rep 160
Posts |
Quote:
|
|
Appreciate
0
|
01-14-2018, 04:49 AM | #3 |
Lieutenant
439
Rep 560
Posts |
All depends on your budget really and what you intend to do with the car. If you are going to mod it, i'd recommend buying it but be ready for a steep depreciation for the first 2 years.
If you are not in a rush and want to save some $, wait 2 years for the F90 or get a 2nd hand F10. I'm sure that majority of future of owners on this forum will lease this car. |
Appreciate
0
|
01-14-2018, 07:33 AM | #4 |
Captain
184
Rep 764
Posts |
Forking out ~$120k on an asset that you know will depreciate ~40% in 3 years does not make financial sense in any scenario. Unless you drive a ton of miles and absolutely must have a new M5, either lease or wait to buy used.
Should you decide to purchase new, I wouldn't write a check. You can get a loan under 4%. With the market today, you should be averaging well above that. At least this would offset some of the depreciation. Actually compared to other cars in this class residuals aren't bad on M5s which is why you can usually get a good lease deal. |
Appreciate
0
|
01-14-2018, 08:07 AM | #5 |
Colonel
632
Rep 2,253
Posts |
Cars are consumables, and my logic has always been if you have to reduce your savings/investment strategy for a car it’s the wrong selection. Nothing wrong with being the second owner if you want to save 1/3, or over pay being the guy to drive it down the road. A price to being first.
|
Appreciate
0
|
01-14-2018, 09:56 AM | #6 |
Major General
4062
Rep 5,231
Posts |
Lease or buy used to hedge depreciation. F90 residuals are not bad at over 60% and MF’s are OK so payments are somewhat attractive compared to some other brands. I’ve leased both of my F10 M5’s (13 & 15) and I’m glad I did given the steep depreciation curve.
Used is another effective way to hedge depreciation but not my first choice. With these cars you simply never know what you’re buying despite PPI, Carfax and service history. Also, Pre-LCI F10 M5’s had many issues from the factory so that’s another factor to consider. BMW is no longer “mod-friendly” at least not in South Florida, so be prepared to be flagged; this applies to both buying and leasing as the claim will be reviewed by BMW NA regardless.
__________________
CURRENT: 22' INDIVIDUAL M5| CHALK | TARTUFO | CCB | MPE | H&R | IND
GONE: 19' M5C| SINGAPORE GREY| ARAGON|VELOS VLS-06|H&R|iPE|IND|XPEL|CF|RADENSO GONE: 15' F10 M5|BSM|BLACK|VELOS VSS-S2|KW|AKRA|IND|CF |ESCORT 360|VELOS PIGGY GONE: 13' F10 M5|SG|BLACK|AKRA|KW|IND LONG GONE: 09' E60 M5|02' E39 M5 |
Appreciate
0
|
01-14-2018, 10:01 AM | #7 |
Knight Commander
558
Rep 5,948
Posts
Drives: 2014 911 Turbo S
Join Date: Aug 2010
Location: Buckhead
iTrader: (0)
Garage List 2014 Porsche 911 Tu ... [10.00]
2015 Mercedes-Benz ... [0.00] 2015 Jaguar F Type R [0.00] 2014 BMW M5 [0.00] |
On my 2013 and 2014 F10 M5s I came out ahead buying and financing rather than leasing. For those years when selling privately real depreciation was less than where residuals were set.
Don't look at where F10 is now to see where F90 will be 2 years from now. Depreciation is slower for the first 2 years of a new model. It hikes massively when the first off-lease cars hit the market 3 years from now. My 2013 and 2014 M5s worked out around $850 a month through buying and financing when you take what it cost overall after netting sales cost and dividing by months of ownership. Leases couldn't touch that.
__________________
2022 Mercedes-Benz EQS 580
2020 Mercedes-Benz GLE 450 Ordered: EQS580, BMW IX, Lucid Air Touring, Corvette Stingray |
Appreciate
2
rjd5981769.50 Hashtag_M_Rated223.00 |
01-14-2018, 12:29 PM | #9 | |
Major General
2868
Rep 7,885
Posts |
Quote:
If you intend to drive the car a lot, leasing is a terrible choice. But if you have 6 other cars in your garage you love driving too then leasing makes total sense. I couldn't lease because I love modding. I'm the kind of person that never understood owning something for a short while then getting rid of it fir the newest thing. I like longevity and building experiences with the expensive things I buy. That's just me though. Good luck.
__________________
|
|
Appreciate
1
Hashtag_M_Rated223.00 |
01-14-2018, 12:35 PM | #10 |
New Member
21
Rep 28
Posts |
Thanks for all the replies and advice.
Seems like most of you are going with a lease with this car. Is it because you think or you're betting on BMW's lease residuals are going to be better than the actual residual rates? Otherwise I'm still going to get hit with the same depreciation and plus the money factor if I go with a lease. Unless you people think selling this car privately in 2-3 years is going to be a big issue/headache.
__________________
2014 Aston Martin V8 Vantage 6-spd & 2017 Range Rover V8 Supercharged 2011 Nissan GT-R /2007 Maserati Quattroporte / 2006 Maserati GranSport MC Victory 2006 Mercedes-Benz E55 AMG / 1999 Ferrari 355F1 Berlinetta / 1999 Ferrari 355F1 Spider 1997 Porsche 993 Turbo / 1995 Porsche 993 C2 / 1998 BMW E36 M3 / 1988 BMW E30 M3 |
Appreciate
0
|
01-14-2018, 01:33 PM | #11 |
BMW Fan Boy
446
Rep 1,385
Posts |
I change out cars every few years, so for that reason alone leasing makes the most sense for me. I also don't put more than 10k miles a year on my daily...
|
Appreciate
0
|
01-14-2018, 01:37 PM | #12 | |
Major General
4062
Rep 5,231
Posts |
Quote:
My 15’ M5 has 13K miles so not a ton of miles for me; still about 9 months left but really want to try the AWD/RWD F90. I feel the same as you regarding the uninspired effort put forth by BMW but I don’t see myself in an E63S AMG or RS7 (options I’m exploring). We’ll see how long it takes to crack the F90 ....
__________________
CURRENT: 22' INDIVIDUAL M5| CHALK | TARTUFO | CCB | MPE | H&R | IND
GONE: 19' M5C| SINGAPORE GREY| ARAGON|VELOS VLS-06|H&R|iPE|IND|XPEL|CF|RADENSO GONE: 15' F10 M5|BSM|BLACK|VELOS VSS-S2|KW|AKRA|IND|CF |ESCORT 360|VELOS PIGGY GONE: 13' F10 M5|SG|BLACK|AKRA|KW|IND LONG GONE: 09' E60 M5|02' E39 M5 |
|
Appreciate
0
|
01-14-2018, 02:23 PM | #13 | ||
Major General
2868
Rep 7,885
Posts |
Quote:
My advice is to have patience. Let your current F10 go and then get a little something to hold you over until the Competition Package for the F90 M5 comes out then lease that one and do light modding on it then move on.
__________________
|
||
Appreciate
0
|
01-14-2018, 03:15 PM | #14 | |
Major General
4062
Rep 5,231
Posts |
Quote:
__________________
CURRENT: 22' INDIVIDUAL M5| CHALK | TARTUFO | CCB | MPE | H&R | IND
GONE: 19' M5C| SINGAPORE GREY| ARAGON|VELOS VLS-06|H&R|iPE|IND|XPEL|CF|RADENSO GONE: 15' F10 M5|BSM|BLACK|VELOS VSS-S2|KW|AKRA|IND|CF |ESCORT 360|VELOS PIGGY GONE: 13' F10 M5|SG|BLACK|AKRA|KW|IND LONG GONE: 09' E60 M5|02' E39 M5 |
|
Appreciate
0
|
01-14-2018, 09:08 PM | #15 |
Colonel
1881
Rep 2,923
Posts |
Leasing only make sense if writing off as business expense. All of payments, fuel, maintenance, insurance, etc. can be written on business as expense. So car is totally free. Plus you can buy miles as much as you want, its not limited to 10K-15K a year. In past, I have bought miles up to 40K a year on my business car.
Otherwise leasing is not worth it. Buying is good route if going to keep car for long and doing mods, changing, etc.
__________________
Currently: '24 Mercedes G63 | '24 Porsche GT3 RS | '24 Volkswagen GTI
Previous BMWs: 340i, 740i, 745Li, M3, M4 Previous Others: Audi, Ducati, Honda, Infiniti, Land Rover, Mercedes-Benz, MINI, Mitsubishi, Porsche, Toyota, Volkswagen |
Appreciate
0
|
01-14-2018, 09:15 PM | #16 | |
Major General
4062
Rep 5,231
Posts |
Quote:
I would add that modding is a risk whether you buy or lease as you may need to eat a large repair bill if traced back to mods. BMW has cracked down quite a bit and I’ve seen several people in S. Florida eat the bill for blown engines, primarily due to to tunes.
__________________
CURRENT: 22' INDIVIDUAL M5| CHALK | TARTUFO | CCB | MPE | H&R | IND
GONE: 19' M5C| SINGAPORE GREY| ARAGON|VELOS VLS-06|H&R|iPE|IND|XPEL|CF|RADENSO GONE: 15' F10 M5|BSM|BLACK|VELOS VSS-S2|KW|AKRA|IND|CF |ESCORT 360|VELOS PIGGY GONE: 13' F10 M5|SG|BLACK|AKRA|KW|IND LONG GONE: 09' E60 M5|02' E39 M5 |
|
Appreciate
0
|
01-16-2018, 08:08 AM | #17 |
Private
23
Rep 75
Posts
Drives: 2017 McLaren 570GT
Join Date: Nov 2017
Location: Haymarket, VA
|
I am definitely in the minority, but I only buy cars. I plan to keep them for 8-10 years so I don't care about depreciation.
I would only lease if I have a private business and could write it off.... which I do not. Also, I hate used, so I'm not going that route. |
Appreciate
1
RPiM52868.00 |
01-18-2018, 12:10 AM | #18 | |
Captain
148
Rep 774
Posts
Drives: 21 X5 M50i
Join Date: Oct 2008
Location: San Francisco, CA
|
Quote:
__________________
-Matthew
|
|
Appreciate
1
Asp123180.00 |
01-18-2018, 08:38 AM | #19 |
Private
23
Rep 75
Posts
Drives: 2017 McLaren 570GT
Join Date: Nov 2017
Location: Haymarket, VA
|
Haha, I never said it had to make logical sense. To me, cars are toys. I will never buy used and I keep my cars forever so I don't care if they depreciate since I get my money's worth out of them.
I never said it makes financial sense. I would only lease if the residuals were so high and if the lease rate was so low that it made sense to just lease initially and pay off later. |
Appreciate
0
|
01-22-2018, 12:23 PM | #20 |
Brigadier General
2252
Rep 3,622
Posts |
I would lease solely because it's the first model year of the new generation.
If you have the money for either, I think the question you need to ask is do you want something new in 3 years or do you want to keep it longer
__________________
BMW CCA Member #516012
2016 340i, Estoril Blue, Manual Transmission, MPE, MPBBK, HRE FF04 Instagram: @brandons340i |
Appreciate
0
|
01-26-2018, 10:38 AM | #21 |
New Member
3
Rep 5
Posts |
I'd definitely say lease. There's no glory to "owning" a car- leases will protect you from real life depreciation. If it's a low residual (vs the market), you can buy the car out positively against the market.
|
Appreciate
0
|
01-27-2018, 01:56 PM | #22 | |
Banned
1770
Rep 6,696
Posts
Drives: F30 340i
Join Date: Jan 2009
Location: San Diego,CA
|
Quote:
|
|
Appreciate
0
|
Post Reply |
Bookmarks |
Thread Tools | Search this Thread |
|
|