[PKM5]

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.

[eclipxe]

Originally Posted by PKM5

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.

Lease

[Jez_zza]

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.

[Bönz]

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.

[Bimmer6]

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.

[josec70]

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.

[stealth.pilot]

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.

[gblansten]

I lease through my business. If buying I would look for one a year or two old.

[RPiM5]

Originally Posted by josec70

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.

Josec70 brings up an excellent point about modding. Unfortunately BMW is being very aggressive and proactive about detecting modders these days.

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.

[PKM5]

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.

[TheRealOrosie]

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...

[josec70]

Originally Posted by RPiM5

Josec70 brings up an excellent point about modding. Unfortunately BMW is being very aggressive and proactive about detecting modders these days.

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.

Really good points as well ... I tend to lease, mod, part-out and do it again. I’ve had to be very careful about the modding .. OBDII tunes should make this a little better (been running piggys and FBO’s).

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 ....

[RPiM5]

Originally Posted by josec70

Really good points as well ... I tend to lease, mod, part-out and do it again. I’ve had to be very careful about the modding .. OBDII tunes should make this a little better (been running piggys and FBO’s).

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 ....

I wouldn't count the next RS7 out just yet. Although I'm not the biggest fan of the RS7's fastback design looks, that new interior on the Audi is light years beyond the F90's interior.

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.

[josec70]

Originally Posted by RPiM5

I wouldn't count the next RS7 out just yet. Although I'm not the biggest fan of the RS7's fastback design looks, that new interior on the Audi is light years beyond the F90's interior.

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.

Leaning in that direction.

[uniqueMR]

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.

[josec70]

Originally Posted by uniqueMR

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.

Agreed, this is a big reason I lease.

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.

[dcbigbaps]

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.

[MatthewDavid]

Originally Posted by dcbigbaps

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.

There're some holes in this logic

[dcbigbaps]

Originally Posted by MatthewDavid

There're some holes in this logic

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.

[goj]

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

[jox5]

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.

[rjd598]

Originally Posted by uniqueMR

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.

how is it "free"? actually curious