650 Msport sale question

[M3inMG]

So i have been looking for a 4dr alpine white with red int. i was thinking of getting a 335 or 435 GC and i found this. Seems priced well at 59k obo. Has been serviced here locally at the dealership and has 30k miles. Just wanted to see your thoughts on the pricing or any other advice you may have regarding the 650 in general.

[Downfourit]

I'm not a fan of buying used cars, I lease new because if you get the right deal you are actually coming up financially over a buy of an expensive car with a lot of depreciation over the first 5 years. If you really sit down and do the math and account for everything including money for when the warranty is up, I think a BMW lease is the right way to go. If you were going to buy that car for $55k over a 60 month term you would be paying about $1200 a month with tax, I am paying less than that for a fully loaded 2014 650I M-Sport coupe that had a $95k sticker, with zero out of pocket for 30-36 months.

[M3inMG]

I have never leased a car and most bmws i own out of warranty. I know many people lease i prefer to purchase.

[Downfourit]

Originally Posted by Florida Boy

I have never leased a car and most bmws i own out of warranty. I know many people lease, i prefer to squabble my funds.

I fixed your comment for you.. Try something new, and do the math, you'll be surprised when you realize how much money you have been throwing away on a used vehicle.

[M3inMG]

Originally Posted by Downfourit

I fixed your comment for you.. Try something new, and do the math, you'll be surprised when you realize how much money you have been throwing away on a used vehicle.

I have done the math. Thank you

[Downfourit]

Originally Posted by Florida Boy

I have done the math. Thank you

Then either A. you did it wrong and/or using the wrong formula, or B. you like to throw away money on cars that are not the newest model. do I really have to do it for you?

Ok check this out young padawan, if you take a used $60k car and check out the 2010 650i for example, I can get one right now for $24k while it is about to be a 5 year old car it will depreciate some more next year when it does hit that 5 year mark, if you paid $60k for it plus interest and tax you are at around $75k or more, so that person loses roughly $50k+ on the car after buying it as a used vehicle. Now if you lease new and manage to get a deal where you are paying less than half of the car in the 3 year term you will lose less and stay in the newest model every 3 years instead of 5 years. Any questions? Or do you really just like driving older models cause you can tell your neighbor that you own the car, or actually that a different bank than BMW financial owns it?

I had to edit and add that none of those numbers include maintenance and repairs after warranty, of which you will never spend a dime on while leasing. It's just the smarter choice these days for people that crunch the numbers and want to stay in the newest model cars, it's really a win/win.

[doug_999]

Just make sure it is not one of the Hertz cars. They actually rent the GCs out down there in FL! I think it is part of their dream cars collection.

http://hertzdreamcars.com/vehicles/bmw-650i-gran-coupe

[M3inMG]

Downfourit- again, i do not lease but understand you do. I dont care to drive brand new and switch out every few years. I buy them and keep them for many years. You try to throw in little words to talk down to someone on a forum bc they spend money different. Enjoy your car and drive in good health. Happy new year

Doug- thats good info. Thank you. I will not be purchasing that car after looking further into it.

[Downfourit]

Originally Posted by Florida Boy

Downfourit- again, i do not lease but understand you do. I dont care to drive brand new and switch out every few years. I buy them and keep them for many years. You try to throw in little words to talk down to someone on a forum bc they spend money different. Enjoy your car and drive in good health. Happy new year

Doug- thats good info. Thank you. I will not be purchasing that car after looking further into it.

That's not it at all. I think you are misinterpreting my sarcasm and wit as insults, which is not my intention. I am trying to save you money and put you in a 2015 for 3 years as opposed to an older model for 5+ years. Once the body changes the value drops off significantly and it becomes the old model. Like I said, a win/win on these leases, but to each their own. Happy new year, don't be afraid to try something new.

[aahmichael]

Actually, if you want to drive a new car every three years, there are much cheaper ways to do it, rather than leasing. A lease is nothing more than an agreement between the dealer and the buyer for the dealer to finance the purchase of the car, and then to agree to buy the car back from the buyer after three years at a predetermined price. With interest rates at historic lows, it's much smarter to buy the car outright from the dealer, and finance it yourself, and then sell it yourself when you want to get rid of it. Of course, leasing is more convenient, but you pay a high premium for that convenience. You pay a higher interest rate on the financing part, and you get a lower buyback price at the end of the contract.

[Downfourit]

Originally Posted by aahmichael

Actually, if you want to drive a new car every three years, there are much cheaper ways to do it, rather than leasing. A lease is nothing more than an agreement between the dealer and the buyer for the dealer to finance the purchase of the car, and then to agree to buy the car back from the buyer after three years at a predetermined price. With interest rates at historic lows, it's much smarter to buy the car outright from the dealer, and finance it yourself, and then sell it yourself when you want to get rid of it. Of course, leasing is more convenient, but you pay a high premium for that convenience. You pay a higher interest rate on the financing part, and you get a lower buyback price at the end of the contract.

Here's a good example, my car.. 2014 650i coupe with a $95k sticker, after you buy/finance it, & tax you're well over $110k. Now fast forward 3 years to 2017 and the car won't sell for more than $55k to a private party, so you will lose around $55,000 in the 3 years. In my lease I am not spending more than $40k overall, so why spend that extra $15k? The longer you keep the car after those 3 years it just continues to depreciate at a significant rate, I just don't see the point in buying an expensive car like this that drops value so quickly when you can lease it and come out spending less. If it were a car that held value i could understand buying it. I purchased a used 2006 Saleen S281 Extreme for $36k, put 20k miles on it and sold it 4 years later for $31k, that made sense, it was a car that held its value through the years.

[doug_999]

Well since we have turned this into a buy vs. lease debate..
1. aahmichael, your calculations only really work if you don't option up the car. For a given BMW with $10-15K worth of options on it, many of those options become worthless at trade in 3 years (comfort seats on my 550, leather dash on my X6, etc). A lease guarantees you a percentage return on those. Plus most leases (at least BMW) are around 3% interest vs. say 1-2% for buying - so we are not talking much savings here. So for me, with an optioned up car, leasing has worked out to be less expensive (try selling a V8 on the open market in 2008 with the gas crisis in full swing - Car Max offered me $29,500 for my two year old $70,000 550 with the comment "very clean car").
2. downforit - I lease my cars because I like a new car every 3 years and I don't want to worry about maint or warranty. However, most of the time, it is less expensive to do it the way Florida Boy is doing it. It all depends on the car of course. But with my 2008 M5, sticker of $100K, lease payment of $1,400, I spent $50,400 over 36 months, plus the inception fees of the lease (do note that IL sales tax was on the entire price of the car. In short, I paid about $97,300 for the car ($90K selling price, $6,300 in taxes, $600 in lease inception fees, $350 in disposition fees). The car had a residual of about $59K. I believe the dealer sold it for about $55K. So someone buying that car in 2011 would be looking at about $60K with tax. At 4% over 36 months, that would be a payment of $1,771 - for a total out of pocket of $63,750 over three years. Except... that car is worth about $30K today. So the total cost to buy the 3 year old M5 and keep it for 3.5 years would be about $34,000 vs. the $51,400** for leasing it brand new. Now granted, you would have maint and repairs on the car if out of warranty, but it sounds like Florida Boy might just know someone who can handle this for him at a reasonable rate.

To be fair - every car is different. Case in point, just like the Saleen, the lease option does not work for someone leasing a 1M 3.5 years ago, and buying a 1M today doesn't save you anything much over buying it new 3.5 years ago. But on average, leasing a car makes more sense if you load it up with options that are considered worthless by the black book and buying a 3 year old car and keeping it for 3+ years normally works out better from a financial stand point - especially on a car like the 650 which is seeing some massive depreciation in year 1 and 2 right now (yet another reason to consider leasing! )



*I included the lease inception and disposition fees
** As noted our silly IL sales tax (which is no more as of today) makes this amount higher than it would be for others - but not dramatically.