Close to buying 650GC, questions

[Mrrippey]

Hello all,

First post but been lurking for a while. Looks like I'm going to pull the trigger on a 650GC in Feb14 and wanted to get your opinions...

1. I've built one out and it comes to about $107K. What is a more realistic price, are there discounts to be had. I know Audi didn't budge much on the S7 (they wanted $90k) and a similar Panamera was closer to $125k too rich for me. These are just MSRP prices. I've read sporadically I can get like $10k off new, less of a break used.

2. Does it make sense to get a certified pre owned vs. New. Seems they are going for low to mid $80k's. I've historically purchased cert cars usually because they are much cheaper but usually a few years older.

3. Buy vs. Lease? I'll have about $50k on hand in either case. Credit is ok, thinking payments of $1100 - $1300 lease, finance around $850. I will keep car at least four years for sure. I don't mod cars in any way, maybe tints and a radar on this car though.

4. Are there any options that are 'must have'? I built mine with m sport, lighting, red nappa, cold, driver assist plus, and executive packages.

Anything else I should be aware of?

Thanks all. Looking forward to joining the club!

Rippey

[LSM]

M edition (not M sport) M edition is a line that gives you M Sport and a ton of options all for way cheaper than ordering separately IT is a must which gets you all the important options. If you just get that and the 20's the MSRP would be way less. You can get a lot off new 2014 GC.. INvoice is 8% behind MSRP. Holiday cash is 2k and you also get 1500 loyalty (if you own a BMW) If you are coming out of a lease you also get turnkey of $500. Some dealers will go into their holdback which is another 5% if they have a lot of inventory.

I know a guy who has great deals on BMW leases. He goes right through BMW financial. With the way the car depreciates I would lease and put down as little as possible. Every 1000 down is only 30 less a month in payment on leases.

Lease Contact: Tell him referred from Lou IN SoCal
Elie
305-431-4796

[btbossman]

You should definitely lease if you drive 15k or under a year, then that 50k would be almost your entire lease. Get the 20's.

[Superfluous]

Originally Posted by btbossman

You should definitely lease if you drive 15k or under a year, then that 50k would be almost your entire lease. Get the 20's.

I don't think this is good advice.

[LSM]

The M Sport Edition on 650 GC costs 5300 and includes the M Sport Package, Executive Package, and Driver Assistance Plus all for only 5300...Thats the way to order it...Then get the 20's and you would be mid 90's....

[btbossman]

Originally Posted by Superfluous

I don't think this is good advice.

Based on?

[Mrrippey]

LSM, if I can order it this way, I think that would be a very good way to go. The only other thing I would like is the B&O but it is not totally necessary.

Ive had my TT for three years and put about 45K miles on it (got it Cer pre owned with 44K and I am at 91K). I usually keep my cars 3-4 years (longest was a MB C500 kept for 4 years traded to get the TT)

Superfluous would love to get your thoughts, is it the amount of money down or the leasing part you find not to be good advice?

It does seem that there are a few in the upper 80's that if still around would fit the bill but I have to wait until Feb to know why I am really going to do.


Rippey

[Superfluous]

Originally Posted by btbossman

Based on?

You're basing it off of the convenience of the lease equaling the cash on hand... not any sort of math. Every scenario I've seen, leases don't make sense. In the end, is the amount you pay on the lease less or more than what you could buy and then sell the car for at the same time of the lease expiring? In the end, you can almost always sell your car for more than the lease difference. How much is a lease on a $110k car?

I find a lease to be a cheaper method of getting a car short term but more expensive long term (when you go to buy your next car since you have nothing to trade in or sell).



Here is something that came up when I googled M6 lease. According to this (although your rates and terms may be different), you're roughly paying about $80k to lease a $110k car for 3 years. If you had bought the car, do you think you could sell a 3 year old M6 for more than $30k? I would hope so...

[Bönz]

In fear of turning this into yet another lease vs. buy debate, I would suggest mrrippey do his own research. Lease vs. buy is a personal choice based on one's financial situation, ownership plans and general attitude. But the explanation above is oversimplified to the point of being…superfluous. There is a ton of info in these forums and all over the internet regarding lease vs. buy.

Also, the calculation above is way off. No one pays $2300 a month to lease a $100k car, assuming this is a 36 month lease.

[btbossman]

Originally Posted by Superfluous

You're basing it off of the convenience of the lease equaling the cash on hand... not any sort of math. Every scenario I've seen, leases don't make sense. In the end, is the amount you pay on the lease less or more than what you could buy and then sell the car for at the same time of the lease expiring? In the end, you can almost always sell your car for more than the lease difference. How much is a lease on a $110k car?

I find a lease to be a cheaper method of getting a car short term but more expensive long term (when you go to buy your next car since you have nothing to trade in or sell).



Here is something that came up when I googled M6 lease. According to this (although your rates and terms may be different), you're roughly paying about $80k to lease a $110k car for 3 years. If you had bought the car, do you think you could sell a 3 year old M6 for more than $30k? I would hope so...

Well you must be really terrible at negotiating deals, I pay much less than that for 3 years on my M6 which is over 120k...every lease I have done has been hands down more financially competent than shelling out a bunch of cash for a constantly depreciating asset.

Never put any money down

Never get emotional about the car

Shop dealers if you have to

...Its only worth it if you drive 15k or under, have superb credit, and want a set amount of total loss, not to mention a new car every few years. I pay $1620 with literally nothing down but first payment

[Mrrippey]

First off, thank you for all your feedback.

Did not want this to be a buy vs lease, I will very likely buy the car and then sell it if I don't like it after 3-4 years. I've done this with all my cars and have come out ahead most of the time.

I really just wanted to know what options are must have, the kind of deals you all were getting (if you can get a deal on a 100k car).

Looks like if I can find my car on a lot, I can save loads of money. Seems like there is room to negotiate. These are the types of things I would like to get your feedback on.

Again thanks all, very helpful

Rippey

[LSM]

The lease numbers are way off. Leasing an M6 at least in Cali makes sense. You do not get tax credit for trading cars. The money factor is .000125 or something equates to 3% rate. I got 15k off list on mine. The car depreciates a lot, leasing is better...IMO

[Mrrippey]

My perfect car comes out to $104k. If I could get this car for $90k, I'd be fine. If I have to compromise anything (meaning grab something on the lot), I'd likely not want to pay over $80k for it (maybe not likely)

Lease vs buy doesn't bother me either way. I'll go with the best option at deal time. The big thing is the deal. If I get say $15k off although LSM did (props to you) then I'll join you all in early '14

Rippey

[LSM]

Originally Posted by Mrrippey

My perfect car comes out to $104k. If I could get this car for $90k, I'd be fine. If I have to compromise anything (meaning grab something on the lot), I'd likely not want to pay over $80k for it (maybe not likely)

Lease vs buy doesn't bother me either way. I'll go with the best option at deal time. The big thing is the deal. Can I get say $15k off although LSM did (props to you)

Rippey

My car was 118400 (would be 120,400 if ordered now as there was a 2k price increase on M6) I paid 103400.. Lease payment of 1240 on 39 month. I put 3500 down which includes first month payment and license. I also will get 1000 back from BMW CCA

If you like M5, my payment would have only been 1055 same down, residual is high like 58 with 12k miles per year 36 month lease

My M6 is a 2014...The M5 was also a 2014

Calll the leasing guy I gave you above he will find exactly the car you want and give you biggest discount on new car.

*payments shown do not include monthly tax of 8% in my city...varies on how states handle leasing

[Superfluous]

Originally Posted by LSM

My car was 118400 (would be 120,400 if ordered now as there was a 2k price increase on M6) I paid 103400.. Lease payment of 1240 on 39 month. I put 3500 down which includes first month payment and license. I also will get 1000 back from BMW CCA

If you like M5, my payment would have only been 1055 same down, residual is high like 58 with 12k miles per year 36 month lease

My M6 is a 2014...The M5 was also a 2014

Calll the leasing guy I gave you above he will find exactly the car you want and give you biggest discount on new car.

*payments shown do not include monthly tax of 8% in my city...varies on how states handle leasing

So you're paying about $50k for the car for 39 months, is that correct? If yes, do you think your car will be worth less than $53k in 3 years?

[Mrrippey]

Originally Posted by LSM

My car was 118400 (would be 120,400 if ordered now as there was a 2k price increase on M6) I paid 103400.. Lease payment of 1240 on 39 month. I put 3500 down which includes first month payment and license. I also will get 1000 back from BMW CCA

If you like M5, my payment would have only been 1055 same down, residual is high like 58 with 12k miles per year 36 month lease

My M6 is a 2014...The M5 was also a 2014

Calll the leasing guy I gave you above he will find exactly the car you want and give you biggest discount on new car.

*payments shown do not include monthly tax of 8% in my city...varies on how states handle leasing

LSM, I plan on calling your guy for sure and thanks for the connect. If I'm going to pay this much for a car, I do not want to settle for anything but what I want.

Rippey

[LSM]

Originally Posted by Superfluous

So you're paying about $50k for the car for 39 months, is that correct? If yes, do you think your car will be worth less than $53k in 3 years?

Well for me I do not want 3 year old car. And I will be paying that for a year then will be on swapalease. And he still would have some kind of loan so its not just 50k unless hes paying cash for the car. Yes 48360 in 39 months. but if bought it would be 103420 x .008% tax = $111,693...as it stands I pay 8% of 1240 for tax thats it

Like I said becuase you do not get tax credit on trades in California makes no sense to buy unless you are keeping the car forever or are super rich and dont care

[Superfluous]

Originally Posted by LSM

Well for me I do not want 3 year old car. And I will be paying that for a year then will be on swapalease. And he still would have some kind of loan so its not just 50k unless hes paying cash for the car. Yes 48360 in 39 months. but if bought it would be 103420 x .008% tax = $111,693...as it stands I pay 8% of 1240 for tax thats it

8% of 1240 each month... right?

[LSM]

Originally Posted by Superfluous

8% of 1240 each month... right?

yes $99.00...

[Mrrippey]

Leasing is good because of the low down payment so you can stay cash rich if your cash flow can sustain that large a note. Big difference between 3500 down and 35000 down.

My history is that I don't keep cars, 25 cars in 20 years. Longest kept was a CL500 had it for four years, my TT kept for three and it's gone for this car. I have never leased, always bought and traded.

Rippey

[LSM]

Originally Posted by Mrrippey

Leasing is good because of the low down payment so you can stay cash rich if your cash flow can sustain that large a note. Big difference between 3500 down and 35000 down.

My history is that I don't keep cars, 25 cars in 20 years. Longest kept was a CL500 had it for four years, my TT kept for three and it's gone for this car. I have never leased, always bought and traded.

Rippey

Thats exactly how i feel. Besides you can make your cash work for you as well, so leasing at least for me and in cali is the best option. I dont keep my cars either so works out.

When I lived in a different state I used to buy the hottest car first get a discount that wasnt given to others becuase a dealer is my best friend drive for 6 months, find a buyer who would buy from the dealer so I would actually trade it in lose no money or little money and have that tax credit. Thats just not the case anymore. and again in cali no tax credit you have to pay full tax if you purchase a car everytime as opposed to leasing where you dont and in the other state no additional tax if you traded in a 100k car then bought another car for a 10ok no tax. But again these cars are not as exclusive anymore and lose big money

[doug_999]

Originally Posted by Superfluous

So you're paying about $50k for the car for 39 months, is that correct? If yes, do you think your car will be worth less than $53k in 3 years?

You can't run the math that way - there is the cost of borrowing (as well as the tax issue which is state dependent). If you borrowed $99K at 3.9% interest (which I think is the typical lease rate at BMW), your monthly would be $1,818.77. At the end of 3 years you would still owe $40,243 on the car and would have paid out $65,745 in payments.

Now here is the real trick... certain options are basically worthless per the Blackbook. B&O stereo? Probably nothing. Individual paint or interior? $0. However, if you option up the car, those fun options are worth 60% of their original cost if you lease. So to me, it ultimately comes down to... if you are going to option up the car, always consider leasing -you have a protection from any downside as well as a guarantee to get residual on those expensive options.