12-01-2020, 07:49 PM | #2 |
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Depreciation on these cars is terrible, unless you plan on owning it a loooong time, lease it.
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WillyWillM819.50 |
12-01-2020, 08:10 PM | #3 |
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Lease first then if you want to keep it, purchase at end of the lease. Gives you another opportunity to negotiate price at lease end.
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2024 M8C; 2024 X6MC; 2021 G80 M3C; 2022 P992140
RETIRED: 2021 F93, 2021 F96,2019 F82 M4C, 2018 F80 M3C, 2018 F86 X6M- black fire, 2015 F13 M6, 2015 F10 M5, 2012 F10 550i M-Sport, 2012 F13 650i X-Drive, 2009 E60 535i M-Sport, 2007 E60 530i |
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nate196121.50 |
12-01-2020, 09:49 PM | #4 | |
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I was okay purchasing because I thought I would keep it a long time, but I'd like to swap the colors. Also I personally don't like paying interest if I can avoid it. There is an argument that I could have kept it in the bank; however with my stock portfolio margin, I can sell unsecured cash puts 10x my availability cash. Effectively I can use empty fake air margin to "borrow" at 0% interest. So I sell 2x unsecured, knowing that I can get a loan or sell any of my cars or mortgage the house, if I need to cover any margin calls. Everything I own is paid for in full cash. |
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FBMWWINS603.50 BLACK KILLER90.00 |
12-01-2020, 09:52 PM | #5 | |
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If you keep 7 years or more, you will slightly be ahead by purchasing. |
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12-03-2020, 09:24 AM | #6 | |
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I'm in IPOs - been a good year and it's not over yet. Dec shaping up to be a blockbuster month. IPOs are a risky part of the market but nothing like options especially on margin. Back to cars. Advice on this forum has been invaluable to me in deciding to lease the MY21 M8 Comp GC due into VPC - New Jersey Dec 8. I making decent money on IPOs but nothing like to encourage me to buy the car rather than lease. |
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12-03-2020, 01:18 PM | #7 | ||
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I'd say that I make money about 40% of the time, break even 50%, and "lose" 10%. I don't really lose because selling puts is a buy order, so I end up owning the stock and then I sell covered calls. So my positions take longer to close but still win every time. It's almost bullet proof, and I've been doing it for nearly 40 years. I'd say it's 50% less risky than just buying and holding any stock. And on average I make about 31.5% profit per year in average over the past 40+ years. When I was young, 30% of $1000 was $300 per year. Now I get to play with bigger numbers, so you can add a few zeros to that number and see why I retired at 40. ~ |
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LSM1118.00 |
02-01-2024, 01:51 PM | #10 | |
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If you drive over the mileage allotment, you pay the fine at lease end and probably not buy it. There is a good chance the value is now below residual. Who would pay 75k for a car worth 68k? So, ya walk. The depreciation is there in the car whether you lease it (BMW tells you what it is 3 years from now), finance it or buy it. The car does not car how you acquired it. The only known factor is the residual value. The rest is real world pricing based on depreciation and market forces 3 years from now. It's kind of all the same. I got screaming deals when I leased two F90s. I ended up keeping each for only 17 months. Got out of them with very little, if any, financial damage). I bought my current M850 almost two years ago because I looked out at where we (as a country) were going to be in Dec 2023 when my last F90 lease would have been up. I could see we were heading into an insane inflation spiral and that means only one thing - much higher interest rates. Lease payments are nuts now - on top of price increases. I was going to pay cash, but swung a deal for only 2.74% - a great rate to lock in. I can keep my money invested for a much higher rate of return than that. So it all depends. Each has their place in the car buying scheme. Some have better timing at various points in the economic cycle. It's hard to predict interest rates, but this was a no brainer in 2022. We were coming off a 40 year decline in rates and inflation was going to 40 year highs. |
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02-01-2024, 02:13 PM | #11 | |
Monkeyman8
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snowbimmer5002.50 |
02-01-2024, 02:25 PM | #12 |
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Used is really the way to go with these cars. You can find many examples of very low mileage M8's for a significant discount from new. I bought 2022 with 600 miles for 109K, it has everything except CCBs.
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02-01-2024, 02:41 PM | #13 |
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monkeyman8128.50 |
02-01-2024, 05:50 PM | #14 | |
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That said I understand anyone’s reticence toward not having new and to spec. To each his/her own.
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Einstein said "You cannot love a car the way you love a horse." I have both. Einstein could learn a thing or two.
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02-01-2024, 10:58 PM | #15 |
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I just got a 2024 M8 coupe, only a couple months old with ~500 miles for $30K less than sticker. Prior owner is loaded, ordered 2 cars and decided to keep the other one. Sold the M8 back to the dealership at what I'm assuming was a big loss. Some would argue the M8 is overpriced, but I'd decided that's the car I wanted, and I felt good about not having to take that immediate depreciation hit. So, I would go for a newer, used model.
I had scoured the internet and put a spreadsheet together of all the ones I found for sale across the US two months ago. See attached as a reference point. |
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