I'm shopping for a new daily driver, and I'd settled on a 540i 6speed...I was planning on paying cash, ~$15-20k...I started looking into leasing a little bit, and I realized I can lease an M5 for ~$450/mo w/ ~$7000 down...thats predicated on a 2001 w/~60k miles purchased for ~$35k (I've found several), allowing 12k miles a year...my insurance will go up, I doubt more than ~$50/mo tho...plus higher maintenance...I'm so tempted
What would you do? Oh, and I forgot to add, if I do the lease I'll probably keep one of my current cars which means I get to write off EVERYTHING I spend on the M5...payments, insurance, maintenance, etc
Initially, i was going to say i would never lease a used M5. AT that age and millage You will get hit with some bills at some point, and i'd be irritated spending a few grand on repairs for a car that i didn't own. If you really need the write off, however, it's an incredible car. You might be able to get the car, get all the potential bugs worked out on the pretax dime and buy it dirt cheap at the end.
I certainly wouldn't put 7k down on a lease though, minimum drive off fees only. If you get totaled on the way home, you'd likely kiss that $7k goodbye.
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Initially, i was going to say i would never lease a used M5. AT that age and millage You will get hit with some bills at some point, and i'd be irritated spending a few grand on repairs for a car that i didn't own. If you really need the write off, however, it's an incredible car. You might be able to get the car, get all the potential bugs worked out on the pretax dime and buy it dirt cheap at the end.
I certainly wouldn't put 7k down on a lease though, minimum drive off fees only. If you get totaled on the way home, you'd likely kiss that $7k goodbye.
You make good points...maintenance is def a concern...what major issues might I run into with a ~60k car??
And now that I really think about it you're right about the down. It doesn't make sense from an opportunity cost standpoint, spending $7k to save ~200/mo...not to mention for the reason you stated...
I've never had a car payment before...always paid cash...$650 just seemed like a lot
Tough choice. I would kill for an M5, but there is no way I could afford any part of one at this time. I have a 540 and I love it. It feels fast to me and will "hold its own" against most any new 50 or 60k dollar sedan. I hope to some day own an m5, but when I do I will buy new or with very low miles. The thought of maintaining a high mileage one scares me.
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Personally I would never lease a car. Leasing is pretty rare in Finland, and I think europe as a whole. I guess leasing is pretty common in the US though?
But as mentioned, you live only once, that's also my motto in life, so get it. It's a hell of a car.
I'm shopping for a new daily driver, and I'd settled on a 540i 6speed...I was planning on paying cash, ~$15-20k...I started looking into leasing a little bit, and I realized I can lease an M5 for ~$450/mo w/ ~$7000 down...thats predicated on a 2001 w/~60k miles purchased for ~$35k (I've found several), allowing 12k miles a year...my insurance will go up, I doubt more than ~$50/mo tho...plus higher maintenance...I'm so tempted
What would you do? Oh, and I forgot to add, if I do the lease I'll probably keep one of my current cars which means I get to write off EVERYTHING I spend on the M5...payments, insurance, maintenance, etc
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I've had both. For that kind of $, I'd go with the 540i.
Why not wait a bit, save some more cash and buy the m5. Despite what we would all like to believe, I think the cost of our cars will continue to drop, and in another year you may get the car you want at a price you can afford. Personally, I see no real advantage to leasing. Every time I ever looked at leasing, I walked away thinking it was a way to drive a car I really couldn't afford to buy. Cars are not investments, they are toys. I never borrow to buy toys. My .02 cents.
Pay cash for the 540i. Use the $7K for something else. Many good points made about leasing, not a good idea at all for a used car. Most reputable dealers will try to talk you out of a used car lease. Does the M5 come with a CPO or other extended warranty? If it doesn't walk away. You'll never recover your $7K at lease turn-in time unless you purchase the car for its residual value which could be a lot more than the car is actually worth.
BTW, unless you use the M5 "exclusively for business" and you keep a daily log, you can't deduct it. Been there, done that, be careful. JMHO.
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