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      12-21-2017, 09:33 AM   #23
josec70
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Lease w/ no money down.

Keep your money invested, perfectly hedge depreciation, warranty and use the tax code to effectively lower your payment.

Turn the car in after lease and do it again.

I understand this is not an option for everyone.
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      01-02-2018, 09:53 AM   #24
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As of today with 32k on my '14, I'm about $3k in the black. I was fortunate to get a fair deal, plus I send an extra 56% per month to the car. I set a schedule to have the car paid off at the same time the warranty expires, which is when I intend on moving to a GT3 hopefully.
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      01-02-2018, 12:08 PM   #25
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Do you guys in the U.S. not have lease agreements?

Lease agreements are very common here in the UK, in fact I think 90% of luxury cars are leased!

I'm a cash buyer btw, we're frowned upon by the salesmen (less profit for them if they don't sell a finance package!!)
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      01-02-2018, 01:46 PM   #26
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Quote:
Originally Posted by sonnenschein3000 View Post
Do you guys in the U.S. not have lease agreements?

Lease agreements are very common here in the UK, in fact I think 90% of luxury cars are leased!

I'm a cash buyer btw, we're frowned upon by the salesmen (less profit for them if they don't sell a finance package!!)
Yes we do.
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CURRENT: 22' INDIVIDUAL M5| CHALK | TARTUFO | CCB | MPE | H&R | IND
GONE: 19' M5C| SINGAPORE GREY| ARAGON|VELOS VLS-06|H&R|iPE|IND|XPEL|CF|RADENSO
GONE: 15' F10 M5|BSM|BLACK|VELOS VSS-S2|KW|AKRA|IND|CF |ESCORT 360|VELOS PIGGY
GONE: 13' F10 M5|SG|BLACK|AKRA|KW|IND
LONG GONE: 09' E60 M5|02' E39 M5
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      01-02-2018, 04:08 PM   #27
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Quote:
Originally Posted by variable229 View Post
My final resale price on my 2015 w/ 22K miles, was about what you owed and in addition by rolling all my MSD, I was able to save more on $7K of state sales tax to repurchase my car.
Congratulations on your deal. That is the best outcome one can hope for. I have the same exact car as you (2015 M5 comp pack, low miles) and I am also contemplating buying it at year end lease (Aug. 2018). If I can get this result then that makes the decision much easier.

Question tho. From the above excerpt of your post, am I understanding correctly that the dealer was able to discount the final resale price by the amount of MSD you had coming back to you (i.e. a credit applied at time of the sale back to you)?? That's a wonderful way to reduce your sales tax liability, but I didn't think a dealership would agree to this because I thought the MSDs are handled separately by BMW NA and they cannot be assigned to anyone other than the leasee.....including the dealership.

How did you do this?
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      01-03-2018, 08:53 AM   #28
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Quote:
Originally Posted by Loft23 View Post
Sold my 2014 M5, paid off and title in-hand within 3 years, with 24k miles just before they announced the F90 M5 for $60k to a friend. Used that money towards a 2018 911 Carrera S and financed the remaining $75k @ 2% interest rate for 48 months. Used the $75k cash I had and invested in several ETF's and mutual funds, netting me 12% YTD. Invested $4k play money into Litecoin and Ethereum and turned it into $20k.

Cash is not King if you can take it further on investments. I don't like buying used, and I accept the fact that it is a depreciating asset. Why not offset the depreciation with an appreciating investment? Put enough down to make your payments comfortable and put in extra principal if you want to pay it off earlier and save on interest.

I put any extra money I have into a "car fund", basically a steady growth mutual fund / ETF that I keep feeding. After 4 years, you'd have a good chunk of money to go towards a new car in addition to the trade-in if needed.
This.

Cash has not been king for the past 6 years. If you held cash, or had your $$$ sunk in a "paid off car" you're down about -200% vs ETF's.

I put down enough DP to keep my payments close to the depreciation cost of the car. This way my "monthly payment" is the depreciation cost. I then invest the rest. When I sell or trade in, I usually owe about what the car is worth. I pay the bank for depreciation on my car, while I make more than that in investments.

I calculate the cost of my cars as total acquisition cost - amount paid divided by number of months. I drive pretty nice cars for around $500 a month including M3's, 911, etc.

I've paid cash for too many cars in the past to my cash deteriorate in the car.

G/L.
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Last edited by Damage Inc; 01-03-2018 at 08:55 AM.. Reason: spelling
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      01-03-2018, 09:46 AM   #29
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Quote:
Originally Posted by TheHouseWon View Post
I meant as in no debt so +49k. Bought used for 58k couple years ago. No way I would buy a new pre-lci
What's pre-LCI?
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      01-03-2018, 09:48 AM   #30
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Originally Posted by MuffinFlavored View Post
What's pre-LCI?
2013
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      01-03-2018, 09:48 AM   #31
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Quote:
Originally Posted by Warrior75 View Post
2013, bought used, paid in full, thank God. I'll probably never buy a brand new car again, regardless of my financial situation.
You aren't worried about warranty/issues?
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      01-03-2018, 09:49 AM   #32
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Quote:
Originally Posted by VoytekM5 View Post
2013
What does pre-LCI stand for?
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      01-03-2018, 09:50 AM   #33
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Quote:
Originally Posted by MuffinFlavored View Post
What's pre-LCI?
"Life Cycle Impulse". Basically a mid-life refresh of the model where cosmetic, mechanical, electronic, packages/features are updated. Usually on a small scale. Common with BMW, they tend to "LCI" just about every model.

The F10 M5 was "LCI'd" in 2014.
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      01-03-2018, 09:51 AM   #34
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Quote:
Originally Posted by josec70 View Post
Lease w/ no money down.

Keep your money invested, perfectly hedge depreciation, warranty and use the tax code to effectively lower your payment.

Turn the car in after lease and do it again.

I understand this is not an option for everyone.
I'd do it if I could get an F10 with a stick and not some fancy new F90
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      01-03-2018, 03:48 PM   #35
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not surprised by these figures I'm seeing here. For these cars, it's always better off buying preowned. I'm even betting for the M6, M6 GC and F8X owners, almost everyone is upside down.
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      01-03-2018, 03:50 PM   #36
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Quote:
Originally Posted by MuffinFlavored View Post
You aren't worried about warranty/issues?
buying used and warranty issues aren't directly related. I bought my M6 GC used, but from a BMW dealership with a CPO. So got the best of both worlds, more friendly depreciation and a dealer warranty.
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      01-03-2018, 03:54 PM   #37
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Quote:
Originally Posted by sonnenschein3000 View Post
Do you guys in the U.S. not have lease agreements?

Lease agreements are very common here in the UK, in fact I think 90% of luxury cars are leased!

I'm a cash buyer btw, we're frowned upon by the salesmen (less profit for them if they don't sell a finance package!!)
We do have leases. In fact, I'm betting most M5s are actually leased and not financed.

Even getting leases doesn't mean you won't eat the depreciation at a bad rate. In this case, a lease of the M5 would have been better than a finance as the lease residuals were clearly better than actual depreciation. But you can easily be upside down on a bad lease residual.
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      01-12-2018, 10:19 PM   #38
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2014 with 34K miles. Owe $31K
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      01-13-2018, 05:11 AM   #39
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Quote:
Originally Posted by Mkai0 View Post
Quote:
Originally Posted by Herofmine View Post
I owe $27k 2015 M5 14k miles on dash not that bad. But planing to pay off by next year.
How long will you keep car once paid off?
I won't ever sell it as it's worth more to me than to give it away. At 116k miles now it's prob worth 25k and runs and looks every bit of new. So I'm not letting some little snot nose kid have my hard earned money monster on the cheap.
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      01-13-2018, 10:38 AM   #40
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Quote:
Originally Posted by boots View Post
Quote:
Originally Posted by Mkai0 View Post
Quote:
Originally Posted by Herofmine View Post
I owe $27k 2015 M5 14k miles on dash not that bad. But planing to pay off by next year.
How long will you keep car once paid off?
I won't ever sell it as it's worth more to me than to give it away. At 116k miles now it's prob worth 25k and runs and looks every bit of new. So I'm not letting some little snot nose kid have my hard earned money monster on the cheap.
Hell yeah
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      01-13-2018, 06:05 PM   #41
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Quote:
Originally Posted by boots View Post
Quote:
Originally Posted by Mkai0 View Post
Quote:
Originally Posted by Herofmine View Post
I owe $27k 2015 M5 14k miles on dash not that bad. But planing to pay off by next year.
How long will you keep car once paid off?
I won't ever sell it as it's worth more to me than to give it away. At 116k miles now it's prob worth 25k and runs and looks every bit of new. So I'm not letting some little snot nose kid have my hard earned money monster on the cheap.
This is amazing
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      01-17-2018, 01:10 PM   #42
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I am with boots on this one....I just keep the cars, which presents a storage problem though. Lol.
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