[wrsbmw]

Originally Posted by Djokodallas

Hi Guys,

I am just trying to figure out the following:

A. To lease brand new M5/M6 or CLS63
B. To buy 1 or 2 year old car and save $$$$
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With lease:
1. You get a new car every 2-3 years
2. You always drive news best etc
3. No worries about selling it after just swap cars
4. If you get into accident its on MB or BMW
5. Car is under warranty always

With Purchase of a 1-2 year old car:
1. Save at least 25k
2. After 5 years you will have car that you will actually own
3. Even if you sell that 5-6 year old car you will still be able to sell it for 20k
4. Even if you spend 5k on repairs you will still sell the car for 15k lets say and still be plus 10k.....

So if you lease BMW M5 for 6 years you will spend about 1,000 - 1,300 per month.

6years * 12 = 72
72 * $1,150 = $82,800

So after 6 years you paid off one M5 in full......(I am CPA ignoring interest, just plain calculation,etc)

Now if you deduct for businesses use M5 there is no way (well unless you like audit) that you will deduct more than 50% of your lease......

I am looking at autotrader.com and there are 2013 M5 with 20,000 miles for about 75k......

Can someone help me here ?

Thanks

$82,800 - $20,000 = $62,800

In six years you can save up what you need to buy a decent used one with < 20k miles on it. There is a lot to be said for writing a check and walking away with a car you own outright. Buy a solid toyota now for $20k and drive it the next 6 years while saving the $1100/mo payment.

You should have seen the pile of crap I drove at your age.