[DarkTrigger]

Originally Posted by tony20009

Buying is cheaper if you plan to keep your car for 6+ years, not 5, provided you pay for the car in fewer than 5 years.

If you are one who will have a car note every month and then trade in your purchased car, leasing will be cheaper always.

If you buy your car and keep it for 10 years, you are financially better off than in either of the two scenarios above.\

After a certain point, you don't really lose much in car value at all. For example, in 2007, I was offered $5000 for my 1993 318i with 158K miles on it. I paid a bit over $20K for it new in 1993. (I didn't accept the offer, I gave the car to a relative.) I've seen several ads on the Internet where they are still selling for about that price.

So, by simple math, that comes out to around $1000/year in value lost on the car. So, it seems if you keep your car for a very long time, you'll be quite satisfied with the price you can sell it for even when it's very old. I know I would be very happy if in 2021 or so, someone offers me $5000 or $6000 for my E92. Here in 2013, though, $15000-$16000 feels like I'm being ripped off.

+1 Very true.

Although, I must say I didn't even think about a used car. Used car 3-4 years old is probably the best deal since you're getting a relatively new car without all that horrible depreciation of the first few years of a new car.

I was just bringing up the differences between leasing and purchasing. If you lease cars for 10 years versus buying 1 car for 10 years then buying another, it only makes financial sense to buy it.

Personally, I plan to keep this car until it no longer runs. We'll see how long that is, hopefully it's more than 10 years

[JohnVidale]

My logic is that my 328ix is exactly the car I want - I see nothing else preferable (at any price) for my needs. Right size, plenty of pep, good mileage for my conscience, Consumer Reports calls reliability great, luxurious, very safe, looks good, and has most of the electronic gadgets that seem useful.

Luckily, I can afford it. If I were buying next year, perhaps the best car would change.

[GB72]

I believe I got a good deal on mine, it's a December 2012 335i m sport with pro nav and a good spec, pre registered brand new the list price was £45000 and I paid £31800, even though I think I got a good deal I know I'll still feel financial pain when I come to sell!

[ToyotaBMW]

I think this is the problem when BMW financial makes it so cheap to lease new vehicles. It creates a huge supply of used vehicles and hence supply is greater than demand for used BMW's and any other brand that has cheap leases.

[BavarianFanatic]

Originally Posted by ToyotaBMW

I think this is the problem when BMW financial makes it so cheap to lease new vehicles. It creates a huge supply of used vehicles and hence supply is greater than demand for used BMW's and any other brand that has cheap leases.

You have it backwards. The leases are cheaper because of higher residual values. Economics 101.

[shivaswrath]

Originally Posted by DerekS

My guess is the tested car had all season tires, which always result in longer stopping distances compared to summer performance tires.

No, i meant that's really good. I mean REALLY GOOD...that's only a few feet behind supercars (will more than a few feet):http://www.motortrend.com/features/m...t/viewall.html

Originally Posted by jtuds

No, the 4.7 people hang their hat on was not from a standstill.

I see. Yeah, from my seat of pants, feels as fast as my Evo, which was clicking off quarters, with descent shifts, in the 13's.

[shivaswrath]

Regarding leasing versus financing, I run my own business and actually write off the loan payments...with the mileage I place on the car, the lease option would almost be similar in monthly payments...

Unsure what's financially better or not, but my loan is 6 years, warranty is 6 years - if I'm not squeaking and having issues at that point, I'll keep on driving the 335i. I was just surprised that when BUYING a $50k car, it essentially depcreciates $10k a year per 20k miles I put on it...

[SamS]

Originally Posted by kobechrome

I just sold my 2006 E90 325i for 10k private party. 107k miles. Exactly 7 years old.

Two weeks ago, I sold my 2006 Honda Accord (7 years old) to a dealer (not trade, cash sale) for $9500. The MSRP on the Honda was about $26K, and mine had a few dents. That is ridiculous that BMWs depreciate so much over the same time period.

[shivaswrath]

Originally Posted by SamS

Two weeks ago, I sold my 2006 Honda Accord (7 years old) to a dealer (not trade, cash sale) for $9500. The MSRP on the Honda was about $26K, and mine had a few dents. That is ridiculous that BMWs depreciate so much over the same time period.

Exactly, that was more my point...you purchase a car for $26-50k. Both end at $10k.

I mean, it REALLY HAS TO BE the Ultimate Driving Machine in order to justify the insanity.

Regardless, when I traded in my Evo VIII for the TSX, I was depressed and underwhelmed with the driving experience. The most difficult 50,000 miles I have driven in 20 months.

When I traded in the TSX for the BMW (mind you I made $2,000 profit off of the trade in, go Acura!), I've only had smiles when driving the car since.

I feel like the cost of maintenance on the BMW must add to the depreciation value...

[Tsuvoi]

Originally Posted by DarkTrigger

I can't believe I'm hearing all this talk. Buying a car IS a smarter decision if you plan on keeping it any more than 5 years. Anyone with a little background in finance will tell you that!

Seems like people who are leasing are trying to justify. Leasing is almost ALWAYS worse, unless you run your own business.

Ease off dude, this is buying new vs buying used. That's what people are referring to. Buying old is a good financial move.

[DarkTrigger]

Originally Posted by ft1337

Ease off dude, this is buying new vs buying used. That's what people are referring to. Buying old is a good financial move.

The original post WAS about that. However, everyone keeps talking about leases. Also, if you look, I had another post which identified buying used a much better finnancial choice than new, but not leasing over the long run.

I don't even think you can lease a used vehicle, but the leasing posts are most prevalent, therefore, we're back to the lease vs buying discussion.

I don't care either way, people do what makes them happy, plus we're all financially dumb for buying a BMW, otherwise we'd all have Toyotas which hold their value the best.

[SamS]

Originally Posted by ft1337

Buying old is a good financial move.

As long as you don't mind paying tens of thousands to drive around in someone's old car that they farted in all day for the past few years

[Jamesons Viggen]

I think the car in the test if the Modern Line, that means no sport suspension.

[tdizzle]

Originally Posted by kobechrome

I think it was around $33,500 (not including taxes/title/fees). It was pretty barebones and I got $500 over invoice.

Interesting, I sold my FX4 F-150 for $12k trade in at the dealer for my 335. I'm sure I couldve gotten around $15k private. It MSRP'd $37k, I forget what I paid for it though, probably around your $33k though. It was also 7 years old when I traded it in, but I "only" had 82k miles.

[kobechrome]

Originally Posted by tdizzle

Interesting, I sold my FX4 F-150 for $12k trade in at the dealer for my 335. I'm sure I couldve gotten around $15k private. It MSRP'd $37k, I forget what I paid for it though, probably around your $33k though. It was also 7 years old when I traded it in, but I "only" had 82k miles.

Good ole bmw depreciation

[BavarianFanatic]

Originally Posted by SamS

Two weeks ago, I sold my 2006 Honda Accord (7 years old) to a dealer (not trade, cash sale) for $9500. The MSRP on the Honda was about $26K, and mine had a few dents. That is ridiculous that BMWs depreciate so much over the same time period.

I've been driving an E32 750iL for the last 8 or so years that I bought for $600. Original sticker was north of $80k. I don't mind being on that side of the curve.

[snowghost]

Originally Posted by DarkTrigger

I can't believe I'm hearing all this talk. Buying a car IS a smarter decision if you plan on keeping it any more than 5 years. Anyone with a little background in finance will tell you that!

Seems like people who are leasing are trying to justify. Leasing is almost ALWAYS worse, unless you run your own business.

You can still write off an owned car for tax purposes as well.

[shivaswrath]

Originally Posted by snowghost

You can still write off an owned car for tax purposes as well.

That's what I'm doing...my accountant said any cost associated with a company car can be written off (lease/loan/maintenance).

For now..

[Jamesons Viggen]

Originally Posted by shivaswrath

That's what I'm doing...my accountant said any cost associated with a company car can be written off (lease/loan/maintenance).

For now..

That's what I am doing as my business partner and I are forming an LLC. Win!

[snowghost]

Originally Posted by SamS

As long as you don't mind paying tens of thousands to drive around in someone's old car that they farted in all day for the past few years

Yeah check out the Top Gear episode where they do forensics on used cars, and find boogers, feces, blood, scabs, skin and semen amongst other things.

[dd1981]

Originally Posted by kobechrome

I don't think the argument is lease vs buying. From a pure financials perspective, buying probably wins out every time. I think the point the poster is trying to make is that buying NEW is "stupid" when compared with buying USED. The most economical way to acquire cars is to buy a 3 yr old used car (when depreciation hits hardest) and then drive that thing to its death, into the ground, sputtering, crawling all the way to the car's grave - then repeat cycle.

However this explanation doesn't account for lifestyle, culture, happiness, what people want to do - its just a pure numbers game. If it makes you happy to have new cars, or lease and drive new cars every 3 years - more power to you if you have the financial means. People have the right to spend their $$ however they want to achieve happiness. Plus, the guy arguing against leasing cars surely has other areas in his lifestyle where there is waste/excess - so its all relative and in the end not really that "stupid."

wow well put, I could not agree more.

[pruettfan]

That residual is about right for a 5 year old car with what will likely be 80,000 miles. Remember residual is not based on retail value it is based on a wholesale value. My 06 330i at 5 years was worth less than that if you look at wholesale, the retail was about 16k.