View Poll Results: How long will you keep your E60?
Less than 1 year
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How long will you keep your E60?
#22
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My Ride: [i][b][u]Since 19 august 2004[/u][/b][/i]: [color=red][b]530i[/b] High Executive[/color], Silvergray with beige interior, Popular wood, Servotronic, Sportssuspension, electric foldable and dimmed mirrors, dimmed interior mirror, pappelmaser braun wood, cupholders, styling 123 18" wheels, Logic 7, Steptronic, alarm class 3, electric sunscreen in the rear and suncreens for sidewindows, Comfort seats, heated seats, Xenon with headlightwashers, Adaptive corner lights ALC, Advanced airconditioning, lightpackage, Nav Pro, 6 cd changer, side airbags rearseats, bluetooth siemens S55, chrome kidneys, gearlever with wood, voice recognition retrofit, front windshield with green band.
Waiting for trunkopener button from Hobi :)
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Originally Posted by alohalc' date='Aug 6 2004, 03:44 AM
530e60nl, i've heard from many people and read many magazines, they all said don't lease more than 3 years. otherwise you'll lose more money. of course it's a very personal thing. but i just don't want bmw make another dollar out of our pockets
.
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#23
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My Ride: F02 LCI Individual
Model Year: 2013
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Mine is a leasing, since I own a company this is the only way to do it...
I wouldn't lease it if it was my private ride.
I wouldn't lease it if it was my private ride.
#24
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Pardon the financial jargon below, just trying to figure out if I've thought about my E60 financing plan correctly!
I'm planning on buying my E60 for cash, even though I don't plan to keep it for too long (maybe 3-4 years?)
My logic is that the main downside of paying cash is the opportunity cost of the capital that's tied up in the vehicle when I pay for it. Since I don't think I can invest the equivalent capital at a risk-free return of more than 5.5% (which is the absolute minimum rate I think I could get on financing), I concluded that I'm better off just paying cash now under almost all circumstances rather than try to lease or finance.
(it would have to be a risk-free return of 5.5% because there is 100% certainty that the interest payments are due on the car, so I would need to generate the equivalent amount of risk-free returns -- or risk-adjusted premium -- on the capital to justify financing the car)
I think the key potential weakness of this logic is under the lease scenario if the lease payments, adjusted to factor in the initial downpayment, are less than the market depreciation of the car. Then as long as this is true (i.e. lease payments + amortized initial downpayment < annual depreciation), I'm better off leasing. Is this ever true? I wouldn't imagine so.
Is there anything wrong with this logic? I haven't picked up the car yet so I still have time to finance / lease if there's something wrong with how i'm thinking about this.....i'm not too experienced with buying cars
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I'm planning on buying my E60 for cash, even though I don't plan to keep it for too long (maybe 3-4 years?)
My logic is that the main downside of paying cash is the opportunity cost of the capital that's tied up in the vehicle when I pay for it. Since I don't think I can invest the equivalent capital at a risk-free return of more than 5.5% (which is the absolute minimum rate I think I could get on financing), I concluded that I'm better off just paying cash now under almost all circumstances rather than try to lease or finance.
(it would have to be a risk-free return of 5.5% because there is 100% certainty that the interest payments are due on the car, so I would need to generate the equivalent amount of risk-free returns -- or risk-adjusted premium -- on the capital to justify financing the car)
I think the key potential weakness of this logic is under the lease scenario if the lease payments, adjusted to factor in the initial downpayment, are less than the market depreciation of the car. Then as long as this is true (i.e. lease payments + amortized initial downpayment < annual depreciation), I'm better off leasing. Is this ever true? I wouldn't imagine so.
Is there anything wrong with this logic? I haven't picked up the car yet so I still have time to finance / lease if there's something wrong with how i'm thinking about this.....i'm not too experienced with buying cars
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#25
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Originally Posted by Rudy' date='Aug 5 2004, 07:19 PM
I do three year leases so I'm sure I'll be doing this again in three years. Most likely I'll be getting the same thing, just a 2007 model with all the trimmings! ![Big Grin](https://5series.net/forums/images/smilies/imported/biggrin.gif)
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I can't wait to see what goodies we have in store for us in the '07 model year. Maybe the 535d will be available...
-MrB
#26
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My Ride: '04 545i/6sp SilverGray/Beige
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Originally Posted by alohalc' date='Aug 6 2004, 02:42 AM
i've noticed a few of you or more out there are leasing your car. i know it's stupid to ask
but leasing is always good for business owners (because of the tax write off) and not for "regular" people like me
. but of course there are also many out there don't mind to pay a little more for the "convenience" and "new-car-every-three-years" kind of pride
. i was seriously thinking about leasing before i ended up purchase the car. i know a few of you might remember all the questions i asked couple months ago. how do you guys like leasing? maybe i should start a new poll.
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Personally, I get the "itch" for a new car every 3 or so years, so leasing is perfect for me. I'm never out of warranty, don't have to worry about being upside-down, etc. etc. I've just accepted the fact that I will always have a car payment. I'm OK with that. I could never be the guy that drive his car into the ground. Plus, I know that if I ever got to the point where I didn't have a car payment, I'd never be able to get a new car.
The wife would "steal" all that extra money and go to Bloomingdale's every day. I've found that my lifestyle expands to consume my after-tax salary regardless of the amount. Kind of like how a fish will continue to grow if you put it in ever larger bowls. Thank goodness for 401(k) plans, or I might be sleeping in my 545 come retirement.
With this E60, leasing seemed "safer," since I'm an early adopter and didn't want to get "stuck" trying to sell it if it had had tons of problems (which, 2400 miles in, it hasn't) when I was tired of it.
-MrB
#27
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I voted 5-10 years because when I bought the car, I told my wife I would keep it for a long time. After seeing all of the specs on the new M5, now I am rethinking this plan!
Hmmmm....
Hmmmm....
#30
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I don't plan to get rid of this one. I told my wife it's the first car of the "collection"...
I only put 3500 miles a year on my last car so the e60 will easily be taken out of daily use before it wears out. My wife is up for the next car in 5 years so we'll see what I can talk her into.
I only put 3500 miles a year on my last car so the e60 will easily be taken out of daily use before it wears out. My wife is up for the next car in 5 years so we'll see what I can talk her into.