View Single Post
      10-10-2012, 08:09 PM   #9
Monterra
Captain
 
Monterra's Avatar
 
Drives: 09 128i 6MT
Join Date: Jan 2009
Location: HVNY

Posts: 616
iTrader: (0)

Um ok don't really get your point. Cars are most certainly not investments but man 20k every three years X10- that's a 200k mortgage over 30- granted doesn't get you that far in my area. Yes, there are plenty of people who can afford that but for many leasees that's a really bad allocation of $. The same buyer on the new every 6 plan gets 5 new cars for the same $200k plus the residual on 5 6 year old bimmers with only 60k on them(same as lease). Kept nice with records I think 15k each is pretty conservative, that's 75k. Sure over quite a period of time but that's a pretty good chunk of change- good for another decade of driving bimmers. Put the wife on the same plan and now its a 400k mortgage vs. saving roughly 150k. I understand these are very rough numbers but I think they're pretty close to reality really a 2007 328xi with step premium, xenons, cold weather gave me a private party value of 17k in good, 15.5k in fair condition with 60k.

Cars? Not investments but they sure as hell are an expense, how you manage it is up to you. Sure driving a new car every 3 is nice but you'll pay for that perk- a lot. Finance 099 from a former finance major himself. Taxes? Well 8% on 20k + 8% on 20k (two leases) vs. 8% on 40k- one purchase over 6- I think that works out pretty close, no? Additionally if you trade in your 6 year old car you'll deduct that 15k off your new car's tax bill- in most states. Galves gave me 14.5k low end of range trade in value. Leases are like strip clubs- easy access, convenient, nice new things to look at frequently, seamingly cheap entertainment but you're fooling yourself if you think they won't slowly bleed you of cash.
__________________
6MT-Montego/Terra 128i ZSP
Save the manuals, bring the diesels BMW!

Last edited by Monterra; 10-10-2012 at 09:13 PM.
Monterra is offline  
0
Reply With Quote