M Power Lease Hire v's Ownwership
Discussion
All
I am a long term viewer but this is a first time posting, my reason for doing so is I would like to get peoples views on something I am contemplating.
In one corner is my 6 year old E60 M5 and in the opposite corner is the potential to own a brand new E92 M3, now the tale of the tape as I see it is as follows:-
M5 advantages:-
I get to choose what spec I want - in as much as I do not buy until the spec I like becomes available (although possible I may have to wait for a while)
Flexibility when wanting to change (although lease is only 2 years)
Will effectively be going down a model, M5 to M3. But is this considered a 'move down' so-to-speak? I am test driving an M3 this weekend to see what I think so will have a clearer picture in my own mind then. I would especially like to hear views on this and particuarly from those who have experienced both vehicles?
M3 advantages:-
Will be brand new so no need to set aside money for warranty or if no warranty a 'war chest'
As it is new there is less to go wrong (covered by warranty anyway) unlike the M5 which the older it gets the more niggles and issues there will be and less and less covered on warranty as the miles creep up
Road fund licence included for term of lease
Subject to confirmation BMW appear to be offering a 'complimentary upgrade' which I will insist upon the lease company getting as it will be a new build car I have. The package is worth circa £5000 and consists of the 'competition package' 'audio system upgrade' and 'sun protection glass'
Now for the statistics, we can forget servicing as whether lease or ownership I pay this (I know I can get a service package with a lease but I do not want it as I am not a high mileage type of guy). Sure there maybe a slight difference in servicing the two but let us assume they offset, so:-
I normally re-new my M5 every two years and in todays market would pay circa £20/22k, so I estimate that roughly, over two years, I will lose around £8000 fair comment?
If I were to have warranty I guess it will be around £3000 for two years and if say a couple of claims may have to add another £1000k for non covered items/excess etc. If no warranty an equivalent 'war chest' of £4000. Yes I know this could be a hell of a lot more but this is what I have found as an average for me so far and being conservative here is actually undervaluing the stress free motoring aspect of a brand new car.
M3 - The lease deal will cost me in all £15000 for two years - deposit of £3k and 24 months at £505 (inc of vat) then I give the car back. As mentioned road fund licence is included.
The money from the sale of the M5 I can keep in a 2 year bond thus earning circa £1k so net the deal costs me £14000
M5 - 2 year devaluation of say £8k, two years RFL £1k and warranty/war chest £4k minimum equals £13k and possibly more should non warranty items go (clutch/flywheel comes to mind).
In summary the costs are pretty similar so subject to liking the M3 I have a decision to make. I know the ultimate decision is mine and I am not asking for people to make that decsion for me. What I am asking are personal views on the two scenarios, and looking for anything I may have missed out, information of value and other questions i need to consider.
Thanks for reading chaps
I am a long term viewer but this is a first time posting, my reason for doing so is I would like to get peoples views on something I am contemplating.
In one corner is my 6 year old E60 M5 and in the opposite corner is the potential to own a brand new E92 M3, now the tale of the tape as I see it is as follows:-
M5 advantages:-
I get to choose what spec I want - in as much as I do not buy until the spec I like becomes available (although possible I may have to wait for a while)
Flexibility when wanting to change (although lease is only 2 years)
Will effectively be going down a model, M5 to M3. But is this considered a 'move down' so-to-speak? I am test driving an M3 this weekend to see what I think so will have a clearer picture in my own mind then. I would especially like to hear views on this and particuarly from those who have experienced both vehicles?
M3 advantages:-
Will be brand new so no need to set aside money for warranty or if no warranty a 'war chest'
As it is new there is less to go wrong (covered by warranty anyway) unlike the M5 which the older it gets the more niggles and issues there will be and less and less covered on warranty as the miles creep up
Road fund licence included for term of lease
Subject to confirmation BMW appear to be offering a 'complimentary upgrade' which I will insist upon the lease company getting as it will be a new build car I have. The package is worth circa £5000 and consists of the 'competition package' 'audio system upgrade' and 'sun protection glass'
Now for the statistics, we can forget servicing as whether lease or ownership I pay this (I know I can get a service package with a lease but I do not want it as I am not a high mileage type of guy). Sure there maybe a slight difference in servicing the two but let us assume they offset, so:-
I normally re-new my M5 every two years and in todays market would pay circa £20/22k, so I estimate that roughly, over two years, I will lose around £8000 fair comment?
If I were to have warranty I guess it will be around £3000 for two years and if say a couple of claims may have to add another £1000k for non covered items/excess etc. If no warranty an equivalent 'war chest' of £4000. Yes I know this could be a hell of a lot more but this is what I have found as an average for me so far and being conservative here is actually undervaluing the stress free motoring aspect of a brand new car.
M3 - The lease deal will cost me in all £15000 for two years - deposit of £3k and 24 months at £505 (inc of vat) then I give the car back. As mentioned road fund licence is included.
The money from the sale of the M5 I can keep in a 2 year bond thus earning circa £1k so net the deal costs me £14000
M5 - 2 year devaluation of say £8k, two years RFL £1k and warranty/war chest £4k minimum equals £13k and possibly more should non warranty items go (clutch/flywheel comes to mind).
In summary the costs are pretty similar so subject to liking the M3 I have a decision to make. I know the ultimate decision is mine and I am not asking for people to make that decsion for me. What I am asking are personal views on the two scenarios, and looking for anything I may have missed out, information of value and other questions i need to consider.
Thanks for reading chaps
jm doc said:
M3 is a definite move down after E60 in my opinion, everything about it is just smaller and less satisfying, in particular the engine
One of my buddies went from an M5 (he had from new for about 4 years) to an M3 DCT coupe (he is really too old to be driving Frozen Grey).He really raves about the M3 having a much improved gearbox and handling better - so in his opinion, not a step down - just different.
On the OPs original question - I have always had a preference for a new or nearly new car, with the relative peace of mind of warranty, hassle free driving. The downside is unknown depreciation, but some of the excellent contract hire deals look very attractive and take away the uncertainty of overall cost of ownership. So I would say if you like the M3 once you have test driven, and you are happy your numbers stack up (your logic seems sensible - and the lower fuel consumption of the M3 will close the gap further) then go for it.
If you are paying £20-22K for a 6yr old M5, I would think that you'd be losing £5-7k as soon as you drive it out the showroom.
Trade in 2 years down the line would be round £10k I reckon, so more like £12k depreciation overall.
Werent BMW offereing £500 lease deals on M3s recently?
At that price even with 6 payments upfront it would be a no brainer in my book
Trade in 2 years down the line would be round £10k I reckon, so more like £12k depreciation overall.
Werent BMW offereing £500 lease deals on M3s recently?
At that price even with 6 payments upfront it would be a no brainer in my book
turboman786 said:
Where are they doing M3's at c£500 inc VAT?......I looked high and low a few months ago, and with any meaningful options, the price is cloer to £700 in vat....(which is still pretty good!)
I was quoted £450+ vat just before christmas for a basic spec car at my local dealer. That was with 6 payments up front and over 24mnths. Dont think you can get that deal anymore thoughThe dealer "free" spec upgrade is not available through the lease deals, well it is but you pay full option list over the term of the lease, and that makes it a lot more expensive. The broker lease deals are generally DCT, Bluetooth and 19's, probably the bare minimum the trade will want when they are all handed back.
The dealer offer needs about 10k down to get to 640 a month as well doesn't it?
I looked at them and you would be utterly mad to buy to be honest!
The dealer offer needs about 10k down to get to 640 a month as well doesn't it?
I looked at them and you would be utterly mad to buy to be honest!
shadow1964 said:
Jazzer - You are very wrong this is a genuine post. May I ask what is amusing? If you cannot say anything constructive don't say anything at all. Why would I waste my time on a hoax posting, cannot see your logic why you may think this is so.
Don't get hot and bothered Craig!The M3 is fabulous, of that there is no question.
However, the M5 is in a different league, just like the E39 was when compared with the E46.
I'd find it very hard to move from the glorious V10 to a V8.
But each to their own.
Whichever way you go, you won't be disappointed.
Where are you in Essex?
Jazzer
Got talking about a lease deal for the M3 with my dealer, It was around a year ago and he said figures of 3Months up front and £600 a month excluding VAT!!
This was through my business but seems a hell of alot cheaper than the poster is quoting deposit wise?? We got into the conversation as I said surely they would be losing more than that a month......
This was through my business but seems a hell of alot cheaper than the poster is quoting deposit wise?? We got into the conversation as I said surely they would be losing more than that a month......
foz01 said:
The dealer "free" spec upgrade is not available through the lease deals, well it is but you pay full option list over the term of the lease, and that makes it a lot more expensive. The broker lease deals are generally DCT, Bluetooth and 19's, probably the bare minimum the trade will want when they are all handed back.
The dealer offer needs about 10k down to get to 640 a month as well doesn't it?
I looked at them and you would be utterly mad to buy to be honest!
Mad? Really? £15k to own a £60k car for two years. That's without actually having money tied up in it, and you don't need to worry about depreciation. Sounds pretty sensible to me. The dealer offer needs about 10k down to get to 640 a month as well doesn't it?
I looked at them and you would be utterly mad to buy to be honest!
Best M3 lease deal I can find at present: http://www.amsleasing.co.uk/FindOffers.asp?OfferID....
M3 Coupe with DCT & 19"s.
6+29 at 8k p/a = £429 business, £514.80 personal
6+29 at 10k p/a = £449 business, £538.80 personal
M3 Coupe with DCT & 19"s.
6+29 at 8k p/a = £429 business, £514.80 personal
6+29 at 10k p/a = £449 business, £538.80 personal
David 997t said:
Got talking about a lease deal for the M3 with my dealer, It was around a year ago and he said figures of 3Months up front and £600 a month excluding VAT!!
This was through my business but seems a hell of alot cheaper than the poster is quoting deposit wise?? We got into the conversation as I said surely they would be losing more than that a month......
I've been offered this deal on the M3, but the £600pcm is for a base car. You'd be looking at £660pcm for a decent spec, still a very good deal though considering depreciation.This was through my business but seems a hell of alot cheaper than the poster is quoting deposit wise?? We got into the conversation as I said surely they would be losing more than that a month......
I opted for a low mileage AUC instead, mainly because I'm so impatient I didn't want to wait 2 months and then have to run the thing in!
OP, I guess both options will cost you roughly the same so I'd suggest driving both back to back and going with your gut feeling.
Did you actually read my post, 
FesterNath said:
foz01 said:
The dealer "free" spec upgrade is not available through the lease deals, well it is but you pay full option list over the term of the lease, and that makes it a lot more expensive. The broker lease deals are generally DCT, Bluetooth and 19's, probably the bare minimum the trade will want when they are all handed back.
The dealer offer needs about 10k down to get to 640 a month as well doesn't it?
I looked at them and you would be utterly mad to buy to be honest!
Mad? Really? £15k to own a £60k car for two years. That's without actually having money tied up in it, and you don't need to worry about depreciation. Sounds pretty sensible to me. The dealer offer needs about 10k down to get to 640 a month as well doesn't it?
I looked at them and you would be utterly mad to buy to be honest!
foz01 said:
The dealer "free" spec upgrade is not available through the lease deals, well it is but you pay full option list over the term of the lease, and that makes it a lot more expensive. The broker lease deals are generally DCT, Bluetooth and 19's, probably the bare minimum the trade will want when they are all handed back.
The dealer offer needs about 10k down to get to 640 a month as well doesn't it?
I looked at them and you would be utterly mad to buy to be honest!
Couldn't you source the car through someone like Broadspeed and get the benefit of both their discount and the BMW complimentary specification upgrade? Not checked recently but I'm sure when I talked to Broadspeed a while ago they said you're still entitled to the spec upgrade even if you pay their lower discounted price; that being the case you'd get a new M3 with Competition Pack, DCT, etc for around £47.5k. If you then want to go the lease route rather than owning the car outright I daresay a specialist company like Oracle Finance would put a deal together for you based on that lower cost to finance? I guess you could also just use the Broadspeed discounted price as a lever with your BMW dealer and try to get a better lease deal with them; their quotes often tend to start with something close to list price but if that inital cost was reduced by £10k it ought to make a difference to the monthly repayments!The dealer offer needs about 10k down to get to 640 a month as well doesn't it?
I looked at them and you would be utterly mad to buy to be honest!
foz01 said:
i think even taking that into account the depreciation will be more..
Yes, if you were going to purchase the car for £47k you're probably right as after a couple of years and 20k miles I doubt the car would be worth much more than £30k as a part-ex. What I more thinking was that a specialist finance company might be able to tailor a competitive personal lease off the back of the lower price you'd negotiated; however, I suppose leasing companies are able to buy competitively anyway and hence in theory that should be reflected in the rates they quote!Gassing Station | M Power | Top of Page | What's New | My Stuff