M5 Depreciation...
Discussion
I know we should not buy anything with depreciation in mind, but I am about to 'push the button' on an M5 lease over two or three years and just looking at the maths if I purchase instead. Any ideas how much I would lose if I bought one. I am going for standard car + 20 inch wheels, nothing else. Sorry for such a boring topic. PS - I would be 'chopping in' as I don't like selling cars privately.
I suspect you'll lose more than the cost of the lease bearing in mind the deals that are currently around.
On the assumption a 75k car would be worth say £45k on trade-in that's £30k, my lease is costing me £27k for three years and I don't pay any RFL which saves a further £1500, so £25.5k
That said, I've guessed on the value of an M5 after 3 years and it may be more? (May also be less!)
On the assumption a 75k car would be worth say £45k on trade-in that's £30k, my lease is costing me £27k for three years and I don't pay any RFL which saves a further £1500, so £25.5k
That said, I've guessed on the value of an M5 after 3 years and it may be more? (May also be less!)
I went for Sakhir to get away from a black interior which I've had pretty much on every car I've ever owned - the fact I'm leasing means I don't have any concerns about the residual value and I can be a bit more adventurous than normal.
That said, the images I've seen of Silverstone II and Sakhir looks bloody lovely
I was going Monte Carlo and Sakhir but thought that was too much although I know it looks fantastic. I wonder if I'm a touch old for such loud colours!
Colour choice is so difficult. My wife today traded a '12 plate Grey E70 X5 for a 120D M Sport (wanted a smaller car and it's only used for the school run) and we were torn between Le Mans blue (or whatever it's called) and Mineral Grey. She decided to be sensible and grown up and go grey. I wasn't sure, but when we picked it up this morning I think it's exactly the right choice and suits the car well.
No doubt you'll be changing your choice until the day before you have to make your final decision - have a good look around the net and you can see pretty much every choice.
That said, the images I've seen of Silverstone II and Sakhir looks bloody lovely
I was going Monte Carlo and Sakhir but thought that was too much although I know it looks fantastic. I wonder if I'm a touch old for such loud colours!Colour choice is so difficult. My wife today traded a '12 plate Grey E70 X5 for a 120D M Sport (wanted a smaller car and it's only used for the school run) and we were torn between Le Mans blue (or whatever it's called) and Mineral Grey. She decided to be sensible and grown up and go grey. I wasn't sure, but when we picked it up this morning I think it's exactly the right choice and suits the car well.
No doubt you'll be changing your choice until the day before you have to make your final decision - have a good look around the net and you can see pretty much every choice.
I quite like Space Grey, had that one an '07 535D M Sport and I think it suited the car very well.
There's a PH (W8PMC) with a dark grey M5 and it looks very nice - see here Dark Grey M5
Looks lovely but the light interior is a no no for me.
There's a PH (W8PMC) with a dark grey M5 and it looks very nice - see here Dark Grey M5
Looks lovely but the light interior is a no no for me.
Mines Singapore Grey with Silverstone Interior. I like the dark outside/light inside contrast & at the last minute went for this slightly tamer option as almost pushed the button on MCB with Sakhir interior. If slightly younger/braver/louder i'd have proceeded but at the last minute i decided understated was probably better as i do have to leave the car at stations & airports etc.
As for the Man Maths, given the current deals are seeing these cars leave showrooms with close to £15k off the list price, i personally think they'd be lucky to hold a value much North of £30k in 3 years so paying just over £21k + VAT to have one of these machines for 3 years & as above that includes RFL & the 1st service which is as good as another £2500, the lease route really is a no brainer. My lease is for i think 13 or 14k miles per annum.
As for the Man Maths, given the current deals are seeing these cars leave showrooms with close to £15k off the list price, i personally think they'd be lucky to hold a value much North of £30k in 3 years so paying just over £21k + VAT to have one of these machines for 3 years & as above that includes RFL & the 1st service which is as good as another £2500, the lease route really is a no brainer. My lease is for i think 13 or 14k miles per annum.
At 6-8k miles a year I should think you'll be looking at the region of £35K after 3 years. If you're just going to trade it in at the dealers then as long as it's in reasonable condition they won't care much about options and history, more important will be a colour that's in fashion at the time.
scoobyc said:
Didn't think the 1200 mile service was included or have I missed something?
Sorry if i mislead, it's not included in the Lease (all RFL's are), however i've not yet encountered one of these deals that didn't have the 1200 mile service thrown in. TBH a couple of dealers i dealt with during my search for the best deal indicated they wouldn't include it but come deal time it wasn't a tough ask to get it thrown in. I was also told this figure is accounted for in the overall M5 supply cost so although a dealer can charge for the 1200 mile service, it is a sunk cost & should be given FOC.W8PMC said:
scoobyc said:
Didn't think the 1200 mile service was included or have I missed something?
Sorry if i mislead, it's not included in the Lease (all RFL's are), however i've not yet encountered one of these deals that didn't have the 1200 mile service thrown in. TBH a couple of dealers i dealt with during my search for the best deal indicated they wouldn't include it but come deal time it wasn't a tough ask to get it thrown in. I was also told this figure is accounted for in the overall M5 supply cost so although a dealer can charge for the 1200 mile service, it is a sunk cost & should be given FOC.The dealer reduced the cost of my deposit by the cost of the service (about £320?) so whilst I have to pay for it, I've won't have paid for it.
W8PMC said:
3 years & as above that includes RFL & the 1st service which is as good as another £2500, the lease route really is a no brainer.
I agree that the lease route is a no brainer but how did you get £2500? 1st service = £320. RFL = £475 pa for year 2 and 3. Year 1 is in the purchase already. £320 + £475 + £475 = £1270 total, not £2500
HoHoHo said:
my lease is costing me £27k for three years and I don't pay any RFL which saves a further £1500
Similarly, £475 + £475 = £950 total, not £1500ACE997 said:
W8PMC said:
3 years & as above that includes RFL & the 1st service which is as good as another £2500, the lease route really is a no brainer.
I agree that the lease route is a no brainer but how did you get £2500? 1st service = £320. RFL = £475 pa for year 2 and 3. Year 1 is in the purchase already. £320 + £475 + £475 = £1270 total, not £2500
HoHoHo said:
my lease is costing me £27k for three years and I don't pay any RFL which saves a further £1500
Similarly, £475 + £475 = £950 total, not £1500ACE997 said:
Similarly, £475 + £475 = £950 total, not £1500
Add in 1st years RFL (£895 on my M5) which if buying you'd pay by way of the OTR (On The Road) charge which is made up of 1st yrs RFL, delivery, plates & i think a new reg fee although that might also be the inflated 1st yrs RFL.So £895 + £475 + £475 + £450 (cost of 1200 mile service) = £2295 so i did exaggerate by a couple of hundred quid
Updated as checked my invoice & the £895 for 1st yrs RFL is listed
Edited by W8PMC on Friday 15th November 15:58
W8PMC said:
Add in 1st years RFL (£895 on my M5) which if buying you'd pay by way of the OTR (On The Road) charge which is made up of 1st yrs RFL, delivery, plates & i think a new reg fee although that might also be the inflated 1st yrs RFL.
So £895 + £475 + £475 + £450 (cost of 1200 mile service) = £2295 so i did exaggerate by a couple of hundred quid
Updated as checked my invoice & the £895 for 1st yrs RFL is listed
http://www.theaa.com/motoring_advice/car-buyers-guide/cbg_depreciation.htmlSo £895 + £475 + £475 + £450 (cost of 1200 mile service) = £2295 so i did exaggerate by a couple of hundred quid
Updated as checked my invoice & the £895 for 1st yrs RFL is listed
Edited by W8PMC on Friday 15th November 15:58
Depreciation is simply the difference between the amount you spend when you buy a car and the amount you get back when you sell.
The first years RFL is part of depreciation in the same way the delivery, plates etc are.
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