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I have a 2025 G63 on order that should be arriving end of year. It is specced in silver with red diamond stitch leather, interior carbon, carbon steering wheel, monoblocks, and the dark chrome package (image from German configurator below).
I LOVE G Wagons. They are the greatest car ever built. I love the ruggedness of them, the size is perfect, the solid driving feel, the satisfying door closures, the power... all of it. It really is the perfect vehicle.
Options add up to roughly $25k and dealer is charging me $15k markup. Depending on where MSRP lands, that means a total cost of $230-$240k... a quarter million dollars after taxes.
I have been watching YouTube videos for months trying to convince myself there is something else I would love almost as much for half the price. A 2025 V8 Range Rover, for example, would come out to around $140k. The BMW X5m Competition goes for $130k and has a 2.9% finance deal. Would I like them as much as a G? Absolutely not. But they're a hundred grand less.
Part of me says you only live once, the depreciation is less on the G, and I know I would love it. On the other hand, just the interest on the note would be $10-$15k/year. I can't be the only one struggling with the price of this thing. Any advice or feedback from you guys who have owned several or struggled with the same decision? This will be my daily driver, and I put 8-10k miles a year on them.
I did consider buying used, but a decently specced, low mileage 2022 model is going to run $180k. In two years it would be out of warranty with ~40k miles and likely suffer the same depreciation amount as a 2025 based on my research.
TBH just me, but I would definitely not be doing this if I needed to be talked into a quarter million dollar discretionary purchase on a depreciating asset, especially if using debt.. it's not worth the stress or fretting over as it will take away from enjoyment of the car IMO
I have a 25 on order as well, and I'm paying 25 over in my market which I think is #1 in the US (LA), so I will be ~250 all-in as well, and just can't wait to get my hands on the car. This will be my 3rd G63 and haven't given a single thought to resale or MMR or retained value
@sampelligrino Well I don't have to use debt, but my investments return ~20% per year so it seems smarter to borrow at 7-8%.
You may be right though. And that is my fear, that the stress of the expense would take away from my enjoyment of it. Thank you for the input.
Go with your gut is the only advice I'll give, otherwise it's usually never a good idea to listen to internet strangers.. I work in investments as well, and that market beating alpha I would find suspect to rely on consistently year in and year out
I did something similar in 2021 yolo buying a Ferrari with a value 4x my next most expensive car, no debt, and still the stress of owning it and worrying about the value, what would happen if someone bumped into it, parking it, etc all led me to sell it months later as a data point..I've learned nothing, no matter how cool or desirable it is, is worth an equivalent amount of stress in life
Go with your gut is the only advice I'll give, otherwise it's usually never a good idea to listen to internet strangers.. I work in investments as well, and that market beating alpha I would find suspect to rely on consistently year in and year out
I did something similar in 2021 yolo buying a Ferrari with a value 4x my next most expensive car, no debt, and still the stress of owning it and worrying about the value, what would happen if someone bumped into it, parking it, etc all led me to sell it months later as a data point..I've learned nothing, no matter how cool or desirable it is, is worth an equivalent amount of stress in life
Aside from the $100k difference you already highlighted, your actual cost to own the car (assuming you're buying/financing) is car at purchase minus cost at sale, divided by months of ownership. And of course you can also try to calculate the cost of money into that I suppose. With the G63 strong resale, I would wager your cost to own it will wind up being similar to the cars that are $100k less.
The bigger question is if that will carry over into the G580 I just ordered (EV resale hasn't been great) lol
I don’t think you can count on 20% year over year returns. No way would I finance a $250,000 depreciating asset at 7% to 8%. I needed a new SUV about a month ago and had it narrowed done to a Porsche Cayenne S vs the G550. Totally different SUVs, I went with the G550 and am glad I did.
Note: The Cayenne S when totally priced out is surprisingly close in price to the G550.
I don’t think you can count on 20% year over year returns. No way would I finance a $250,000 depreciating asset at 7% to 8%. I needed a new SUV about a month ago and had it narrowed done to a Porsche Cayenne S vs the G550. Totally different SUVs, I went with the G550 and am glad I did.
Note: The Cayenne S when totally priced out is surprisingly close in price to the G550.
I looked at the Cayenne as well. Porsche has a wonderful pedigree, but the Cayenne just didn't do it for me. It's too car-like for my taste. You cannot see the front of the hood from driver position as you can in an upright SUV like a G or Range.
I looked at the Cayenne as well. Porsche has a wonderful pedigree, but the Cayenne just didn't do it for me. It's too car-like for my taste. You cannot see the front of the hood from driver position as you can in an upright SUV like a G or Range.
Agree, plus the space behind the second row was not enough for me. I also could not get past the feeling that I should just buy the equivalent Audi version,
On the other hand, just the interest on the note would be $10-$15k/year. I can't be the only one struggling with the price of this thing. Any advice or feedback from you guys who have owned several or struggled with the same decision? This will be my daily driver, and I put 8-10k miles a year on them.
I am retired but remain somewhat of a passive investor in various businesses. I was taught at an early age "The Rule of 3 Nevers" when it comes to car ownership by my mentor who holds a huge and well-known classic car collection (sorry, I can't disclose his real name for privacy reasons): (1) never buy a car with an expectation of how much you will eventually be able to recapture your purchase price; (2) never finance or lease a car because subsequent payments will be a constant reminder you don't truly "own" the car and will interfere with your daily enjoyment of the vehicle after taking delivery; and (3) never allocate more than 5% of your total net worth to your car collection. I know everyone may have different philosophies when it comes to car ownership, but I've always abided by "The Rule of 3 Nevers" and it has worked out extremely well for me and my family.
At the end of the day, cars are toys for grown-ups (and FUN toys at that ). Although I obviously have no knowledge of your financial situation, I would suggest you consult with your financial advisor to get the green light.
I am retired but remain somewhat of a passive investor in various businesses. I was taught at an early age "The Rule of 3 Nevers" when it comes to car ownership by my mentor who holds a huge and well-known classic car collection (sorry, I can't disclose his real name for privacy reasons): (1) never buy a car with an expectation of how much you will eventually be able to recapture your purchase price; (2) never finance or lease a car because subsequent payments will be a constant reminder you don't truly "own" the car and will interfere with your daily enjoyment of the vehicle after taking delivery; and (3) never allocate more than 5% of your total net worth to your car collection. I know everyone may have different philosophies when it comes to car ownership, but I've always abided by "The Rule of 3 Nevers" and it has worked out extremely well for me and my family.
At the end of the day, cars are toys for grown-ups (and FUN toys at that ). Although I obviously have no knowledge of your financial situation, I would suggest you consult with your financial advisor to get the green light.
This is really good advice, thank you @AMGRonin . I think I may have gotten ahead of myself with this car. For some background, I am 41 with a wife and kids. My income has gone way up over the last few years. So even though the assumed payment would not make a big impact, I am not in a comfortable enough position to purchase the G in cash without taking money from somewhere else.
You are 1,000% correct about financing interfering with daily enjoyment. This has been in the back of my mind since putting down the deposit. Some people are comfortable carrying a high debt load and borrowing or leasing their toys. I am not one of those people. Waiting until I can buy one in cash is a better way to do it and also creates a goal that, when met, would allow me to fully enjoy the car.
This is really good advice, thank you @AMGRonin . I think I may have gotten ahead of myself with this car. For some background, I am 41 with a wife and kids. My income has gone way up over the last few years. So even though the assumed payment would not make a big impact, I am not in a comfortable enough position to purchase the G in cash without taking money from somewhere else.
You are 1,000% correct about financing interfering with daily enjoyment. This has been in the back of my mind since putting down the deposit. Some people are comfortable carrying a high debt load and borrowing or leasing their toys. I am not one of those people. Waiting until I can buy one in cash is a better way to do it and also creates a goal that, when met, would allow me to fully enjoy the car.
Fingers crossed my deposit is refundable.
I'm in a similar background if you can afford it, I say enjoy it. Most people I know, even those that are very wealthy, don't like buying cash. I'm on the other spectrum where I hate debt. I think either way - life is short, try to enjoy it I just did a non-refundable payment towards a G580 coming next month; a tiny bit cheaper then the G63 but not much.
Oh, and maybe see if you can find a dealer without such a big bump over MSRP. I can try to connect you with a few to try with if you want to PM me.
RR, Urus, Bentley, Aston , Porsche SUVs will all depreciate, G63 will keep its value way more than others. 25 models will have a better value for a while. Remember what happened when MB said no more V8.
Get the car, enjoy it for one year then decide if you want to keep or sell. Life is short. Enjoy your passion.
This is really good advice, thank you @AMGRonin . I think I may have gotten ahead of myself with this car. For some background, I am 41 with a wife and kids. My income has gone way up over the last few years. So even though the assumed payment would not make a big impact, I am not in a comfortable enough position to purchase the G in cash without taking money from somewhere else.
You are 1,000% correct about financing interfering with daily enjoyment. This has been in the back of my mind since putting down the deposit. Some people are comfortable carrying a high debt load and borrowing or leasing their toys. I am not one of those people. Waiting until I can buy one in cash is a better way to do it and also creates a goal that, when met, would allow me to fully enjoy the car.
Fingers crossed my deposit is refundable.
I was hoping you would come to that conclusion without dictating to you what I think you should do. It's the smart one. You are young and it sounds like you have done well for yourself so far. Congrats. Focus on accumulating your net worth. Once you get to the position - after setting aside college (and graduate school if that is on their horizon) tuitions for your kids - of having sufficient cash, then you are financially ready for a $200k+ car or car collection. It can be a new goal for you to set and eventually accomplish. Work hard and you will get there in no time. Just remember: you want to own the car - you don't want the car to own you.
As for a return of your deposit, that would be governed by state law. In CA where I live, the law requires a complete deposit refund by dealers if a customer changes his/her mind before the customer takes possession of the vehicle. That's why we often have "orphan" new exotic or high-end cars pop up at dealerships in CA - after prospective buyers place their orders: (1) they decide it's not financially feasible for them once they run their numbers in detail or (2) their financial situations change following their order placements.
In the meantime, you also have to keep the Mrs. happy - although I'm not certain where that falls on the ladder of priorities in life. Don't tell my wife I said that... Just kidding, That should be at the top right below your kids if you want to maintain a happy life. In the meantime, remember that it's much better to be a good man than to drive a cool car.
Today, 10:06 AM
). Although I obviously have no knowledge of your financial situation, I would suggest you consult with your financial advisor to get the green light.
