So how many people actually bought their E55/E63 in cash?
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E63
Do the analysis folks. For the most part, leasing is A LOT less expensive if you like to own a new car every 2 to 3 years, particularly when it comes to expensive luxury cars, as they lose their value so abruptly. Sure, look at the popular sources for used cars (autotrader for example) and you think you’re okay relative to resale. However, actually trying to sell at those prices does not happen. If you want to own your car for a long time, then buy it. If you’re like most of use and like new cars every two or three years, you’re stupid if you don’t lease as you’re going to lose money if you buy…
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From: OC, SoCal
08 S65, 06 M3 CS(stick), 02 BMW X5 4.6iS, 07 R1 Raven, 08 F-450 4x4, 08 CooperS JCW
Do the analysis folks. For the most part, leasing is A LOT less expensive if you like to own a new car every 2 to 3 years, particularly when it comes to expensive luxury cars, as they lose their value so abruptly. Sure, look at the popular sources for used cars (autotrader for example) and you think you’re okay relative to resale. However, actually trying to sell at those prices does not happen. If you want to own your car for a long time, then buy it. If you’re like most of use and like new cars every two or three years, you’re stupid if you don’t lease as you’re going to lose money if you buy…
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12' C63 P31, 06' Supercharged Range, 08' BMW 550i
paid off but wish it wasn't. Probably the last time I will ever pay off a car of this caliber. Makes a lot more sense to lease and write it off.
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E-ZGO 53hp., 1999 E 430 sport, 2004 E 55, 2008 Tahoe LTZ on 24"s
My seller, gave discount for cash.
If I can't buy a car out right I feel as if I should not be driving it, but that's just me. 
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CLS63 Silver/charcoal, RRS S/C stornoway grey/ebony
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2006 E55 AMG
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I do, but then again, I usually negotiate out of my car before the lease ends. Permanent mods may get you stuck on owning it in the end. I've never ended up having a residual that is much more (if any) than the current value, but that may happen with this one.
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From: Oklahoma City
2015 AMG C63 S
Went for the lease......
I leased mine. I am very busy so don't want to invest a bunch of time selling the car later. I do want the freedom to look at the availability of the E63TT in 2-3 years. If I want to buy the car I can always negotiate a reduction with MB Financial in the residual. They definitely do not want the car back at the end of the lease. I will start watching the auctions closely and this forum for the values as my lease gets close to expiring. Buying one of these cars and keeping it for many years is hard to imagine.
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2003 E55 K1
Cash is always more economic. Do you actually think you know the resale market better than the dealer or leasing company? And if your rationale is alternative investment opportunities, borrow the money (use a home equity loan and you can even deduct the interest) and the payment on the loan will be cheaper than your lease payments after factoring in resale value. Cash is ALWAYS cheaper than leasing.
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2015 BMW 640ix GC (Ruby Black)
Cash is always more economic. Do you actually think you know the resale market better than the dealer or leasing company? And if your rationale is alternative investment opportunities, borrow the money (use a home equity loan and you can even deduct the interest) and the payment on the loan will be cheaper than your lease payments after factoring in resale value. Cash is ALWAYS cheaper than leasing.
IF you assume interest rates won't go up AND resale in three or so years will be what you think it will be AND you don't get into an accident that diminishes that resale THEN it might be a bit cheaper to buy (leaving aside leasing for business purposes). I always bought my cars but I don't drive very many miles, I DON'T like trying to sell them and I am VERY risk averse and afraid of an accident that diminishes resale value so I leased my E63. Cold calculation says it will turn out to be a few thousand more expensive than cash but I'll take the hit for the extra level of security.
=NLK=
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Cash is always more economic. Do you actually think you know the resale market better than the dealer or leasing company? And if your rationale is alternative investment opportunities, borrow the money (use a home equity loan and you can even deduct the interest) and the payment on the loan will be cheaper than your lease payments after factoring in resale value. Cash is ALWAYS cheaper than leasing.
While we are making absolute statements,
ALWAYS buy and sell WHEN you WANT to, not when you HAVE to.
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2003 E55 K1
Leasing is just another form of borrowing, so the decision should be based the the lowest "effective" cost of borrowing. How you intend to invest your money makes no difference at all.
If you buy a $100,000 car with a lease, you can invest the $100,000 you would have paid into whatever. If you borrow $100,000 to pay for the car, you can take the same $100,000 and invest it in the same whatever. The only difference is that you are trading loan payments less resale at the end of the hunt for lease payments. Both are viewed as debt (ie fixed payment obligations) by lenders.
The comments above on the potential for accidents impairing resale, etc. are well taken. But how much are you willing to pay for insurance?
If you buy a $100,000 car with a lease, you can invest the $100,000 you would have paid into whatever. If you borrow $100,000 to pay for the car, you can take the same $100,000 and invest it in the same whatever. The only difference is that you are trading loan payments less resale at the end of the hunt for lease payments. Both are viewed as debt (ie fixed payment obligations) by lenders.
The comments above on the potential for accidents impairing resale, etc. are well taken. But how much are you willing to pay for insurance?
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2003 E55 K1
A foornote to above. It is true that no one knows what interest rates will do. But whether you lease or borrow money, you will be locking into whatever the market rates of interest are at that time so the fact that rates will change makes no difference.
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1989 Toyota Tercel EZ - dyno'd @ 70whp/77wtq
This is interesting....
Coalman, let's say you have $100K to spend, which one of the following hypothetical scenarios would you choose?
Scenario A:
Buy $100K car
2 years later, sell it for $70K
You lose: $30K
Scenario B:
Lease $100K car: $0 down $833/mo
+ Put $100K investment (annual return 10%)
2 years later:
- You will have spent $40K on the car ($10K more cost on ownership)
- You will gain $20K from investment (non-compounded interest for simplicity sake).
So Scenario B will leave you w/ more money ($80K vs. $70K in Scenario A).
My point is that while it is true paying cash is always cheaper than leasing/financing, it MAY NOT be the best decision to always paying cash.
Coalman, let's say you have $100K to spend, which one of the following hypothetical scenarios would you choose?
Scenario A:
Buy $100K car
2 years later, sell it for $70K
You lose: $30K
Scenario B:
Lease $100K car: $0 down $833/mo
+ Put $100K investment (annual return 10%)
2 years later:
- You will have spent $40K on the car ($10K more cost on ownership)
- You will gain $20K from investment (non-compounded interest for simplicity sake).
So Scenario B will leave you w/ more money ($80K vs. $70K in Scenario A).
My point is that while it is true paying cash is always cheaper than leasing/financing, it MAY NOT be the best decision to always paying cash.
