So how many people actually bought their E55/E63 in cash?
Senior Member
Joined: Jul 2003
Posts: 460
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2006 SL65 ///AMG - GONE BUT NOT FORGOTTEN: 2005 E55; 2002 ML55; 2001 CLK55; 1992 BMW 850i; 1991 M5
Wealth vs. Success
A "Wealthy" man buys a car with one check. A "Successful" man buys the identical car with 60 checks. Funny how both cars seem to start the same, run the same, smell the same, accelerate the same, brake the same, handle the same, yadda, yadda, yadda.
As far as not feeling as though the "successful" man 'deserves' the car because he pays over time??? He very well may 'work' harder on a day to day basis for the enjoyment of the car than the "wealthy" man who signs a single check for it.
Me? I'm paying over time and darned proud of it. I have managed to make double payments on my 'previously enjoyed' certified car since acquiring it last summer thanks to successes at the office beyond my control. I don't have a cabin at the lake, or a ski boat and I don't travel much. I say my E55 is like a little 'vacation' every time I turn the key. And after a day at the office, I NEED that little vacation.
For whatever it's worth, a very close friend of mine dropped dead last month at age 41 of a heart attack with no previous indicators. I sincerely hope he wasn't waiting for retirement to enjoy driving a "fun" car.
As far as not feeling as though the "successful" man 'deserves' the car because he pays over time??? He very well may 'work' harder on a day to day basis for the enjoyment of the car than the "wealthy" man who signs a single check for it.
Me? I'm paying over time and darned proud of it. I have managed to make double payments on my 'previously enjoyed' certified car since acquiring it last summer thanks to successes at the office beyond my control. I don't have a cabin at the lake, or a ski boat and I don't travel much. I say my E55 is like a little 'vacation' every time I turn the key. And after a day at the office, I NEED that little vacation.
For whatever it's worth, a very close friend of mine dropped dead last month at age 41 of a heart attack with no previous indicators. I sincerely hope he wasn't waiting for retirement to enjoy driving a "fun" car.
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Joined: Jan 2003
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From: El Paso, TX
'03 G500, '13 G63, '17 GLS63,
After taking the hit I took selling my E55, I will only lease a Benz from now on. Even buying it 1 year old, assuming the biggest proportion of deprecation had taken place, it cost me over $2k month to own it. Bought it with 4k miles, sold with 18k. I could have leased a new one for LESS than the money I lost and had it from new, to boot. Screw buying (either cash or finance), I'm leasing these damn M-B's from now on. Cars are not investments, but I would like to minimize my losses as much as possible from now on.
Super Member
Joined: Nov 2004
Posts: 718
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From: Santa Clarita, CA
I drive a E55T, SLK55 and 65 Mustang Conv.
Well people I sorta did everything. I am leasing the SLK coming up to the termination point where I have to decide to keep it and pay $40000 to US Bank or let it go and get something else.
I financed the E55 by trading in a paid off 2004 Chevy Trailblazer no cash paid $1500 monthly for 6 months than paid it off with a bonus check.
Fast forward to a 2 year old car it may be worth $45,000 to $50,000 but I will be keeping it for a while.
Wolf Cross posting as Lady Wolf
I financed the E55 by trading in a paid off 2004 Chevy Trailblazer no cash paid $1500 monthly for 6 months than paid it off with a bonus check.
Fast forward to a 2 year old car it may be worth $45,000 to $50,000 but I will be keeping it for a while.
Wolf Cross posting as Lady Wolf
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Paid cash on my 06 E55, would have leased it but I don't like to get bind with a 3 year contract and a measy 10-12k miles a year restriction. I might loose alittle more money buying cash/finance than lease, but the freedom of switching cars in between the first 3 years of ownership with no contract is priceless.
I guess to each of their own, I tend to change car every 1-2 years, hardly kept any cars over 3 years. So even a lease is not for me.
Now I am 'thinking' to sell my 06 E55 with 6k miles on the clock designo edition for something else. Might sell it for just about 70k, if anyone interested let me know.
If I had leased this car, it will be hard to switch cars..
I guess to each of their own, I tend to change car every 1-2 years, hardly kept any cars over 3 years. So even a lease is not for me.
Now I am 'thinking' to sell my 06 E55 with 6k miles on the clock designo edition for something else. Might sell it for just about 70k, if anyone interested let me know.
If I had leased this car, it will be hard to switch cars..
Member
Joined: Oct 2006
Posts: 138
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From: New Jersey.
2006 E55, 2007 GL450
Paid cash.
Lease doesn't work for me since I drive the car (almost 12k in 8-months already) and I didn't want car payments.
It's going to depreciate anyway. You're making payments with interest on a depreciating asset or your taking a hit on the depreciating asset.
I did, however, lease my wife's GL450 because mileage isn't a concern and I'll want a new car for her in 3-years.
S.
Lease doesn't work for me since I drive the car (almost 12k in 8-months already) and I didn't want car payments.
It's going to depreciate anyway. You're making payments with interest on a depreciating asset or your taking a hit on the depreciating asset.
I did, however, lease my wife's GL450 because mileage isn't a concern and I'll want a new car for her in 3-years.
S.
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Senior Member
Joined: Sep 2005
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2003 E55 K1
Again, the issue is not the alternative opportunities for investing $100,000, it is the form of debt financing. You can lease (a form of debt) and invest your $100,000 or you can borrow $100,000 through a home equity or car loan and invest your $100,000. The issue of losing resale value goes to the cost of debt financing. If it is too high then you may be better off leasing because the "effective" interest cost of leasing will be less than a car loan.
Senior Member
Joined: Feb 2007
Posts: 463
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From: South Florida
2014 E63, Cobra replica, 68 Camaro, 66 Chevy II SS, Z4 BMW, Honda Element, Birel 125cc Shifter Kart.
I could have paid cash but the dealer offered 1.9% financing. That's an offer I just couldn't refuse. Why give the dealer that $$ when you can get 5% in a CD? I also tend to keep my cars for three years or more and rack up some miles. Used to lease but now prefer to own. Everyone's situation is different and whether you lease, finance or pay cash depends on what suits you best.
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Joined: Feb 2005
Posts: 1,046
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From: Chicago, IL
2011 E550 4Matic, 2002 M3 Vert
$833/month on a 100k car with $0 down is IMPOSSIBLE. Please recalculate your scenarios as you have simplified this way too much.
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.
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1989 Toyota Tercel EZ - dyno'd @ 70whp/77wtq
It was only hypothetical - REPEAT hypothetical - scenario.... it was not meant to be taken at face value. It was meant to get my point acrossed that while lease seems to always be more expensive, it may still a better idea to lease since you could use / leverage the remaining funds on something else that has healthy return.If you still don't get it, fill A, B, C, D, I & X below.
Assume:
- You have $A in your pocket
- Car's depreciation over X years is $B
- Car's monthly lease w/ $D down is $C
- Return on an investment over X years is $I
You have an EITHER-OR choice of:
- spending the entire $A for a car; or
- spending a fraction of $A for a car and put the remaining on investment
So....
If ($A - $B) > ($A + $I - $D - X*$C), then you'd better buy.
If ($A - $B) = ($A + $I - $D - X*$C), then no difference between buying and leasing.
If ($A - $B) < ($A + $I - $D - X*$C), then you'd better lease.
Get it now?
Thread Starter
Member
Joined: Jun 2006
Posts: 175
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From: Rhode Island
2004 E55
Leasing does seem tempting after reading what you guys have said. I am starting to wish I had a E63 in the garage and a extra $50K in the bank. The way it would break down for me is:
$1100ish a month for a lease
I'd right off 1/2 for my bussiness.
Tax savings would be $138ish
So $962 a month.
I'd invest the $50K I spent and make $230 a month interest.
So all in all it would be $732 out of my pocket per month.
Damn for $732 a month i'd definatly rather have a brand spanken new E63 with a nice warranty on it. Maybe when the all new E AMG model comes out I will do this...
$1100ish a month for a lease
I'd right off 1/2 for my bussiness.
Tax savings would be $138ish
So $962 a month.
I'd invest the $50K I spent and make $230 a month interest.
So all in all it would be $732 out of my pocket per month.
Damn for $732 a month i'd definatly rather have a brand spanken new E63 with a nice warranty on it. Maybe when the all new E AMG model comes out I will do this...
