[SpaceSilver.X1]

Originally Posted by COBodom

These are disposable items NOT to be owned long term. As its been stated here before, depreciation on luxury German EVs is insane while lease figures continue to look very competitive against ICE.

I know this probably sounds silly, but for my last several cars, I just buy or finance them. I don't like to swap cars that often. I also make sure that each one gets at least a 7-year/100k(or more) extended full-coverage, no-deductible warranty by the car manufacturer. It has worked out pretty well for me.(except one car where the engine had a meltdown, due to my own fault)

[arkhi]

Originally Posted by SpaceSilver.X1

I know this probably sounds silly, but for my last several cars, I just buy or finance them. I don't like to swap cars that often. I also make sure that each one gets at least a 7-year/100k(or more) extended full-coverage, no-deductible warranty by the car manufacturer. It has worked out pretty well for me.(except one car where the engine had a meltdown, due to my own fault)

Did you come ahead or at least broke even with what you paid for the warranty?

[SpaceSilver.X1]

Originally Posted by arkhi

Did you come ahead or at least broke even with what you paid for the warranty?

I got them knowing full well that extended warranty were basically a gamble. It's more or less for my peace of mind. I always buy from out-of-state dealers who sell these factory warranties at a steep discount, of course.

Just looked up the notes that I kept over the years. It appears that the manufacturers came out way ahead on all of them. (not that it's a bad thing? since it meant the cars were all pretty much trouble free for 7 years or more each)

2 Lexus car and SUV: no repairs at all during the 7 years. only expenses were wear and tear or routine maintenance items.

2 Mercedes sedans: 7-year warranty, MBUSA paid for a cracked harmonic balancer on one car. On the second car, they paid for a driver door check strap, oil pain gasket replacement, and gas strut for the center armrest storage. All other expenses were scheduled maintenance, brake pads/discs and tires

Lincoln Navigator: factory extended warranty only paid for one AC blower fan. No other repairs.(except a broken windshield)

Toyota Avalon: 7 years Toyota warranty. No repairs. Warranty paid for one replacement dead battery. Paid out-of-pocket expenses: 4 sets of tires at Costco. Routine service at Toyota dealer.

Last, and most recently: 2023 BMW X1. Received free 7-year/100k BMW warranty as a result of dealer error for the order.(they forgot to add heated seats despite it being on the order sheet). 4 visits so far for software issues. iDrive 8 head unit and screen replaced. (although those probably fall within original 4-year warranty) 1 oil change $59 at 1000-mile mark.

[PsychDoc]

On extended warranties I always go with the odds. And, as tempting as it may be to have that emotional security I remind myself that every other junk call I get on my phone is to buy one of these. Same with ads on TV. I wonder what that tells me.... It tells me that you're lucky to realize $0.50 on every dollar you spend on these policies. Poof, your dollar just turned into 50 cents (or less). Not a smart way to deploy your money. I've self-insured my two previous BMW's, the F10 and the current G30, both of which I've owned for 6+ years. They have both been extremely trouble free and other than brake pads and rotors, a small coolant leak and routine maintenance, there have been no other problems. But I avoid things like fancy adjustable suspensions and 20" or 21" rims that shake the car to death over potholes and things like that. Base BMW suspensions are superb and added complexity for no particular benefit is something I'll always pass on.

Like I said, play the odds and over the long haul you'll always end up ahead of the game. Investing in a product where the return is 50 cents on the dollar is just not a great idea... at least to me.

[SpaceSilver.X1]

Originally Posted by PsychDoc

On extended warranties I always go with the odds. And, as tempting as it may be to have that emotional security I remind myself that every other junk call I get on my phone is to buy one of these. Same with ads on TV. I wonder what that tells me.... It tells me that you're lucky to realize $0.50 on every dollar you spend on these policies. Poof, your dollar just turned into 50 cents (or less). Not a smart way to deploy your money. I've self-insured my two previous BMW's, the F10 and the current G30, both of which I've owned for 6+ years. They have both been extremely trouble free and other than brake pads and rotors, a small coolant leak and routine maintenance, there have been no other problems. But I avoid things like fancy adjustable suspensions and 20" or 21" rims that shake the car to death over potholes and things like that. Base BMW suspensions are superb and added complexity for no particular benefit is something I'll always pass on.

Like I said, play the odds and over the long haul you'll always end up ahead of the game. Investing in a product where the return is 50 cents on the dollar is just not a great idea... at least to me.

(knock on wood) I also have not had a single auto insurance claim since 1994... and I've been with the same insurance company during all that time. Don't even want to add up how much premium I've paid them during the last 30 years. Loyalty means nothing to them... in fact, the just raised my premium by $1.37 for the first half of 2024.

[SkykingUSA]

Originally Posted by SpaceSilver.X1

I know this probably sounds silly, but for my last several cars, I just buy or finance them. I don't like to swap cars that often. I also make sure that each one gets at least a 7-year/100k(or more) extended full-coverage, no-deductible warranty by the car manufacturer. It has worked out pretty well for me.(except one car where the engine had a meltdown, due to my own fault)

That doesn't sound silly to me. I have done the same as you. I don't buy cars as "investments" like some people do, I buy them because of the way they look, the way they feel to drive and whether I "like" them or not. Everyone is different, and no one perspective is right for everyone.

[bradfahed]

I rolled the dice and bought a demo 2024 i5 M60 for $27,000 off. Wish me luck!

[SkykingUSA]

Originally Posted by bradfahed

I rolled the dice and bought a demo 2024 i5 M60 for $27,000 off. Wish me luck!

Good luck! How many miles on it?

You should be fine as long as the warranty is still valid.

[bradfahed]

Originally Posted by SkykingUSA

Good luck! How many miles on it?

You should be fine as long as the warranty is still valid.

5,000 miles - came CPO'ed which extends out to almost 2029 with unlimited miles. Thanks!

[Greg-Bimmer550e]

I grew up in a family who has always finance and trade in their cars.

I generally did the same. I got a great trade in value on my prior Yukon, far more than selling it to Carvana or Carmax. So I ended up buying again. 63k trade in value on an 85k car. Didn't even need gap.

[dwan]

Originally Posted by Travis

To me right now lease is a no brainer: 1) you get $7500 incentive, 2) you avoid the downside of huge used EV depreciation thanks to Tesla, 3) you can also pay the residual to own it when the lease expires; 4) the APR is not that bad, compared with financing; 5) you can wait for the next gen BMW EV and enjoy the advancement of technology.

Can one custom-order an i5 M60 for lease, and still have some bargaining power?

I am used to purchasing a car from a dealer lot. I have enjoyed a lot of bargaining leverage when purchasing in cash -- it's simple, I can act immediately, and it provides immediate gratification for the dealership. This time, I want to make sure I get my desired specs and I would like to lease.

Do I give up my bargaining leverage when placing a custom order? How about when placing a custom order intended for lease?

Thanks,
dw

[RichardInCA]

Originally Posted by dwan

Can one custom-order an i5 M60 for lease, and still have some bargaining power?

I am used to purchasing a car from a dealer lot. I have enjoyed a lot of bargaining leverage when purchasing in cash — it's simple, I can act immediately, and it provides immediate gratification for the dealership. This time, I want to make sure I get my desired specs and I would like to lease.

Do I give up my bargaining leverage when placing a custom order? How about when placing a custom order intended for lease?

Thanks,
dw

In general you order the car first and agree how you’re financing it later….obviously if you take a car off the lot that the dealer is incentivized to move, then you may well get a better deal, but there are plenty of stories on this forum of people who ordered, then switched to another car before it was delivered.

[SkykingUSA]

Don't tell the dealer you intend to lease. Tell them you have not decided yet, but will consider all options. Work on getting the best out the door price you can, then decide how you want to pay.

[F12M6MD]

There really is not much dealerships are able to hide from you anymore given publicly available information on invoice pricing, current finance rates, lease money factors, residual values, available incentives, etc. So you really are going in having to decide how much exact profit the dealership deserves or the market is currently supporting. I think in many cases an ordered vehicle carries the same level of motivation from the dealership to off-load as an inventory car. Just negotiate the same either way and get the deal sheet in writing. You should be solid. However, walking from an ordered vehicle at your local dealership won’t generally serve you well on your next car.

Mark

[dwan]

Originally Posted by RichardInCA

In general you order the car first and agree how you’re financing it later….obviously if you take a car off the lot that the dealer is incentivized to move, then you may well get a better deal, but there are plenty of stories on this forum of people who ordered, then switched to another car before it was delivered.

Oh, good to know. I was under the impression that all those details - method of purchase, amount, down payment -- get worked out at the time of order. Thanks for the correction!

[dwan]

Originally Posted by F12M6MD

There really is not much dealerships are able to hide from you anymore given publicly available information on invoice pricing, current finance rates, lease money factors, residual values, available incentives, etc. So you really are going in having to decide how much exact profit the dealership deserves or the market is currently supporting. I think in many cases an ordered vehicle carries the same level of motivation from the dealership to off-load as an inventory car. Just negotiate the same either way and get the deal sheet in writing. You should be solid. However, walking from an ordered vehicle at your local dealership won’t generally serve you well on your next car.

Mark

Well-reasoned points. I had a bad leasing experience in 1994, due primarily to my 23-year-old naivety, and have generally stayed away from that option since. Thanks for this helpful education.
dw

[RichardInCA]

The other thing that seems pertinent is the current unpredictable climate around financing (presence/absence of tax credits, import tariffs etc). Who knows which will and will not be in place when the time comes to take delivery.

[SkykingUSA]

Originally Posted by dwan

Can one custom-order an i5 M60 for lease, and still have some bargaining power?

I am used to purchasing a car from a dealer lot. I have enjoyed a lot of bargaining leverage when purchasing in cash -- it's simple, I can act immediately, and it provides immediate gratification for the dealership. This time, I want to make sure I get my desired specs and I would like to lease.

Do I give up my bargaining leverage when placing a custom order? How about when placing a custom order intended for lease?

Thanks,
dw

You may want to check out some YouTube videos from CarEdge.com about how to negotiate your car with the dealer. I used some of their advice and it helped me.

[Jsharkey79]

Originally Posted by F12M6MD

There really is not much dealerships are able to hide from you anymore given publicly available information on invoice pricing, current finance rates, lease money factors, residual values, available incentives, etc. So you really are going in having to decide how much exact profit the dealership deserves or the market is currently supporting. I think in many cases an ordered vehicle carries the same level of motivation from the dealership to off-load as an inventory car. Just negotiate the same either way and get the deal sheet in writing. You should be solid. However, walking from an ordered vehicle at your local dealership won’t generally serve you well on your next car.

Mark

This is actually what got me in my I5 M60. I was busy looking at the window tag and wife said “hey look, hanging from mirror”. It said price for 36 month lease and i was happy with that price. Deal done after test drive 😂. Told them I’m sure there are others like me that hate the idea of the “haggle” and just want to see a price and if they feel the price is worth the value, no need to haggle. Some will say “you always have to haggle”, but i disagree that it’s not leaving meat on the bone if you are really happy with the price:value.

I use the analogy of 6 pack of beer and a large pizza with 8 slices. most want either one extra beer or extra slice to feel like they got the best value where I want an equal split and a nice party

[AiredaleDad]

Originally Posted by Jsharkey79

This is actually what got me in my I5 M60. I was busy looking at the window tag and wife said “hey look, hanging from mirror”. It said price for 36 month lease and i was happy with that price. Deal done after test drive 😂. Told them I’m sure there are others like me that hate the idea of the “haggle” and just want to see a price and if they feel the price is worth the value, no need to haggle. Some will say “you always have to haggle”, but i disagree that it’s not leaving meat on the bone if you are really happy with the price:value.

I use the analogy of 6 pack of beer and a large pizza with 8 slices. most want either one extra beer or extra slice to feel like they got the best value where I want an equal split and a nice party

It's FOMO. When you pay $80,000.00 for a car and find out that someone else paid $75,000 for the same exact car, you feel like you could have done better.

That's why you are not supposed to discuss salary with your co-workers. Lol. You might be making more than they are for the same job. Or less. Would you be happy if it was less? Or would you go to your boss and ask for a raise because of it?

Nobody wants to feel like someone else got a better deal than they did. Regardless if they can afford it or not. Money, is Money.

If you are happy with the deal you got, then that's fine. But if you later find out someone else got a better deal, please don't feel cheated.

[SkykingUSA]

Originally Posted by AiredaleDad

It's FOMO. When you pay $80,000.00 for a car and find out that someone else paid $75,000 for the same exact car, you feel like you could have done better.

That's why you are not supposed to discuss salary with your co-workers. Lol. You might be making more than they are for the same job. Or less. Would you be happy if it was less? Or would you go to your boss and ask for a raise because of it?

Nobody wants to feel like someone else got a better deal than they did. Regardless if they can afford it or not. Money, is Money.

If you are happy with the deal you got, then that's fine. But if you later find out someone else got a better deal, please don't feel cheated.

Very well put.

[AiredaleDad]

Originally Posted by SkykingUSA

Very well put.

Thanks. I know in some companies it's actually grounds for dismissal. For both the one asking, and the one who gave the answer. It undermines the authority of the hiring official etc... However with working for the government, if you know the person's GS Grade, and Step, Locality %, etc. it's not hard to figure out.


In all seriousness though, I doubt there are more than a few people here who paid exactly the same for their car. Unless you paid MSRP for the exact same car at the exact same dealer, with the exact same APR etc. There are too many variables in taxes, incentives, lease vs. purchase, negotiation etc. I feel that if you are comfortable with the deal you got, and don't walk away feeling cheated, it's a win.