[23109VC]

My question focus mainly on the bang for the buck and financials of the comparison and not the differences between the two models,

I would much rather have the newer LCI model with the higher horsepower motor redesigned exterior and updated dash.

What I'm trying to determine is assuming what kind of deals are out there right now on a lease with approximately 12 or 15,000 miles a year what would be the more cost effective approach leasing one of the new ones or searching for a low mileage certified preowned 2018 model and financing that for anywhere from 4 to 6 years.

If I purchased a low mileage CPO model I would also have to incorporate the cost of a platinum extended warranty that would run up through the life of my financing. I've been in touch with Troy at Fidelity and it looks like a warranty on one of these cars with low miles is going to be anywhere from 4 to 6000. That would get bumper-to-bumper coverage up to 100,000 miles for the duration of the ownership.

I'm curious if anyone has gone through a similar comparison debating between leasing new or purchasing barely used I know it's a somewhat apples to orange comparison because you're comparing a three-year lease of a new car to a purchase over a longer time frame.

I have not sat down yet and run all the numbers but my intuition is that if you're solely concerned with costs it's going to be cheaper to purchase a CPO and hold it for longer.

I have noticed quite a few very low mileage M550's in my Southern California area nicely optioned all priced around 45 to 50,000.

These are cars that compare in terms of options to new models with MSRP is between 80 to to 85.

I'd rather have the newer car it looks more modern and aggressive and has more horsepower up top however I I am sure I'd be more than content with the 462 hp of the 2018 and if for some inexplicable reason I ever got bored of that you could throw on a tune and it would be obscene.

Thx

[hoyas490]

Originally Posted by 23109VC

My question focus mainly on the bang for the buck and financials of the comparison and not the differences between the two models,

I would much rather have the newer LCI model with the higher horsepower motor redesigned exterior and updated dash.

What I'm trying to determine is assuming what kind of deals are out there right now on a lease with approximately 12 or 15,000 miles a year what would be the more cost effective approach leasing one of the new ones or searching for a low mileage certified preowned 2018 model and financing that for anywhere from 4 to 6 years.

If I purchased a low mileage CPO model I would also have to incorporate the cost of a platinum extended warranty that would run up through the life of my financing. I've been in touch with Troy at Fidelity and it looks like a warranty on one of these cars with low miles is going to be anywhere from 4 to 6000. That would get bumper-to-bumper coverage up to 100,000 miles for the duration of the ownership.

I'm curious if anyone has gone through a similar comparison debating between leasing new or purchasing barely used I know it's a somewhat apples to orange comparison because you're comparing a three-year lease of a new car to a purchase over a longer time frame.

I have not sat down yet and run all the numbers but my intuition is that if you're solely concerned with costs it's going to be cheaper to purchase a CPO and hold it for longer.

I have noticed quite a few very low mileage M550's in my Southern California area nicely optioned all priced around 45 to 50,000.

These are cars that compare in terms of options to new models with MSRP is between 80 to to 85.

I'd rather have the newer car it looks more modern and aggressive and has more horsepower up top however I I am sure I'd be more than content with the 462 hp of the 2018 and if for some inexplicable reason I ever got bored of that you could throw on a tune and it would be obscene.

Thx

So, this guy in the M550i owners FB sold his 2018 and CarMax has it listed for $53k then tax with 22,000 miles on the clock.

Linked here: https://www.carmax.com/car/20068314?...ukz6mmGgyFPeGA

So you're talking about $55k (roughly) then warranty and potential shipping costs. So, likely around $60k ish? ($4k warranty and $1k shipping numbers ballparked)

A 2021 custom build can be leased for the $8xx, closer to $800-825 for a 10k lease and probably more towards $850-900 for a 12-15k miles lease (all rough numbers).

Assuming you're doing $875 a month with $5k DAS - you're looking at $34,750 to lease a 2021 for 3 years.

Or you could pay $60k for the 2018, and likely sell it for a floor of $25k in 4-5 years if you don't ding it up or put 90k more miles on it? (All rough estimates since there is no previous generation M550i to comp).

So at that, you're spending $35k on owning the 2018 over 4-5 years, but not accounting for oil changes, maintenance, insurance etc. for either. Think they'd be very similar prices, with a small edge to the 2021 with the ultimate care + warranty vs. a 2018 with just warranty.

So, really depends on whether you want the new body/screens and are willing to pay that $35k over 3 years or end up spending that $35k over 4-5 years.

Only risk is the downside of buying it and then prices dropping more, which would cost you more long term, but that's just an unknown right now.

Based on my napkin-math you'd likely be fine either way? So mostly what you would be financially and mentally more comfortable with.

[halovoa]

I have a similar situation and decide to lease the 2021 540i xdrive instead of buying a CPO.
Here is my thoughts:
First, if I buy a CPO, I will need to buy the extended warranty and extend it to something like 7 years because the CPO program only extends the warranty for 1 year and the cost of the extended warranty is around 5000. Let us assume that you can find a deal on 2018 m550i with 45000USD(lowest in your provided range) and adding the warranty will make it 50000USD. A 2021 M550i with MSRP of 82000 will cost you around 30000USD to lease for 36 months (find a broker on leasehackr to get you 8 percent off and get some incentives)so if you don't mind driving a old model car, the 2018 m550i will at least can be sold at a price tag of 20000USD in April of 2024, otherwise you are losing your money. So right now if we want to sell a 2014 bmw 550i to dealership, how much will it worth(I am referencing selling a 2018 m550i in 2024 as selling a 2014 550i in 2021, although it is not identical for sure but it can give you a rough idea on the price)? I don't use KBB for price reference because I find when you try to sell the car, the dealer always low ball you and KBB is meaningless at that point and especially on german cars. You can go to carvana or vroom to get some real numbers because if you have a car with the identical information you put in for appraisal, you will be guranteed to sell your car with that number unless you lie to them. Right now carvana offers only 18000 USD for a everyoption is loaded 2014 550i xdrive with 60k miles in my region(assuming you get a 100000k loaded 2018 m550i with only 45000 and the car has only 20000miles and you drive 40000miles in three years after you buy it). I am considering every situation that favors you but still you are losing money. So there is no way I am going to buy a used bmw because leasing is actually cheaper and I can drive the new model.

One more thing that I want to notice that currently because of the corona virus, the used car market price has raised a lot and if you buy a used car right now, drive it for couple years and sell it when corona virus ends, you will lose more money than you would do during good normal old days when we don't have a corona virus.

Here are my thoughts and I end up with custom ordered a 2021 540i. I wish I could get the m550i but I feel it is too powerful to just drive in Boston and I end up with a custom order 540i with everything that I want.

[23109VC]

Originally Posted by halovoa

I have a similar situation and decide to lease the 2021 540i xdrive instead of buying a CPO.
Here is my thoughts:
First, if I buy a CPO, I will need to buy the extended warranty and extend it to something like 7 years because the CPO program only extends the warranty for 1 year and the cost of the extended warranty is around 5000. Let us assume that you can find a deal on 2018 m550i with 45000USD(lowest in your provided range) and adding the warranty will make it 50000USD. A 2021 M550i with MSRP of 82000 will cost you around 30000USD to lease for 36 months (find a broker on leasehackr to get you 8 percent off and get some incentives)so if you don't mind driving a old model car, the 2018 m550i will at least can be sold at a price tag of 20000USD in April of 2024, otherwise you are losing your money. So right now if we want to sell a 2014 bmw 550i to dealership, how much will it worth(I am referencing selling a 2018 m550i in 2024 as selling a 2014 550i in 2021, although it is not identical for sure but it can give you a rough idea on the price)? I don't use KBB for price reference because I find when you try to sell the car, the dealer always low ball you and KBB is meaningless at that point and especially on german cars. You can go to carvana or vroom to get some real numbers because if you have a car with the identical information you put in for appraisal, you will be guranteed to sell your car with that number unless you lie to them. Right now carvana offers only 18000 USD for a everyoption is loaded 2014 550i xdrive with 60k miles in my region(assuming you get a 100000k loaded 2018 m550i with only 45000 and the car has only 20000miles and you drive 40000miles in three years after you buy it). I am considering every situation that favors you but still you are losing money. So there is no way I am going to buy a used bmw because leasing is actually cheaper and I can drive the new model.

One more thing that I want to notice that currently because of the corona virus, the used car market price has raised a lot and if you buy a used car right now, drive it for couple years and sell it when corona virus ends, you will lose more money than you would do during good normal old days when we don't have a corona virus.

Here are my thoughts and I end up with custom ordered a 2021 540i. I wish I could get the m550i but I feel it is too powerful to just drive in Boston and I end up with a custom order 540i with everything that I want.

I ended up buying a CPO 2018 M550i. Love it! I got a great deal on a highly optioned car. 30k miles. Got a discount on extended CPO as well.

I priced out a lease and even with a lot down and negotiating - the lease was still going to cost more money monthly - but the big price differential is long term. I typically buy my cars and keep them at least six years. By purchasing this vehicle I will have it paid off before the six years are up and my total payments will be far less than doing two back to back three year leases. If you look short term like two or three years out the lease monthly is close to the auto loan monthly but the differences you pay off the car in a few years versus leasing for three and then starting over on another lease.

Even by extending the CPO warranty I am still coming in at far less money.

The only potential downside is that my CPO car is a 2018 and the new car is a 2021 with slightly newer features and more horsepower. After I drove a 2018 I was convinced the car is fast enough. My 2018 feels like a rocket ship!

I actually like the older gauges on the pre-LCI they feel like actual gauges I'm not a huge fan of the new pute digital looking Dash

[halovoa]

Originally Posted by 23109VC

I ended up buying a CPO 2018 M550i. Love it! I got a great deal on a highly optioned car. 30k miles. Got a discount on extended CPO as well.

I priced out a lease and even with a lot down and negotiating - the lease was still going to cost more money monthly - but the big price differential is long term. I typically buy my cars and keep them at least six years. By purchasing this vehicle I will have it paid off before the six years are up and my total payments will be far less than doing two back to back three year leases. If you look short term like two or three years out the lease monthly is close to the auto loan monthly but the differences you pay off the car in a few years versus leasing for three and then starting over on another lease.

Even by extending the CPO warranty I am still coming in at far less money.

The only potential downside is that my CPO car is a 2018 and the new car is a 2021 with slightly newer features and more horsepower. After I drove a 2018 I was convinced the car is fast enough. My 2018 feels like a rocket ship!

I actually like the older gauges on the pre-LCI they feel like actual gauges I'm not a huge fan of the new pute digital looking Dash

Congratulations on the vehicle, it looks nice. Do you mind sharing the money that you paid for this cpo and the amount of money you paid for extended warranty? I was looking at the extended warranty from BMW couple days ago and found the offical pricing is around 6k to extend it for 3 years which will make the leasing more favorable but I am sure you get a number much better than it. I am thinking maybe I can use your number as reference in case I want to buy a used m550i in the next year.

[trooper1414]

I would like to know as well about the price you paid. In the market for a V8. Honestly I was looking for a dodge Charger Scat pack widebody as that was the only one in my budget. Sub 50k but then stumbled upon the m550i.

I know the vehicles are class apart so I'm not even trying to compare. Currently drive a 328i F30, so excited about my next car.

Any suggestions if I get the 2018 m550i, will I have to worty to much about the warranty.

[Scotty B]

Originally Posted by trooper1414

I would like to know as well about the price you paid. In the market for a V8. Honestly I was looking for a dodge Charger Scat pack widebody as that was the only one in my budget. Sub 50k but then stumbled upon the m550i.

I know the vehicles are class apart so I'm not even trying to compare. Currently drive a 328i F30, so excited about my next car.

Any suggestions if I get the 2018 m550i, will I have to worty to much about the warranty.

If its out of warranty, I would highly recommend an aftermarket warranty. Nothing is cheap on the car.