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      07-03-2020, 06:44 AM   #1
adamjs83
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Purchase X7

I know this has been brought up before but I'm really having some second thoughts. My X7 is in production and should be arriving in a few weeks. MSRP is $92k and I'm getting about 9% off before incentives.

This vehicle is replacing a leased 2017 Sienna that was just returned after 36 months with barely 18,000 miles. It will be driven used during the week to drive my kids the short distance to and from preschool and after school events by my wife and nanny. On the weekend it will be the family hauler and we will also take it on vacations around the Northeast such as ski trips, maybe 2-3 per year. My DD is a leased G05 X5 that I use mon-fri and currently has 3 car seats across the 2nd row.

My current plan has been to finance it 60 months, putting half down to have a manageable payment and drive it until it doesn't drive anymore. Maybe buy a 7 year extended warranty and think about flipping it in year 8 or something when it will have 40k mikes or just keeping it for the long haul as my kids will
be starting to drive in about 10 years.

I came up with this plan because it seems crazy to have a $1,000 lease payment for a vehicle that we will only use 6,000 miles a year.

I'm having second thoughts because I know these things depreciate quickly and maybe even faster as it seems as BMW is moving in a higher tech direction features can become obsolete very quickly, ie the July 1st Car Key debacle. I'm trying to convince myself not to worry about those things in the family hauler as I will continue to lease my own DD.

At this moment still leaning toward the purchase but I'm curious what the forum thinks, especially those who have bought not leased X7s.
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      07-03-2020, 06:54 AM   #2
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Quote:
Originally Posted by adamjs83 View Post
I know this has been brought up before but I'm really having some second thoughts. My X7 is in production and should be arriving in a few weeks. MSRP is $92k and I'm getting about 9% off before incentives.

This vehicle is replacing a leased 2017 Sienna that was just returned after 36 months with barely 18,000 miles. It will be driven used during the week to drive my kids the short distance to and from preschool and after school events by my wife and nanny. On the weekend it will be the family hauler and we will also take it on vacations around the Northeast such as ski trips, maybe 2-3 per year. My DD is a leased G05 X5 that I use mon-fri and currently has 3 car seats across the 2nd row.

My current plan has been to finance it 60 months, putting half down to have a manageable payment and drive it until it doesn't drive anymore. Maybe buy a 7 year extended warranty and think about flipping it in year 8 or something when it will have 40k mikes or just keeping it for the long haul as my kids will
be starting to drive in about 10 years.

I came up with this plan because it seems crazy to have a $1,000 lease payment for a vehicle that we will only use 6,000 miles a year.

I'm having second thoughts because I know these things depreciate quickly and maybe even faster as it seems as BMW is moving in a higher tech direction features can become obsolete very quickly, ie the July 1st Car Key debacle. I'm trying to convince myself not to worry about those things in the family hauler as I will continue to lease my own DD.

At this moment still leaning toward the purchase but I'm curious what the forum thinks, especially those who have bought not leased X7s.
I had those thoughts in the past. I drive 5K per year too. Three words. Just enjoy it. You've earned it. It's not going to change the way you live your life either way. Just enjoy it and be happy you can. Mine should be in production any day now.
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      07-03-2020, 08:14 AM   #3
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I don't lease my vehicles. I buy my vehicles and keep them as long as I still like them....for me that's usually 10 plus years. Newer tech comes out all the time but I can't keep chasing my tail so I basically take a stance and purchase a fully loaded and enjoy it and I don't look back (hence my M50i with everything on order) I have other BMWs on a different life cycle so basically every 6-8 years there's always something new in the garage on a 10 plus year cycle from date of purchase. So granted not a new car in the garage every 3-4 years like leasing but this works for me.

I don't knock people who lease that's a life style decision that makes them happy. Some people want the latest to drive and they pay for the luxury. Some want to get their max moneys worth by keeping them for long. Some want a vehicle to build memories with over years etc. to each his own.

Also note that sh*t happens and sometimes a long haul 10 year plus vehicle can go south on you and force your hand to switch it out. But sometimes not having a car payment is also great when the car is not calling for anything but regular maintenance post warranty. I've been in both situations.

You do you and enjoy what you have.
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      07-03-2020, 08:33 AM   #4
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I also purchased mine, including using a good sized down payment as well to keep the monthly payment in check. My X7 replaced my previous SUV which I owned for 10 yrs and put 120k+ miles on it during that ownership period. My SUV then and my X7 now will split daily driver duties with my M3 during my X7 ownership and will also meet my family's hauling wants/needs (see my sig pic below ). I don't expect to put too many miles per year on it either, maybe 6-7k or so. Just like my previous SUV, I plan to keep it for the long haul, at least 8-10 years. I keep all of my cars for at least 7+ years and/or 100k+ miles. My M3 is currently at 49k+ miles and 3.5 yrs of ownership.

I would not worry too much about depreciation. I think people place way too much emphasis on depreciation when it comes to cars IMHO. Except in very rare cases, a car will never be a cost effective investment, so I never see it as one. It is essentially a very long term wear item/disposable asset - like tires or windshield wipers. For the SUV above that I traded in for my X7 (2007 Ford Expedition EL, purchased in 2009 w/24k miles), I got $4500 on the trade. After 120k+ miles and 10 years of ownership I feel I got my money's worth out of it so I considered the $4500 trade "icing on the cake". So I treat a car purchase just like any other consumer product that I want - I do my homework, determine what has $$ value for my needs/desires, and I get what I enjoy and can afford.

So as was mentioned above, just enjoy it and get every ounce of value out of it to your level of satisfaction. And when the time is right for you and your family situation, move on to something else that fits your needs & desires.
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      07-03-2020, 03:43 PM   #5
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I lease for 3 years have never been able to keep the cars that long. They end up on swapalease after 2 years and I get a new one. Ive been doing that for 17 years, I may have a problem. Currently getting rid of my F80 ZCP after 2 years to make room for either a G80 6MT or F87 CS 6MT.

Hopefully since this G07 M50i is for my wife we will keep for a while.

I consider leasing cars a probationary period. Only car we kept was our E70 because we loved it so much.
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      07-03-2020, 03:55 PM   #6
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I lease for 3 years have never been able to keep the cars that long. They end up on swapalease after 2 years and I get a new one. Ive been doing that for 17 years, I may have a problem. Currently getting rid of my F80 ZCP after 2 years to make room for either a G80 6MT or F87 CS 6MT.

Hopefully since this G07 M50i is for my wife we will keep for a while.

I consider leasing cars a probationary period. Only car we kept was our E70 because we loved it so much.
That's how I have been in the past but I can't justify a lease payment of this magnitude for a family hauler we will only put 6k mikes a year in.
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      07-03-2020, 03:57 PM   #7
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Quote:
Originally Posted by adamjs83 View Post
Quote:
Originally Posted by MomoM3 View Post
I lease for 3 years have never been able to keep the cars that long. They end up on swapalease after 2 years and I get a new one. Ive been doing that for 17 years, I may have a problem. Currently getting rid of my F80 ZCP after 2 years to make room for either a G80 6MT or F87 CS 6MT.

Hopefully since this G07 M50i is for my wife we will keep for a while.

I consider leasing cars a probationary period. Only car we kept was our E70 because we loved it so much.
That's how I have been in the past but I can't justify a lease payment of this magnitude for a family hauler we will only put 6k mikes a year in.
I feel like if you get a healthy enough discount at minimum residual your lease end buyout will still be pretty ok if you did decide to keep it.
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      07-03-2020, 04:07 PM   #8
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I feel like if you get a healthy enough discount at minimum residual your lease end buyout will still be pretty ok if you did decide to keep it.
I guess that's a thought. Option value.
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      07-03-2020, 04:47 PM   #9
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Quote:
Originally Posted by adamjs83 View Post
At this moment still leaning toward the purchase but I'm curious what the forum thinks, especially those who have bought not leased X7s.
I learned a long time ago buying a vehicle is not an investment; it always depreciates (unless you are in a different car business.) Normally with car loans being extremely low interest rate, I don't even pay a lot of down payment because I could use my cash somewhere else and make more. That said, I buy what I can afford, but I always buy new. (I never leased.) I keep the car for a long time; take care of the car and enjoy the ride with my family on day-to-day drive or during our road trips. When it's time to sell the car (before any major maintenance issues), I always sell it myself and I do not trade it in. It has worked out well for me and my family. So enjoy your car because you know what's best for yourself.
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      07-03-2020, 05:32 PM   #10
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Quote:
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I learned a long time ago buying a vehicle is not an investment; it always depreciates (unless you are in a different car business.) Normally with car loans being extremely low interest rate, I don't even pay a lot of down payment because I could use my cash somewhere else and make more. That said, I buy what I can afford, but I always buy new. (I never leased.) I keep the car for a long time; take care of the car and enjoy the ride with my family on day-to-day drive or during our road trips. When it's time to sell the car (before any major maintenance issues), I always sell it myself and I do not trade it in. It has worked out well for me and my family. So enjoy your car because you know what's best for yourself.
I have always purchased my cars in the past and kept them a really long time (sometimes too long!!) but am now considering a lease. With the pace of change in technology these days (I think about self driving cars, electrics with longer ranges, etc.) I think I will be interested in upgrading in three years. I know its not the best financial move, but it's how I'm thinking about my upcoming X7 build due to be delivered in July.
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      07-04-2020, 12:14 PM   #11
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Obviously a personal choice as others have commented. I leased my M50i and look at it as a monthly "utility" (albeit an expensive one). I have a sick problem with wanting the latest and greatest, so with this approach, I'm paying for an experience that resets every 3 years To each their own.
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      07-04-2020, 12:25 PM   #12
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Originally Posted by Wanderer73 View Post
Obviously a personal choice as others have commented. I leased my M50i and look at it as a monthly "utility" (albeit an expensive one). I have a sick problem with wanting the latest and greatest, so with this approach, I'm paying for an experience that resets every 3 years To each their own.
I have the same sick obsession. I'm trying to
convince myself though that it won't matter for the second car.
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      07-04-2020, 04:31 PM   #13
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Originally Posted by adamjs83 View Post
I have the same sick obsession. I'm trying to
convince myself though that it won't matter for the second car.
I do lease because I trade so often. If I didnít I would do cash or loan. Lease just makes sense when you swap every 2-3 years. You donít get murdered with a trade in or have to haggle. Only haggle is your discount on a new one.
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      07-04-2020, 06:04 PM   #14
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If you want to rationalize the decision
Do the basics.

Future money value of your payments in both scenarios.

Cost of ownership/ lease

Depreciation value in both cases.
I.e. residual value of the vehicle owning Vs leasing.

Follow those three steps and you'll know which way to go.

You just have to get actual starting point values. I.e. get your discount finalized.
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      07-05-2020, 01:53 AM   #15
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Quote:
Originally Posted by jmcd2524 View Post
I have always purchased my cars in the past and kept them a really long time (sometimes too long!!) but am now considering a lease. With the pace of change in technology these days (I think about self driving cars, electrics with longer ranges, etc.) I think I will be interested in upgrading in three years. I know its not the best financial move, but it's how I'm thinking about my upcoming X7 build due to be delivered in July.
jmcd2524, I am with you. I also think you will like your X7 so much that you will keep it much longer 😀. In the near future you will just download apps to get more options and features. So you never get tired of the car.

About electric car, I do like them, but as a secondary car. We just do a lot of road trips with my kids that I do not like to plan my trips over charging stations. Our focus is usually the scenic routes.

I also like self-driveing, but as of now or in the near future no body gets near Tesla. BMWs Driver Assistant Pro is still in early stages. I use our X7's Driver Assistant allot on higways, it does reduce lots of driving stress from me especially at night.
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      07-05-2020, 04:03 AM   #16
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You're making it too complicated. Ask yourself one (1) simple question. How long are you going to be hauling kids around in a big SUV?

If it's less than 5 years, lease.
if it's 5-6 years, you'll get the same results either way.
If it's more than 6 years, buy the X7.

with technology and maintenance and warranty issues, I'd preferred to keep my cars insured and in warranty. so anything over 5 years seems crazy nuts to me in this day and age.

I understand some of the older boomers on here want to buy and own, but for me it's not worth the hassle. Before I retired, I billed my clients at $1200 per Hour. At that rate, I'm not doing any DIY repairs on my 10 year old BMW. For me, it's leasing all the way. Let BMW worry about the maintenance and residual value of my 8 cylinder 550 horsepower v8 engines.
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