By JLP | July 23, 2010
Last week when I was getting the oil changed in my wife’s car, this fairly young-looking guy pulls up in a fairly new BMW 740Li. I got to wondering how much it would cost a person to drive a car like that. If you’ve never priced the 740Li, you might be shocked that they run upwards of $80,000. To put that in perspective, my wife and I paid $89,000 for our 2,275 square foot house in 1999. I know it’s not a fair comparison due to inflation but it is the closest thing I have to make a comparison.
Anyway, I was poking around on BMW’s website last night and found a link for their leasing deal, which works out like this:
I’m not sure how the taxes part works, but I’m pretty sure that has to be paid up-front, which means a person leasing this particular BMW would have to put down over $13,000 to drive the car off the lot. They would then have a monthly lease payment of $909 for the next 36 months. At the end of 36 months, they can purchase the car for $44,791 or hand it back to the dealership and pay a $350 disposition fee and $.25 per mile over 30,000 miles and any other fees for excessive wear (as pointed out in the contract). If they hand it back to the dealership, they would have spent $45,383 over three years (or essentially $1,260 per month).
If they decide to go ahead and buy the car and finance it for 4 years at a 6% interest rate, their payment will be $1,051.92 (and that number doesn’t include taxes, which are mentioned on the BMW site).
What’s worse is my math doesn’t include maintenance, which I have heard is pretty expensive on a BMW.
I can’t imagine spending that much just so I could drive a BMW 740Li. The question I always think about when I see younger people driving these expensive cars is, “How much have you saved for your retirement?”