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How Much Does it Cost to Drive a BMW 740Li?

By JLP | July 23, 2010

A lot!

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?”

Topics: Budgeting, Cars | 8 Comments »


8 Responses to “How Much Does it Cost to Drive a BMW 740Li?”

  1. bb Says:
    August 3rd, 2010 at 2:33 pm

    He will tell you he’s too young to think about retirement at all.

  2. dogatemyfinances Says:
    August 3rd, 2010 at 5:51 pm

    Maintenence is free on BMWs and quite a few other luxury cars. For the first few years, at least.

  3. Money Obedience Says:
    August 4th, 2010 at 10:39 am

    All kinds of things are possible. The driver could be maxing out his retirement accounts and that he has money left over to buy a 740LI for cash. I think it is very difficult to draw any conclusions from one single observation like that.

  4. Goner Says:
    August 4th, 2010 at 10:42 am

    What about insurance? Yikes.

  5. Evan Says:
    August 4th, 2010 at 10:49 am

    Don’t forget about insurance! When you get into a fender bender and the bumper like plastic costs more than the value of some used cars your insurance is going to sky rocket

  6. BMW Owner Says:
    August 5th, 2010 at 9:27 am

    If any of you have driven a BMW, you would agree that these costs are all reasonable. If you’re not into driving, then you wouldn’t see the value.

  7. Beeg Says:
    August 5th, 2010 at 9:38 am

    I can’t see any need for someone making less than $0.5 to 1.0 million/year (or a high amount of assets) in income to buy one of these things.

    $80k for a car is stupid if you don’t make a lot of money (less than $500K).

    These things depreciate the second they are driven off of the lot.

    There’s a sucker born every minute.

  8. BMW owner too Says:
    August 6th, 2010 at 1:28 pm

    Well DH and I both drive BMWs (purchased used though). We tithe, max out both our 401ks and IRAs and have a six month efund. No, we don’t make $500K/yr but we’re very blessed to have an abundance of funds.

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