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

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?”

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

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

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

  3. 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. What about insurance? Yikes.

  5. 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. 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. 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. 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.