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$330 lease cost + $30 tax? = $360
Insurance = $150
Gas (at 1200 miles/month, 25mpg, $4.25/gal (cost in CA)) = $204
Maintenance = $24
downpayment $4k amortized to 36 mos = $111
Monthly cost of ownership = $849/month
Lets make this more realistic for something like a BMW 320i (I'll leave out the effect of MSD's as that muddies the waters, but they can significantly reduce the payment. Optimally you'd want to max out the MSDs and put 0 down, which would shave off about $50/mo)
$309 lease cost + $30 tax? = $339
Insurance = $65 ($150 if you wreck a lot!)
Gas (at 800 miles/month, 28mpg, $4.25/gal (cost in CA)) = $121 (base lease is 10K/yr no reason you have to drive that car 15K/yr)
Maintenance = $0
down payment $3500 (2750 down, 750 acquisition fee) amortized to 36 mos = $97
Monthly cost of ownership = $622/month
Bumping this up to the mid level 328i adds around $50/mo.
We are talking purchase price here. Why are you throwing in all the other stuff?
not purchase price, we are talking about how much of a budget needs to be allocated towards a econobox leased and driven 15000 mi/yr vs a cheapest possible luxury marque. The cost of operation is higher (fuel, insurance, maintenance etc.) with luxury cars hence that needs to be in the equation as well.
What we are trying to figure out is a rough monthly dollar value as to how much extra it would be.
Quote:
Originally Posted by mkarch
Monthly cost of ownership = $622/month
Bumping this up to the mid level 328i adds around $50/mo.
So, what would your calculation be for a Toyota Corolla LE using the exact same parameters?
Let's get it straight here... i've always thought that luxury cars are a money pit any way you slice it even if one is leasing. So, when you see someone driving a Mercedes, BMW or Lexus, regardless of model, you can come to the conclusion that the guy/gal is paying quite a bit for it. Agree with me here? Note, that I did not necessarily say that they could comfortably afford it, just that they pay a lot for it.
Well, was chatting with a friend the other day and he was saying how it wasn't that much more to drive a Mercedes vs driving a Corolla, I thought this was totally ridiculous.
Can you contrast the cost difference between driving a basic Toyota Corolla vs driving the cheapest Mercedes in the cheapest way possible? Leasing + extra cost for premium fuel + extra cost for insurance + much higher maintenance cost + lease overrage charges + origination, disposition and the BS fees that come with a lease etc. etc.
I was thinking it was $350/month for the Corolla vs something like $1000/month total cost of operation including gas for the C230 Merc.
If you compare a new Corolla to an older BMW/Mercedes, then you are probably looking at similar costs. You can probably get the luxury car at a lower purchase price, but you'll need to have a maintenance/repair fund ready. If you target a car that has only had one owner, with maintenance records, and with reasonably low mileage, then you are likely getting a vehicle that has been well taken care of and will drive like new with a tune-up.
we're debating whether the total costs of driving a luxury car is only incrementally more than driving an econobox because this argument is made by many. Why drive a Corolla when you can spend only $100 more and drive a Mercedes... well, my thoughts were that you cannot. It would cost hundreds of $$ more a month to drive even the cheapest Merc over the most expensive Toyota Corolla.
we're debating whether the total costs of driving a luxury car is only incrementally more than driving an econobox because this argument is made by many. Why drive a Corolla when you can spend only $100 more and drive a Mercedes... well, my thoughts were that you cannot. It would cost hundreds of $$ more a month to drive even the cheapest Merc over the most expensive Toyota Corolla.
Yeah, about $200.
If you're talking about leased luxury versus buying a Corolla, it's not even that. For the two years I had payments on my last car, the payments where about what the lease on a 5-series would be.
Let's get it straight here... i've always thought that luxury cars are a money pit any way you slice it even if one is leasing. So, when you see someone driving a Mercedes, BMW or Lexus, regardless of model, you can come to the conclusion that the guy/gal is paying quite a bit for it. Agree with me here? Note, that I did not necessarily say that they could comfortably afford it, just that they pay a lot for it.
Well, was chatting with a friend the other day and he was saying how it wasn't that much more to drive a Mercedes vs driving a Corolla, I thought this was totally ridiculous.
Can you contrast the cost difference between driving a basic Toyota Corolla vs driving the cheapest Mercedes in the cheapest way possible? Leasing + extra cost for premium fuel + extra cost for insurance + much higher maintenance cost + lease overrage charges + origination, disposition and the BS fees that come with a lease etc. etc.
I was thinking it was $350/month for the Corolla vs something like $1000/month total cost of operation including gas for the C230 Merc.
Depends on what you call luxury. I personally feel a Benz is money pit, especially when you can get an Audi, with more standard stuff I'll never use for less!
Can you contrast the cost difference between driving a basic Toyota Corolla vs driving the cheapest Mercedes in the cheapest way possible? Leasing + extra cost for premium fuel + extra cost for insurance + much higher maintenance cost + lease overrage charges + origination, disposition and the BS fees that come with a lease etc. etc.
I was thinking it was $350/month for the Corolla vs something like $1000/month total cost of operation including gas for the C230 Merc.
Here's how mine breaks down - Fully loaded Infiniti G37x. Stickers for around $45K. I leased it for no money down and $380 per month. Overage charges are 10c a mile but that's not an issue as I wouldn't lease my car if I were to go over the 12,000 per year I pay for. Insurance is a whole $12 per month more that the Prius my wife drives. The bulk of our insurance payment seems to be various liabilities. As for premium gas, pretty much anything with a bit of performance needs it. Fuel is pricey, but still less that someone driving a giant SUV or pickup.
Why is leasing luxury cars reasonably inexpensive? It's usually down to residual values. They're high on the luxury brands. My Infiniti has a 3 year residual of 66%. A Ford Fusion is around 49% last time I looked. The high end brands pretty much subsidize these to get more out on the road.
At the end of the day, like everything, it's a choice. I'd rather drive a nice car and change it every three years that buy something cheap and keep is for 6 or 7 years. It's my treat to myself.
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