Quote:
Originally Posted by Agent0037
Actually, given the difference in residual values, the lease on the G37 will be around $200+/month cheaper on a 36 month/36,000 mi lease lease with no money down after TTL/fees are rolled in. (Around $600-$650 for the G37, likely around $850 or more for the 335i). If you have to spend an extra $200+/month for the rest of your life due to the need to lease ("only an idiot" would do otherwise), then it gets expensive indeed ($200/month invested at a reasonable 8% return nets you about $300K after 30 years of investing). That's a pretty steep price to pay for BMW cache. Again, I like the Bimmer better, but let's not kid ourselves that the price difference is "negligible" to most people.
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Comparing investing the $200 extra a month at an 8% return isn't really that important to most people as sadly too few of our citizens invest. I read somewhere that on average most people have more debt than assets these days. You should probably figure $200 a month less credit card debt for the average person. I don't feel like checking it but did you use the PvIfa? formula to figure out the 300k? 300k seems about right for that kind of annuity.