How to justify X5 purchase?

[highintensity]

Hi,

I look around and see soo many X5s. They are not cheap. Considering the average salary in London in less than 30K, how can people afford to drive one? Am I jealous? Yes.

I'm a bit perplexed; my self, I'm in the highest rate 50% tax bracket, but I am finding it difficult to justify a 50K purchase that is such a large percentage of my take home pay.

And I really want one to replace my 9 year old Lexus RX300. :

How have you talked yourself into getting a new X5? At 7%, finance isn't cheap either. And used ones "stubbornly" seem to retain their residual value.

Since I only do 5,000 miles a year, the better fuel economy from diesel vs petrol amounts to a bit over 1% of the purchase price pe year. Hardly any savings there for me. The Lexus is a very good car, but I am looking for a bit more excitement!

How have you worked the numbers: cost spread out over the years of ownership, total depreciation and running costs per month, or just buy it to satisfy your needs.

Sorry to sound a bit green with evny, but I am envious of all you folks and your Ultimate Driving Machine(s)! And I hope to join your club soon.

Thanks!

[IvanG]

I bought a new 40d M Sport in June last year. I was tempted by a 12% discount, good trade-in for my 3-series touring. Great finance deal - paid 50% on delivery and 50% in 2 years time, interest-free. Also got free panoramic sunroof and 5 years free servicing
However money isn't the only factor as it was the car I had always wanted - so I think heart ruled head to some degree!

PS It's a great car and you won't regret it

[X5Sport]

Just do it.......Simples!

Deep down, I probably couldn't justify it, but the cash was available, earning sweet fa in either shares or the bank so.............what the hell. I went out and bought a brand new X6 40d, waiting just long enough for it to come to the UK in late 2010. I didn't 'need' one, but I love the car and sometimes the 'no common sense' bit overrules the 'hang on a minute' bit. I'm only doing around 5k a year too and actually at that low mileage petrol power makes more sense (because of the up front extra cost of the diesel engine and then the fuel), but petrol's are harder to sell and lose more money. My 6 1/2 year old X5 was still worth more than 25% of /its purchase price.

I do tend to keep my cars for a while though. Financing through BMW was VERY expensive, and if I had bought another one last year (which I almost did, but was stopped by some of the folks with cooler heads here) using the deal then available and gone to the max time period it added £40k to the price of the car. Order cancelled. I am part financing mine but via a flex mortgage so only paying about 3% and paying off much faster than I could doing it any other way.

I know I'm never going to recover the cost - few do - so it's part of life. Oh and I'm not in your tax bracket either and once I added the toys that added up to nearer £63k. £50k gets you the car, but once you start looking at the options list you either need incredible self-control, or your bank balance will take a bigger hit. Base spec ones don't sell - at least not very well.

Definitely heart over head. But once you get behind the wheel, on an open road and press the 'loud pedal' you'll know why we drive them.......

[pvr]

First of all, you need a better accountant and get out of that tax bracket. I did not realise anyone was actually getting caught by that as there are so many ways around it

I just used previous years profits to buy the car so it does not "feel" like a large chunk of cash out of the current year's income. And like X5Sport, I have kept my previous X5 6.5 years so the cost per year is not too bad.

The X5 was not that far off in costs from my M, which depreciates even harder and that car is used even less

[dirtymonkey29]

I need a new accountant too lol

[pvr]

Just get married, that is half the income moved across

[X5Sport]

[quote=""pvr""]Just get married, that is half the income moved across [/quote]

Yeah but generally in my experience - the wrong way.....

[pvr]

Mrs PVR is now officially my boss in companies house

[X5Sport]

[quote=""pvr""]Mrs PVR is now officially my boss in companies house [/quote]

Uh Uh.....NOT happening - and you keep quiet in July!!

[davyk31]

I bought my 63k 35d X5 for 37k just because it was 2 years old and covered 25k miles. That's a lot easier to justify.

[highintensity]

Thanks for everyone's reply! I greatly appreciate it.

I guess it mostly boils down to a heart-vs-wallet thing. Heat says, yes! Wallet says, maybe.

I'm not sure I can do anything about the punitive 50% tax rate since everything is PAYE. If there is a way to deal with that, I'm all ears!

I really want the 4.0d with the twin turbo engine. When was that engine first available? I would probably go used with the TT engine.

After looking at information, I think that I would really want something like a 4.0d with 7 seats, Media Pack/Sat Nav, reverse cam, Professional Sound, 19" rims, heated front seats, and hopefully the Panoramic Sunroof. The HUD would be icing on the cake.

I wonder what year and price I would be looking for with that spec?

Thanks!

[X5Sport]

Mine was supposed to be one of the first X6 variants with it, and that was built in October 2010. The 35d was dropped at that point and the 8-speed auto arrived with it. Not certain if it's the same for the E70. You'd be looking at around £45k upwards for a hi spec '60' plate.

That should get you the full Comms Pack, Audio, Pano, 20" wheels, 7-seats, Nav and the HUD, although I'm not sure how many people spec that as it was an expensive option, though useful. You might even get a power tailgate, and 'voice control' for that too - I'm still trying o get mine o play nicely though! 20-pages of commands! You would also get the later version of the iDrive (known as the CIC or Car Infotainment Computer) with an 80GB hard drive.

[pvr]

You have moved on nicely now from doubt stage to planning stage

[MJim]

Sounds like you want to buy my car, but it's not for sale - I like it too much!
Can't recommend the car highly enough even though for me, given the cost, I had to let the heart rule. Having said that we've benefitted enormously from the car being so much more pleasant with a young family (2 little ones) which has made quite a difference with long journeys generally being enjoyable rather than a total nightmare!
I really recommend all the options you set out - the HUD is brilliant - but would also advise the top view camera, and for those long motorway journeys the active cruise control really makes it so much more relaxing. Personally I find the voice recognition useless and wish I hadn't bothered!
I don't know what sort of price you can achieve on a second hand car, but when I looked, by shopping around for a good discount, buying new i got a higher specced car than BMW were selling second hand for similar money. Plus you have peace of mind that no ones previously been rally driving across fields in your car!
If you go for it, you won't regret it!

[535dboy]

[quote=""pvr""]First of all, you need a better accountant and get out of that tax bracket. I did not realise anyone was actually getting caught by that as there are so many ways around it

I just used previous years profits to buy the car so it does not "feel" like a large chunk of cash out of the current year's income.

The X5 was not that far off in costs from my M, which depreciates even harder and that car is used even less [/quote]

You are obviously not earning enough then if you shelter just through the mrs. I have to use the kids too!