Buy/Sell Financial Advice
02-19-2010, 01:43 PM
#1
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My Ride: 04 530i Space Gray/ Black Dakota Leather interior with SMG, Sports Package+ Paddle Shifters, HUD, NAV, Premium Package, Multi-Contour Seats, Xenons , Logic 7.
Hi All,
My CPO/Extended Maintenance warranty is expiring this year in Jun and I am trying to decide if I should get an aftermarket extended maintenance plan for my E60 and keep it for another couple of years or sell/trade in for a newer car.
To give you some background on the car, I bought it CPO with extended maintenance in Nov '07 with 37000 miles on it and so far there have not been any major problems (75000 miles currently). The only major repair done was the SMG pump replacement which was covered under CPO warranty. I bought the car for $38,000 and I now owe about $20,000 or less on it so I am not sure what would be the best thing to do financially. I think I have two options:
1) Try to sell the car for approx $20,000 OBO
2) Purchase extended warranty and keep the car for another year or two.
The issue with option 1 is that I don?t know how much the car would sell for in this market and I might have to pay out of pocket to payoff the loan and with option 2, I don?t know how reliable extended warranties are and I don?t want to drive an SMG bmw without a reliable warranty. I am quite confused as to what would be the safest option financially and I need some serious advice.
-MIK
My CPO/Extended Maintenance warranty is expiring this year in Jun and I am trying to decide if I should get an aftermarket extended maintenance plan for my E60 and keep it for another couple of years or sell/trade in for a newer car.
To give you some background on the car, I bought it CPO with extended maintenance in Nov '07 with 37000 miles on it and so far there have not been any major problems (75000 miles currently). The only major repair done was the SMG pump replacement which was covered under CPO warranty. I bought the car for $38,000 and I now owe about $20,000 or less on it so I am not sure what would be the best thing to do financially. I think I have two options:
1) Try to sell the car for approx $20,000 OBO
2) Purchase extended warranty and keep the car for another year or two.
The issue with option 1 is that I don?t know how much the car would sell for in this market and I might have to pay out of pocket to payoff the loan and with option 2, I don?t know how reliable extended warranties are and I don?t want to drive an SMG bmw without a reliable warranty. I am quite confused as to what would be the safest option financially and I need some serious advice.
-MIK
02-19-2010, 03:11 PM
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Here is a question for you. Do you love your car enough to want to keep it and deal with the possible issues it may have? Note that all makes in cars will have problems as they age and accumulate miles.
Honestly, it is difficult for someone to tell you how to sort your finances, but if I were in your situation, this is what I would do.
1. List the car for sale. List it for more than what you owe to give yourself the wiggle room to negotiate with the buyer. You have 4 months till June when the CPO warranty expires.
2. Have the CPO warranty replace as much as you can get replaced.
3. If the car sells, hopefully for enough to pay off the rest of the car with nothing additionally out of your pocket, you are free and have a clean slate.
4. At the same time, find a reputable indy shop/mechanic and ask them what extended warranties they accept and which work the best with them regarding claims and repairs. Specifically look for an exclusionary warranty only. (these list items NOT covered vs warranties that only list what is covered) READ THE WARRANTY.
5. If the car doesn't sell and you are fine with keeping it, you will then have a good mechanic and a warranty to cover things.
P.S. Since we know you owe $20k on the car, you left yourself less wiggle room..
Honestly, it is difficult for someone to tell you how to sort your finances, but if I were in your situation, this is what I would do.
1. List the car for sale. List it for more than what you owe to give yourself the wiggle room to negotiate with the buyer. You have 4 months till June when the CPO warranty expires.
2. Have the CPO warranty replace as much as you can get replaced.
3. If the car sells, hopefully for enough to pay off the rest of the car with nothing additionally out of your pocket, you are free and have a clean slate.
4. At the same time, find a reputable indy shop/mechanic and ask them what extended warranties they accept and which work the best with them regarding claims and repairs. Specifically look for an exclusionary warranty only. (these list items NOT covered vs warranties that only list what is covered) READ THE WARRANTY.
5. If the car doesn't sell and you are fine with keeping it, you will then have a good mechanic and a warranty to cover things.
P.S. Since we know you owe $20k on the car, you left yourself less wiggle room..
02-19-2010, 03:33 PM
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My Ride: 2008 535i:
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Don't sell the car if you can't get enough to pay off the lien.
02-19-2010, 04:03 PM
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My Ride: 2006 525XI, Jet black on Dakota beige. Premium and winter packages. I consider myself a purist and intend to keep my car absolutely stock and shiny.
2008 328I Convertible, Sapphire black on beige interior. Premium package, NAV, iPod adapter.
Retired: 2002 325I, Titanium silver on black leather. Premium package. Absolutely stock and proud of it.
Since your car has been very reliable, I would put aside the money you would spend on an extended warranty and use that as seed money for repairs. With good maintenance, your car should continue being reliable, save for the occasional electrical gremlin. G/L
02-19-2010, 04:07 PM
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My Ride: 04 530i Space Gray/ Black Dakota Leather interior with SMG, Sports Package+ Paddle Shifters, HUD, NAV, Premium Package, Multi-Contour Seats, Xenons , Logic 7.
What really scares me is the SMG, even though I had the pump replaced under warranty I am not sure if I will be able to find a reliable indy shop that has the expertise of working on the SMG.
02-19-2010, 04:22 PM
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My Ride: 04 530i Space Gray/ Black Dakota Leather interior with SMG, Sports Package+ Paddle Shifters, HUD, NAV, Premium Package, Multi-Contour Seats, Xenons , Logic 7.
Here is a question for you. Do you love your car enough to want to keep it and deal with the possible issues it may have? Note that all makes in cars will have problems as they age and accumulate miles.
Honestly, it is difficult for someone to tell you how to sort your finances, but if I were in your situation, this is what I would do.
1. List the car for sale. List it for more than what you owe to give yourself the wiggle room to negotiate with the buyer. You have 4 months till June when the CPO warranty expires.
2. Have the CPO warranty replace as much as you can get replaced.
3. If the car sells, hopefully for enough to pay off the rest of the car with nothing additionally out of your pocket, you are free and have a clean slate.
4. At the same time, find a reputable indy shop/mechanic and ask them what extended warranties they accept and which work the best with them regarding claims and repairs. Specifically look for an exclusionary warranty only. (these list items NOT covered vs warranties that only list what is covered) READ THE WARRANTY.
5. If the car doesn't sell and you are fine with keeping it, you will then have a good mechanic and a warranty to cover things.
P.S. Since we know you owe $20k on the car, you left yourself less wiggle room..
Honestly, it is difficult for someone to tell you how to sort your finances, but if I were in your situation, this is what I would do.
1. List the car for sale. List it for more than what you owe to give yourself the wiggle room to negotiate with the buyer. You have 4 months till June when the CPO warranty expires.
2. Have the CPO warranty replace as much as you can get replaced.
3. If the car sells, hopefully for enough to pay off the rest of the car with nothing additionally out of your pocket, you are free and have a clean slate.
4. At the same time, find a reputable indy shop/mechanic and ask them what extended warranties they accept and which work the best with them regarding claims and repairs. Specifically look for an exclusionary warranty only. (these list items NOT covered vs warranties that only list what is covered) READ THE WARRANTY.
5. If the car doesn't sell and you are fine with keeping it, you will then have a good mechanic and a warranty to cover things.
P.S. Since we know you owe $20k on the car, you left yourself less wiggle room..
There really is nothing that needs repairs, I will be taking it to the dealership for oil change.As for extended warranties and Indy shops, i need to do some research as I am new to NJ and dont know anyone around the area.
02-20-2010, 08:18 AM
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My Ride: 04 530i Space Gray/ Black Dakota Leather interior with SMG, Sports Package+ Paddle Shifters, HUD, NAV, Premium Package, Multi-Contour Seats, Xenons , Logic 7.
Has anyone driven their SMG beyond 75k? If so what issues did you face.
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