545i HUGE LOSS! Trade for M5? Or Shoot myself?
03-08-2009, 02:45 PM
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Originally Posted by craigm1841' post='810915' date='Mar 8 2009, 03:04 PM
this is why BMWs are so widely leased. I am not wealthy, I have a great income though and I am a single guy, so i am doing far better than most people, however, Leasing was the best option for me. the OP pretty much makes the argument for leasing in his original post.
If you want a nice car, that you wont keep forever and money matters to you, in the way that you actually have to be cognisant of your mortgage/rent/car payment, then leasing is the best option.
He has had it for 15 mos and he is tired of it? When i hit the 15 month mark on my 08 535 that i am paying 599 a month for, it will be halfway gone. and after the lease is up, i wont be upsidedown on it.
If you want a nice car, that you wont keep forever and money matters to you, in the way that you actually have to be cognisant of your mortgage/rent/car payment, then leasing is the best option.
He has had it for 15 mos and he is tired of it? When i hit the 15 month mark on my 08 535 that i am paying 599 a month for, it will be halfway gone. and after the lease is up, i wont be upsidedown on it.
03-08-2009, 02:49 PM
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My Ride: 2007 530i Alpine White with Navi and Premium PackageIn progress: OEM Mtech kit, H&R Sport Springs, and 19
Oh yeah and don't forget you can save yourself some interest and pay off early by sending equal payments in twice a month 
03-08-2009, 03:21 PM
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Originally Posted by Westcoast M5' post='810937' date='Mar 8 2009, 05:45 PM
+1 on leasing. Also if you have some cash you can save a bunch of finance charges by prepaying the lease - lease it for 3 years with a lump sum payment. No car payment, just using up your "prepaid time" until you return it and decide how much you want to spend for your next 3 years of driving.
Boys,
You just can't buy these cars nowadays. I orignally thought I made a mistake leasing. Was crying like a baby thinking of paying tax a second time. Around $3k.
Well, the buyout came in $9K under residual with better financing options. And I could have walked away free as a bird. I took the buyout. Risking the residual value on a $70K car is dangerous. You got to want the car for the long term, 6 years or more.
How many of us fall into this category??
I'd say very few.
Used cars is the way to go.
CVT Benhogan
03-08-2009, 03:33 PM
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Originally Posted by CVTBenhogan' post='810946' date='Mar 8 2009, 07:21 PM
Boys,
You just can't buy these cars nowadays. I orignally thought I made a mistake leasing. Was crying like a baby thinking of paying tax a second time. Around $3k.
Well, the buyout came in $9K under residual with better financing options. And I could have walked away free as a bird. I took the buyout. Risking the residual value on a $70K car is dangerous. You got to want the car for the long term, 6 years or more.
How many of us fall into this category??
I'd say very few.
Used cars is the way to go.
CVT Benhogan
You just can't buy these cars nowadays. I orignally thought I made a mistake leasing. Was crying like a baby thinking of paying tax a second time. Around $3k.
Well, the buyout came in $9K under residual with better financing options. And I could have walked away free as a bird. I took the buyout. Risking the residual value on a $70K car is dangerous. You got to want the car for the long term, 6 years or more.
How many of us fall into this category??
I'd say very few.
Used cars is the way to go.
CVT Benhogan
03-08-2009, 03:35 PM
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Originally Posted by CVTBenhogan' post='810946' date='Mar 8 2009, 07:21 PM
Boys,
You just can't buy these cars nowadays. I orignally thought I made a mistake leasing. Was crying like a baby thinking of paying tax a second time. Around $3k.
Well, the buyout came in $9K under residual with better financing options. And I could have walked away free as a bird. I took the buyout. Risking the residual value on a $70K car is dangerous. You got to want the car for the long term, 6 years or more.
How many of us fall into this category??
I'd say very few.
Used cars is the way to go.
CVT Benhogan
You just can't buy these cars nowadays. I orignally thought I made a mistake leasing. Was crying like a baby thinking of paying tax a second time. Around $3k.
Well, the buyout came in $9K under residual with better financing options. And I could have walked away free as a bird. I took the buyout. Risking the residual value on a $70K car is dangerous. You got to want the car for the long term, 6 years or more.
How many of us fall into this category??
I'd say very few.
Used cars is the way to go.
CVT Benhogan
03-08-2009, 03:36 PM
#36
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My Ride: 2005 545i Sport Package Limo Tinted, Heads up display, Fully Loaded Minus Cold Weather Package and Rear window Sunshades.
Great tips guys... Seriously everyone has left me with a little bit of advice. I started quoting but I realized replying to 20 plus responses was going to take way too long!
Although I feel some may not have fully got my story correctly. I'm not affected by this economy too bad. I am self employed so I don't have much to worry about in that sense.
The 4k I have extra in mods is just something I planned on doing for a while. Someone mentioned a super charger... That would be great but I do want this car to last, not spend 7k to kill my engine life :thumbsdown:
Because of my loss, and depreciated values made me think if I've already lost this much... might as well save my 4k, and put it towards the M5 since that's what I basically want my car to be anyways... Take a little bigger loss but be twice as happy.
Don't get me wrong guys I am very happy with my 545i, and take every chance I can to drive it. (I put 24K Miles on it so far!) I love my car.
My whole thing is I can take a loss, but to be 15k down in 15/mo is pretty ridiculous in my opinion I took a 6 year loan. I got the 100K Warranty. And walked out paying $42,000 on an 8% loan with 0 down for my 545i
I needed a car and I needed all my extra funds at the time for various investments to keep my business running. So I opted on 0 Down.
Paying for my car has never been an issue. I did a little math, and decided I'm just going to pay $400 extra each month towards my payments not sure of the correct outcome on this maybe someone with better finance skills can tell me exactly what it's going to work out to be.
$35,000 on loan at 8%
Payment of 760/mo for 57 more months.
Then I want to pay 400 extra per month.
How fast would my car be paid off? And what will be saved on interest that won't accumulate due to early pay off?
Although I feel some may not have fully got my story correctly. I'm not affected by this economy too bad. I am self employed so I don't have much to worry about in that sense.
The 4k I have extra in mods is just something I planned on doing for a while. Someone mentioned a super charger... That would be great but I do want this car to last, not spend 7k to kill my engine life :thumbsdown:
Because of my loss, and depreciated values made me think if I've already lost this much... might as well save my 4k, and put it towards the M5 since that's what I basically want my car to be anyways... Take a little bigger loss but be twice as happy.
Don't get me wrong guys I am very happy with my 545i, and take every chance I can to drive it. (I put 24K Miles on it so far!) I love my car.
My whole thing is I can take a loss, but to be 15k down in 15/mo is pretty ridiculous in my opinion I took a 6 year loan. I got the 100K Warranty. And walked out paying $42,000 on an 8% loan with 0 down for my 545i
I needed a car and I needed all my extra funds at the time for various investments to keep my business running. So I opted on 0 Down.
Paying for my car has never been an issue. I did a little math, and decided I'm just going to pay $400 extra each month towards my payments not sure of the correct outcome on this maybe someone with better finance skills can tell me exactly what it's going to work out to be.
$35,000 on loan at 8%
Payment of 760/mo for 57 more months.
Then I want to pay 400 extra per month.
How fast would my car be paid off? And what will be saved on interest that won't accumulate due to early pay off?
03-08-2009, 03:37 PM
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The great Warren Buffet once said, "If you have to repair it or feed it, then it's not an investement". Rare are the cars where you either lose very little or actually make money on it. Us mere mortals buy cars with the notion that as soon as you pull out of the dealership, you've lost 20% already. My advice would be to just enjoy your car, mod the heck out of it (if you really want it) and use it as a source of fun. Who cares if it'll be worth $0 in 7 or 8 years? At some point you will pay off this car and all you have to do is keep making those payments to yourself and save the money for downpayment on your next car.
Have fun and enjoy your car. Just trading it in while it's underwater will put you further in debt and for an even bigger amount. G/L
Have fun and enjoy your car. Just trading it in while it's underwater will put you further in debt and for an even bigger amount. G/L
03-08-2009, 03:42 PM
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Originally Posted by porsche911targa' post='810974' date='Mar 8 2009, 07:37 PM
The great Warren Buffet once said, "If you have to repair it or feed it, then it's not an investement". Rare are the cars where you either lose very little or actually make money on it. Us mere mortals buy cars with the notion that as soon as you pull out of the dealership, you've lost 20% already. My advice would be to just enjoy your car, mod the heck out of it (if you really want it) and use it as a source of fun. Who cares if it'll be worth $0 in 7 or 8 years? At some point you will pay off this car and all you have to do is keep making those payments to yourself and save the money for downpayment on your next car.
Have fun and enjoy your car. Just trading it in while it's underwater will put you further in debt and for an even bigger amount. G/L
Have fun and enjoy your car. Just trading it in while it's underwater will put you further in debt and for an even bigger amount. G/L
(joking)+1 on that last statement. a car is not an investment unless you are buying a 69 camaro, gullwing MB, shelby cobra, stuff like that. If you can afford it and you will enjoy it, drive it. when you get tired of it, if it is reasonable to, turn it in and get something fresh. i get tired of cars quickly and if anyone is like that, you should be leasing.
03-08-2009, 04:20 PM
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Originally Posted by craigm1841' post='810978' date='Mar 8 2009, 07:42 PM
what does warren buffet know about money? isn't that the guy who sings margaritaville? (joking)
+1 on that last statement. a car is not an investment unless you are buying a 69 camaro, gullwing MB, shelby cobra, stuff like that. If you can afford it and you will enjoy it, drive it. when you get tired of it, if it is reasonable to, turn it in and get something fresh. i get tired of cars quickly and if anyone is like that, you should be leasing.
(joking)+1 on that last statement. a car is not an investment unless you are buying a 69 camaro, gullwing MB, shelby cobra, stuff like that. If you can afford it and you will enjoy it, drive it. when you get tired of it, if it is reasonable to, turn it in and get something fresh. i get tired of cars quickly and if anyone is like that, you should be leasing.
This is an investment car.. I bet you can't pick this thing up for < $200k. New it was < $4k. LOL
03-08-2009, 04:33 PM
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Originally Posted by Jrowe' post='810972' date='Mar 8 2009, 06:36 PM
Great tips guys... Seriously everyone has left me with a little bit of advice. I started quoting but I realized replying to 20 plus responses was going to take way too long!
Although I feel some may not have fully got my story correctly. I'm not affected by this economy too bad. I am self employed so I don't have much to worry about in that sense.
The 4k I have extra in mods is just something I planned on doing for a while. Someone mentioned a super charger... That would be great but I do want this car to last, not spend 7k to kill my engine life :thumbsdown:
Because of my loss, and depreciated values made me think if I've already lost this much... might as well save my 4k, and put it towards the M5 since that's what I basically want my car to be anyways... Take a little bigger loss but be twice as happy.
Don't get me wrong guys I am very happy with my 545i, and take every chance I can to drive it. (I put 24K Miles on it so far!) I love my car.
My whole thing is I can take a loss, but to be 15k down in 15/mo is pretty ridiculous in my opinion I took a 6 year loan. I got the 100K Warranty. And walked out paying $42,000 on an 8% loan with 0 down for my 545i
I needed a car and I needed all my extra funds at the time for various investments to keep my business running. So I opted on 0 Down.
Paying for my car has never been an issue. I did a little math, and decided I'm just going to pay $400 extra each month towards my payments not sure of the correct outcome on this maybe someone with better finance skills can tell me exactly what it's going to work out to be.
$35,000 on loan at 8%
Payment of 760/mo for 57 more months.
Then I want to pay 400 extra per month.
How fast would my car be paid off? And what will be saved on interest that won't accumulate due to early pay off?
Although I feel some may not have fully got my story correctly. I'm not affected by this economy too bad. I am self employed so I don't have much to worry about in that sense.
The 4k I have extra in mods is just something I planned on doing for a while. Someone mentioned a super charger... That would be great but I do want this car to last, not spend 7k to kill my engine life :thumbsdown:
Because of my loss, and depreciated values made me think if I've already lost this much... might as well save my 4k, and put it towards the M5 since that's what I basically want my car to be anyways... Take a little bigger loss but be twice as happy.
Don't get me wrong guys I am very happy with my 545i, and take every chance I can to drive it. (I put 24K Miles on it so far!) I love my car.
My whole thing is I can take a loss, but to be 15k down in 15/mo is pretty ridiculous in my opinion I took a 6 year loan. I got the 100K Warranty. And walked out paying $42,000 on an 8% loan with 0 down for my 545i
I needed a car and I needed all my extra funds at the time for various investments to keep my business running. So I opted on 0 Down.
Paying for my car has never been an issue. I did a little math, and decided I'm just going to pay $400 extra each month towards my payments not sure of the correct outcome on this maybe someone with better finance skills can tell me exactly what it's going to work out to be.
$35,000 on loan at 8%
Payment of 760/mo for 57 more months.
Then I want to pay 400 extra per month.
How fast would my car be paid off? And what will be saved on interest that won't accumulate due to early pay off?
Dude,
Sorry to hear this.
That is a horrible rate to finance with. Not sure about your budget, but you'll earn more than 8% on every dollar you prepay. No stock market return is close to that nowadays. I'd pay the thing off as fast as possible. With all the mileage, selling isn't an option. In sum, you have committed to an expense of $35K plus interest. I'd pay it off as fast as possible and hope the residual value decline starts to flat out. When it flattens, only then should you think to sell and you'll need to hold on.
I'd plot the annual depreciation by looking at used prices. Right now (year 0), you've lost $10K or whatever. Next year will be less and even less the year after. The goal is to see the average annual cost of owership decline, otherwise its a complete disaster.
On the plus side, its still a great car. And you've learned a valuable lesson.