Let's talk money - BMW style - BUY/SELL/KEEP

[nazali]

OK, back-ground
2019 car (in service date) bought in 2020 (211km) now 2023 done 13k
approx $55k, $10k down on finance about $300k monthly, last time I went in they said they would give me $25K (after paying off the debt) towards a car

I want a 4 series vert (big grill) NEW or new inventory, looks like around 60-70k with the options I want.

===========> the 2'er warranty expires in August, to extend the warranty for a year (next august) is $3450

NOW.....

1> Keep the car another year pay off more on the car (millage still low)
2> ^^^ extend warranty (maybe able to claim it as a business expense but not sure)
3> ^^^ dont and just put 3.5K into the bank savings account for a rainy day
4>Trade in and get a 4

5> for warranty they do a full inspection, warranty has no deposits fees, or pay anything extra (forgetting the term I'm looking for)

Thoughts or other options ?

[nazali]

550 views and not one reply ?

[PcarFan]

600+ views

They`re giving you $25k for your 2019 230 vert with 13k km? If that`s correct, that`s a very low offer. They`re asking over $40k for them in the auto trader, with higher km than yours.

Anyway, you want a 4 series vert, you the one who knows your financial situation. If it makes sense to you financially, buy the 4 series.

It`s a newer car that comes with warranty, and warranty is something that looks to me is important to you, so if the numbers make sense to you, you got your answer.

[Watching The World Burn]

Originally Posted by nazali

550 views and not one reply ?

That's because what you are talking about is a rounding error to most of us. You want a reply, post something that intrigues us, like perhaps:

- "What brand of toothpaste do you use"

- "Do you have a beard"

etc.

Signed - a BMW asshat


But seriously, these forums are crap now, moderators have moderated all the fun out, which is precisely why all we will get are heavily sanitized threads like the above that are dumb, and yet we'll comment anyways because there is nothing else. Used to enjoy these forums, only thing that keeps me sometimes checking is the half decent thread about asking cops anything and the lol pic thread.

Here's a true reply though I guess - if they are offering you $25K plus paying off your existing debt, then I guess you just need to look at your finances and decide whether you are at a point where you can comfortably put that $25K down on what you want. Only you know your finances though.

[Mason Hatcher]

Originally Posted by nazali

approx $55k, $10k down on finance about $300k monthly, ?

Say what?

[dreamingat30fps]

Originally Posted by Mason Hatcher

Say what?

That's the first thing I noticed. Neither makes sense. $300k... why are you even asking if you can afford $300k/mo. If he meant $300 then I don't know how you get a $45k loan at $300/mo. Even with no interest on a 72 month term it would be $625. So I'm guessing he must have a balloon payment.

[nazali]

sorry
LOL

$300 LOL not 300K
my bad

[nazali]

I'll get the exact figures, they were just ballpark,
the car was like 55k, trade-in was 10k, think I put down 10k cash, over 5 years 6.99% $300odd a month (I think), paid already 2 years, think have another 3

but I'm more interested on thoughts of the warrantee
txs

[nazali]

if I remember right, after debt paid off they were giving me $25k towards the new car if my 2 is traded-in

[dreamingat30fps]

I mean the numbers are all that matter if you want other peoples opinion. Otherwise what do we have to go on? If you just want a new car and can afford it then buy it.

You said "$25K (after paying off the debt)" so what is the debt? What is the total number they are paying you for the car and what does that car sell for in your area. That's the only way to know if it's a good deal or not. Have you gotten offers from other places on your car to see how they compare?

If you know all your numbers then you could calculate what getting a new car is really costing you and is that amount worth it to you or not. If all you care about is warranty then you could also get a 3rd party warranty.

[Maynard]

OK, let's get this thread rolling OT style:

You'd be a flaming idiot to ever want a new 4 series rather than your 230. 230 is the last of the true 2 series, which we all know is the best looking car BMW has ever made. The new 4 is like a Pinto with a nose job. The money you'll save will pay for any repairs, so no need for a warranty.

[p0p]

Sell the car and go take some basic math or some finance classes.
Math has a funny way of always adding up; and yours dose not add up.

Total = 55k
Down and Trade in = -20k
________________________

35K loan @ 6.99% x 60 = $692.88 (You are more then 1/2 off Monthly)

Also work on your credit score; in 2019/2020 the highest interest rate (Canada) was 5.39%. You would of had to have a 500 credit score for them to give you a 6.99% back then...
https://www.finder.com/ca/car-loans/...interest-rates

[UncleWede]

Sell car to one of the big yards (CarMax, whatever they have in Canadia- eh) In my case when I sold the X3 after about 1.5 years, CarMax paid off my loan and gave me a check for about $2000. Then I inherited a Toyota Highlander with payments of $0.00.

Once you sell your 2, buy a 4 if that's what you want. Dealer won't give you as much as you can get in the "open market"

[Mason Hatcher]

Originally Posted by p0p

Also work on your credit score; in 2019/2020 the highest interest rate (Canada) was 5.39%. You would of had to have a 500 credit score for them to give you a 6.99% back then...

My loan was in Nov of 21. 2.24%

[GoRomeo]

Not having a car payment... Priceless

[nazali]

ok, so I'm at home and got some figures

sale price 53k
trade in 10k
dep 5k
biweekly 332
month 721
finance (originally) 33k
int 1.99% 48 months
(as of today) estimated pay off 13k

on the invoice between 53,058 and 33,257, there is a whole lotta stuff my20credit fees etc

bought june 21

[nazali]

so 2nd question is 3450 for a years extended warranty , sound ok ? thoughts or save the money in the bank

[dreamingat30fps]

Originally Posted by nazali

ok, so I'm at home and got some figures

sale price 53k
trade in 10k
dep 5k
biweekly 332
month 721
finance (originally) 33k
int 1.99% 48 months
(as of today) estimated pay off 13k

on the invoice between 53,058 and 33,257, there is a whole lotta stuff my20credit fees etc

bought june 21

So $25k + $13k = $38k for your trade? Not sure if that's good or not, especially in Canada. Would recommend getting offers from other places like Carmax, Carvana etc if they have that there.

I always treat it like 2 separate transaction. I want to get the best price for my trade then get the best price for the new car.

Also you have a 2% loan... unless BMW is offering something special I doubt you will get that today.

Originally Posted by nazali

so 2nd question is 3450 for a years extended warranty , sound ok ? thoughts or save the money in the bank

Dunno what they cost, but will you not sleep at night if you don't have a warranty? Is sleeping worth $3450 to you?

Personally I don't buy extended warranties on anything. Statistically it has to be a losing proposition or else the warranty companies would be out of business.

Of course there is always the chance your engine will blow up after not buying it, but statistically it won't. So at that point it's basically like insurance. Can you self insure if you have something major go wrong with the car? Is it likely to have anything go wrong that's more than $3450 to fix?

[JMcLellan]

Holy crap my brain hurts from all the numbers and percentages. And I might have had one too many hazy IPA's last night....

My advice is to go out and do what you want. As long as it doesn't compromise other higher financial priorities, retirement plans, etc.

[spazzyfry123]

What tax savings are there by trading in? Would be wise to see what the delta would be selling outright and paying all the taxes on the new ride vs partial taxes by trading in.

Also factor in the high likelihood that your new payment will be inclusive of a much higher interest rate 2020 vs 2023, so the purchase price will be much more costly over term.

[nazali]

Yes that is a good point on the interest rates, the other points on trading in is the (as you say) tax benefit, also not having issues with selling a car, I don't wanna go down that rabbit hole, I understand your taking a loss on that

Originally Posted by spazzyfry123

What tax savings are there by trading in? Would be wise to see what the delta would be selling outright and paying all the taxes on the new ride vs partial taxes by trading in.

Also factor in the high likelihood that your new payment will be inclusive of a much higher interest rate 2020 vs 2023, so the purchase price will be much more costly over term.

[nazali]

It's good to get other views, sometimes it highlights things we often miss

Originally Posted by JMcLellan

Holy crap my brain hurts from all the numbers and percentages. And I might have had one too many hazy IPA's last night....

My advice is to go out and do what you want. As long as it doesn't compromise other higher financial priorities, retirement plans, etc.