People who finance

[IFX]

Hey guys, curious about what payments would look like if i were to put down 25k on a 45k car?

I know the numbers will vary, jus looking for a rough estimate.
Never financed before.


I went to carmax today to get my M appraised, and they'll give me 19. But I couldn't disgrace my car selling it for 19.. KBB is 25. So I would've taken 23-24. But 19 is....


With that being said, would BMW give me a more than 19 if i were to trade it in? Or around the same thing? (Never traded in a car either)

thanks!

[301Bimmer9]

From my personal experience, Carmax normally offers more than the the traditional dealers. Try selling private party if you can to get the full kbb value.

[Crazy Bimmer]

I use this http://www.carmax.com/enus/car-payme...r/default.html

Dealer trade in would most likely give you the same as car max or even a less. But you do save on taxes if you trade in at the dealer. So evens out.

[dibxna]

two things:

1. trading the car in will reduce the sales tax you pay on the end sale price. 45k car no trade in at 8% tax = 3600.

if you trade in for say 20k then you end up with 25k to pay 8% on so you pay only 2000 in tax so effectively you really got 21,600 for your trade in.

2. financing you asked what people are paying... you can do a google search for a car payment calculator (or go here: http://www.bankrate.com/calculators/...alculator.aspx). plug in financing at 20k and use an interest rate of around 3% (buying a cpo used car will get you around that rate from bank of america) and assuming a 5 year term you have payments under 400.

hope it helps!

[lve2xlr8]

Don't trade in an AW e46! These are very desirable and I'm sure it would sell quick...

Good luck

[GOLFFRR]

you will always end up ahead if you can sell it on your own that is not new info. You have to remember when you look up a car on Kbb or any other online aprasier you are getting the vehicles market value(which at times is a bit scewed at times). so if your car books for 24 or 25 the dealers will most likely offer you 4 to 5k back of book bc they have to turn around and sell it. which im sure you all know.

A big tip to always remember is when dealing with a trade always negotiate the sale price of the new car first before you negotiate the trade. The reason for this is a dealer may sense that you are interested in getting a certian number on your trade and will try to show you that your getting the number you want for you trade but they are actually taking on the extra amount somewhere else in the new deal. Just something to keep in mind

If you would like any other info or a quote feel free to contact me.

[persian54]

19k for an e46 is great for a dealer trade in

KBB is not used by dealers; rather the Black book is.

That it's about 10-20% less than KBB

plus, who sells at KBB these days?

Everyone is "below kbb!" etc

You'll be really lucky to get 25k for it

Plus, as stated, the buyer will need to pay a sales tax.. so evidently you're still getting less and spending time...

Negotiate the deal on the car you want to buy. then negotiate the deal on the trade in

I wasn't able to get the deal I really wanted on my M (about $20 more per month), but I was able to get $1k more than Carmax trade in (evidently 1k more than my payoff as well) so it worked out

I would have had to pay tax on the car if i would have sold it... making my positive 1k equity into a negative 2k

[fuddman]

Originally Posted by lve2xlr8

Don't trade in an AW e46! These are very desirable and I'm sure it would sell quick...

Good luck

Couldn't agree more. I've sold three, no problem. Two to three weeks on the market. About to sell two more. Make it look perfect. I've used local papers, Autotrader, Cars.com. Best call back results, by far, Craigs List. Kind of fun, really.

Good luck.

[IFX]

Originally Posted by persian54

19k for an e46 is great for a dealer trade in

KBB is not used by dealers; rather the Black book is.

That it's about 10-20% less than KBB

plus, who sells at KBB these days?

Everyone is "below kbb!" etc

You'll be really lucky to get 25k for it

Plus, as stated, the buyer will need to pay a sales tax.. so evidently you're still getting less and spending time...

Negotiate the deal on the car you want to buy. then negotiate the deal on the trade in

I wasn't able to get the deal I really wanted on my M (about $20 more per month), but I was able to get $1k more than Carmax trade in (evidently 1k more than my payoff as well) so it worked out

I would have had to pay tax on the car if i would have sold it... making my positive 1k equity into a negative 2k

19k for en e46M3 is "great"?

Sorry, not for mine.

I don't think my car is anything special, but it is AW on Imola, no paintwork, and not a ding in sight. 55K on the clock. I refuse to let it go for 19.

lve2xlr8, yea I' probably going to keep searching around.

Dibxna, yea that 400 number was right. Just got back from BMW, and he estimated it would be around that. thanks for the replies so far guys

[dibxna]

Originally Posted by IFX

19k for en e46M3 is "great"?

Sorry, not for mine.

I don't think my car is anything special, but it is AW on Imola, no paintwork, and not a ding in sight. 55K on the clock. I refuse to let it go for 19.

lve2xlr8, yea I' probably going to keep searching around.

Dibxna, yea that 400 number was right. Just got back from BMW, and he estimated it would be around that. thanks for the replies so far guys

the really hard part is when you find the car you want to buy. you have two choices then... try and rush sell your car privately and hope the car you want to buy is still on the lot when you finish.... or you have to bite the bullet and trade it in for less money but guarantee you get the car you want to buy.

i bounced back and forth on this while readying myself for my purchase. i could have pulled at least another 3k on my private sale but I showed up at the dealer on 9/30/2010 at about 6pm. The dealer thought I was coming to look at 335i's and had pulled 3 options up front for me to test drive and had them all washed up and waiting on me. I dropped a surprise on them when i pointed at the CPO m3 with 3k miles on it and said "im going to drive that one." That was probably my mistake... literally 5 minutes behind the wheel in the test drive i looked at the sales man and asked him "how do i drive this home tonight yet"

so i kind of cornered myself into the tradein. but hey... im happy as a fat kid in cupcake heaven with my choice because had i waited and tried selling privately i may not have gotten this car. my dealership tends to flip their cars rather quickly so I def acted as quickly as I felt i should.

[RRGOO7]

cash or DIE

[dibxna]

Originally Posted by RRGOO7

cash or DIE

sometimes when you have the cash but its earning interest at greater than the 3% being paid to finance the car it makes sense to leave the investment in tact though...

agreed... this is the first time ive ever financed and my car payment is as much as some of my friends mortgage payments but it is what it is... im happy and will probably pay off the loan within the first year here but for now it made sense to finance.

[IFX]

Originally Posted by dibxna

the really hard part is when you find the car you want to buy. you have two choices then... try and rush sell your car privately and hope the car you want to buy is still on the lot when you finish.... or you have to bite the bullet and trade it in for less money but guarantee you get the car you want to buy.

i bounced back and forth on this while readying myself for my purchase. i could have pulled at least another 3k on my private sale but I showed up at the dealer on 9/30/2010 at about 6pm. The dealer thought I was coming to look at 335i's and had pulled 3 options up front for me to test drive and had them all washed up and waiting on me. I dropped a surprise on them when i pointed at the CPO m3 with 3k miles on it and said "im going to drive that one." That was probably my mistake... literally 5 minutes behind the wheel in the test drive i looked at the sales man and asked him "how do i drive this home tonight yet"

so i kind of cornered myself into the tradein. but hey... im happy as a fat kid in cupcake heaven with my choice because had i waited and tried selling privately i may not have gotten this car. my dealership tends to flip their cars rather quickly so I def acted as quickly as I felt i should.

yea that's very true. I haven't actually found a car i want yet. i just need to let the 46 go though.

If worst comes to worst, i'll let it go, buy something to beat around in like an 07 335, and when the 08 e90 M's hit the 35k mark I'll snag one in cash.


RRG, yea I agree with you on that statement. I usually buy all of my vehicles from auctions, so it's always straight up cash. I don't have 45k in hand at the moment. Which is why financing came to mind.

[persian54]

Originally Posted by IFX

19k for en e46M3 is "great"?

Sorry, not for mine.

I don't think my car is anything special, but it is AW on Imola, no paintwork, and not a ding in sight. 55K on the clock. I refuse to let it go for 19.

By you saying that last statement, you are negating the statement prior to it.


I'm not saying yours isn't special

But do you really think carmax cars it's AW/IR?

I may. The other forum guy prly will too. You will. But will CarMax care? No.

Hence why I said it's great.

Also, you never mentioned the miles, year, and other options.

If KBB is 25k, expect to sell about 10% below that private (so 22.5k)

As I stated before: who pays KBB nowadays?
People always advertise "Below kbb!" etc

if you list it at KBB of 25, people will come in at you at 15k and work their way up from there.

and at 22.5k, you have about 10% tax (Depending on the state), so it's in actuality reduced to about 20k, only 1k more than what carmax offered you (since they don't need to pay tax as they're a dealer)

So, using just numbers and not being an enthusiast (cause to us, of course our well taken M is worth a lot, but most dealers and carmax don't care), is why I said 19k is great

Zero hassle.
No need for auto trader, cars.com, craigslist, risk of being beaten up and put in your trunk, etc etc.

Personally, I want to get the most money out of anything and everything.

But $1k isn't worth all of that effort, as you may not even get it.

If you list it on forums and are patient, you may get more.

But it's always going to be a may

With CarMax, their 19k is guaranteed

See the difference?

And BMW dealers generally give less than CarMax does by about 5-10% (so 18k?)

Hence why I said negotiate the car you want down, then mention your trade in and negotiate it up.

Never mention your trade in prior to negotiating the car down, as they may bring the car down, but they won't really move your trade in up.

Up to you whatever you do.

[osteome]

Originally Posted by dibxna

sometimes when you have the cash but its earning interest at greater than the 3% being paid to finance the car it makes sense to leave the investment in tact though...

Remember your effective interest post-taxable income rate needs to be greater than the finance rate for it to be ahead. Not really sure of any relatively low risk (savings, CD, etc) that can meet that criteria at the moment.

[persian54]

Originally Posted by osteome

Remember your effective interest post-taxable income rate needs to be greater than the finance rate for it to be ahead. Not really sure of any relatively low risk (savings, CD, etc) that can meet that criteria at the moment.

I personally think Savings/CDs are a pretty bad investment.. even a few years ago when interest rates were at 5% you were barely beating inflation

High yield dividends IMO are a better investment; not AS safe, but still safe if you pick a highly rated one and better return

Or if you know what you're doing and have disposal cash, real estate, day trading, etc can really be a good use for cash.

[dibxna]

Originally Posted by persian54

I personally think Savings/CDs are a pretty bad investment.. even a few years ago when interest rates were at 5% you were barely beating inflation

High yield dividends IMO are a better investment; not AS safe, but still safe if you pick a highly rated one and better return

Or if you know what you're doing and have disposal cash, real estate, day trading, etc can really be a good use for cash.

this.

dividends pay my car payment for me. so its effectively the same thing as having paid cash for the car because the cash i left in stocks that have a high payout yields more than my car payment each month so i just have an auto pay set up out of my dividend account.

[persian54]

Originally Posted by dibxna

this.

dividends pay my car payment for me. so its effectively the same thing as having paid cash for the car because the cash i left in stocks that have a high payout yields more than my car payment each month so i just have an auto pay set up out of my dividend account.

You must have a very large amount of cash then hehe

Nicely done.

Mine don't give me enough for my car payments... then again I'm more of a day2day trader, which happens to pay for the car payments.

I like how my bank (citi) tried to tell me how nice they're 1% CD is now..

[double_j]

Originally Posted by dibxna

this.

dividends pay my car payment for me. so its effectively the same thing as having paid cash for the car because the cash i left in stocks that have a high payout yields more than my car payment each month so i just have an auto pay set up out of my dividend account.

Seriously, you must have a mother load of cash sitting around (or paid 90% of the purchase price up front). Looking to adopt (or to share investment tips at the very least)?

And keep in mind that regardless of the fact that you have enough to cover your payment in absolute dollars you still might be losing money on the deal if your post tax dividend yield is lower than the interest rate. If I had that much cash, I probably would have paid cash outright and then reinvested the dividends on any remaining investments (but I tend to prefer avoiding long term debt commitments even if it means foregoing a little bit of income in the longer run).

[persian54]

Originally Posted by double_j

Seriously, you must have a mother load of cash sitting around (or paid 90% of the purchase price up front). Looking to adopt (or to share investment tips at the very least)?

And keep in mind that regardless of the fact that you have enough to cover your payment in absolute dollars you still might be losing money on the deal if your post tax dividend yield is lower than the interest rate. If I had that much cash, I probably would have paid cash outright and then reinvested the dividends on any remaining investments (but I tend to prefer avoiding long term debt commitments even if it means foregoing a little bit of income in the longer run).

I'm different than you

I don't mind long term debt as long as the interest rate is low (under 1%)

[kaykay]

Do a private party sale, everyone else will offer you shit money - because THEY have to make money too.

[BMWBoss]

It's such a hassle selling a car on your own. People appear interested just so they can come and get a test drive (you might even end up in the trunk like the guy in NY :-) ). I say trade it in, and recoup some of the difference b/t the trade in value and the Kbb with the taxes you save.