05-27-2014, 11:51 AM | #1 |
Second Lieutenant
279
Rep 203
Posts |
$8k of negative equity into a lease...
Save the negative equity comments. I made some bad financials choices regarding this vehicle that I am trying to fix.
Currently paying $630/mo on '13 328i with the select financing through BMW. I owe about $38k, trade in is worth about $30-31k. Dealer is telling me I can do a lease at 27 months in a 2014 328i at $729/mo. I'll rid my negative equity in 2.5 years this way. Thoughts? I know I could also just pay off more on my car payment each month, but for some reason this feels like a faster way to correct things. |
05-27-2014, 12:16 PM | #2 |
Major
263
Rep 1,130
Posts
Drives: '16 340i AW MSport
Join Date: Jun 2011
Location: Miami, FL
|
It's not faster, you are just paying more monthly, that negative equity is getting paid one way or another, with this method, quicker, through higher payments.... And it would be 2.25 years that u'll rid your negative equity not 2.5, sounds better :P
|
Appreciate
0
|
05-27-2014, 12:17 PM | #3 |
First Lieutenant
104
Rep 300
Posts |
Huh do you must change car? Selling a car less than 2 years old will always involve large financial loss... So your negative equity is not an unique problem.
You ll take less financial loss if you simply hold on for more time... However if you must change car right now, the best choice probably would be to try to sell this car yourself (so you get 33+k instead of 30k) and then lease a new car... Depending on MSRP, you can lease a pretty well equipped 328i for 400 to 450/m for 36 months... Leasing a used 328i for 730/m is the most ridiculous deal I have ever seen... The dealer is trying to screw you in the most extreme way. |
Appreciate
0
|
05-27-2014, 12:29 PM | #5 | |
Second Lieutenant
279
Rep 203
Posts |
Quote:
|
|
Appreciate
0
|
05-27-2014, 01:32 PM | #6 |
Major
111
Rep 1,262
Posts
Drives: 2014 BMW 435i Coupe Msport 6MT
Join Date: Sep 2009
Location: Fort Lauderdale, Florida
|
I would try to post it on swapalease first and even offer an incentive of maybe $1,000.00 which would lower you payment and make it more attractive to a potential buyer. Then lease a new one for way less then $700 a month.
__________________
2013 BMW 335is Coupe AW/CR 6MT
2012 BMW 335 coupe ( Sold) 2012 Audi S5 coupe( Sold) 2010 BMW 335i coupe( Sold) 2009 BMW 335i coupe ( Sold) |
Appreciate
0
|
05-27-2014, 01:40 PM | #7 | |
Second Lieutenant
279
Rep 203
Posts |
Quote:
|
|
Appreciate
0
|
05-28-2014, 10:06 AM | #8 |
New Member
2
Rep 21
Posts |
I just traded in my 13 328I (25k miles)for a 14 328D M-line. They gave me 30,541(valued way less than that) which is what I owed on my lease. Then they leased me a 328D with 10 miles 0 down my monthly went from 455 to 640. Basically the amount I drive its the difference in fuel. BIG WIN on my part. Its sounds like they are trying to f you proper with no lube. Cheers!!! window price on my new one was 44640. They saved me from having to spend 900 on tires. Go to another dealer, tell them your not happy with your car. I showed up handed my keys over and said put me in a Honda lol my service rep said hell no and referred me to a sales man.
Last edited by f30D; 05-29-2014 at 10:08 AM.. |
Appreciate
0
|
05-28-2014, 10:13 AM | #9 |
Major
111
Rep 1,262
Posts
Drives: 2014 BMW 435i Coupe Msport 6MT
Join Date: Sep 2009
Location: Fort Lauderdale, Florida
|
Sorry I misread your post.
__________________
2013 BMW 335is Coupe AW/CR 6MT
2012 BMW 335 coupe ( Sold) 2012 Audi S5 coupe( Sold) 2010 BMW 335i coupe( Sold) 2009 BMW 335i coupe ( Sold) |
Appreciate
0
|
05-28-2014, 11:15 AM | #10 | |
Banned
6
Rep 57
Posts
Drives: 2013 BMW 328i F30 M-Sport
Join Date: May 2014
Location: Dubai, United Arab Emirates
|
Quote:
Is it M-Sport? What is the MSRP of your car? |
|
Appreciate
0
|
05-28-2014, 11:30 AM | #11 |
Major
266
Rep 1,093
Posts |
OP, if I read your post correct, you bought your current car with a loan and owe more to the loan company than the car is worth doing a tradein. And you want to sell that and lease a new one. Is that correct?
Two things, if you are really trying to make things financially better, the obvious choice is to hold on to your current car instead of getting a new one . If financial health is not the main objective here and you got the "itch to switch" and can afford it, why don't you sell your current car to a private party? Get the buyer to take a loan from a local credit union, pay off the balance with your savings and shop fresh for a new lease. You'll not only save 2-3k by getting a better price for your current car, you can also negotiate a new lease harder without any tradein involved.
__________________
Has a bad car addiction
|
Appreciate
0
|
05-28-2014, 01:48 PM | #12 |
New Member
2
Rep 8
Posts |
I found it interesting how dealer always trying to put "things" into perspective for their own benefit. The quote above may look like it cost only $2700 extra to cover $7-8000 lost. However, fast forward 27 mo with depreciation and time value of money, Is your lease return + disposition fee + wear & tear = selling the car at break-even?
BMW usually set the residual value around 60% at 39 mo lease, so keeping the car another 27 mo and extra $100/mo is better option than what dealer proposed above. If must getting rid of the car for any reason, than consider trading down and accept as minimum lost (e.g. sell private party) Rolling a negative equity with interest is not consider fixing it and dealer knows it. |
Appreciate
0
|
Post Reply |
Bookmarks |
|
|