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      02-27-2008, 10:32 PM   #135
Private First Class
Ronno111's Avatar

Drives: 2014 MB E63S-AMG/ 2014 X5 50i
Join Date: Nov 2007
Location: New York

iTrader: (0)

Hey guys, I posted this before but think its appropriate to repost it here as an alternative to these crazy lease numbers:

Best way to go, if you can, is a home equity line of credit (no cost, no closing fees). I am taking one for $62k of the $75k cost of the M3(total cost with tax, tags, gas guzz out the door).

The loan is interest only based stretched over 20 years variable rate of prime minus .5 (now 5.5%), but you can lock the rate to fixed anytime. Meaning, my interest payments alone will be appx. $285/mo. I can apply as much or as little over the $285/mo toward the principle balance of $62k. So, if I make a $750/mo payment for 3 years, I am putting $465 toward principle (which actually increases slightly every month I pay down the principle a little more as there is less money accumulating interest).

In 3 years, I will have paid about $18,000 off of the $62k loan... Therefore, I need to only get about $45k for the car in 3 years to repay my remaining loan balance ($75k - $18,000 - $13,000 deposit = $44,000 OWED to bank). Since M3's are rated about #5 of the top 10 resale value for cars, and my research showing the car has about 28% max depreciation in 36 months time with 45k miles,,, a dealer or private person should offer me $43-$45k for the car (having a $68k sticker w/options). Factor in the $3,200 tax savings I get off a new BMW for the trade in---- makes buying this car a cost effective no brainer.... The interest paid on the loan for 3 years is also 100% tax deductible!!!

Everyone follow my logic???? The M3 should cost me about the same as a 36 month lease on an 08 335xi with $6k on mods I was going to do....

Just some food for thought for those guys that don't wanna get stuck with a $1,200/mo car payment

CURRENTLY: 2014 MB E63AMG-S, CF package loaded, Weistec 725hp ECU on order, Dado downpipes; 2014 BMW X5 50i ||| FORMERLY: 2008 E60 M5 ||| 2011 X5 50i, ECU upgrade to 485hp, LOADED ||| 2009 BMW 335xi, jb4 map5, downpipes, spings, etc. |||

Last edited by Ronno111; 02-27-2008 at 10:49 PM. Reason: add info