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 at about 6.5% fixed APR... Meaning, my interest payments alone will be appx. $325/mo. I can apply as much or as little over the $325/mo toward the principle balance of $62k. So, if I make a $750/mo payment for 3 years, I am putting $425 toward principle (which actually increases slightly every month I pay down the principle a little more).
In 3 years, I will have paid about $16,500 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 - $16,500 - $13,000 deposit = $45,500 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 should easily offer me $45-$48k for the car (having a $68k sticker). 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
