Do these numbers add up?

zamm3k · 07-24-2010, 08:34 AM

Ok, so I need someone to enlighten me if I'm wrong with this. I'm purchasing financing an M3 through BMW Select. The total for the car is $76,354.30.

For the sake of calculations, I told my salesman NO DOWNPAYMENT, and we'll take it from there depending on how I see the numbers. He gave me a monthly payment of $986.00 w/ tax included. That sounded too high so I made my own calculations.

$76,354.30 + 7% Sales Tax= 81,699.10

$81,699.10 + $1,500 (Gap Insurance, Tire Insurance, Tag Transfer) = $83,199.10

$83,199.10 + 1.9% APR (I'm currently on a .9%) = $84,779.88

$84,779.88 - 38% Balloon Percentage = $52,563.53

$52,563.53 / 60 months = 876.06.

That's a difference of $110 a month, $1,320 a year, $6,600 in 60 months. Supposing there are some slight fluctuations and maybe a slightly higher APR than 1.9%, there's no way this all adds up. The 38% has been confirmed by the salesman that is the balloon percentage on a 60 month finance.

By the way, I'm considering waiving the tire insurance regardless since I have a new set of wheels coming in.

Please, Discuss

outie · 07-24-2010, 11:01 AM

Quote:

$83,199.10 + 1.9% APR (I'm currently on a .9%) = $84,779.88

the most obvious one I see is this one. Did you just add the interest as a one-off amount calculated for one year only? It's an annual rate...

richardbb85 · 07-24-2010, 03:23 PM

Quote:

Originally Posted by outie

the most obvious one I see is this one. Did you just add the interest as a one-off amount calculated for one year only? It's an annual rate...

^^^^^^^^^ yea that

zamm3k · 07-24-2010, 04:41 PM

Yeah, I re-ran the numbers and it still doesn't add up. I'll have to sit down with their financial adviser so he can try and explain me the discrepancy.

996TTE92M3 · 07-24-2010, 11:55 PM

you are not calculating the apr right.

I did the numbers and i got roughly $970 with tax and no down payment

piloto · 07-25-2010, 12:36 AM

Like the poster above said, your apr calculation is off.

with 1.9% APR over 60 months, the total comes to $87,279.60 or $1454.66/mo. Also, if I'm not mistaken, the ballon payment is taken off MSRP, which does not include tax, title, and license fees, so deduct your 38% off of the $76,354.30 MSRP (which would be $29,014.63).

87,279.60-29014.63 = 58,263.96

58,263.96/60 = $971.06/month

kaykay · 07-25-2010, 01:30 AM

Yeap, APR is off...

Sit down with the financial advisor and have him/her explain to you why your numbers are what they are... It's an $80k purchase...

His numbers are totally accurate.

zamm3k · 07-25-2010, 10:34 AM

Ok. Recalculated all the numbers. They're closer to what the saleman is saying so it seems reasonable. I'm going in today to consider sealing the deal. Thanks for the input guys!

07-24-2010, 08:34 AM	#1
zamm3k Bla! 82 Rep 909 Posts Drives: F82 M4 Join Date: Apr 2008 Location: Miami, FL iTrader: (4)	Do these numbers add up? Ok, so I need someone to enlighten me if I'm wrong with this. I'm purchasing financing an M3 through BMW Select. The total for the car is $76,354.30. For the sake of calculations, I told my salesman NO DOWNPAYMENT, and we'll take it from there depending on how I see the numbers. He gave me a monthly payment of $986.00 w/ tax included. That sounded too high so I made my own calculations. $76,354.30 + 7% Sales Tax= 81,699.10 $81,699.10 + $1,500 (Gap Insurance, Tire Insurance, Tag Transfer) = $83,199.10 $83,199.10 + 1.9% APR (I'm currently on a .9%) = $84,779.88 $84,779.88 - 38% Balloon Percentage = $52,563.53 $52,563.53 / 60 months = 876.06. That's a difference of $110 a month, $1,320 a year, $6,600 in 60 months. Supposing there are some slight fluctuations and maybe a slightly higher APR than 1.9%, there's no way this all adds up. The 38% has been confirmed by the salesman that is the balloon percentage on a 60 month finance. By the way, I'm considering waiving the tire insurance regardless since I have a new set of wheels coming in. Please, Discuss __________________ ......................::.........................
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07-24-2010, 04:41 PM	#4
zamm3k Bla! 82 Rep 909 Posts Drives: F82 M4 Join Date: Apr 2008 Location: Miami, FL iTrader: (4)	Yeah, I re-ran the numbers and it still doesn't add up. I'll have to sit down with their financial adviser so he can try and explain me the discrepancy. __________________ ......................::.........................
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07-24-2010, 11:55 PM	#5
996TTE92M3 Enlisted Member 0 Rep 41 Posts Drives: M3 Join Date: Dec 2009 Location: OC iTrader: (0)	you are not calculating the apr right. I did the numbers and i got roughly $970 with tax and no down payment
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07-25-2010, 12:36 AM	#6
piloto Captain 28 Rep 843 Posts Drives: 2011 E90 M3 - AW/FR Join Date: Jun 2010 Location: Orange County, CA iTrader: (0)	Like the poster above said, your apr calculation is off. with 1.9% APR over 60 months, the total comes to $87,279.60 or $1454.66/mo. Also, if I'm not mistaken, the ballon payment is taken off MSRP, which does not include tax, title, and license fees, so deduct your 38% off of the $76,354.30 MSRP (which would be $29,014.63). 87,279.60-29014.63 = 58,263.96 58,263.96/60 = $971.06/month Last edited by piloto; 07-25-2010 at 02:20 AM..
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07-25-2010, 01:30 AM	#7
kaykay Lieutenant Colonel 90 Rep 1,769 Posts Drives: 2011 E92 M3 ZCP Join Date: Apr 2010 Location: SoCal iTrader: (0) Garage List 2011 E93 328i Conve ... [9.50] 2011 E92 M3 ZCP [8.66] 2008 550i Sport [10.00]	Yeap, APR is off... Sit down with the financial advisor and have him/her explain to you why your numbers are what they are... It's an $80k purchase... His numbers are totally accurate. __________________ '12 CLS550 Palladium Silver - loaded '11 E92 M3 ZCP - SG/B-EXT/CF, M-DCT, loaded '11 E93 328i, BSM over Saddle Brown, sport, loaded '08 550i M-Sport, Carbon Black (Gone but not forgotten), '06 W211 E55 AMG (Gone, miss this animal),'01 E39 540i Sport
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07-25-2010, 10:34 AM	#8
zamm3k Bla! 82 Rep 909 Posts Drives: F82 M4 Join Date: Apr 2008 Location: Miami, FL iTrader: (4)	Ok. Recalculated all the numbers. They're closer to what the saleman is saying so it seems reasonable. I'm going in today to consider sealing the deal. Thanks for the input guys! __________________ ......................::.........................
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