Login



Post Reply 

Thread Tools  Search this Thread 
02272008, 08:18 PM  #133 
Private
2
Rep 95
Posts
Drives: 07 Z4 Coupe Slvr Gry
Join Date: Feb 2007
Location: Boulder, CO

Thanks. Will do.
__________________
Cardebt
07 Z4 Coupe 3.0si Silver Gray on Black/ M Seats  Active 05 Ford F150 Quad Cab King Ranch Copper  Active 07 Ford Expedition EL Limited Carbon Metallic  Active RETIRED  02 996 Cab 02 M Roadster 02 996 C4S 02 E46 M3 SMG  99 Z3 2.8  98 Z3 2.8 
Appreciate
0

02272008, 08:55 PM  #134 
Banned
553
Rep 46,030
Posts 

Appreciate
0

02272008, 10:32 PM  #135 
Private First Class
7
Rep 124
Posts 
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 E63AMGS, 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; 02272008 at 10:49 PM. Reason: add info 
Appreciate
0

02272008, 11:16 PM  #136  
Beandoc
719
Rep 3,198
Posts 
Quote:


Appreciate
0

02272008, 11:29 PM  #137 
Private First Class
7
Rep 124
Posts 
AMT?
__________________
CURRENTLY: 2014 MB E63AMGS, 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.  
Appreciate
0

02272008, 11:31 PM  #138 
Beandoc
719
Rep 3,198
Posts 
And you live in NY as well. You are the poster child for the AMT.
http://en.wikipedia.org/wiki/Alternative_Minimum_Tax 
Appreciate
0

02282008, 03:02 AM  #139 
BMW & MB  friends in my garage
56
Rep 1,285
Posts 
No.
Buying a car by leveraging your home with a HELOC in this kind of market is silly. But then I am a grumpy old fashioned stickinthemud and don't know the rest of your story.
__________________
2009 135i 6MT Euro Delivery 9/5/09
BMW Performance Power Kit  Exhaust  Short Shifter 
Appreciate
0

02282008, 03:16 AM  #140 
Private First Class
7
Rep 124
Posts 
I am not sure how the AMT comes into play here. I use the vehicle as a business deduction, always have and always will. AMT should not play into this scenario if you have the income to handle the deductions.
Hans, if you do it right and know what you are doing, you are not taking a risk. The HELOC rates are far superior to BMWFS. Why get roped into a 7.9% rate over 3 years when I can better that by 3 points and use the cars equity to settle the loan in 3 years. I'm not moving or selling my home any time soon. As the fed lowers the rate to spark the economy, I will enjoy the low rate and my M3 a little bit more
__________________
CURRENTLY: 2014 MB E63AMGS, 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.  
Appreciate
0

02282008, 03:18 AM  #141  
Beandoc
719
Rep 3,198
Posts 
Quote:


Appreciate
0

02282008, 04:17 AM  #142 
Banned
553
Rep 46,030
Posts 
fuck dude!!!! i always miss 1/2 of every thread coz pictures arent attached! i didnt see the sheet in the first post.
that's more comforting, if anything i can do a 42 month lease. not ideal, but the only way i can afford the fucking car. im a bit more relieved P.S. please try to attach all your pictures. Photobucket and image sharing sites are usually blocked by most firewalls at any work 
Appreciate
0

02282008, 08:46 AM  #143  
Reincarnated
174
Rep 4,227
Posts 
Quote:
Really stretching your finances to have a car isn't the best idea...
__________________


Appreciate
0

02282008, 09:49 AM  #144  
Second Lieutenant
14
Rep 258
Posts 
Quote:
To answer your first questions, the answer is YES, it matters a lot. This is because the residual is based on the MSRP, NOT the negotiated value. Here is an example.... 2007 M6s had a pretty good lease deal going on, I believe it was a 72% residual for a 24 month lease (I could be wrong, but it doesn't change my point). Now, let us say that the MSRP of the car was exactly 100,000k. So, if you got the car at MSRP, you would, over 24 months pay (1.72)*100,000 + interest, which is 28 grand + interest. Now, lets say that they offer a 10k discount on MSRP. The way the bank calculates the residual is the same thing (.72)*(MSRP), which in this case is 72,000. But now, instead of paying the difference between 100,000 and 72,000, you now pay the difference between 90,000 and 72,000 (+ interest of course), which is only 18 grand (+ interest) over 24 months. Therefore, a 10% difference in MSRP, created a 36% decrease in the lease payments. So, getting a discount off MSRP, even a little, helps decrease your payments by a lot. To answer your second question, no, a car's lease payments won't be disproportionately higher with options than with no options. So, what BMW does, is they take into account that the average M3 will have $X,XXX amount of options, and then they use that total figure to guess what the residual should be. So basically, if you were to graph the lease numbers, with MSRP of the car on the X axis, and monthly payment on the Y axis, then the line will be positive, and linear (meaning the line is straight, which basically tells use that at no matter what price point the car is, a $1000.00 increase in MSRP, will always increase the monthly payment by a fixed number.) 

Appreciate
0

02282008, 12:53 PM  #147  
Banned
553
Rep 46,030
Posts 
Quote:
the other thing is i switch cars too quick, so it doesnt matter if i have a 36 or 48 or 42 month lease. im going to get rid of it in like 2 years. so i prefer the lower payment 

Appreciate
0

02282008, 01:01 PM  #148  
Captain
13
Rep 657
Posts 
Quote:
With a lease in the US, do you not have the option to buy out the lease for the residual value at the end of the lease? 

Appreciate
0

02282008, 05:45 PM  #150 
Private First Class
7
Rep 124
Posts 
Yes, you can buy the car at the end of the lease, but they frown on it as no warranty exists unless you buy one. Also, BMW does not want to negotiate the end of lease price, as many others do. BMW would rather taket the car back and release it for another 3/4 years including a 100k mile "certified preowned warranty"
I did think about my scenario falling through with a worse depreciation than expected. Assuming you are correct, and the car depreciates unexpectedy I will have to come up with cash to get rid of it. However, a straight lease of $8,550 down and $998/month (as quoted by my dealer) leaves me spending $44,478 for 3 years usage. My scenario I spend $750/mo with appx $12,500 out of pocket = appx $40,000 spent over 3 years. Therefore, I have to be wrong by more than $4,478 for this to work out worse than a lease. Moreover, I will save 8.65% (NYS tax rate) with the trade in value toward a new car. This gives me an additional some odd $3,500 in my pocket when I get a new car in 11. I don't think my numbers will be off by $8k. If they are off by $8k then there was not advantage to purchasing in this car.
__________________
CURRENTLY: 2014 MB E63AMGS, 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.  
Appreciate
0

02282008, 08:29 PM  #151 
Second Lieutenant
6
Rep 220
Posts 
I will preach for a bit and get off the soap box:
After reading this thread and a few others, I think some of you younger guys need to pass on the M3. The reason being is that if you buy a house now and save; with the release of the next great BMW you will be in a wonderful financial situation where you can buy anything you want, anyway you want with out having to finance for 84 months or leasing for 48.
__________________
"Motion does not equal progress"
"I love the smell of cosmoline in the morning" 
Appreciate
0

02282008, 08:33 PM  #152 
Second Lieutenant
5
Rep 256
Posts 
$68,000 M3 E90  10,000 Miles/Year
24 months $1195 plus taxes 30 months $1124 plus taxes 36 months $1089 plus taxes Now I just wonder what a C63 lease would come out to be....if it's less, I will get that. 
Appreciate
0

02282008, 08:37 PM  #153  
Reincarnated
174
Rep 4,227
Posts 
Quote:
I guess that is California though, for alot of posters here. People more concerned with what they drive and appearances than making the financially smart decision. I was renting a townhouse 2 years ago and really wanted to buy a car then. I understood that buying a house first was the better move, however unpopular that was with my carwanting attitude. Now, two years later I can go after a car with a sizeable downpayment and be completely comfortable.
__________________


Appreciate
0

02282008, 08:48 PM  #154 
Second Lieutenant
14
Rep 258
Posts 

Appreciate
0

Post Reply 
Bookmarks 
Thread Tools  Search this Thread 

