Quote:
Originally Posted by ///M1
Well, not to sound too criticizing, but there are some inherent flaws in your analysis (which in no way should take away anything from your car, it seems it was kept in prestine condition and I wish you luck).
But if choice is financing $35K at 8% and buying used, vs. financing $40K at 2% and having a brand new car with all the options you want and none that you dont, proven history, longer warranty, and all the goood stuff associated with a new car, then the 'arbitrage' of buying used has all of a sudden disapated...
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I like your thinking- that is why I bought a new 2008 instead of used 2004 M3 (relatively the same cost). However, only because I recently bought a used 330xi and I can say from experience that the interest rate for a used BMW is actually much closer to 5.75% to 6.5% (and that was for a 2001). I have seen some BMW used car interest rates as low as 3.9%.
Regardless – my reason for commenting is that again- we don’t appear to be comparing apples to apples… a 2008 BMW selling for $35k should be compared to it’s 2009 equal pricing –which would be closer to $46k…(that will depreciate the second you drive it of the lot- as I know all too well- LOL )… Even if you put $15k down on it your monthly payment is in the $650-$700/month range.
If you put the same $15k (or even reduce the amount put down on it to $10k) on the 2008- you’re reducing the loan amount to about $20k – The Monthly payment then for the slightly used 2008 will be a much more realistic monthly payment amount – saving you $$$ hundreds of dollars a month…
and if you were foolish enough to buy the extended 50,000 warranty (like I was- thinking I would have the car for 15 years)… it becomes an even great added value…
All of you make excellent points…I see both sides and BELIEVE ME -
I would NOT EVER get rid of my blue baby if there weren’t extenuating circumstances.
I planned on keeping this car for a long long time… I will lose a lot of money (depreciation & that I invested in this car)- I’m hoping to save others from making the same errors mostly because I did not think about all the contingencies and variables.
I wish I had spent more time on this site before I bought my new car last year… You all have excellent ideas and view and I love how there is so much great input and support.. I appreciate all of your comments and notes…
When I can finally by my next one I will definitely be sure to ask for help here first…thanks again to everyone…
Now will someone please buy this car so I don’t have to divorce my wife and move to Nebraska… LOL
