[Xx 335Mangaki xX]

Looking to purchase a 21 M5 with 10k miles.

[jfiore13]

This seems like a fair price for a 21 M5 with 10K miles.

I just bought mine yesterday and it is a 22 M5 comp with 5k miles for 103k.

[micvite]

Originally Posted by Xx 335Mangaki xX

Looking to purchase a 21 M5 with 10k miles.

That says x3

[jfiore13]

Originally Posted by micvite

That says x3

Lol🤣🤣

[micvite]

Originally Posted by jfiore13

Lol🤣🤣

Never mind I'm an idiot

[ResIpsaLoquitur]

Originally Posted by micvite

Never mind I'm an idiot

Honestly, I did the exact same thing initially.

[jnotrom711]

I personally think you can do better at least on the trade in. But maybe a little better on the new car also.

I think you need to be like 85K on M5, 65-67K on X3

Here is some Manheim Auction values for both cars. And list of actual recent real dealer transactions. Auction values are usually a little LOWER than actual trade in values since many times auction cars will need more reconditioning....

[jphcbpa]

What’s the interest rate ?

[pbonsalb]

Originally Posted by jphcbpa

What’s the interest rate ?

That is the question. The listed estimates will vary depending on the rate.

[jnotrom711]

Originally Posted by jphcbpa

What’s the interest rate ?

Based on the payment schedule listed, and a financed amount of 83,324.00 (with the 5,000.00 down they list)

83,324.00 financed for 36 months @ 8% interest is about 2615.00

83,324.00 financed for 72 months @ 8% interest is about 1460.00


If they have not pulled your credit yet, they likely estimated it high to get you to agree on a payment you were comfortable with, and ensure they were safe quoting you a payment at worst case scenario, they will then shop it and try to get the lowest rate they can find, mark it up and get you to the highest payment you agreed to. say something like "good news! we actually got the payment down to 2550.00!! at 7%, even better than the 2615.00 you wanted to be at!" LOL

This is due to the fact that with out a credit report and bank quote they cant legally quote you a rate unless they can for sure give you that rate. So they'll estimate it high, and hope you have good credit. They'll find a bank who gives a buy rate of 6.5 and mark it up a point, make some money on the back end, and look like a hero for saving you money off the payment you already mentally accepted. Most of the time they're only allowed to mark up the rate a small amount .5-2% typically. So they'll get you as close as they can to the payment amount you agreed to.

This is why it's always best to shop loans independently from a dealer. Sometimes the dealer has access to better loan programs, but probably 50% of the time you can get a better loan, term, and rate shopping it yourself with your own bank or banks you have done business with.

Even if you agree to their loan and sign, you legally have (cant remember the time frame) to shop and secure your own financing, and then tell the dealer you went your own direction with ABC bank, refinance it, or have them fund the dealer directly before their loan they gave you is finalized.

Who knows what they're doing, but depending on your credit, I think you could do better.

8% is high even right now. But thats all dependent on your credit, term, and LTV. It looks like they quoted the 36 month and 72 month both around 8%, probably 8.25%, which is not usually how it works. The lower the term (36 month), should be at least a point lower than the longer term loan. They usually charge an extra 1/2-1 point for above 60 months.


Screen shot of the amortization schedule.

[ResIpsaLoquitur]

Originally Posted by jnotrom711

Based on the payment schedule listed, and a financed amount of 83,324.00 (with the 5,000.00 down they list)

83,324.00 financed for 36 months @ 8% interest is about 2615.00

83,324.00 financed for 72 months @ 8% interest is about 1460.00


If they have not pulled your credit yet, they likely estimated it high to get you to agree on a payment you were comfortable with, and ensure they were safe quoting you a payment at worst case scenario, they will then shop it and try to get the lowest rate they can find, mark it up and get you to the highest payment you agreed to. say something like "good news! we actually got the payment down to 2550.00!! at 7%, even better than the 2615.00 you wanted to be at!" LOL

This is due to the fact that with out a credit report and bank quote they cant legally quote you a rate unless they can for sure give you that rate. So they'll estimate it high, and hope you have good credit. They'll find a bank who gives a buy rate of 6.5 and mark it up a point, make some money on the back end, and look like a hero for saving you money off the payment you already mentally accepted. Most of the time they're only allowed to mark up the rate a small amount .5-2% typically. So they'll get you as close as they can to the payment amount you agreed to.

This is why it's always best to shop loans independently from a dealer. Sometimes the dealer has access to better loan programs, but probably 50% of the time you can get a better loan, term, and rate shopping it yourself with your own bank or banks you have done business with.

Even if you agree to [...]

Extremely well said and extremely well done.

[micvite]

Originally Posted by jnotrom711

Based on the payment schedule listed, and a financed amount of 83,324.00 (with the 5,000.00 down they list)

83,324.00 financed for 36 months @ 8% interest is about 2615.00

83,324.00 financed for 72 months @ 8% interest is about 1460.00


If they have not pulled your credit yet, they likely estimated it high to get you to agree on a payment you were comfortable with, and ensure they were safe quoting you a payment at worst case scenario, they will then shop it and try to get the lowest rate they can find, mark it up and get you to the highest payment you agreed to. say something like "good news! we actually got the payment down to 2550.00!! at 7%, even better than the 2615.00 you wanted to be at!" LOL

This is due to the fact that with out a credit report and bank quote they cant legally quote you a rate unless they can for sure give you that rate. So they'll estimate it high, and hope you have good credit. They'll find a bank who gives a buy rate of 6.5 and mark it up a point, make some money on the back end, and look like a hero for saving you money off the payment you already mentally accepted. Most of the time they're only allowed to mark up the rate a small amount .5-2% typically. So they'll get you as close as they can to the payment amount you agreed to.

This is why it's always best to shop loans independently from a dealer. Sometimes the dealer has access to better loan programs, but probably 50% of the time you can get a better loan, term, and rate shopping it yourself with your own bank or banks you have done business with.

Even if you agree to [...]

Yeah... if I remember prime rate for bmw rn is 6.5 ish but I forget if that's 60 or 72 months. Either way 72 is just .5 more now instead of a whole % which is good😂.

[jnotrom711]

Originally Posted by micvite

Yeah... if I remember prime rate for bmw rn is 6.5 ish but I forget if that's 60 or 72 months. Either way 72 is just .5 more now instead of a whole % which is good😂.

Yes, I was referring to the difference from 36 to 72.

60/72 are usually either the same or a tiny bit higher on the longer term.

.25-.5% typically.

But for 36 vs 72, should be at least a full point lower on the 36 month term.

This dealer above quoted the same rate for all 3 term options, meaning they have a lot more room for marking up the 36 month rate if thats the option the buyer goes with . But all 3 will likely have different rates when they shop and get the real quotes from banks. Usually longest term will be the highest.

[Xx 335Mangaki xX]

THANK YOU ALL!

I missed it. Someone picked up the car the next morning.

[jnotrom711]

Originally Posted by Xx 335Mangaki xX

THANK YOU ALL!

I missed it. Someone picked up the car the next morning.

Well thats ok, I think you could have done better on the deal anyway. Youll find one and it'll be a better deal.

[M5KEITH]

Originally Posted by Xx 335Mangaki xX

Looking to purchase a 21 M5 with 10k miles.

Where is your trade in difference ie equity going on your deal sheet?

[jnotrom711]

Originally Posted by M5KEITH

Where is your trade in difference ie equity going on your deal sheet?

It's a confusing format, but they usually have to do this this way for accounting and disclosure etc.

But it's in the total balance financed.

The m5 should be :
$87,995.00
$1,618.74 only taxed on the difference between the trade and new car)
$89.00+$895.00+$743.90 doc fees, probably title/reg fees estimated

=$91,341.64 total cost for the M5 including the tax, fees.

Then you subtract:
-$62,000.00 for X3

$29,341.64 =the "net price", or difference between trade $62,000.00 and new m5 total, if there was no financing or payoffs involved.

Then, since there is a pay off you add that to the net price since the dealer is paying it off for client.

$29,341.64 (net price)
$58,982.50 (X3 pay off)
=$88,324.14 total amount financed.

$91,341.64 M5 total
-$88,324.14 total amount financed
=$3017.50 is difference btwn those 2 numbers and it is also the exact same difference between $62,000.00 and the $58,982.50 pay off.

=$3017.50 is the equity reflected in the Total financed amount of $88,324.14, if it wasn't it would show $91,341.64 amount financed.

From there you take the $88,324.14 minus any additional cash down being brought to the table by buyer, which is the options shown on the left in the box. $5-10K down.

[smoox]

Our dealer agreed to a 2023 M5 for $106k. It has the following:

-5k miles
-competition package
-executive package
-driver’s assistance package
-bowers wilkins sound package
-extended leather (not full leather)