[gemini.m3]

Hey guys curious to get some feedback

So I'm like 6 grand in the hole with my car and I have about 6 grand to do either

Pay down the 6 grand on the loan before going into the dealer to lease a new car or
Walk into the dealer with 6 grand down in cash knowing I'm 6 grand in the hole

Credit is over 800

Just want the best deal wondering what puts me in a better negotiation position

[ronanz]

Hmmmm....with a score over 800, you'd certainly get the lowest MF available. I'd be inclined to put the least amount down as possible, and residualize the negative equity. Walk away from lease at the end, then you'll be fine on the next vehicle.


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[dalto]

I don't think it will effect your negotiating position either way.

Only question is if you will be able to get financing on an additional 6k.

Be curious to know if you are leasing or buying.

[BavarianFanatic]

^Exactly. Limiting factor will be how much the bank is willing to pop the note for the new car. That's a healthy amount. Lease vs. finance will be a factor.

[ronanz]

Originally Posted by dalto

I don't think it will effect your negotiating position either way.

Only question is if you will be able to get financing on an additional 6k.

Be curious to know if you are leasing or buying.

Originally Posted by BavarianFanatic

^Exactly. Limiting factor will be how much the bank is willing to pop the note for the new car. That's a healthy amount. Lease vs. finance will be a factor.

OP stated he'll be leasing. With a FICO score over 750, he can EASILY enter into either a lease or purchase with minimal cap cost reduction or down payment (no more than 2K)..dealer may request $$ down to preserve any hope of profit tho

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[Nacho98]

If you're somehow still $6k in the hole on a car that's 3-4 years old with a ton of mods, you should probably stick with the car you have.

But if you must, I'd pay the $6k down on the loan before going to the dealer (assuming you bought the current car and didn't lease it). I would never, ever roll negative equity into a new car. Ever. I'd keep the car, but barring that, I'd pay down the loan to at least be even, then if I was leasing the next one, do it with zero down.

[gemini.m3]

yea def leasing

so kinda the plan i have is to pay down 4k against the note of the car, probably go in 2 grand in the hole and have that rolled into the lease. plan on leasing a new 340i or an outgoing 335 hence choice of forum

[lens]

I know when I traded in my 14'328i which was a lease, for a 13'335i, I would've ended up with 18k negative equity. However, my dealer did me a favour and added a bunch of discounts and increased my trade in value, which brought it down to 7k. I put down 20k down and got my payments to 800 a month for 5 years. Car is covered by warranty till 2019.

[rolltidef32]

If I were you, the smart money would just be to wait and continue with your current car until you're at least to under $2K.

Why the rush? Nothing is worth eating $6K just to get a 3 series.

Just because you can do something, doesn't mean that you should....

[Nacho98]

Originally Posted by chaungo

I know when I traded in my 14'328i which was a lease, for a 13'335i, I would've ended up with 18k negative equity. However, my dealer did me a favour and added a bunch of discounts and increased my trade in value, which brought it down to 7k. I put down 20k down and got my payments to 800 a month for 5 years. Car is covered by warranty till 2019.

$800 x 60 = $48,000

$48,000 + $20,000 down payment = $68,000 used 335. Even if the negative equity really was only $7k, that's still $61,000 for a used 335. Your dealer must love you more than anyone else he's ever seen. You got flat out raped dude.

[lens]

Originally Posted by Nacho98

$800 x 60 = $48,000

$48,000 + $20,000 down payment = $68,000 used 335. Even if the negative equity really was only $7k, that's still $61,000 for a used 335. Your dealer must love you more than anyone else he's ever seen. You got flat out raped dude.

Actually your math is a little off. I live in quebec, and the 20k down paid for the taxes+ all my negative equity and more. I owed around 58000, and put 20k down which dropped it to 38000, the 800x60 is basically the interest rate of 4.9%

The car was 45000 and they reduced it to 39000, and add 7k, thats 46000+ taxes is around 58000 with winters included.


Don't forget, quebec has different tax rates and our CAD currency is crap, so our amount might seem ridiculous.

[rolltidef32]

Originally Posted by Nacho98

$800 x 60 = $48,000

$48,000 + $20,000 down payment = $68,000 used 335. Even if the negative equity really was only $7k, that's still $61,000 for a used 335. Your dealer must love you more than anyone else he's ever seen. You got flat out raped dude.

No doubt!

chuango, know how you become poor? Making bad financial decisions. Take a calculator to the dealership man.

Let this be a lesson to everyone else. Once you buy a car, live with it. You chose it, so deal with it until your obligation is paid. otherwise, you'll be a fool. Continue to make such bad financial decisions and you'll be a poor fool with a mountain of debt.

[rolltidef32]

Originally Posted by chaungo

Actually your math is a little off. I live in quebec, and the 20k down paid for the taxes+ all my negative equity and more. I owed around 58000, and put 20k down which dropped it to 38000, the 800x60 is basically the interest rate of 4.9%

The car was 45000 and they reduced it to 39000, and add 7k, thats 46000+ taxes is around 58000 with winters included.


Don't forget, quebec has different tax rates and our CAD currency is crap, so our amount might seem ridiculous.

Well good grief man, if all of this is true, even more reason to not do a deal like that.

Remind me to never move to Canada!

[lens]

Originally Posted by rolltidef32

Well good grief man, if all of this is true, even more reason to not do a deal like that.

Remind me to never move to Canada!

Again, the dealer basically removed 11k off my negative equity, yes I traded in for a used car, but I have a 6 year warranty with it, not to mention, I had 3 years left on my 328i lease.

A brand new 335/340 here loaded costs 80k tax in.

80k! How do you negociate 80k? The US you guys pay about 60k?

Used 335i here go for 40-50k taxes excluded. So if you do the math correctly, I actually got a good deal for my car, and got rid of my old car without paying a ridiculous amount.

If I were to buy the used 335 without the trade in, it would have costed me 52000 taxes in.

So the fact that I'm paying basically 48000 over 5 years is good considering my situation.

My job, I make about 70k a year, and with certain bonuses I get that same amount over a 6 month period. Not to mention, no wife, no gf, no kids! I even have a portion of my salary going into savings each month.


Oh I forget to mention, 328i here depreciate like mad here. It is legit impossible to have it below 4k negative equity.


But hey, at least it's not as bad as Australia (no offense guys)

[pz619]

Also lets not forget. 60k Canadian is about 45k US.

[lens]

Originally Posted by pz619

Also lets not forget. 60k Canadian is about 45k US.

That too.

Damn did our currency drop hard.

[rolltidef32]

Originally Posted by chaungo

Again, the dealer basically removed 11k off my negative equity, yes I traded in for a used car, but I have a 6 year warranty with it, not to mention, I had 3 years left on my 328i lease.

A brand new 335/340 here loaded costs 80k tax in.

80k! How do you negociate 80k? The US you guys pay about 60k?

Used 335i here go for 40-50k taxes excluded. So if you do the math correctly, I actually got a good deal for my car, and got rid of my old car without paying a ridiculous amount.

If I were to buy the used 335 without the trade in, it would have costed me 52000 taxes in.

So the fact that I'm paying basically 48000 over 5 years is good considering my situation.

My job, I make about 70k a year, and with certain bonuses I get that same amount over a 6 month period. Not to mention, no wife, no gf, no kids! I even have a portion of my salary going into savings each month.


Oh I forget to mention, 328i here depreciate like mad here. It is legit impossible to have it below 4k negative equity.


But hey, at least it's not as bad as Australia (no offense guys)

I see your point. Guess we don't hear much about the situation economically up there.

Do you guys make more in salary to compensate for the high costs?

Guess we're just spoiled down here. I have said before on this forum that a 3 series isn't exactly entry level car money in other parts of the world. Didn't know that would also ring true to out neighbors in Canada.

So your car note is really more like $650 per month in US dollars?

[lens]

Originally Posted by rolltidef32

I see your point. Guess we don't hear much about the situation economically up there.

Do you guys make more in salary to compensate for the high costs?

Guess we're just spoiled down here. I have said before on this forum that a 3 series isn't exactly entry level car money in other parts of the world. Didn't know that would also ring true to out neighbors in Canada.

So your car note is really more like $650 per month in US dollars?

Around there maybe 550-600USD? No the salary really doesn't change much unfortunately. I just got lucky early in my life by sacrificing alot of things to have the job I have, and it paid off (literally.) BMW 320/328 are the civics around here as it's easily affordable, 335i and higher is a different story as it's considered the "high middle class" car as most can't afford it new or used.

I just decided to get a used one to rid of my 328i, and spend the rest on mods, I already have 5k into the car already! So if you do currency conversion, I'm actually not that bad, it's quite a deal I had.

[CIWS]

Originally Posted by rolltidef32

Why the rush? Nothing is worth eating $6K just to get a 3 series.

If his ultimate decision is a 340i I would agree, but if he's thinking of going with the 335i they will vanish quickly as dealers try and deal to get rid of them.

OP, if you have to do it now the 335i will probably be the better way to go because the dealers are offering good discounts on the 2015s vs the 2016s like a 340i that would help with the amount you're upside down. But as rolltidef32 states if this is just due to the new car bug trying to bite, you would be best to wait approx 6 months to a year, pay your current car down and then see what kind of deal you can work on a 340i.

[gemini.m3]

couple reasons why the rush.

my car got rear ended - didnt go through insurance, paid claim with cash so carfax still clean, it was small rear bumper damage.

i took it to a bodyshop and somehow they got water in the trunk and it fried 2-3 ECU's.. BMW and the body shop footed the bill but every now and again I get a weird electrical diagnostic error and honestly I feel the safety of the car is nearly compromised.

i had hopes of owning the car for 2-3 years, hence all the money i put into with mods which have now been taken off.

i just want the feeling of a new car with 0 miles and no problems, well it could have problems but itll be a lease and i dont have to eat any more depreciation.

it doesnt need to be the LCI, but i could see myself kicking myself if i dont get it later on..

if i can walk out the dealer paying less than $650 a month for a 340i lease with about 2k in negative equity rolled in I'll be more than ok with it. Hell I'm paying 581 now for a 2012 135i.

I make over 80k a year, while financially it makes way more sense to wait.. im just not happy with the car and i've already raised 3k from parting out the car whats another 3k to put down to have a new car w/ no problems.

[lens]

Originally Posted by thrilla135

couple reasons why the rush.

my car got rear ended - didnt go through insurance, paid claim with cash so carfax still clean, it was small rear bumper damage.

i took it to a bodyshop and somehow they got water in the trunk and it fried 2-3 ECU's.. BMW and the body shop footed the bill but every now and again I get a weird electrical diagnostic error and honestly I feel the safety of the car is nearly compromised.

i had hopes of owning the car for 2-3 years, hence all the money i put into with mods which have now been taken off.

i just want the feeling of a new car with 0 miles and no problems, well it could have problems but itll be a lease and i dont have to eat any more depreciation.

it doesnt need to be the LCI, but i could see myself kicking myself if i dont get it later on..

if i can walk out the dealer paying less than $650 a month for a 340i lease with about 2k in negative equity rolled in I'll be more than ok with it. Hell I'm paying 581 now for a 2012 135i.

I make over 80k a year, while financially it makes way more sense to wait.. im just not happy with the car and i've already raised 3k from parting out the car whats another 3k to put down to have a new car w/ no problems.

If you can afford it without being broke, then do it.

That's the reason why I traded in my 328i (couldn't stand the car anymore.) I had the money, and I wasn't going to be broke when I traded it in. Out of that deal I made, I probably only lost about 6k in negative equity instead of 18k, so imagine how much the dealer lost just by taking my 328. They bought it out for 52500$ and they sold it the next week for 39000$, and they're making 6k off of the negative equity they attached to my new car.

39000+6000=45000$.

That means they lost 7500$ just on that deal alone.

How did it get approved by BMWFS? No idea.

[Nacho98]

Originally Posted by chaungo

Actually your math is a little off. I live in quebec, and the 20k down paid for the taxes+ all my negative equity and more. I owed around 58000, and put 20k down which dropped it to 38000, the 800x60 is basically the interest rate of 4.9%

The car was 45000 and they reduced it to 39000, and add 7k, thats 46000+ taxes is around 58000 with winters included.


Don't forget, quebec has different tax rates and our CAD currency is crap, so our amount might seem ridiculous.

Originally Posted by chaungo

If you can afford it without being broke, then do it.

That's the reason why I traded in my 328i (couldn't stand the car anymore.) I had the money, and I wasn't going to be broke when I traded it in. Out of that deal I made, I probably only lost about 6k in negative equity instead of 18k, so imagine how much the dealer lost just by taking my 328. They bought it out for 52500$ and they sold it the next week for 39000$, and they're making 6k off of the negative equity they attached to my new car.

39000+6000=45000$.

That means they lost 7500$ just on that deal alone.

How did it get approved by BMWFS? No idea.

Didn't realize you were in Canada as I was posting from my phone which doesn't show location, but something still smells. My math is solid and correct, regardless of currency.

Using a basic auto loan calculator from bankrate.com, if you financed $38,000 at 4.9% for 60 months, your payment would only be $715, not $800. Why isn't your payment $715 if you financed $38,000 at 4.9% for five years?

Also the dealer absolutely did not lose money on you, they are not a charity. The dealer is not stupid and doesn't do random people favors that result in massive losses on a balance sheet, no matter how much business you may bring to the dealership. That's why it got approved by BMWFS. No offense, but the fact you put the dollar symbol after the number is pretty telling...

Anyway, next time bring your calculator to the dealership. *shrug*

To the OP, good luck.