Why I will NEVER Finance a BMW Again...

[NYF32DRIVER]

The loaded 2010 135 I currently own is my fourth BMW and the only one to be financed, NOT leased. The payment I am making every month is based on 0% down 0.9% financing with 6 payments from my previous 335i coupe rolled in. The sticker price for the 135 was $48,000.
NOW, I may be forced to get a larger vehicle (Like a 5 series, YIKES !) Current appraisal for my 135: $25-30,000 !!???!!
So basically I am WAY upside down after 13 months of ownership. The car is in EXCELLENT condition, no dings or scratches and has pretty much every option there is. (Mileage is a bit high at 20,000) I should have done more research re: Resale value. This is a VERY difficult situation for me. Any suggestions ?

[amancuso]

Why are you being "Forced" to change your car?

[juliansorl]

I found myself in the same upside down position with my 09 JCW Cooper Cabriolet which only has 10k miles on it. I'm either going to keep the car or wait another year and sell it back to the dealer (wholesale). On the other hand, my CPO 09 135 cab also with 10k miles is now worth (wholesale) what I owe, but this is the car I want to keep and wouldn't dream of selling it. Unless you plan on keeping a car, zero down is not a good idea.

[GO135i007]

Whenever you buy and sell a car in under a 2 year period you will lose money. Every time. There is no way around this it's just how it works. By the time you pay the taxes, title, and registration on the new vehicle and then figure in the money for depreciation etc. Never works out in your favor. You either gotta suck it up and lose money to make the change or keep your car.

[NYF32DRIVER]

Originally Posted by amancuso

Why are you being "Forced" to change your car?

Business reasons. Long story. Believe me, I love driving it and prefer a smaller car. But its making things difficult right now.

[NYF32DRIVER]

Originally Posted by jainism

13 months is your answer. Thats with ANY car you try and sell after 13 months.....

I suggest wait another year if you can.

I agree, however the mileage by that time might kill me.

[Focusedintntions]

Also, this is why you do not buy a car with zero down. At least pay the taxes and fees b/c way behind. And 48k for a 1 series..wow some salesman had a hell of a commission check too.

[DriveHard]

I dont see a happy ending here.. you would have been upside down in 13 months without the 6 payment roll into the car. That just made it much worse..

estimating your payment at 650.00 ish ( maybe a little more), that 48k MSRP car turned out to be approx a 52,000.00 Boat anchor ( not incl taxes etc etc ..

1 year is just too early to bail on a car... worse so with your roll in..

sorry man..

p.s. Your title is a little decieving.... It sounds like BMW FS screwed you... but in reality you screwed yourself in a rather large financial decision.. With all do respect, not trying to dis you or anything... just my .02c

Try selling your car private, its your only out ( that wont hurt as much) if you must.

[KingOfJericho]

You were upside down in the car from the start by rolling 6 payments from your previous car into this one and putting $0 down. Your best bet would be to *try* to sell it privately but you're going to be taking a massive hit no matter what. It's not a BMW thing, it's the way you structured your financing.

[Nitroxide]

This is why you buy used if you're not going to keep a car for the long haul!

[DDS2015]

Why not keep it for weekends, and get something older for what you need with your business?

Doesn't matter if you sell it privately or trade in at the dealer, you're going to lose a lot of money. On the otter hand, 0.9% financing is a good rate and the majority of your payments go directly to the car as opposed to interest to BMW.

In your situation, you'll be negative on that car for 3-4 years. That's when your depreciation and amount paid off will start to coincide.

My 0.02: keep the 135, and get an E60 528 for your business needs. Should be able to find a CPO for a decent price.

[2010AW135i]

Originally Posted by DriveHard

p.s. Your title is a little decieving.... It sounds like BMW FS screwed you... but in reality you screwed yourself in a rather large financial decision..

He actually didnt say BMW FS screwed him, he just said he wont ever finance a BMW again, (Instead of leasing)

[jmc777]

Terrible situation to be in, but I don't think you would be better off with a different brand (assuming you roll in payments from previous vehicle, zero down, run up the miles, and sell early).

[JHOOPS2]

I always buy used when I can for this reason if I don't know for sure how long I am going to keep it. I found my 2009 1'er with 4K miles, and paid $35,400 iirc OTD with CPO. Also, another good idea is to make extra payments. It's never a good idea to keep rolling dept from one car into another car.

[moveswiftly]

Originally Posted by KingOfJericho

You were upside down in the car from the start by rolling 6 payments from your previous car into this one and putting $0 down. Your best bet would be to *try* to sell it privately but you're going to be taking a massive hit no matter what. It's not a BMW thing, it's the way you structured your financing.

+1.

The thing you need to understand is depreciation is very aggressive on cars in the first 2 years, what we call double declining in the accounting world. Your best bet is to hold onto the car for another 1 and a half and make the most out of the money. Your car wont lose as much value as it will compared to first 13months.

Best thing to do to have avoided this situation would be to have put more money down. The GAP between what you owe and what its worth would've been less.

I'd ride it out though.

[inthemovie]

Originally Posted by NYCE90DRIVER

The loaded 2010 135 I currently own is my fourth BMW and the only one to be financed, NOT leased. The payment I am making every month is based on 0% down 0.9% financing with 6 payments from my previous 335i coupe rolled in. The sticker price for the 135 was $48,000.
NOW, I may be forced to get a larger vehicle (Like a 5 series, YIKES !) Current appraisal for my 135: $25-30,000 !!???!!
So basically I am WAY upside down after 13 months of ownership. The car is in EXCELLENT condition, no dings or scratches and has pretty much every option there is. (Mileage is a bit high at 20,000) I should have done more research re: Resale value. This is a VERY difficult situation for me. Any suggestions ?

Wow I just traded a 2011 128 6 speed that had no extra options did have free leather upgrade and ipod. I just traded it for 28K and that is what I paid minus tax and license. 128 ten months old had a sticker close 31K. I thought I came out ok but only 25-30K for yours wow.

[DriveHard]

Originally Posted by 2010AW135i

He actually didnt say BMW FS screwed him, he just said he wont ever finance a BMW again, (Instead of leasing)

your right... mis read... or read what i wanted to..

sorry OP...


Carry on

[Barry45RPM]

Originally Posted by jainism

13 months is your answer. Thats with ANY car you try and sell after 13 months.....

I suggest wait another year if you can.

Zero down is the Reason. He financed the whole enchilada. All new cars lose a bunch as soon as they hit the streets. But remember.... he financed the whole thing. In that case you have no "asset" in the car in the car, its all liability.

[mtla4]

Originally Posted by DDS2015

Why not keep it for weekends, and get something older for what you need with your business?

Doesn't matter if you sell it privately or trade in at the dealer, you're going to lose a lot of money. On the otter hand, 0.9% financing is a good rate and the majority of your payments go directly to the car as opposed to interest to BMW.

In your situation, you'll be negative on that car for 3-4 years. That's when your depreciation and amount paid off will start to coincide.

My 0.02: keep the 135, and get an E60 528 for your business needs. Should be able to find a CPO for a decent price.

X2...screw that get an Accord, Altima, Camry, Sonata. No need for an unreliable E60 , Audi or luxury car. When you work you have no time for breakdowns unless you need to look like a big shot. I prefer being stealth and leave the toys at home...you avoid hating and heat that way.

Or if you need to sell it buy a car that offers 0% and lots of incentive plus sell the car privately.

[IZAGLO]

Buying new is alway's the best option if money is not an issue ...for me it was and bought a used 135i 6 months old 9000 miles + CPO at a savings of almost 15 grand+ over buying it new....so yea they do depreciate quite a bit if you buy new at 0 down. the 1st year....for what it is worth the new 2012 535i is a pretty nice looking/riding car..i prefer the 1 as smaller for me is better.. but for a larger car they are sweet.

[chili555]

The payment I am making every month is based on 0% down 0.9% financing with 6 payments from my previous 335i coupe rolled in.

So you financed 100% of your new car plus that amount by which you were upside-down on your previous car? Did you get a free tube of KY?

Everyone wants a shiny new car and no one wants the depreciation.

I think your assertion to never finance a BMW again is very sound reasoning. Pay off your current car; that's right, all the way to zero. Then put those payments in the bank and save, save, save. When you have the cash, buy a car that's paid for the day you drive it off the dealerships lot. Start saving again and repeat. Of course, BMW will have no further reason to put a tube of KY in the glove compartment. You will never be upside-down.

[Frack]

Originally Posted by inthemovie

Wow I just traded a 2011 128 6 speed that had no extra options did have free leather upgrade and ipod. I just traded it for 28K and that is what I paid minus tax and license. 128 ten months old had a sticker close 31K. I thought I came out ok but only 25-30K for yours wow.

You did well on that trade but 135 is a totally different animal...
not too many people is actually in the market for second hand 300hp car this is why evo, sti or 135i will never hold it's value as well as the 128,
2 weeks ago I was really surprised to get a phone call from my dealer with buy back offer, I've never heard about such thing but seems like more and more people is starting to appreciate 128's