Fell in love, ordered one, and it will be here in a week. HELP!!

[1HungryMan]

Went into a dealership here in Toronto, test drove a 128i, and fell in love. Surprise suprise, right?

So, on impulse, I bought a stock one, which the dealer is having delivered within the week. That was the only condition I would buy one, if I could have that sucker now. LOL.

Here's my thing: I have two days to follow through on my deposit and buy the car, or pass and get a refund.

My problem is that with tax and everything the car is $47k. This is a lot of bread for a car that was supposed to be $35k-ish. Now please don't yell at me, I'm new to BMW but it does seem to me I can get a lot of car elsewhere for that kind of bread. I am not cheap, and will surely love the car.

So, question is: If I drive this car for two years, get bored of it, how much of its value can I reasonably expect to keep when I sell it in 2-3 years assuming the car is in great shape? The dealer assured me at least $25k after three years. What are some real world thoughts?

I have bad credit, but I have cash, I am not financing, but paying full cash on the barrel, so am tying up lots of cash in the purchase.

Basically I put down $2k to be at the front of the line and have this car for spring/summer. Would love to hear some thoughts.

(And: Is this car really in high demand at the moment? It's hard to tell from these boards, but having driven it I wouldn't be surprised)

Thanks!

[fe1rx]

If you need to pay up front and think you want to part with the car after two or (better) three years, get a lump-sum lease. That way you pay the entire lease cost up front and know exactly what your costs will be. BMW takes the risk that the residual value will hold. Also, you will only be tying up half the cash, and you will get the extra free service that apparently only comes with leasing and financing.

[spudw]

^ fantastic advice

[raisemyrent]

+1!

[mtw]

Which options made a 128i come to 47k? I think I've priced it out before with premium and sport package and it came to something like 41k after all the fees and taxes. I could be mistaken though...

[1HungryMan]

Originally Posted by fe1rx

If you need to pay up front and think you want to part with the car after two or (better) three years, get a lump-sum lease. That way you pay the entire lease cost up front and know exactly what your costs will be. BMW takes the risk that the residual value will hold. Also, you will only be tying up half the cash, and you will get the extra free service that apparently only comes with leasing and financing.

Good advice, but I'm still wondering what the car will be worth--roughly--after a couple of years? I know you can't know precisely, just ballpark.

Thanks either way for your suggestion.

[1HungryMan]

Originally Posted by mtw

Which options made a 128i come to 47k? I think I've priced it out before with premium and sport package and it came to something like 41k after all the fees and taxes. I could be mistaken though...

That would be pre-tax. If you're right and I'm wrong, please PM me as I'd love to drive the thing away for $41k all in.

Add in $2300 for freight and "admin" fee and you're up to $42k pre tax for me

[raisemyrent]

Originally Posted by 1HungryMan

That would be pre-tax. If you're right and I'm wrong, please PM me as I'd love to drive the thing away for $41k all in.

Add in $2300 for freight and "admin" fee and you're up to $42k pre tax for me

42k pretax means 44k after tax... so still 3 short of 47...

and hey, if you do that lump sum lease, it might improve your credit... that's a different topic, but if you have cash to buy a 135i, then you should have good credit... funny how the system works
also, on residual values... go to the financial services part of bmw.ca, and use the payment calculator for lease on ANY car... you'll find that they use very simple residuals (30%, 40%, 50%, etc) depending on the time period

[koala]

Originally Posted by raisemyrent

42k pretax means 44k after tax... so still 3 short of 47...

and hey, if you do that lump sum lease, it might improve your credit... that's a different topic, but if you have cash to buy a 135i, then you should have good credit... funny how the system works
also, on residual values... go to the financial services part of bmw.ca, and use the payment calculator for lease on ANY car... you'll find that they use very simple residuals (30%, 40%, 50%, etc) depending on the time period

His price is about right, they have PST in Ontario

I'd definitely look at lump sum lease.

[mtw]

hm..thank god for Alberta. lol

Anyway, and I know vehicle depreciation rates vary across Canada, but suggesting a 47k car would be anywhere near 25k after 3 years is fairly pessimistic. Like I said though, I understand the tendancy for Ontario vehicles to take the plunge much faster than others around the country.

[1HungryMan]

Originally Posted by mtw

hm..thank god for Alberta. lol

Anyway, and I know vehicle depreciation rates vary across Canada, but suggesting a 47k car would be anywhere near 25k after 3 years is fairly pessimistic. Like I said though, I understand the tendancy for Ontario vehicles to take the plunge much faster than others around the country.

Yes, I just checked at BMW's own residual values are about 50% based on 5 years. I just wanted someone who knows this stuff well to confirm to me.

Based on the Sales Associates estimates, it would cost me $5k a year to drive the $47k 128i Coupe, if I drove it for 3 years and then shed it. Does this sound right to people? Because if it's yes, I can live with that.

[fedex]

I still don't see how the price went from 34k to 47k....

you said you bought bone stock, 34k + 2.5k in pdi,freight,ac fees + tax is around 39k without using a calculator... you only pay gst when you buy the car. you pay pst when you register the car. which would bring us to the 41k someone else mentioned.

[1HungryMan]

Originally Posted by fedex

I still don't see how the price went from 34k to 47k....

you said you bought bone stock, 34k + 2.5k in pdi,freight,ac fees + tax is around 39k without using a calculator... you only pay gst when you buy the car. you pay pst when you register the car. which would bring us to the 41k someone else mentioned.

Sigh...

128i MSRP =33900.00
Premium Package =2700.00
Metallic Paint =800.00
6 Speed Auto =1600.00
Wood trim =585.00
-----------------------
$39585.00

Freight=1995.00
Air con tax=$100
Fuel consumption tax=$75
Admin Fee=299.00
--------------
$42059.00

PST=3364.72
GST=2102.95
License Fee=$100
---------
$47626.67

[spudw]

^ Ah ha... Bone stock, plus $6,570 (tax incl.) in options. Yup, that'll do it...

Go big, or go home...:biggrin:

[M3Newbie88]

^^ Thats BMW options for you!!!

[1HungryMan]

Can someone explain to me an example of the one payment lease?

On $47k, for example, they set the residual at $30k on a 3 year lease, so I lay down a $17k downpayment up front, add some interest (presumably much lower than the going rate for regular leases) and then can choose to walk away or buy it out?

Sound right? Thanks for any help.

[fe1rx]

Originally Posted by 1HungryMan

Can someone explain to me an example of the one payment lease?

1) go to www.bmw.ca
2) from the grey menu bar choose "BMW Financial Services"
3) from the menu on the side choose "Payment Calculator"
4) from the 3 series models on display (just as example, because the 1 is not there) choose the 335i sedan and then select "Use the Payment Calculator"
5) In the Payment Calculator choose "Single Payment Lease"
6) Choose the province, the term and the km per year (Ontario, 36 months, 24,000 km/year for example)
7) Choose "Calculate Your Single Payment"
8) In this case on an MSRP of $49,900 at a rate of 3.65% you need a single payment of $25,297 (plus taxes) and the car has a residual of $27,445.

[looking]

^^^

If you're planning to flip the car in 2/3 years you're way better off to lease. guesstimating the value of this car is like telling the future. What BMW has on there website is only general guideline on what the car would be worth 2/3 years down the road. You should seriously consider leasing regardless, of if you have the money to buy out right.

[john970]

Not sure about Canada, but lump sum lease would not improve credit here in the states. It's not really a loan...

I'd agree though that selling a car to a private party is a major pain in the ass and selling it to a dealer you will get hammered on the price. I'd lease as others have stated.

[spudw]

Originally Posted by john970

I'd agree though that selling a car to a private party is a major pain in the ass and selling it to a dealer you will get hammered on the price.

Very true. I wouldn't relish the task of trying to sell a $25,000 car off my driveway...

[1HungryMan]

Originally Posted by john970

Not sure about Canada, but lump sum lease would not improve credit here in the states. It's not really a loan...

I'd agree though that selling a car to a private party is a major pain in the ass and selling it to a dealer you will get hammered on the price. I'd lease as others have stated.

Thanks guys, appreciate the advice.

[imported_sbw]

$47K is a lot of money for a 128i! Ouch!