Car Question/Options

Option one.

BMW 325i

Leased car coming up on the end of the 3 yr lease. Payoff 20K. Edmonds valuation 21-22K. Buy out the lease and keep the car. No financing. Could sell the car in a month or so but still would lose money due to taxes. about 1,400.

Option 2:

Turn in said car lease new one,328i 28 months, 60$ more a month. $1K down which includes first payment and fees. Have car payments and pay interest.

 

lease a Lexus IS350

 

You have to add to the $1400 cost of taxes the cost of oppportunity lost ( you should easily be able to earn 5% on that ), the additional depreciation, and maintenance.

$1400 + $3152.50 ( 5% opportunity cost on $20k for 3 years ) + $5k depreciation ( I'd guess ) + prolly about $2k in maintenance costs, although this could be higher or lower. If you need brakes after the 4 year BMW deal, it's gonna cost you. Also tires. Those 2 things are $2k.

So - the cost of keeping old car = about $11552.50 - if you only earn 5%, only depreciate $5k, and only have $2k of maintenance.

Cost of 3 year lease prolly about $18000, I'd guess.

Cost you about $6-$7k for the new one over the term. Just depends on what you want. They're both nice. The new one is the new E90.

 

Thanks. I have pretty much come to the conclusion that the new car is the way to go just for the on going maintainance and small issues with the old car that need to be looked at. In my mind it is a either/or situation. I think the maintainance will be higher than your projections.

 

Yeah - but when you buy a new one, the depreciation expense is guaranteed.

When cars need repair the money doesn't piss me off nearly as much as the time and hassle. The same can be true with a new car - who cares about a warranty if you spend all your time hanging out at the dealer with you fucking car? Not worth it.

Plus - there's always a cost to selling a car - the ad, the time, not always getting what you hope, etc. I learned that the hard way, and I learned that selling cars sucks balls.

 

Turned my last two 325s and although I made some of the money back the whole hassel with the title and taxes is a pain in the ass. I am with you on the the time thing. I am convinced it is a given that you will lose on a car, that is why I hate them, but the deal is how to minimize the loss.

 

either one of you have a bmw front license tag like this that you dont want?

 

I don't.

 

Turn the car back in and buy an accord or camry that is a couple years old and under one of those certified pre-owned warranties. You will save a lot of money and probably have a better car in the process.

 

You will save a lot of money and probably have a better car in the process.



rofl..you seriously think a camry or an accord is a better car than a bmw?