I'm sure somebody around here knows something about this. I just built an 09 M3 coupe with tech and some options and it came to about $67k on the BMW site (obviously I'd bargain for a lower price). Anyway, by using the BMW Select financing my payment would be just $800/month (60 months) for a brand new 09 M3! Now I understand that there is a balloon payment at the end that would be around $23k. Has anybody around here used this program recently or know anything about it. What are the pros and cons? As i underdstand it its like a lease but you own the car so there are no restrictions on mods or mileage.

Btw, I priced a new 09 335i M-Sport with i-Drive and other stuff and its only $600/month with BMW Select....

 

I dunno. I guess you can do that. The car will probably be worth about 23k in 5 yrs. You could sell it then. How much is a lease? I think it is a pay me now or pay me later scenario. Personally I like to pay the majority for my toys while they are still new and I like them.

 

You can also refinance the balloon at the end of the term as a used car loan....

 

BMW Select bases its numbers on MSRP, with I think some money down and it's plus tax. not a good guide to work with, IMO..

 

I always heard that option was good for those who were in IL or TX.

Only because on leases they have to pay full tax on the whole car. Then if you decide you want to buy the car end of lease, you have to pay tax again on the buyout amount.

BMW select allows the owner to be taxed only once if living in those states.

Correct me if im wrong... im not too familiar with it.

 

Yeah, but I don't want to lease. Plus the BMW Select payments are less than lease payments and you still own the car.

 

It's funny financing...risky. It seems to me it would keep you stuck in the car longer, which could be a bad thing if you needed out of it quickly. If you're only paying $800/mo on a $67k car you're going to have a hard time ever catching up with the depreciation if you just followed the payment schedule. I'd say if you cant afford the payment on at worst a 72mo payment then it really is too much car even our retarded standards.

Sounds like me trying to justify an Audi TTS...I'd have to live in the damn thing.

 

wow, only $800 per mo. !

 

^^^

w0rd

Only $800 a month? Can I have some?

 

i would the big one if i had to pay that monthly.

 

Yea but in the long run you will be paying A LOT for the car.

Also im pretty sure that $800 payment on their site doesnt even include tax.

You can mod a lease car btw, just keep the stock parts. But then again i dont lease since i dont want to be "stuck" in a contract.

 

I'm thinking that if you are looking at these financing options you may want to hold off and save up more money until you can either afford it outright, or afford a much larger down payment.

Think about it... you're going to be paying $800/mo for 60 months (so $48k PLUS tax,tags,title, etc).... then, in 5 years when the car is worth about $25k you're going to be financing another $23k for another 3-5 years? So you're paying $71k (PLUS tax, tags, title, etc) for a car that you can likely get for $65k or less if you shop around... and be paying for it for almost 10 years?

Paying that much money for a depreciating asset for that long long doesn't seem to make much sense to me. Either buy it when you can afford to put more down... or wait a year or two and buy the same exact car as a pre-owned for under $50k and let some other sucker take the depreciation hit...

 

Isn't an auto loan a contract as well?

 

 

 

It's your life, but I wouldn't dream of getting into a $800/month car payment unless I owned my house(no mortgage) and was maxing out retirement accounts or were pulling in $100k+ and had job security, good equity in a home and a healthy savings(more then 2-3 years income). When you have to start pulling funny games with financing to get into a car comfortably it typically means you are stretching yourself too thin, the majority of this economic crisis is due to everyone extending themselves way too far.

 

Pretty much what I was trying to say

Unless OP is living large with a lot of assets and very little debt right now, $800/mo for 5-10 years for a car just does not make any sense...

 

Yea yea yea.

Agreed with JB! Your G37 is a nice car, hold out for a bit and look for a preowned M3.

 

I think the G37S is still a terrific car, maybe you could mod it a bit to fall in love with it all over again?

 

Same exact advice I gave in the last thread.

1. Sell G37
2. Save enough for a down payment that wont put you at a significantly worse monthly payment that what you're at now.

 

Smartest advice in thread by far

Note to self, next time looking at F430s call Timmy ASAP.

 

Yeah you REALLY don't wanna have to finance a balloon payment at the end. Paying a note on a BMW that is 4 yrs past warranty FTL! You are gonna be buried in that thing.

I paid 66k for my M3, put 12K down and have been paying on it for around 10 months. Even with 2.9%, I am still buried in the bastard as far as real-world trade in goes. I just paid off my 08 Frontier in 8 months, I'm really gonna start paying down the Bimmer. The note doesn't really bother me as our other 2 cars are paid for but so far that M3 has cost me better than $3 per mile, easily.

 

Financing and paying interest on a rapidly depreciating asset such as a high-end german automobile isn't the most fiscally sound strategy. That capital could be better served investing in appreciable assets such as real estate, equities, bonds, or annuities. But to each his own.

 

It all depends on your overall financial status. If all your other bases are covered then go for it. I feel all my bases are adequately covered and I really don't miss the money so I went for it. But then I am also nearing 40 and am well established. I believe you have to find a balance between fun and putting away for the future. Could I swing a Lambo? Sure, but I wouldn't have "balance" anymore. LOL.

 

QFT. I bought my 911 for cash after I had purchased my home.

 

This...

 

Where was this info when i was 18


probably the single best info here.

 

Reading this has made me think about owning my M3 really costs.





Right now the car is around 10 months old. It currently has 7404 miles. I figure with down payment, payments so far, insurance, fuel and the few mods I have, so far the car has cost at least $27,451 so far. This equals to roughly $3.71 PER MILE.
Good thing it's fun to drive
Are you sure you want an M3?

 

I AM sure I want an M3.....I just think getting a used one is the best plan for me. 08's are already in the low $50k's so with a few more months depreciation I should be able to get one with less than 10k miles for mid-to high $40k's. That makes alot more sense than losing $15-20k in depreciation in the first year like many of these M3 owners must have. The only problem is I really like new cars and I really want the new iDrive.

It'll probably end up coming down between an 08 M3 with under 10k miles or a new 335i fully loaded. Not planning on doing anything until the end of the year at least so we'll see....

 

Was just thinking about this some more. It didn't even occur to me yesterday, but my wife and I are thinking about buying a foreclosure for a vacation home somewhere between Myrtle Beach and Wilmington for between $60k & $70k.

Kind of puts that new M3 into perspective.... and your car payment would be about double our mortgage!!

 

http://www.luxury4play.com/autos-aut...eful-mods.html

08 M3
7k miles
mods
$50k

 

BTW, you guys must not remember his G37 threads. You all said the same thing about the money thing. Yet he still bought it.

My advice that you would most likely listen to: Dont get a new 335i. Once the new car feel is gone you will then wish you bought a used M3 instead.

 

... and you wouldn't have a balloon payment in 5 years

I must be getting old, or my values are changing or something because spending that much to drive a car I just don't get, it's almost regardless of income/net worth. To me, it's no longer worth spending an absolute premium to have that last few percent in refinement/power/performance, perhaps my passion for cars is waning.

 

$50k for a nice low milage one like that seems like a way better deal than $67k for a new one. Cars in this price range in general sink like a lead balloon the first couple years out the gate.

 

i was going to say the same thing. he keeps saying "only"

 

BMW Select is a fancy term for a balloon lease, which is an alternative to financing (though it is similar to financing). It's similar to a lease in that there's a residual amount. The main difference is a lease is closed end, a balloon is open end. A lease there's a buyback that is your option, a balloon the residual you must pay. A lease, you make 36 payments of $xxx, a balloon you make 35 payments of $xxx and the 36th payment is the balloon amount, which is the residual. On a lease you pay tax on the usage, a balloon you pay tax on the full amount of the car.

 

Yeah, I'm kind of changing too. Thing is my passion for cars is still as strong as ever. Difference is that my passion to be wealthy is greater. So, I don't mind passing on the higher end cars right now b/c the goal would be to have enough money to buy them in cash down the road when I reach that goal of wealth.

In the meantime I'll still have nice cars, but we'll buy them pre-owned like we did with my wife's A6, and some other sucker can take the huge depreciation hit. Then again, we'll probably always do this... more money in my pocket each time

 

I wanna be just like juniorbean when I grow up. Well said! Sold my payment-riddled '06 G35 sedan in Feb and paid cash for an '00 BMW 740il in May...you know, the car just drives different when it's fully paid for, I swear.