[Bryan M]

Hi all!

I was considering leasing a F30. I am interested in a Sport Line with Premium and Tech/BMW Apps.

I currently am financing a 2007 328i. I am about $2500-$3000 upside down. I spoke to a salesman and he said I should just roll that into my lease but I want to keep my payments as low as possible.

Should I pay down the loan so its closer to the trade in value prior to negotiating the deal? Say make a $2000 payment on the car.. Or do as the salesman suggested?

I want to keep my payment at $550 to $575 a month for a 3 year/15,000 lease.

Thanks for your advise.

Bryan

[rayusaFL]

Originally Posted by Bryan H

Hi all!

I was considering leasing a F30. I am interested in a Sport Line with Premium and Tech/BMW Apps.

I currently am financing a 2007 328i. I am about $2500-$3000 upside down. I spoke to a salesman and he said I should just roll that into my lease but I want to keep my payments as low as possible.

Should I pay down the loan so its closer to the trade in value prior to negotiating the deal? Say make a $2000 payment on the car.. Or do as the salesman suggested?

I want to keep my payment at $550 to $575 a month for a 3 year/15,000 lease.

Thanks for your advise.

Bryan

99.9% of the times, you get screwed in a trade in.
If you can pay it off and then sell it to a private party, TRUST ME, you will be in a much better position.
Yes, selling to a private party can be a pain. But, you will definitely be saving some money.
I did a trade in once and I will never do it again.
I had a 2006 G35 in GREAT condition and low mileage. Car max offered me $19,000 and the dealer offered me around $20,000.
I put an add on Autotrader and sold the car in 30 days for $23,500. (and there were several interested buyers)
So, to me, you will always get screwed in a trade in.
And even if they make a good offer on your car, you won't he getting the greatest deal on their car.
Good luck to you.

[Bryan M]

I totally agree. I've had my car listed on MSN Autotrader for over a month.. No calls.. No interest and I've had it listed below bluebook.

Seems Texans don't appreciate german engineering like we do.

So I'm stuck with making a trade-in.

[jddssc121]

depending on the state, it can actually be beneficial to trade it in (tax credit) vs Private party sale (depending on how much more you can get for private party sale)

So as long as we can all agree that dumping a car when you're upside down is a bad idea ................... I personally would say if you ARE going to do it, roll the upside down cost into the lease. If you make a $2K down payment to "break even" on the trade and then the car gets totaled/stolen 6 months later, you're out your $2K..... But if it's rolled into the lease, GAP coverage just became your best friend. I'd much rather pay the small interest charge on financing that "upside down" portion in exchange for BMW carrying that extra $2k risk instead of me....

Capital is king. Keep it in your pocket

[matt_435xi]

Originally Posted by Bryan H

Hi all!

I was considering leasing a F30. I am interested in a Sport Line with Premium and Tech/BMW Apps.

I currently am financing a 2007 328i. I am about $2500-$3000 upside down. I spoke to a salesman and he said I should just roll that into my lease but I want to keep my payments as low as possible.

Should I pay down the loan so its closer to the trade in value prior to negotiating the deal? Say make a $2000 payment on the car.. Or do as the salesman suggested?

I want to keep my payment at $550 to $575 a month for a 3 year/15,000 lease.

Thanks for your advise.

Bryan

to get your payment less than $600/mo on a 335i with the options you have listed and rolling in some negative equity is going to be impossible. even if you pay off your car its going to be very difficult to get a $50k (sticker price) 335i with 15k/yr 550-575 after taxes...unless you are going to reduce the cap cost buy putting some $ down. not to burst your bubble but you may want to hold on to your car or set your expectations for your monthly payments higher.

[adelphi_sky]

Originally Posted by jddssc121

depending on the state, it can actually be beneficial to trade it in (tax credit) vs Private party sale (depending on how much more you can get for private party sale)

So as long as we can all agree that dumping a car when you're upside down is a bad idea ................... I personally would say if you ARE going to do it, roll the upside down cost into the lease. If you make a $2K down payment to "break even" on the trade and then the car gets totaled/stolen 6 months later, you're out your $2K..... But if it's rolled into the lease, GAP coverage just became your best friend. I'd much rather pay the small interest charge on financing that "upside down" portion in exchange for BMW carrying that extra $2k risk instead of me....

Capital is king. Keep it in your pocket

I agree. Maryland is still offering the tax rebate on trade-ins. I'm currently considering doing the same thing. I would like to trade in my 2009 328i for the new 328i Sport. I "broke even" on my loan last month, but at 0.9%, the principle goes down pretty fast. So, by the time I'm ready to purchase in the next 30 days, I should have a nice cushion from being upside down. Not driving the car much at all to keep the mileage down.

I'd like my payments to be in the mid-$500 range as well. My current payment is $800/month. So, with the tax rebate, recent graduate credit, owner loyalty perks, and hopefully a two month free payments deal, I shouldn't have to come up with much down.

[Bryan M]

Hey! thanks for all the replies!

I was looking at a 328i not a 335i.. Priced out it comes to aprox 45,000 on the BMW website.

The lease price comes out to $606.00 when I build the car.

Bryan

[BMWrules7]

First rule, never put money down on a lease? Why? You don't save enough, you lose the use of your money, and if you total the car in a crash (this does happen) then you will never get the money back. If you just allow your monthly payment to increase (by not putting money down) then your payments just stop if you total the car. Thus, you end up saving that portion of the cap reduction on future payments that will never be made. Plus, if your lease expires and you don't have the time or the funds to get a new car and you extend your current lease, then your monthly payments will increase during that period of the extension since the extra money you put down only applied to the initial deal.

Second, the opposite can be true. If the dealer is willing to take the risk and roll a portion of your upside down indebtedness into your new lease then it might seem like a good deal. Here is what you do. Take the monthly payment without the added rollover dollars and multiply times the length of the lease.

Next, ask you dealer how much it will cost to lease your car each month off you rollover the upside down indebtedness. Multiply that monthly amount times the term of the lease.


Subtract this amount (with the rollover) minus the amount without the rollover.

Now compare the difference to how much you would have to put down in advance to cover your old car. If these amounts are the same or close to the same then do it!!! You don't lose use of your extra upfront payment and if you total the car then your entire debt goes away due to gap insurance (if u have it)

So, yes it can be okay to rollover the a portion of the previous car. Just don't go over your monthly budget.

[pcbrew]

If you have some cash to take care of the negative equity, is to put the cash toward MSD (multiple security deposits). You will save a big chunk of that negative equity by lowering the MF (interest) rate you pay on the lease.

[Bryan M]

Thanks for the advise!