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Old 10-24-2009, 03:21 AM   #1
lvan
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CPO rates and experiences



I am in the market to get 335i. I am looking to hear some buying experiences. I would like to buy the car outwright if I can squeeze in a few more coins. However I wanted to ask for some feedback as well. Were any of you in a chance to finance. Is there a way that a car loan may be worth more than the value of the car down the road. That being said considering it with a decent downpayment as BMW work it out on their display sheet. I follow autommotive talk on CP24, and I hear that many people get stuck with a car loan being worth more then a loan. This is where I chicken out and try to see I can just buy it out in full amount. I am looking at year 2007-2008. Thanks
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Old 10-26-2009, 08:29 AM   #2
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So as a finance manager at a car dealership (it might not be a BMW store but the standard rule still applies) I can tell you this much:

Without putting a significant amount down (25%) you should almost expect to be in a negative equity situation for the first 2-4 years depending upon the term of the loan and how much you drive the car.

A less than typical now 60 month finance driving normal KM on a brand new car it will be in negative equity the first 3 years. A 60 month finance on a pre-owned you'll probably be in negative equity for 18 months to 24 months.

Beyond the semi-standard realities on it, you keep hearing about people taking 84 month loans used to emulate the payments of a lease. We do it more often than we would like, however it is what customers want. You are "upside down" or "backwards" or "in the water" for the first 4-5 years of an 84 month finance generally speaking.

I would suggest not taking an extended loan (past 60 months) unless you're planning on paying it down much faster and simply going for a lower payment because of job stability concerns.

That is the best advice I can give you.
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Old 10-26-2009, 08:46 AM   #3
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Thank You for the response.

^ I agree. I am not too keen to get it now because it would be parked over the winter. Also buying it in March would give me some room to be able to pay it in full. Going back to how much you can put down, I doubt they would allow anything under 20%. You can see when you enter the showroom, they have a sheet of what they are asking based on rate and interest worked out.
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Old 10-26-2009, 09:10 AM   #4
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You can put down as little as you want depending on what your credit is. The 20% down ensures a low payment, that is the only purpose for that spreadsheet, show you a nice low payment.

Buying this time of year has several advantages, most dealers are getting ready to sit on their M cars all winter I would presume if things out here are anything like they were back in Alberta. If you can beat the hell out of them now, then you're good to go.
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Old 10-26-2009, 09:47 AM   #5
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Yes. I know the chick that went to MB dealer and they wanted 5k down. She walked away and they asked her to return and negotiate. She put nothing down, but that is not what I want. If I end up financing it, I will put at least 50% down. As Going for buying now, it is good time to buy now as well. The economy is not doing well, so they have very attractive rates.
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Old 10-26-2009, 12:59 PM   #6
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FYI too much $$$ down = crappy finance rate (mostly due to how much you're financing, if it gets much below 20K your minimum rate begins creeping up) You'd be better off to put 25%ish down and then pay extra. It's an open loan so you don't pay a penalty past the first 45 days. Any additional payments shorten the term. All you do is call them and mail them a cheque or draft.
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Old 10-27-2009, 06:14 AM   #7
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^ Very well said. That's where I need to sit down with a rep and work out. IMHO , some people are getting as low as 0.09%. If the banks would pay more from the saving account, I may want to reconsider about buying it outwright. I spoke with my insurance agent, and this week will wrap up with bmw sales rep.
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Old 10-27-2009, 08:35 AM   #8
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Realistically if you get 1.9% financing, and worst case scenario is you aren't paying much interest.

Get a good savings account or GIC or whatever and you've got a safe way to pay 1% or less for financing.
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Old 10-31-2009, 04:29 PM   #9
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MorningCruiser, what dealership do you work for?
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Old 10-31-2009, 04:39 PM   #10
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Quote:
Originally Posted by MorningCruiser View Post
Realistically if you get 1.9% financing, and worst case scenario is you aren't paying much interest.

Get a good savings account or GIC or whatever and you've got a safe way to pay 1% or less for financing.
Just came back from the dealer. 2.9% is the best they can do. The 0.09 is for 24 month term on a very few models. So it is like advertisement lure to me.
On top of all that, they interest rate does not get higher if you put larger amount down. I say 2.9 is not bad, but I should pay off the car and not worry.
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Old 10-31-2009, 04:42 PM   #11
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MorningCruiser, what dealership do you work for?
Lol where have you been? I missed you. Listen up you need to snatch the keys from Mark's exotic car fleet. Once you hop in his exotic fleet, you would be a big shot.
You would be eligible to all those 905 materialistic broads. Here you come to test them out in bed.

Cheers for the comeback.
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Old 11-04-2009, 12:45 AM   #12
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Lol where have you been? I missed you. Listen up you need to snatch the keys from Mark's exotic car fleet. Once you hop in his exotic fleet, you would be a big shot.
You would be eligible to all those 905 materialistic broads. Here you come to test them out in bed.

Cheers for the comeback.
yawn, you're more of a bore then ever before. Stop humping Mark's leg please.
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