[Hyper psi-atic]

Hey guys.
I've been shopping around for my 2009 335i Coupe for some time and wanted to get an opinion on the most recent deal I've been offered:

Car:
2009 AW/Corel Red 335i Coupe in Manual
M Sport, Premium, Nav, Comfort, Logic 7, Sat Radio, Heated Seats.


Background: I usually Lease my cars as I only hold onto my cars for 3 years and want to stay within Warranty. A friend of mine works as a CA for BMW and we went over current deals. Apparantly BMW took a huge hit recently from an increase in Leases in 2006, so now that the 36 month Leases are up like mine, they are not offering aggresive Lease offers. Without negotiation we talked about a starting point of $740/month. This was with a sample Cap Cost of $51K after 2500 down, .00210, 59% resid, and taxes etc. rolled into payments. I said they're crazy and wanted closer to $500 flat.

He brought up this Select Financing as I am a return "owner loyalty" customer with good credit.

$2500 down
Sample Price of $51K
0.9% Interest
Balloon Finance for 60 Months at $570/month
At the end of 60 months I will still owe $17K which i can then finance or pay outright.

My thinking is that, okay I take the Select Financing Plan after I negotiate the car price down to about $49K (close to invoice) then pay the 2500 down, pay the $570/month for about 36 months until I want something new, and sell the car privately for close to what my buyout would be, and then Im free and clear from BMWFS and paid a lot lower than I was offered with a Lease, PLUS have the option of keeping the car if I take it to 60 months and buy it out, or maybe I pay down the balloon payment while paying the $570 if I find my financial situation allows me do so.

Please advise if you have heard of this idea??

Thanks in advance for the help !

[BMW F22]

You have to add up all the numbers because sure you could negotiate $49k + tax but your monthly payments and/or your balloon payment at the end could add up to over $49k + tax. Your plan sounds okay to me though.

[VTECaddict]

if i'm calculating right, you would owe about $30600 on the car at 36 months, without factoring in interest. highly unlikely you can sell a 3 year old car for that.

decked out CPO 06 330i's are around $30k asking price right now. private sellers are closer to $23k ish.

assuming you can sell the car after 36 months for $24k privately, and you eat the rest of the difference to pay off the loan, the math comes out about the same as a 36mo lease at $740.

[jpx2610]

I struggled with the same issue when I was looking to get my next BMW. I have been leasing cars for the last six years. I want to own my car and have it paid off so I don't have a car payment anymore. I don't like the feeling of not owning it after spending so much money on it. It made sense six years ago, but now I am older and more settled.

First of all, I have seen many many people get $500 over invoice. I would shoot for that. You should get it with no problem. My advice is start negotiating with that figure.

I am going to go with the Select financing because the monthly payment will be about $100 less than what I am paying with my current lease.

That with the 0.9 percent financing the car is a steal.

I also figured after the five years, I can always sell the car and use the profit to pay off the balloon payment. The balloon payment is based on driving the car for 15K miles a year. I only drive it 10K a year.

good luck.

JP

[Hyper psi-atic]

Thank guys for the valued suggestions!

I realize that this basically sums up to the same as Leasing for 36 months if I sell the car after 3 years provided I have stored away the extra $170/month in a savings account or something to buffer taking a hit on not selling for the buyout at 36 months.