320D a/t (E90) need to know the value

[Sabretooth tiger]

I have a story that should make you feel better.

A ex buddy of mine traded his Polo Tdi in on a MG ZT 180 years ago.
He loaded the difference of the polo he had for less than a year, MG went bust and he had a HUGE balloon payment.
The car ended up standing with cobwebs all around it, and grass growing through the wheels, while his GF bought a Fiesta for them to use. Took him like 8 years to get out of the ordeal. He now drives a Q5. Don't know if he took a balloon again.

 

[SharnThoR]

I have a story that should make you feel better.

A ex buddy of mine traded his Polo Tdi in on a MG ZT 180 years ago.
He loaded the difference of the polo he had for less than a year, MG went bust and he had a HUGE balloon payment.
The car ended up standing with cobwebs all around it, and grass growing through the wheels, while his GF bought a Fiesta for them to use. Took him like 8 years to get out of the ordeal. He now drives a Q5. Don't know if he took a balloon again.

WAHAHAHAHAHAHAHAHAHA!!! So, we all make mistakes then

No more balloon...that is 100% for certain

 

[AshG108]

Dude, honestly i feel your pain but i rather keep the BMW for now (much better than any GWM) & drive it into the ground. pay a few extra bucks monthly into the car and break it even earlier...the 320d is a fortunate car that can be kept so you not so badly burnt (excl. the financial side of it).

give it a thought bro...I drove my motorplan out of my 2010 model within 18 months of purchase (within the 4th year) and also in the same boat with the value being pretty low because of high mileage so im just keeping the car and driving it for longer till i can trade it on a decent deal for something else decent.

Good luck with which ever way you choose to go bud

 

[Sabretooth tiger]

Ash has a very good point there, paying in extra will also reduce your capital, meaning a lower residual value.

 

[sash]

Hectic situation to be in, but a GWM ....., really..., highly doubt that you would get similar consumption. Why a 4X4 or such a big vehicle?

I would what Ash is suggesting, load your payments from now till your residual is due.

Maybe the other guys might be able to let me know if the suggestion is worth it or not? What if you refinance the remainder and keep your payments roughly the same? Yes you end up paying longer for a car and yes you will be paying more than R330k for the car but the main issue is the fact that you dont or might not have the capital for the residual when the time comes.

 

[SharnThoR]

Hectic situation to be in, but a GWM ....., really..., highly doubt that you would get similar consumption. Why a 4X4 or such a big vehicle?

I would what Ash is suggesting, load your payments from now till your residual is due.

Maybe the other guys might be able to let me know if the suggestion is worth it or not? What if you refinance the remainder and keep your payments roughly the same? Yes you end up paying longer for a car and yes you will be paying more than R330k for the car but the main issue is the fact that you dont or might not have the capital for the residual when the time comes.

Well, when I took on the BMW, I drove a long distance regularly and paid my on fuel etc.

Now though, my company pays my fuel so I'm not worried about fuel consumption so badly.

The problem that I have with keeping the BMW is that it costs so much to maintain... My last service was R10k, it did include break pads though, but hell!!! That's twice my monthly installment!!!

I also can't afford the higher repayment right now as we're busy buying a house and that takes priority above the vehicle. I'm also leaning more towards the GWM 4x4 because we like the outdoors and that's the best value for what you pay on a vehicle like that.

I can refinance the vehicle, but that'll be much worse than what I'm on now...
1. I'll get around 11% interest rate, currently 6.25%
2. I'll only start repaying the real finance cost from year 2. This still with no motor plan etc.
3. No motor plan!!! Maintenance on the BMW is just way too much.

I never planned on driving the car for this long, but things happen unfortunately.

 

[Sabretooth tiger]

I just heard that BMW finance actually does deals with up to 45% balloons :slow:

 

[SharnThoR]

I just heard that BMW finance actually does deals with up to 45% balloons :slow:

That's correct. They nearly got me into that one...

 

[Sabretooth tiger]

I just heard that BMW finance actually does deals with up to 45% balloons :slow:

That's correct. They nearly got me into that one...

That's nearly half the car's value. It is reckless in my book, on both BMW Finance and who ever falls for that.
You will never break even.

 

[SharnThoR]

I just heard that BMW finance actually does deals with up to 45% balloons :slow:

That's correct. They nearly got me into that one...

That's nearly half the car's value. It is reckless in my book, on both BMW Finance and who ever falls for that.
You will never break even.

Agreed... Although, admittedly, I do think that credit regulators and finance companies should re-consider the way they do things. This is actually just getting out of hand.

In fact, it's simple... For that kind of balloon payments, you can't afford the vehicle. FULL STOP

 

[Lizzard]

Not being the bearer of sad news, but my X went through this a few years ago, where we paid the car off and then on the last month that balloon payment came (well though only R35000, but still) and we tried to arrange second finance for the vehicle but the bank just blatantly said NO, we have to pay the R35K before or on the day (was a Friday if I remember correctly) otherwise we must give in the keys and the car (they even sent us the location where this had to happen), so we managed to arrange the R35K on the Friday morning and paid the car off. We almost lost this car due to this stupid balloon thing, but hey so we all learn. They also said that the car will be sold on auction and we will be liable for the remainder of the outstanding money. :RedNo:

SharnThoR, hope they changed their policy as we had issues with them refinancing the vehicle for a 2nd term, they didn't bite :blueCry:

 

[Sabretooth tiger]

I know of 2 people who financed the balloon when it became payable. Dont know if there is a finance period though. Think its probably like 12 months, speaking under correction.

 

[SharnThoR]

Not being the bearer of sad news, but my X went through this a few years ago, where we paid the car off and then on the last month that balloon payment came (well though only R35000, but still) and we tried to arrange second finance for the vehicle but the bank just blatantly said NO, we have to pay the R35K before or on the day (was a Friday if I remember correctly) otherwise we must give in the keys and the car (they even sent us the location where this had to happen), so we managed to arrange the R35K on the Friday morning and paid the car off. We almost lost this car due to this stupid balloon thing, but hey so we all learn. They also said that the car will be sold on auction and we will be liable for the remainder of the outstanding money. :RedNo:

SharnThoR, hope they changed their policy as we had issues with them refinancing the vehicle for a 2nd term, they didn't bite :blueCry:

Yeah, the biggest problem is that institutes doesn't want to finance a vehicle older than 5 years...generally speaking.

So I think I'm going to have a problem with my BMW also :blueCry::blueCry:

 

[sash]

Hectic situation to be in, but a GWM ....., really..., highly doubt that you would get similar consumption. Why a 4X4 or such a big vehicle?

I would what Ash is suggesting, load your payments from now till your residual is due.

Maybe the other guys might be able to let me know if the suggestion is worth it or not? What if you refinance the remainder and keep your payments roughly the same? Yes you end up paying longer for a car and yes you will be paying more than R330k for the car but the main issue is the fact that you dont or might not have the capital for the residual when the time comes.

Well, when I took on the BMW, I drove a long distance regularly and paid my on fuel etc.

Now though, my company pays my fuel so I'm not worried about fuel consumption so badly.

The problem that I have with keeping the BMW is that it costs so much to maintain... My last service was R10k, it did include break pads though, but hell!!! That's twice my monthly installment!!!

I also can't afford the higher repayment right now as we're busy buying a house and that takes priority above the vehicle. I'm also leaning more towards the GWM 4x4 because we like the outdoors and that's the best value for what you pay on a vehicle like that.

I can refinance the vehicle, but that'll be much worse than what I'm on now...
1. I'll get around 11% interest rate, currently 6.25%
2. I'll only start repaying the real finance cost from year 2. This still with no motor plan etc.
3. No motor plan!!! Maintenance on the BMW is just way too much.

I never planned on driving the car for this long, but things happen unfortunately.

Based on the above..., you have no good options.., just bad. If loading up the deal on the GWM after you trade puts you in the same place in terms of payments.., then do it is probably the best option.

While i see that you arent paying for fuel now, but is that also not a bit of shortsightedness in that there is no guarantee that your company might be paying for fuel by the end of the term, or you might not even be working at the same company. Thats just my perspective though.

 

[SharnThoR]

Based on the above..., you have no good options.., just bad. If loading up the deal on the GWM after you trade puts you in the same place in terms of payments.., then do it is probably the best option.

While i see that you arent paying for fuel now, but is that also not a bit of shortsightedness in that there is no guarantee that your company might be paying for fuel by the end of the term, or you might not even be working at the same company. Thats just my perspective though.

True that... Well, the GWM is the only potential deal that can keep me at the same installments - that's also now without Residual though whereas I'm currently into a res value. Everything else fails miserably... Even BMW directly, my next vehicle through BMW would put me at around R8k p/m with R70k loaded!!! So, BMW is unfortunately not the next step.

I'll have to keep working on this...

Thanks again everyone!

 

[Sabretooth tiger]

If the GWM allows you to get out of the BMW, without going over the retail price of the GWM (the banks will pick up on it, and ask for basically the overload as a deposit), allowing you to keep to the same installment, and where you can basically pay the GWM off in 5 years, then go for it.
So you basically need a BIG discount from GWM to allow for this. Your best bet would probably be a demo model, it will have more meat in it than a new or second hand model.
You wont be able to trade the GWM in before 36 months has passed, as you wont get a good trade in value. So pay it off, keep it, and write the residual issue off as school fees.

 

[WIDEOPN-X5]

If you think you have a problem with value dropping on a BMW mate, then you're in for a rude surprise on the GWM. The value on that vehicle will drop like a Pucto bus down a mine shaft with a tailwind!!!:skit:

Keep the BMW, look after it properly, service it with a good indy or the dealer and when the time comes to do the residual you can maybe still find a similar deal with to get you out of the BMW.

Or refinance the residual over 24 months because I may be wrong here but there is a point at which a vehicle like a BMW simply doesn't drop further. If anything it starts to "rise" but only because the new car prices are so high and of course inflation reeking havoc!

Perhaps also consider a Fortuner / Hilux (current model) over a GWM. There's a new Hilux coming early next year with the Fortuner following not long after. expect soem sweet deals towards the end of the life cycle of the current models:=):

 

[TurboLlew]

You need to pay the same installment for another year and then come up with the residual value. You can save towards this every month or refinance for 12 months next year IMHO. That is 1-2 years of 'pain'. Why on earth would you want to spend all that money on a GWM? Same installment as your BMW but for another 5 years and at a far higher rate? It isn't BMW finance that is going to be making more money out of that deal... At the end of those 5 years you will own a car worth what? MAYBE R50K IF it hasn't fallen apart and you can find someone to take if off your hands. The world is not in a great space at the moment and harder times are yet to come. I'd focus on the situation that leads to the quickest exit from anything linked to an interest rate. On that basis, what you are proposing doesn't make much sense to me, unless you are dead set on getting an SUV type vehicle at any cost. You can start paying that extra money into your house when the car is paid up and still have money left over for maintenance.

If bill-shock has brought this on, bear in mind you aren't replacing brakes at every service and budgeting now for servicing will save you paying R5K x 54months on a GWM. You need to define what you consider 'expensive to maintain' for yourself and make sure you are not going from a relatively reliable car to one that can be fixed cheaply but requires numerous fixes... You also need to look at independent workshops. Tune Tech helped me assess realistic maintenance costs out of plan when I was looking for a V10 M5. Use that as a start.

Nothing modern is going to be really "cheap" to maintain in absolute terms. I wouldn't believe the dealerships estimates from GWM if you have been given an outline. Do THOROUGH research into this first before you go out of the fryingpan and into the fire. I was at McLaren earlier this week and the estimate I got for maintenance out of plan was around R10-12K a year, which deep down you want to believe but you know is probably a crock... Point is, we are told what the salesperson thinks we want to hear... It is our own fault if we don't do the necessary due diligence.

Residual deals can work for guys who understand them or use them to their advantage (to secure a lower rate and then rapidly pay off the res as an example). These posts often vilify the dealerships, but I have yet to have a finance person NOT try to explain in graphic detail what the payments, rates etc are around a deal and I've yet to sign the first proposed deal from them either. Maybe I've just been lucky. That said, the abuse does happen but at the same time these deals are not new and the pitfalls are just a google search away. These new GFV deals are worse IMO and there are many many many poor people that are going to be caught out by impossibly good installments linked to impossibly high future value and impossible to meet criteria...

 

[SharnThoR]

Okay everyone... reality set in over this weekend...

1. GWM lowballed me... They are offering me R100k, just "because the car is clean", but they actually wanted to offer me R90k. That's R80k below my current value.
2. GWM has a special on their vehicles, normal H6 for instance is R80k drop in price. So that would've worked...but not at the loss mentioned above.
3. I've read up a little bit on the services of my E90 and I came to the conclusion that I'll be doing the oil changes and smaller services myself from now on. I've never worked on a car before, other than changing the headlamps on the BMW, but I think this is a good time to learn.

What I want to know now though... where the hell can I get OEM parts as BMW is charging me R550 for ONE headlight... WTF? Either way, I'd prefer to have original parts in my BMW than imported stuff that might fail sooner rather than later.

Thanks again for everyone's help!

P.S chances are, I'll just complete my finance with BMW, then refinance the RES value. If I do come across some extra cash, I'll forward all of it into the finance of my BMW.

 

[tman]

In your situation I think you are very lucky that the e90 320d is relatively problem free. Imagine being stuck with a POS problematic car...

Although I haven't don't the services myself, as I understand it's not too hard. Air filter, fuel filter, diesel filter (all original BMW) and 5.5l oil will set you back R2100



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