F30 320i for R4799 p/m - Sales invite from BMW!!

[petrivanzyl]

All this debate is pointless really:rollsmile:

If you want it (and can afford it) GET IT!:thumbs:

 

[dvst8]

but no DVST8..

so say after the 48 months.. person A who has bought to own keeps the car.. he pays basic maintenance on the car with little depreciation..

and person B muststill pay off R200 000 to keep the car..

so person A has R200 000 over person B in terms of cash lying around to spend on say a timeshare or sumthing else.

If you are buying to keep the car an installment sale with no residual is a better option. The rental/ lease option is when you dont want to keep the car after the term. Instead u take another new car.

If you on a car allowance and claim back business kms, its the best option as :

1. You can claim for a much higher value car than what u paying for
2. Maintenance costs reduced due to always having a car on maintenance plan (maintenance costs are included in the rate per km even though u have a mp)
3. Drive a new car more often

If you not on a car allowance it may still be a good option if you wanna drive a new car more often.

Remeber on a lease/rental you dont hav to pay or re-finance the residual amount.

 

[CocoPops]

ah didnt know u were making a case for car allowance.. yeas for car allowance purposes makes sense.. to just pay and pay and pay out of ure own pocket seems a bit stupid to me.. but i suppose kkeeping up with the joneses is important to many!

 

[frikkieh]

All this debate is pointless really:rollsmile:

If you want it (and can afford it) GET IT!:thumbs:

The thing is, you have to have a car, so you get the best one you can afford. If a Hyundai had all the features, built quality and safety the BMW has, I would rather drive that at a fraction of the cost.

 

[petrivanzyl]

The thing is, you have to have a car, so you get the best one you can afford. If a Hyundai had all the features, built quality and safety the BMW has, I would rather drive that at a fraction of the cost.

IF a Hyuandai had all the features, built quality, safety and driving experience the BMW has, I would not be a fraction of the cost:idea:

 

[frikkieh]

but no DVST8..

so say after the 48 months.. person A who has bought to own keeps the car.. he pays basic maintenance on the car with little depreciation..

and person B muststill pay off R200 000 to keep the car..

so person A has R200 000 over person B in terms of cash lying around to spend on say a timeshare or sumthing else.

:+1:

Please help me understand this as many other people that I speak to have the same principle that you have.
I bought to own. 6 year old base model 325i e90, almost out of motorplan.
I paid 60k deposit - total cost R192k. Monthly payment R2602 over 74 months. I plan to pay in more to pay it off sooner. I also paid R8 500 to extend the motorplan (thankfully I did - thank you Coisman).

Two months after the deal I wanted to trade it in (my midlife crisis called, I guess :thinking: ) and was offered 120k at a BMW dealership. :nonono: A big :nonono:

So I advertised it on GUM for R165 000. Not a single call.

I made the above scenario to understand the TCO and to illustrate, that it is not easy get your money back if you want to trade immediately again.
I also need to understand how the newer cars will be cheaper, because after I paid off my 74 months, I still own an "depreciable asset", if you can call it that, and I should get say R70 000 - R80 000 for it.

So in total I would have paid: R2602*74 = R200 244 + R60 000 +R 8500 = R268 744. If the interest rates remain the same.
Get this, It will get out of motor plan and maintenance can be high, since it is a BMW. So let's assume that maintenance cost is R 70 000, tyres etc included.
And I sell it for R70 000 in that time. Then TCO is still R268 744...
So if you get a new model every two years, what would your TCO be?
Year - 1&2 : F30 320i @ 4799 / m - R115 176
Year - 3&4 : F30 320i update @ 5183 / m - 124 392
Year - 4&5 : F30 320i FL @ 5597 / m - 134 343
Total paid: R 373 911
And with maintenance you pay nothing. Not even the tyres wear off every two years.

Assuming interest rates remain the same (highly unlikely) and the car price increase with 8% every two years.

That is more than 100k more than what I paid for my 325i. And you have a 320i At the end of the day I can choose to keep it and pay nothing but maintenance on my reliable BMW.

Many others have said what you did and I cannot get it, please help me understand this concept. Especially if I keep it for at least 5 years after I paid it off and I save the R2 602 / m that I currently pay for a deposit on my next 3-series.

Can anyone with financial experience in this please help me out here.

 

[zaleonardz]

The other thing that you guys need to consider is this.

Age, model and miledge...

A cars value is determined by the above, nothing more nothing less.

a BMW 3 series will trade about 40 to 60k below trade, thats what you will be offered for it.. finished.

a 5 series is about 50 to 80k under book

a 7 can be as much as 100 to 200k under trade value

So if you want an investment, you need to buy the right car with those figures in mind.

Example

BMW 2007 with 85 on the clock, with trade and retail of lets say 230 and 265 works out like this...

85/5 = about 17,000 a year, which is average, if its more then that, you pay LESS... finished

So if the miledge is right, you need to pay about 185 to 190 for this car, with no residual.

This is then an investment, you would be able to resell the car fairly easily.

If you go and finance 265 on this car, your a moron, and even more so if you go and take a residual out on it...

Also, you DONT pay for extra's, because you will not be paid back for them. but dont let the dealer talk you into the car is sat nav, dvd, comfort seats, vibrating ball holder bla bla bla, so he wants a 50k premium on the car on extra's that was originally 100k. you will NOT get this money back...

A new car, well thats a differant ball game, and in my view, the only time you buy a brand new car is when you a have a car allowance, your using the vehicle as a tax write off, you are doing the miledge under working conditions to warrant it.

 

[dvst8]

@ frikkieh - I get what you saying and again I say if you buying a car and planning on keeping it for longer than the finance term or if you buying a second hand car, straight finance with no residual is not the best but the only option.

The point I'm trying illustrate is that if you want to drive a new car every few years or you on a car allowance, the lease/rental option is the best option. As you pointed out, trying to sell a car and getting anywhere near what you paid for it after a short while is not worth it unless you on a Lease/rental agreement, then the risk does not fall on you. Depending on your annual milage you can take up to 45% as a residual that wont be liable for when the term is over, you simply hand the car in and get a new one, and you were paying a lower premuim for the car.

Again, the lease/rental option IS NOT FOR KEEPING the car, the worst thing you could do is keep the car for longer than the term and re-finance the balloon amount. The idea is to give the car back and get a new one.

Yes you would be driving a 325 and the other guy driving a 320i, but the 325 is and old model, old spec and old tech while the 320i is the latest model, latest spec and latest tech. 325 will have no plan while the 320i will. If you use the vehicle for business, on the 325 you claiming on a value of 192k and on the 320i you claiming on a value of twice that. The 325 breaks, you ou of pocket, the 320i breaks you have motorplan, before its out you get a new one.

:thumbs:

 

[frikkieh]

@petrivanzyl - you are probably right, about the driving experience in general.

@dvst8, I understand the concept of keeping it new, however having the latest and greatest comes at a cost.
I would agree if it came with the same price tag, but I believe that it still costs far more than paying to own.
I agree with the re-finance of a balloon payment is eating into your ability to make the next acquisition.
On the maintenance cost side, it is a chance that is taken in terms if breakdowns. Servicing the standard stuff like oil, filters and brakes is not that high iro cost, especially if you know BMWfanatics I personality think BMW charges outrageous prices for parts and services to discourage my behaviour...which I call the DIY behaviour

 

[Coisman]

imp:
So as many of you know, I think I will keep my E46 for now, and see what bmw offers me with the re-finance on my baloon payment.
When I spoke to them in February, they told me I will have the option of 6, 12, 18 or 24 months, dpending on what I think I can afford.
Now the issue will be at what interest rate will they be re-financing??
At the moment I am paying +/- R2800p/m, at 8,3% interest rate. Now They are willing to give me R90k on a trade in, and my settlement will be R62k, so that leaves about R30k for a trade in deposit.
I guess it will have to see in June what happens, and then make my decision... :thinking:

 

[dvst8]

:floggin:

 

[Nic_s]

If I were in Coisman's position I would not trade in my very well specced E46 for a base F30. I looked at a F30 320d on the showroom floor and it didn't have electric seats which I thought would have been standard by now. The E46 is actually still a very modern car when you think about it.

Here's what I do:
I look at what I got and then look at what I would gain with the new car. After that it's about deciding whether the gains are worth it or not. :dunno:

 

[Coisman]

imp:
Nic, BMW actually called me now, and said they see my baloon payment is due in 2 months time.
They are going to send me all the paperwork so I can re-finance it... I think maybe it was asign, that just this morning I was talking about goingthat route, and now BMW calls me... :rollsmile:

 

[Diabolik]

Did some calcs and you've only paid HALF the vehicle value after 4.5 years. The future value buyback amount will just cover the amount that you owe. If you want to rent a car then go for it but I don't think its worth it. Also, that 80000kms is something to watch out, they're looking at selling the car in motorplan after the 4.5 years.

 

[frikkieh]

:floggin:

Agreed to disagree then ? :thumbs:

 

[herr bmw]

yep 80000km over 54 months isnt good,i drive 35000km in a year,so the only way to buy this car was if the wife drove it,and her navara has got more featuries in than the base 320i.

wolud it not be better then to look at a 1series?

@coiaman,to be left with R30000 afterwards isnt good,unless you put it down on a second hand e90.

keep the e46,you eldist will one day be needing a car,so she can have mom's honda,wife your bm and then after putting away the 2800 per month for the next 5 years,you should have a good deposit for anouther bm

 

[dvst8]

:floggin:

Agreed to disagree then ? :thumbs:

For sure !