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

[J1gga]

imp:
So to sum up...
I am an idiot if I finance a 320i on this deal.
I am an idiot if I sell my E46 on this deal.
I am an idiot if I wax my scrotum... :mmm:... Never mind that one... :mmm:

:roflol::roflol::roflol::roflol:

Not at all :biglol::biglol::biglol:

Not at all what??? the 320i deal, the E46 deal, or the scrotum part... :mmm:

On All, it boils down to personal preference :dunno:

 

[Coisman]

imp:
So if its my "personal preference" to shave my scrotum, nobody will mind?? :dunno:

 

[pimpassdaddy]

Here's some interesting points...

http://mybroadband.co.za/vb/archive/index.php/t-194657.html

 

[Dippies]

Yes, but not a 320i go for 320d!

Go for the Diesel:thumbs::thumbs::thumbs:

 

[GTB320i]

Rather buy a car valued at R180,000 with zero residual value.

You'll only need half the deposit to start off with.

You will be able to sell the car during the 54 month period because you are actually paying off capital and not mostly interest.

You will own an asset at the end of the term which can be used as a deposit for another car or kept as a payment free vehicle.

R999 is quite high for insurance, you could halve this on a cheaper car if you are old enough and have a good no claim history.

In the current economic climate, I am surprised that debt trap deals like this are not policed by the Credit Act. This deal is only good for BMW.

 

[dvst8]

It has never been a business transaction that anyone can live with comfortably. All it does is stroke your ego, get you ever indebted, and make you poorer in the long run.

Such financing makes no sense, whichever way you look at it.

Why do you think such financing is not available when buying a home? This scheme is only geared at making the bank richer off a depreciating asset.

Also, being a base model 320i, these cars have THE WORST trade in over the years historically. No one wants them.


Sent from my iPhone using Tapatalk

I have to disagree with you dude. It may not always be the case.

Financing a car to own it the worst financial decision you can make, as you pointed its a depreciating asset. It makes more financial sense to to rent or lease.

This is if you on a car allownace and use the car for business. You pay a rental/lease on a lower amount but get he benifit of claiming usage on the full amount. Use the car for the term, ideally 2-3 years and then give it back at no risk and get a newer model. DO NOT RE-FINANCE to keep the car because you then pay much more than you would have if you financed to own.

This is a good deal if you want to buy a 320i that will have the worst trade in value because no one wants them. Again because the risk does not fall on you. The R118k balloon value on the car is NOT your risk but the banks. Even if the car is valued at R50k after your term, that difference is not your responsibility.

If you look at most 1st world markets, most people lease their vehicles new. Very few finance to own. Thats the reason why you can buy second hand cars so much cheaper in the UK and US for example. Small used car market because most people are leasing new.

Its not always about ego but best financial benefit. Ego would be paying an installment you cannot afford.

A house on the other hand will most often appreciate over time and you should finance to own. Rentals are a waste of money on a house.

Hope this makes sense.

:thumbs:

Oh, BTW - also never a deposit on a car. never pump capital into a depreciating asset especially if you not gonna own it.

---

Okay, here is a little excercise

Say you buy a car for 500 000. Here are 2 options, Installment Sale (Finance to own) and a Rental option, taken over 48 months and a rate of 10% just to compare apples with apples.

After the 48 months if you selling, on average the car will be between 30-40% of its value (obviously dependant on the car, can be much lower added with the k@k trade in’s offered), so let’s take 30% which is 150 000.

Instalment Sale
Finance Amount : 500 000
Term : 48 Months
Rate : 10 %
Repayment : 12 681.29
Total Paid : 608 702

608 702 (Total Paid) – 150 000 (value if you sell) = 458 702 (Actual Cost over the Term)

Lease/Rental
Finance Amount : 500 000
Term : 48 Months
Rate : 10 %
Balloon Payment @ 40% : 200 000
Repayment : 9275.44
Total Paid : 445 221.20

445 221 (Actual Cost over the Term)

458 702 (instalment Cost) – 445 221 (rental cost) = 13 481 (savings over the 48 months)

 

[ASH]

Dude you forgeting that with the balloon payment option, after the payment period ends, you would have paid R445 221.20, but still owe
R 200 000.00 so total cost = R 645 221.20

At least on the finance to own option, you will have the free value of the car to play with as a deposit after the finance period has run, but on the balloon payment option you still owe R200 000 after 4years of paying installements.

So costs should read:-

Finance to own - R 458 702.00
Balloon/RV - R 645 221.20

With the ballon payment option you would have to trade-in/give back your car to settle the balloon payment and take a new finance contract on a new car and start a contract again for another period of 48 months or re-finance the outstanding balloon payment. If the the car has depreciated quickly, people find themselves having to paid in a shortfall, and refinace the amount owing as well, as the bank will ask you to do a new contract for the balloon payment. If the car is not worth R200K then the "kak" has hit the fan as they say.

It has never been a business transaction that anyone can live with comfortably. All it does is stroke your ego, get you ever indebted, and make you poorer in the long run.

Such financing makes no sense, whichever way you look at it.

Why do you think such financing is not available when buying a home? This scheme is only geared at making the bank richer off a depreciating asset.

Also, being a base model 320i, these cars have THE WORST trade in over the years historically. No one wants them.


Sent from my iPhone using Tapatalk

I have to disagree with you dude. It may not always be the case.

Financing a car to own it the worst financial decision you can make, as you pointed its a depreciating asset. It makes more financial sense to to rent or lease.

This is if you on a car allownace and use the car for business. You pay a rental/lease on a lower amount but get he benifit of claiming usage on the full amount. Use the car for the term, ideally 2-3 years and then give it back at no risk and get a newer model. DO NOT RE-FINANCE to keep the car because you then pay much more than you would have if you financed to own.

This is a good deal if you want to buy a 320i that will have the worst trade in value because no one wants them. Again because the risk does not fall on you. The R118k balloon value on the car is NOT your risk but the banks. Even if the car is valued at R50k after your term, that difference is not your responsibility.

If you look at most 1st world markets, most people lease their vehicles new. Very few finance to own. Thats the reason why you can buy second hand cars so much cheaper in the UK and US for example. Small used car market because most people are leasing new.

Its not always about ego but best financial benefit. Ego would be paying an installment you cannot afford.

A house on the other hand will most often appreciate over time and you should finance to own. Rentals are a waste of money on a house.

Hope this makes sense.

:thumbs:

Oh, BTW - also never a deposit on a car. never pump capital into a depreciating asset especially if you not gonna own it.

---

Okay, here is a little excercise

Say you buy a car for 500 000. Here are 2 options, Installment Sale (Finance to own) and a Rental option, taken over 48 months and a rate of 10% just to compare apples with apples.

After the 48 months if you selling, on average the car will be between 30-40% of its value (obviously dependant on the car, can be much lower added with the k@k trade in’s offered), so let’s take 30% which is 150 000.

Instalment Sale
Finance Amount : 500 000
Term : 48 Months
Rate : 10 %
Repayment : 12 681.29
Total Paid : 608 702

608 702 (Total Paid) – 150 000 (value if you sell) = 458 702 (Actual Cost over the Term)

Lease/Rental
Finance Amount : 500 000
Term : 48 Months
Rate : 10 %
Balloon Payment @ 40% : 200 000
Repayment : 9275.44
Total Paid : 445 221.20

445 221 (Actual Cost over the Term)

458 702 (instalment Cost) – 445 221 (rental cost) = 13 481 (savings over the 48 months)

---

 

[dvst8]

Dude you forgeting that with the balloon payment option, after the payment period ends, you would have paid R445 221.20, but still owe
R 200 000.00 so total cost = R 645 221.20

At least on the finance to own option, you will have the free value of the car to play with as a deposit after the finance period has run, but on the balloon payment option you still owe R200 000 after 4years of paying installements.

So costs should read:-

Finance to own - R 458 702.00
Balloon/RV - R 645 221.20

With the ballon payment option you would have to trade-in/give back your car to settle the balloon payment and take a new finance contract on a new car and start a contract again for another period of 48 months or re-finance the outstanding balloon payment. If the the car has depreciated quickly, people find themselves having to paid in a shortfall, and refinace the amount owing as well, as the bank will ask you to do a new contract for the balloon payment. If the car is not worth R200K then the "kak" has hit the fan as they say.

I agree on an Installment sale with a balloon payment. With a Rental/Lease option. The risk of the balloon payment does not fall on you. Its a guaranteed buy back of the 200 000.

Therefore I did not add it to the costs of the Rental option as its never your risk. I did add the estimated "Trade In'" value back into the cost of the Installment sale.

:thumbs:

 

[Raybimmer]

R4800 per month and R999 insurance and a cap of 80000 ........BMWSA screwing the public again , IMHO this car with petrol is nearly R7000 a month . How much per month for a used 335i ?

 

[Coisman]

imp:
Guys, some really interesting points and discussions here. :thumb: :ty:

I am sure that even if I decide to go for this deal...or not!! the info and comments posted will even help someone else on the forum, when faced with the same decision. :thumbsup:

 

[J1gga]

imp:
Guys, some really interesting points and discussions here. :thumb: :ty:

I am sure that even if I decide to go for this deal...or not!! the info and comments posted will even help someone else on the forum, when faced with the same decision. :thumbsup:

:thumbs::thumbs::thumbs:

 

[ntuthuko]

hey cois heres a vid to help you decide on what choice to make

 

[frikkieh]

The best car in the road is the one that's paid for.
I am my own mechanic and know places like Goldwagen for spares that has prices that BMW cannot beat most of the time. If I can't fix it myself, I will take it to someone that is experienced and recommended. But most of the time I can fix it.

I recently replaced my e46 gearbox: Paid R4530 labour inclusive, vat inclusive and parts inclusive.
That is less than one car payment, excluding insurance!!!.

I have a modest salary and my wife is with SAPS, so our combined income can't nearly afford those monthly payments.

Cost of living is rising sharply. If there are two interest rate increases and my salary increase is yet again 2.8%, then I cannot see the that paying this amount for a car is such a good deal.

I rather drive my old car than eat two minute noodles the entire month.
I will renew it with another secondhand model which value already depreciated.

 

[Coisman]

hey cois heres a vid to help you decide on what choice to make

...you just made my choice 10,000,000 times more difficult!!! :argh:

 

[herr bmw]

patient,coisman,patient.

when the time is right,you will know

 

[Coisman]

imp:
I had a LLLLOOOONNNGGG discusion with Frikkie today, and I although I have an itching, I am pretty much 100% sure I will keep my baby, pay her off, and then see what happens then. :dunno:

I am however glad I started this thread, because there has been ALLOT of valuable contributions made. :thumb:

 

[herr bmw]

to be honest i would rather put that money into my house bond once mu car is paid off,ill get more money back for the house than the car

 

[Dmonic1]

I heard with a few mods the 320i will deliver almost 328i performance!!!! :rollsmile:

Leasing is the way to go....

Unless you buying a 1M or any car that appreciates buying to own is a total waste IMO!!!

 

[mikecw]

if me,wouldnt do it,because of the financal crises im at the point where i might be retrenched in the next couple or weeks.
and this isnt just happing where i work ,but at a lt of places

Me too, am holding back, also got word of potential retrenchments. :thumbdo:

I'd rather lay low and avoid all the BMW marketing temptations that makes the heart wanting to rule over the head. :inlove:

 

[CocoPops]

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.