need guidance on purchase

[Going2S5]

I am going to order a 2011 135i w/ sport package. I think the total came out to $40,xxx. I have $8,000 saved up in cash and am looking to trade in my mint condition 2008 Grand Touring Miata with 25,000 miles. The KBB says the dealer trade-in is worth $15,000. I owe roughly $21,000.

What should I do? Use some of the saved up cash to pay the difference that I owe on the Miata? Ask the dealer to include the difference, but maybe give me more on the trade-in?

They said I would qualify for the loan as long as my monthly payment isnt above like $500 or $600.

[Satalite]

Originally Posted by white night

I am going to order a 2011 135i w/ sport package. I think the total came out to $40,xxx. I have $8,000 saved up in cash and am looking to trade in my mint condition 2008 Grand Touring Miata with 25,000 miles. The KBB says the dealer trade-in is worth $15,000. I owe roughly $21,000.

The dealer does not go specifically off KBB's values. They will usually give you their trade-in price (you can expect 2-4k below stated price). It is a double edge sword, you can only work on one side of the deal (trade-in/invoice). The dealer will NOT give you both ways of leverage for sure.

I would say if you wanted the 135 private sell your Miata for the ~19k PPValue or whatever that may be and get the extra 3-5k cash to pay off the car. You can easily finance the 135 with 5k down and have around 500$ payments per month. Plus you can knock off 1-3k off 40,xxx$ price for negotiation.

Your 8k saved would be minimized to roughly 1-3k after down payment and then you would have between 2-6 payments/months of payment on your new 135i. If you have a steady income to make the 5xx payments or whatever they may be for the lets say 48 months, then go for it!

[coldnate]

8k down with ZERO negative equity on a regular purchase at zero interest =

40000 + 4000 tax

44000-8000

36000 / 60 = 600/month.... it'll be closer to 700 after interest. then add neg equity onto that. you're looking at almost $1,000 payment.

[Focusedintntions]

Originally Posted by coldnate

8k down with ZERO negative equity on a regular purchase at zero interest =

40000 + 4000 tax

44000-8000

36000 / 60 = 600/month.... it'll be closer to 700 after interest. then add neg equity onto that. you're looking at almost $1,000 payment.

4000 tax?!?!? Cali has a 10% sales tax on vehicles?? Check the tax rates in states b/c the tax on my car was only 1300...3% in VA...

[jpd]

You are seriously upside down. The most prudent thing to do is continue to pay off the Miata. The KBB as well as other online estimates are usually inaccurate. Take it to a used car lot and have it appraised by them. They will more than likely give you a wholesale price which is what BMW will give you. You may be shocked and feel like you have been taken advantaged of. Such is the used vehicle business. Sell outright on a private sale will help somewhat but the amount you owe is a real hinderance. You can't avoid the sale tax. If you buy in Oregon for example when you register the car in California you will pay the tax at whatever the rate is in Cali.

[allanak]

Sounds like you want a new car every few years anyway considering you're dumping an 08 Have you considered leasing? Sell your car private party, use your down payment money as MSDs instead and you can probably get a 135i with sport package for pretty close to 400/mo and then get a new car again 3 years down the road.

[Ty Vil]

You need to lease...

[Going2S5]

Originally Posted by Ty Vil

You need to lease...

nope, it was actually about $200 less a month to buy, which we have done.