Need Advice

[Maui Boy]

I would like to get into a 328 lease because it would be a more practical car for me and I need to get lower payments.

The problem is I am currently upside down on Year 2 of a 5 year loan on my 08 128i with 34,000 miles. I owe approx. $23,000. Looking at the amortization schedule on this vehicle, I could still be in bad shape this time next year with my odometer close to 50,000 miles by then.

If I sell or trade-in now I might be off by 3 or 4,000 dollars, if I’m lucky. I’m worried that a year or two from now my 128 won’t retain it's value and be out of the warranty/maintenance coverage. Should I just hang on to it, or try to move now?

[ptack]

Get a better job? Cut your expenses elsewhere?
Hate to see you giving up your 1.

[Kamal]

Once you're upside down, you're pretty much always going to be upside down. Keep it and enjoy it! Getting into a 328i, lease or no lease, is not going to help anything!

[Rawhide]

Originally Posted by Kamal

Once you're upside down, you're pretty much always going to be upside down. Keep it and enjoy it! Getting into a 328i, lease or no lease, is not going to help anything!

Agreed. The best thing you can do really is stick with what you've got. Check again in another 1.5 years or so.

[Cy3]

Op I was in the same boat as you; bought used last year and was upside down on a 4 year old car ('06 E90). Figured by the time id be in any shape to trade in again the car would be 8 years old with 100k on the clock and waaay out of warranty. To get off the negative equity train and peace of mind with warranty I leased a bare bones 128. My payments are a little bit less, not by much, but the negative equity was my main concern.

If you can, scrounge up some extra change to offset some or all of the negative equity that'd be the best bet. If not start overpaying your note being sure to apply the extra to principal, you'd be surprised how many months that shaves off the back end.

[UdubBadger]

You ever think of leasing BMW Executive driven cars? most come with 2000-10000 miles on them already, heavily discounted though. Easily knock off $100-150 on payments depending on what you get. PM me if you're interested in learning more and I'll put you in touch with my guy who does a lot in this field. He's in Cincy but it's worth a drive, he can deliver the car to you or you can pick it up and drive it home, they'll get you from the airport.

[RPM90]

Originally Posted by Maui Boy

I would like to get into a 328 lease because it would be a more practical car for me and I need to get lower payments.

The problem is I am currently upside down on Year 2 of a 5 year loan on my 08 128i with 34,000 miles. I owe approx. $23,000. Looking at the amortization schedule on this vehicle, I could still be in bad shape this time next year with my odometer close to 50,000 miles by then.

If I sell or trade-in now I might be off by 3 or 4,000 dollars, if I’m lucky. I’m worried that a year or two from now my 128 won’t retain it's value and be out of the warranty/maintenance coverage. Should I just hang on to it, or try to move now?

Ouch. Tough one.

How much can you get in a private sale?
That would be your best bet. Do NOT do a trade.

For lower payments, have you tried a refinance?
I don't know what you have now, but if your credit wasn't so good when you bought, 2 years of solid payments would improve your score and you might qualify for a lower interest rate. If so, refinancing a car is super simple.

Also, given the miles you drive, a lease may not be the best option.
Generally, if you drive beyond 15K per year, the extra mileage cost could kill any lower payment incentive you think you might get.
3 years of average miles is typically where there is a better "break even" point for good resale compared to what's owed. The biggest depreciation happens within those years, the first 2 being the worst.

That's why 3 year leases are so popular. If you can limit your miles for the next year, a private sale might be worth it and you may not be upside down given how much you'll pay in payments vs how much more depreciation will occur in the 3rd year.

Do you really need the extra rear seat space of the 3?
It's a fine automobile, but all you're getting is a larger rear seat area.