Should I buy?

banggooooo · 11-30-2007, 05:14 PM

I am contemplating on getting a new 3 series but I am still in a lease which ends in April 2008. Do I wait 2 months before my current lease ends to order the vehicle at 7% interest? Or do I order the vehicle now and pay two car payments over the span of 2 months and get the 4.9% financing interest.

carchrism5 · 11-30-2007, 07:59 PM

Correct me if i'm wrong but if you buy it before the end of the year you have to pay taxes on it for an extra year and that may offset the interest rate difference, can't you finance elsewhere for less than 7% next year, i dunno about your credit or bank and whatnot though so you should consider that too.
Again, i could be wrong but its just my 2 cents

MAZNG · 12-01-2007, 02:38 AM

Your state requires to pay the tax for the entire year for a leased car? WOW - RIP OFF! A leased car is basically a rental and therefore should only require sales tax for the period it is used (typically, on a monthly basis). I like Florida more and more every day

John 070 · 12-01-2007, 06:04 AM

7% interest is not good, try your credit union, if not 4.9% then should be in the mid 5's.

Doubling-up on payments is a total waste--it's like renting an apartment and not living it in for 2 mos. The waste of those payments should negate any interest savings. If anything, do without a payment for one month rather than pay double for 2 mos....my .02.

FaintReality · 12-01-2007, 06:40 AM

My credit union offers up to 84 month loans at 5.74% interest. How do you even know what the interest rates will be 2 months from now?

John 070 · 12-01-2007, 07:53 AM

Quote:

Originally Posted by FaintReality

My credit union offers up to 84 month loans at 5.74% interest. How do you even know what the interest rates will be 2 months from now?

Not sure if you're serious, or being funny? Of course one never knows, but Bernanke was implying yesterday a rate cut on Dec. 11., and some are speculating more than 1/4%. That may or may not affect a car loan, but the trend is down. 84 mos. is a little too long imho, though I don't have a problem with 60. The bottom line is I like to have a payment absolutely no more than $500/mo. Even if I were financing a 599GTB, $500/mo. My reasoning on the 60 mos. is that a car can easily last 10 years, so if I finance over 5, I made payments for 1/2 of its life or less.

FaintReality · 12-01-2007, 03:47 PM

Quote:

Originally Posted by John 070

Not sure if you're serious, or being funny? Of course one never knows, but Bernanke was implying yesterday a rate cut on Dec. 11., and some are speculating more than 1/4%. That may or may not affect a car loan, but the trend is down. 84 mos. is a little too long imho, though I don't have a problem with 60. The bottom line is I like to have a payment absolutely no more than $500/mo. Even if I were financing a 599GTB, $500/mo. My reasoning on the 60 mos. is that a car can easily last 10 years, so if I finance over 5, I made payments for 1/2 of its life or less.

Just pointing out that 7% is steep, if you can get an 84 month car loan for 5.74%...

As for the interest rate drop, thats good to hear. I was unaware of this, in which my car will be here on the 15th and I am going to go apply for my loan this monday!

11-30-2007, 05:14 PM	#1
banggooooo Prodigal euro car fanatic returning 3 Rep 76 Posts Drives: 08' 335XI Join Date: Nov 2007 Location: Dirty Jersey iTrader: (0)	Should I buy? I am contemplating on getting a new 3 series but I am still in a lease which ends in April 2008. Do I wait 2 months before my current lease ends to order the vehicle at 7% interest? Or do I order the vehicle now and pay two car payments over the span of 2 months and get the 4.9% financing interest.
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11-30-2007, 07:59 PM	#2
carchrism5 Lieutenant Colonel 336 Rep 1,589 Posts Drives: M2, X3 M40i, 911 Join Date: Jun 2007 Location: NC iTrader: (3)	Correct me if i'm wrong but if you buy it before the end of the year you have to pay taxes on it for an extra year and that may offset the interest rate difference, can't you finance elsewhere for less than 7% next year, i dunno about your credit or bank and whatnot though so you should consider that too. Again, i could be wrong but its just my 2 cents
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12-01-2007, 02:38 AM	#3
MAZNG I found Jesus...He was Hiding behiind my Sofa 69 Rep 957 Posts Drives: '15 MW F82 Join Date: Jun 2006 Location: SoFla iTrader: (14)	Your state requires to pay the tax for the entire year for a leased car? WOW - RIP OFF! A leased car is basically a rental and therefore should only require sales tax for the period it is used (typically, on a monthly basis). I like Florida more and more every day __________________ ///M South Car Club on Facebook
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12-01-2007, 06:04 AM	#4
John 070 Lieutenant General 1705 Rep 14,829 Posts Drives: 335i cpe Join Date: Oct 2006 Location: ZSP/ZPP/ZCW iTrader: (0)	7% interest is not good, try your credit union, if not 4.9% then should be in the mid 5's. Doubling-up on payments is a total waste--it's like renting an apartment and not living it in for 2 mos. The waste of those payments should negate any interest savings. If anything, do without a payment for one month rather than pay double for 2 mos....my .02.
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12-01-2007, 06:40 AM	#5
FaintReality NoUSE4aName 18 Rep 359 Posts Drives: 07 BMW 550i Join Date: Sep 2007 Location: SoCal iTrader: (0)	My credit union offers up to 84 month loans at 5.74% interest. How do you even know what the interest rates will be 2 months from now?
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