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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > New & Preowned BMW Ordering / Pricing / Tracking Information Forum (including European Delivery) > Trade-in on my 335i lease...



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      10-10-2006, 04:50 PM   #1
Russellnyc
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Unhappy Trade-in on my 335i lease...

I know the uselessness of paying a downpament on a lease, and that if I total the car or it gets stolen, my downpayment is lost forever. I assume a trade-in is the same -- it counts against the lease payments, but otherwise it just goes into the ether. I would never consider doing this, and was planning to sell the car on autotrader/ebay/cars.com etc.

But the dealer just appraised my TT and offered me $15.5k (in writing). I paid $20k for this car 3+ years ago before putting on 30k miles. Edmunds says $15k is the dealer retail price, way above the rape-me trade-in number I was expecting. The car has really low mileage (36k on a 2000 MY), I guess that makes it easier for them to sell it at auction or whatever.

The thing is, I owe about 8.5k on the TT, so I'd be putting $7k towards the lease, which would make my payments very low. I can't help but think this is a big waste. The thing is, if I sold the car, in order to get this much money, there are a few things I'd have to fix, and if I trade it in, that headache disappears.

What would you do?
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      10-10-2006, 05:05 PM   #2
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Quote:
Originally Posted by Russellnyc
I know the uselessness of paying a downpament on a lease, and that if I total the car or it gets stolen, my downpayment is lost forever. I assume a trade-in is the same -- it counts against the lease payments, but otherwise it just goes into the ether. I would never consider doing this, and was planning to sell the car on autotrader/ebay/cars.com etc.

But the dealer just appraised my TT and offered me $15.5k (in writing). I paid $20k for this car 3+ years ago before putting on 30k miles. Edmunds says $15k is the dealer retail price, way above the rape-me trade-in number I was expecting. The car has really low mileage (36k on a 2000 MY), I guess that makes it easier for them to sell it at auction or whatever.

The thing is, I owe about 8.5k on the TT, so I'd be putting $7k towards the lease, which would make my payments very low. I can't help but think this is a big waste. The thing is, if I sold the car, in order to get this much money, there are a few things I'd have to fix, and if I trade it in, that headache disappears.

What would you do?
Ask them for a check back.
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      10-10-2006, 05:17 PM   #3
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Yeah, get some "cash back". Pay all your lease fees, first month payment, DMV, etc. and then get the rest of the trade value back in a check. This may take some hard negotiating to do, but if they want to sell you a car and your trade-in is desirable enough to them, they will do it.
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      10-10-2006, 05:54 PM   #4
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I'm assuming this is completely unheard of, isn't it?
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      10-10-2006, 06:22 PM   #5
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Been said, but yes-

just have them cut you a check. Done it many times- well, a few anyway!
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      10-10-2006, 06:59 PM   #6
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it seems like you're in a perpetual cycle of debt. You still owe 8.5k on your TT and you're already trading it in to inherit more debt? If somehow you're getting yourself a lower monthly payment for the 335 compared to the TT payments, then go for it, if not, I'd say find a cheaper car to lease/own.
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      10-10-2006, 07:21 PM   #7
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Quote:
Originally Posted by canucklion
it seems like you're in a perpetual cycle of debt. You still owe 8.5k on your TT and you're already trading it in to inherit more debt? If somehow you're getting yourself a lower monthly payment for the 335 compared to the TT payments, then go for it, if not, I'd say find a cheaper car to lease/own.
What you say would make too much sense!

Just kidding, I never liked leasing, it's the most disadvantageous situation I could ever imagine, all of the obligations of ownership, none of the benefits, unless:

1. One needs the cashflow (no questions asked)
2. One is convinced that they will be getting a new car every 24-48 mos.
3. Let's be honest, it's the only way to get the car into the driveway

I challenge this 335 that I'm getting to last 9 yrs. like my Nissan that it's replacing...do I hear people laughing out there??! The Nissan will still be the daily driver.
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      10-10-2006, 07:36 PM   #8
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I'd hate for this to turn into another lease vs buy debate there are both pros and cons to both leasing and buying.

However, from what the OP posted, it seems that he's going from one debt into another, IMHO, unless the 335 lease is going to end up with a lower monthly payment for you, I really advise you against getting the 335 and inheriting more debt as a result, maybe look at a 328, or even CPO'd E90 325's

Quote:
Originally Posted by John 070
What you say would make too much sense!

Just kidding, I never liked leasing, it's the most disadvantageous situation I could ever imagine, all of the obligations of ownership, none of the benefits, unless:

1. One needs the cashflow (no questions asked)
2. One is convinced that they will be getting a new car every 24-48 mos.
3. Let's be honest, it's the only way to get the car into the driveway

I challenge this 335 that I'm getting to last 9 yrs. like my Nissan that it's replacing...do I hear people laughing out there??! The Nissan will still be the daily driver.
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      10-10-2006, 08:17 PM   #9
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I think some of you are making something out of this thread that isn't there. He is 6.5k ahead on his trade and wants to avoid putting money down on the lease.

To the OP - use the equity to fund the first payment, security deposit, etc. and get the difference back in a check from the dealer. You also have the option of using it for multiple security deposits to bring down your money factor.
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      10-10-2006, 08:28 PM   #10
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good that you brought it up, I've been wondering about this before. Is there a limit to how many security deposits you can have? effectively bringing down the payments, while still being able to get it back when you return the car
Quote:
Originally Posted by RyanE90
I think some of you are making something out of this thread that isn't there. He is 6.5k ahead on his trade and wants to avoid putting money down on the lease.

To the OP - use the equity to fund the first payment, security deposit, etc. and get the difference back in a check from the dealer. You also have the option of using it for multiple security deposits to bring down your money factor.
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      10-10-2006, 08:56 PM   #11
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Quote:
Originally Posted by Russellnyc
I know the uselessness of paying a downpament on a lease, and that if I total the car or it gets stolen, my downpayment is lost forever. I assume a trade-in is the same -- it counts against the lease payments, but otherwise it just goes into the ether. I would never consider doing this, and was planning to sell the car on autotrader/ebay/cars.com etc.

But the dealer just appraised my TT and offered me $15.5k (in writing). I paid $20k for this car 3+ years ago before putting on 30k miles. Edmunds says $15k is the dealer retail price, way above the rape-me trade-in number I was expecting. The car has really low mileage (36k on a 2000 MY), I guess that makes it easier for them to sell it at auction or whatever.

The thing is, I owe about 8.5k on the TT, so I'd be putting $7k towards the lease, which would make my payments very low. I can't help but think this is a big waste. The thing is, if I sold the car, in order to get this much money, there are a few things I'd have to fix, and if I trade it in, that headache disappears.

What would you do?
OMG...DO NOT put $7000 down on a lease! You are absolutely right that it is a big waste. The dealer will cut you a check for the difference on the TT. IMO, put as little money down as possible. I just put 1st month, no sales tax in NH. If you cannot afford the lease payments on a car with the minimum,
1st month, security & taxes then it's too much car for you. Look for a lesser car.
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      10-11-2006, 07:02 AM   #12
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Quote:
Originally Posted by Russellnyc
I know the uselessness of paying a downpament on a lease, and that if I total the car or it gets stolen, my downpayment is lost forever. I assume a trade-in is the same -- it counts against the lease payments, but otherwise it just goes into the ether. I would never consider doing this, and was planning to sell the car on autotrader/ebay/cars.com etc.

But the dealer just appraised my TT and offered me $15.5k (in writing). I paid $20k for this car 3+ years ago before putting on 30k miles. Edmunds says $15k is the dealer retail price, way above the rape-me trade-in number I was expecting. The car has really low mileage (36k on a 2000 MY), I guess that makes it easier for them to sell it at auction or whatever.

The thing is, I owe about 8.5k on the TT, so I'd be putting $7k towards the lease, which would make my payments very low. I can't help but think this is a big waste. The thing is, if I sold the car, in order to get this much money, there are a few things I'd have to fix, and if I trade it in, that headache disappears.

What would you do?
Depending on ones own financial situation and financial discipline it's always the smarter move to never put money down on a lease.

I agree with everyone having the dealer cut you a check back, but only for say 1st mo payment and all your upfront goodies you'll have to pay anyways.

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      10-11-2006, 11:59 AM   #13
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Thanks everyone. First, not to worry about me, I'm not in a perpetual cycle of debt, my finances are in order, my net worth is positive, etc. I wasn't considering putting money down on the car because I couldn't afford the payment, but rather because I didn't know a dealer would pay you cash on a trade. I've never traded a car before. The reason I still have a balance on the car is that my loan costs 4.5% and that money I'd use to pay it off is currently earning 15%. I am not that liquid given the good vibes of the current market, and I don't feel like being cash poor because I paid off my car. Needless to say, I'd rather that money earn 15%-4.5% than 0%.

At any rate, the question is moot because the dealer offered to cut me a check for the entire amount (minus the existing lien, obviously), so I can pocket the difference of $7.5k. I would have had to spend $800-$1k servicing the car mechanically and cosmetically to maximize private sale price, now I don't have to do that.

So, score one for e90post, thanks for giving me the advice!

As I mentioned in the original post, Edmunds gives the car $11,675 for trade-in, and $15,376 is the dealer retail sale price. So especially considering my $20k cost on the car, I think I did very well to have paid about $125 a month in depreciation over ~36 months.
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      10-11-2006, 12:07 PM   #14
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Quote:
Originally Posted by Russellnyc
Thanks everyone. First, not to worry about me, I'm not in a perpetual cycle of debt, my finances are in order, my net worth is positive, etc. I wasn't considering putting money down on the car because I couldn't afford the payment, but rather because I didn't know a dealer would pay you cash on a trade. I've never traded a car before. The reason I still have a balance on the car is that my loan costs 4.5% and that money I'd use to pay it off is currently earning 15%. I am not that liquid given the good vibes of the current market, and I don't feel like being cash poor because I paid off my car. Needless to say, I'd rather that money earn 15%-4.5% than 0%.

At any rate, the question is moot because the dealer offered to cut me a check for the entire amount (minus the existing lien, obviously), so I can pocket the difference of $7.5k. I would have had to spend $800-$1k servicing the car mechanically and cosmetically to maximize private sale price, now I don't have to do that.

So, score one for e90post, thanks for giving me the advice!

As I mentioned in the original post, Edmunds gives the car $11,675 for trade-in, and $15,376 is the dealer retail sale price. So especially considering my $20k cost on the car, I think I did very well to have paid about $125 a month in depreciation over ~36 months.
Where are you getting 15%?
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      10-11-2006, 12:11 PM   #15
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      10-11-2006, 12:25 PM   #16
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Quote:
Originally Posted by greginaz1
Where are you getting 15%?
I work on wall street. During the May downturn, there were some really good bargains, and I'm collecting on them now.

Quote:
I sold my 2004 Brilliant Black Audi TT Quattro 225-hp 2 months ago for my 330i and I miss it. I love the BMW, but the TT is more noticeable and unique
Ah, you are probably right. I still get compliments and thumbs up on it. It's my only car though, and I'm getting tired of having no usable rear seats, paying for repairs and maintenance, carrying my gps around with me wherever I go, and my car is a 5spd so it's really buzzy on the highway. The car is beginning to show its age, it's a 99 build, so it's nearly 8 years old. I'd keep it or strip it and use it as a track car, but my wife is buying a car for her business and we only have 2 garage spaces, so the TT must go.
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