[F82Tazmanian]

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[oonowindoo]

When you have the 4k upside down rolled into to your new car, especially leased payment, it complicates things.

Quick Math: $4000/36 month = $110/month extra for your upside downs, maybe + interest too.

So realistically you are leasing the car for 3500 drive off, $670 a month. You can do better.

My suggestion is - put $0 out of pocket and work the deal on the 440.
instead of putting $3,500 drive off, put it towards the upside down. treat them as 2 separate matters instead of trading 1 in.

Cut a $4k check along with the check from your insurance and mail it to BMW and be done with it. Who is keeping the 335is since you paid the "gap"?? you might want to fight to keep it

Then get the 440 as a completely separate transaction that has nothing to do with your 335is.

[jjrandorin]

Originally Posted by n54335imeth

Hi Everyone-

Joined a couple months back when I picked up my 335is. Sadly, the vehicle was totaled last weekend , and I now need to pick something up asap as I commute 60 miles daily.

In talks with my salesman, he had a 440i xdrive Gran Coupe in stock with a sticker of 62k. My car is about 4k upside down from what I owe and what insurance will pay out. I am working on getting all the details from him (options, sale price, residual, MF), but as of now he quoted me $780 with tax and $3,500 out of pocket. 36m/10k

That is a terrible number just off the bat and I feel like I am a good $50 off from where I should be. My question is, with $3,500 out of pocket all in (inception + my negative), where should I reasonably be on a new 440i at 62k? I am willing to drop down to the 340i with less equipment for a better residual/payment.

Thank you!

so, first of all, was your previous car a lease or a purchase? If a purchase, did you not have gap insurance? Gap insurance is designed to prevent the exact scenerio you find yourself in... are you sure you dont have it?

If it was a lease through BMW FS, your car has gap insurance so there IS no negative equity. If this is the case dont let the dealer charge it to you. If you are in an owners choice contract gap insurance is something you would have had to purchase just as if you were purchasing the car (because thats what owners choice is, a purchase, not a lease).

Second... if you are paying "only" 3500 in drive off fees, you are NOT paying ANY of your inceptions etc "up front". Its ALL beiong added to your cap cost, in ADDITION to the extra 500 in negative equity. The 3500 you are paying is just paying 3.5k of your 4k in negative equity.

Its all in how you think about it (of course) but you have whatever your selling price is (which you dont have, which I find surprising because I never quite understand how a dealer can quote a monthly payment and the very next question is not "what are you selling me the car for?") PLUS the lease aqcquisition fees, documentation fee, etc etc. Even if you are in a state that does not pay taxes up front, but pays them as you go, you probably have around 2k to 2.5k in inception costs, plus your 4k in negative equity.

That means you start off with 6k to 6.5k in "inceptions" you will need to pay to not be adding any money to the cap cost. Thats one of the reasons your deal looks so bad to you (the negative equity).

Every 1k financed adds about $25-30 to the monthly payment, so your $3500 "down" (which is not cap cost reduction, but drive offs I am like 99.9999% sure), against the roughly 6k you would owe to get back to "even" leaves 2.5k added to your cap cost, which is roughly $75 (meaning your payment would be around $700-720 if you did not have the negative equity).

Its hard to know if 700-720 is a good payment without your specifics, especially because the market has changed, and I dont know if you are entitled to any other discounts like fleet. I would imagine that there is some room to go lower however. Post the specific numbers and I am sure someone will take a look.

[jjrandorin]

Originally Posted by n54335imeth

Wow I never even followed up on this. Thanks for the responses, very much appreciated. The car did have gap I double checked, so I walked away scott free.

I ended up grabbing a 440i track pack with a similar sticker. Grabbed the MF and residual from Edmunds to compare and it tied out.

Sub $700 and $2000 out of pocket. Ended up going else where from my first dude.

Thanks for following up... I was wondering but figured you did not want to share so did not bump the thread.

Congrats on the new car, and good luck out there!