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Hello everyone,
I currently have a 2012 335i convertible that I purchased 2 years ago. At tthe time, I had a 560 FICO but managed to get a 6.9% apr for 60mos. I absolutely love the car and have been a longtime bmw fan and owner, however, i realize that I pay way too much for it and would rather save/invest the money or travel more. I pay $670 and it is currently my DD.
I do have some negative equity, i believe about $4k, which i would cover if I were to trade it in. The thought is to reduce my monthly payments and have a more comfortable/practical daily driver. While the payments are not an issue, per se, the maintenance is hefty an djust because you can, does not mean you should. I do not care to impress anyone anymore.
I have always wanted a Chevy Tahoe- the issue is that they hold theyre value very well and are gas guzzlers. However, all the parts are at least 2x cheaper and labor is as well. Most of the Tahoes in my range ($18k) are 8-10 years old and the finance APR is quite high due to the age and mileage these cars seem to have. I would do a 48month loan and be looking to be around $350 per rmonth. I would put about $4k down as well. I absolutely love the way these SUVS ride.
Option 2 is to get a newer seadn- subaru, honda, etc but I think i would be much happier in an SUV though these sedans would have much lower miles and be newer, thus lower apr.
Capital One and Chase are both quoting about 13% on the Tahoes and my current apr with BMWis 6.9%. Lightstream has denied me as I have some baddies/open collections. I have about $9k to put into this deal.
I could also put that money into the bmw and re-fi but that doesnt solve the running costs and it is too small, amongst other things.
Thoughts? Would you get the Tahoe?
@Anonymous wrote:Hello everyone,
I currently have a 2012 335i convertible that I purchased 2 years ago. At tthe time, I had a 560 FICO but managed to get a 6.9% apr for 60mos. I absolutely love the car and have been a longtime bmw fan and owner, however, i realize that I pay way too much for it and would rather save/invest the money or travel more. I pay $670 and it is currently my DD.
I do have some negative equity, i believe about $4k, which i would cover if I were to trade it in. The thought is to reduce my monthly payments and have a more comfortable/practical daily driver. While the payments are not an issue, per se, the maintenance is hefty an djust because you can, does not mean you should. I do not care to impress anyone anymore.
I have always wanted a Chevy Tahoe- the issue is that they hold theyre value very well and are gas guzzlers. However, all the parts are at least 2x cheaper and labor is as well. Most of the Tahoes in my range ($18k) are 8-10 years old and the finance APR is quite high due to the age and mileage these cars seem to have. I would do a 48month loan and be looking to be around $350 per rmonth. I would put about $4k down as well. I absolutely love the way these SUVS ride.
Option 2 is to get a newer seadn- subaru, honda, etc but I think i would be much happier in an SUV though these sedans would have much lower miles and be newer, thus lower apr.
Capital One and Chase are both quoting about 13% on the Tahoes and my current apr with BMWis 6.9%. Lightstream has denied me as I have some baddies/open collections. I have about $9k to put into this deal.
I could also put that money into the bmw and re-fi but that doesnt solve the running costs and it is too small, amongst other things.
Thoughts? Would you get the Tahoe?
I am a BMW fan also but I always seperate these decisions differently than many here. There is the question of do you have the right car and then their is the question of the right financing. From what you describe you have the right car but the wrong financing. Trading in will result in a loss of 4k plus the sales tax and licensing which makes this an expensive trade in. If you like the car you have I would suggest putting some money into the principle of the loan and refinancing with a credit union. If your ready to give up on the BMW I would suggest selling it private party because that will get your best value. There are tons of great reliable vehicles out there so take your time and go with what you like the most. Tahoes are really not the best way to go unless you need to tow something. I would look towards the mid size crossover SUV's like a Ford Esacape , Honda CRV etc etc. Work on cleaning up with baddies now and improve your credit asap so you don't get stuck into a bad car loan that you end up overpaying for because of desperation. I always suggest credit unions and working with them before you go into the dealer with a preapproval. This will give you lots of leverage. Work for a few months on those credit issues, test drive as many cars as you wish till you get to the right one and then get a good preapproval to work from so you end up with the right car and financing. Take a close look at edmunds.com for models that hold their value best (Honda, Subaru) so you don't take as big of a depreciation hit. Buy smart and put enough down so if you don't get a great APR initially you have a good enough loan to value to refinance should your credit improve in 5 months i went from12.57% to 4.29% so it can be done if carefully planned and excecuted.
Thank you! OH i most definitely love the Bimmer for sure but I tend to definitely DRIVE it so my costs are higher than normal haha. I would've loved to finance with DCU but they have deniwed me twice, even with down payment. I can try other credit unions too but I am definitely never walking in the dealer with other options in hand.
I still think the "smarter" option would be to get a cheaper vehicle and save the money in the long run but there's a lot of cons to that as well.... sigh