BMW 1-Series Forum (F20) 135i - 1Addicts.com > Second Generation 1 Series Forum > 2012 BMW 1-Series Sporthatch (F20) Discussion > BMW Finance
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      06-26-2013, 09:15 PM   #23
AusF20
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The current rate is 6.99%, however you can get a slightly better rate with a fixed residual value from BMW.
My advice is, choose the car you like with all the extras you want, then get two quotes from two BMW dealers , then choose the Dealer that gave you the best value that suits your budget. You might be surprised by the small difference in monthly payments between the 118i and 125i.
Ask each dealer for the standard rate based on the time frame for 3,4,5 year+residual package, then get them to provide you with the payment per month based on a $15,000 residual after 3 years & 5 years.
Then you can work out the best option that fits your wallet and time frame.

I found that I got my 125i M Sport with lots of extras (beat them down on the total price by going to two BMW dealers then haggled some more) on a 5 year with $15,000 residual worked best for my business needs.
This also works well on the trade-in value after 3 years, if you decide to update after 3 years.

I wish you good haggling (whatever price they give you, look only at the overall total for payments + residual)

I based my calculations on the value of a trade in
Currently a 5 year old 120i 1er is still worth around $25,000 to sell privately
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      06-26-2013, 10:35 PM   #24
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But isnt generally the RV/balloon payment is calculated based on the value of the car when the RV/balloon payment is due?

Example. $80000 Car after 5 year will be value at $40k. So shouldnt the RV/balloon % be 50%/$40k assuming after 5 years I want to change car after that.
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      06-27-2013, 12:05 AM   #25
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It's a forecast, and not a very accurate one.

You need to have a residual (balloon) that is reasonable in the market in five years time, bearing in mind that if you are buying new, and trading in, you'll be offered the wholesale valuation at best --- unless you are leaving a lot of money on the table in bargaining for your new car.

Over the last five years, the used car market in Australia has changed dramatically -- especially for Euro cars, largely because year-on-year, new car prices have dropped as our exchange rate appreciated. This is especially acute right now, and is further affected by competition especially in the M135i sector (A series, new S3, new GTI, Golf R, Scirocco etc).

In the face of that, I think you'd have to take a pretty deep breath and cross all fingers, toes, legs, eyes....if you think the M135i will have a market value of 50% of the current buying price. Far better to work out finance with a much lower (more realistic) residual, which -- as I said -- would be 30% max.

Alternatively, you can look at BMW's Full Circle offering, which guarantees a buyback value, but doesn't leave you with any equity (unless you are very lucky)
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      06-27-2013, 12:31 AM   #26
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Quote:
Originally Posted by kaitan View Post
hmmm thx guys, I mean you think after 5 years a $70k car will not be worth 31500 but less then that?

I mean looking at the pricing of the 135 ($80k)from new after 5 years it's still about $45k? Make sense?
Who is actually going to pay $45K? Certainly nobody on forums like these who like their discounts!

I recently sold an immaculate 3er with warranty, new RRP $92K. At the 4 year mark I was getting trade-in offers of $25-27K. 4 months later, the offers ranged from $22 to $25K. BMW approved cars in worse condition were being advertised for $42-44K, private sales were around the $37-40K mark.

I advertised for $36K, waited a couple of months and only had a trickle of interest with buyers wanting nearer $30K. I dropped the price and eventually sold for $32K which was 38% of my original discounted purchase price (or 34% of the RRP). I'd had the car detailed and a major service done to prepare for sale too.
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      06-27-2013, 12:47 AM   #27
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Quote:
Originally Posted by johnnydad View Post
Who is actually going to pay $45K? Certainly nobody on forums like these who like their discounts!

I recently sold an immaculate 3er with warranty, new RRP $92K. At the 4 year mark I was getting trade-in offers of $25-27K. 4 months later, the offers ranged from $22 to $25K. BMW approved cars in worse condition were being advertised for $42-44K, private sales were around the $37-40K mark.

I advertised for $36K, waited a couple of months and only had a trickle of interest with buyers wanting nearer $30K. I dropped the price and eventually sold for $32K which was 38% of my original discounted purchase price (or 34% of the RRP). I'd had the car detailed and a major service done to prepare for sale too.
Wow ouch!!! $92k for a 320d is crazy!! For example a e92 335 when new with the options i got is roughly about $130k but after 5 years(2008) the going rate is about $50k-$60k depending on condition and mileage. Ofcourse before the balloon is due i'll try to sell the car in the private market hopefully will get more?


Quote:
Originally Posted by ttimbo View Post
It's a forecast, and not a very accurate one.

You need to have a residual (balloon) that is reasonable in the market in five years time, bearing in mind that if you are buying new, and trading in, you'll be offered the wholesale valuation at best --- unless you are leaving a lot of money on the table in bargaining for your new car.

Over the last five years, the used car market in Australia has changed dramatically -- especially for Euro cars, largely because year-on-year, new car prices have dropped as our exchange rate appreciated. This is especially acute right now, and is further affected by competition especially in the M135i sector (A series, new S3, new GTI, Golf R, Scirocco etc).

In the face of that, I think you'd have to take a pretty deep breath and cross all fingers, toes, legs, eyes....if you think the M135i will have a market value of 50% of the current buying price. Far better to work out finance with a much lower (more realistic) residual, which -- as I said -- would be 30% max.

Alternatively, you can look at BMW's Full Circle offering, which guarantees a buyback value, but doesn't leave you with any equity (unless you are very lucky)
Hmmm i understand what you are saying. I guess the other option is to keep the car and get a personal loan to pay of the balloon or like above try to sell it before the balloon is due.

Also with the BMW buy back guarantee, I dont quite understand how it works? As a customer do you pay more to have this option?

I just want to know how it works?

Thanks
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      06-27-2013, 01:18 AM   #28
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Tory, with BMW full circle you do pay a little more when compared to just a simple finance. But like everyone says you do get the guarantee value.
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      06-27-2013, 02:46 AM   #29
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Quote:
Originally Posted by kaitan View Post
Wow ouch!!! $92k for a 320d is crazy!! For example a e92 335 when new with the options i got is roughly about $130k but after 5 years(2008) the going rate is about $50k-$60k depending on condition and mileage. Ofcourse before the balloon is due i'll try to sell the car in the private market hopefully will get more?
It was a 325i, and I didn't pay full RRP of course

What are you basing the going rate on?
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      06-27-2013, 05:16 AM   #30
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Quote:
Originally Posted by kaitan View Post
But isnt generally the RV/balloon payment is calculated based on the value of the car when the RV/balloon payment is due?

Example. $80000 Car after 5 year will be value at $40k. So shouldnt the RV/balloon % be 50%/$40k assuming after 5 years I want to change car after that.
I wouldn't be doing a 5/50 for love not money; you'll be perpetually be at their mercy forever. At a stretch maybe 40% on a beamer but I'd suggest 30%.

If it was something more "mainstream" like a Holden/Toyota I would be suggesting 15% over 30%.

Glasses guide puts out a projected residual value snapshot for everyone & model FYI.
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      06-27-2013, 07:26 AM   #31
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Quote:
Originally Posted by johnnydad View Post
It was a 325i, and I didn't pay full RRP of course

What are you basing the going rate on?
Base on 6% as that is what I can get at the moment. Well it's just a thought but I still think i will just stick to my e92 N54! No harm dreaming of a newer car but yet it does not make sense as the performance will be about the same! Can't use the full potential of the engine on sydney roads!

But the mind often wonders "Hmmm what can I get that is faster and newer for the same out of repayment " lol i'm sure i'm not the only one that wonders around
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      06-27-2013, 09:25 PM   #32
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Has anyone used or made enquiries with Carloans.com.au? If so, any thoughts on what they're like? Are they reliable, trustworthy, competitive? I've never used companies like these before, mostly banks, CUs or BMW finance.

Cheers

Blue 335i
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      06-28-2013, 11:03 PM   #33
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Quote:
Originally Posted by blue 335i View Post
Has anyone used or made enquiries with Carloans.com.au? If so, any thoughts on what they're like? Are they reliable, trustworthy, competitive? I've never used companies like these before, mostly banks, CUs or BMW finance.

Cheers

Blue 335i

I looked at some other forms of finance but went with the BMW finance as I got a lower % than first quoted and discount on the BMW insurance with the new car replacement cover for 5 years

If you are looking at alternatives, check with the lender as to their costs, as some have up front fees or a termination fee at the end of the finance term or % penalties for early closure than the term that you sign up for. Not good if you decide to trade in at three years rather than five.
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