Results 1 to 4 of 4

Thread: Which is the best stupid decision?

  1. #1
    Join Date
    May 2016
    Location
    London
    Posts
    4
    My Cars
    F15, F10

    Which is the best stupid decision?

    Which makes the most financial sense for me?

    1. A 2015 F02 at around £32-£34,000 - Purchased cash.

    2. An used G11 at around £45 -£46,000 - Cash

    3. A brand new G11 with 0% finance, on PCP.

    I am trying to find an easy way to work this out in my head. I like both cars.

  2. #2
    Join Date
    Jan 2007
    Location
    .
    Posts
    7,708
    My Cars
    .
    0% financing is always tempting. It's free money. However, buying new, you take the initial hit of depreciation. I would venture to say at least 10% value as soon as you drive it off the lot. Buying a gently used, super low mileage car could keep that 10% in your pocket as the previous owner took the hit. And you still get a nearly brand new car.
    ASE and BMW Master Certified Technician

  3. #3
    Join Date
    May 2016
    Location
    London
    Posts
    4
    My Cars
    F15, F10
    Quote Originally Posted by White94RX View Post
    0% financing is always tempting. It's free money. However, buying new, you take the initial hit of depreciation. I would venture to say at least 10% value as soon as you drive it off the lot. Buying a gently used, super low mileage car could keep that 10% in your pocket as the previous owner took the hit. And you still get a nearly brand new car.
    Well - thanks for taking the time White.

    Here that might be the VAT AND the depreciation VAT is 17.5%

    BUT...

    BMW give you a deal - so that the deal looks like this and this MIGHT mitigate loss and depreciation.

    Purchase - £72,000
    Price after Manu discount - £60,000
    Deposit - £5,000
    £600 a month
    Total cost over 3 years £21,600

    Does seem like a lot to spend on a hire car essentially!?


    Whereas a nearly new - would have to be cash. Because rate of interest is 10%
    A nearly new is around.
    £46,500
    The future value is around the same so equates to between £600 - £700 as a loss if the car is worth £21,000 in 3 years.
    Noting that it would more likely be worth around £28,000 ( looking at 3 year old F02 car prices today) then the loss is only £16,500 over 3 years making a monthly loss only £500 a month.

    A used F02 today might be around £32,000 with low-ish miles and arguably be worth around £19,000 in 2 years. Not 3 because one would not wish to keep an F02 that long with the newer ones coming in cheaper by 2019. With that equation being fair that loss would be £13,000 or a loss of £541 a month

    Over 3 years so that the F02 would be 5 years old in 2020 the value might be around £16,000 and thus a monthly loss of £444.00

    My other theory is that a G11 - may be easier to sell in 3 years, due to tech, emissions and perception.

    I have dyscalcula so I need a boffin to argue my theories - as both cars are good.

    G11 - More tech - looks newer - soft steering - more dynamic drive.
    F02 - 20% quieter, bigger seats, potentially! better value. But it is potentially.

  4. #4
    Join Date
    Jun 2011
    Location
    NYC & Long Island & So FL
    Posts
    1,119
    My Cars
    '93 740il '84 633Csi
    Here is the colonies, the used car market is flooded so that the car companies are lowering the residuals (making the lease rate higher) on the new leases to make up for that. Double check your residuals plus the PITA of selling a used car is a non-monetary hassle. How much is your time worth?

Similar Threads

  1. Which is the best car wash liquid?
    By marwan in forum Car Detailing and Show & Shine Prep sponsored by Autogeek.net
    Replies: 8
    Last Post: 07-08-2003, 03:10 PM
  2. Redline/Mobil 1/Royal Purple--which is the best tranny fluid?
    By Gatorbait in forum 1992 - 1999 M3 (E36)
    Replies: 8
    Last Post: 08-08-2002, 05:46 AM
  3. Which is the best theory?
    By BMWguy206 in forum 1992 - 1999 M3 (E36)
    Replies: 8
    Last Post: 07-05-2002, 12:48 PM
  4. intake? which is the best?!
    By driveit in forum 1991 - 1999 (E36)
    Replies: 4
    Last Post: 08-16-2001, 01:24 PM
  5. Which is the best performance flywheel out there???
    By ///M3 Lover in forum 1992 - 1999 M3 (E36)
    Replies: 0
    Last Post: 06-06-2001, 07:55 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •