Help me settle a dispute with a friend

thechoson · 05-10-2010, 04:13 PM

My friend and I purchased our 2008 328s together at the same time from the same dealership. Identical cars (except for color). We were both intending to keep the cars a while.

Now my friend is on some weird "save money" kick. He wants to get rid of the BMW and trade it for a new Nissan Altima or Honda Accord, although he can afford to keep the BMW.

I told him that makes no sense and he'd save nothing, since he's trading a car that's depreciated for a new car that will depreciate immediately. Yes, the BMW will cost money to maintain, but I told him to just buy an extended warranty if he's worried about that.

I'd understand if he had a 7 series and wanted to downgrade to a Honda Civic or something, or if he was willing to get some 5000 dollar used junker. But he owns basically the most inexpensive BMW you can buy new, and wants to trade it for a 20k dollar new car.

Does not seem like he'd save any money in the long run, but he's convinced this would save him thousands of dollars.

Who's right?

F32Fleet · 05-10-2010, 04:20 PM

Maybe he REALLY can't afford it.

FLA 335 · 05-10-2010, 04:23 PM

really depends on the deal you got when you purchased the car i would think. how much was the total OTD, down payment, APR? balance owed on the car vs. resale value (THIS IS KEY)...

but i agree the 328 is one of the most reliable cars according to some study out there recently... why get rid of it !?!??! it doesnt even have the HPFP /wastegate problem like the 335s... seriously... i mean it is up to him really... but factor in what he has already put in to the car, mileage? is he reaching 50k miles ?

you gave us the story but what about the facts ?

FLA 335 · 05-10-2010, 04:24 PM

Quote:

Originally Posted by Socom

Maybe he REALLY can't afford it.

+1

thechoson · 05-10-2010, 04:26 PM

We both paid 35,500 OTD at the time (stripped 328 with the auto transmissions). He paid in cash, so no payments. He's only at about 25k miles right now.

Since the car is paid off, he wants to do a straight up trade for a new Accord or Altima (not sure if the dealers would go for that)

VTECaddict · 05-10-2010, 04:28 PM

Yes, he would save money in the long rum. BMWs are luxury items. They are not cars you buy if you want to save money.

Depending on what trim level Accord/Altima he's looking at, he could pocket a couple thousand dollars right off the bat by trading in. Then the future maintenance costs, etc he would save more. Also if the BMW is being financed, interest rate and loan term will factor into the amount money saved in the long run. If he's really trying to save money, he should be looking at used cars. But even if he buys new, the initial depreciation hit isn't that big of a deal if he's really planning to keep it for a while. Honda's typically have one of the highest resale values as well.

thechoson · 05-10-2010, 04:33 PM

Quote:

Originally Posted by VTECaddict

Yes, he would save money in the long rum. BMWs are luxury items. They are not cars you buy if you want to save money.

Depending on what trim level Accord/Altima he's looking at, he could pocket a couple thousand dollars right off the bat by trading in. Then the future maintenance costs, etc he would save more. Also if the BMW is being financed, interest rate and loan term will factor into the amount money saved in the long run. If he's really trying to save money, he should be looking at used cars. But even if he buys new, the initial depreciation hit isn't that big of a deal if he's really planning to keep it for a while. Honda's typically have one of the highest resale values as well.

Interesting take. Do you really think he could actually get the dealer to GIVE him money when trading the BMW in? Seems like lower trim Accords are going for about 22k OTD, seems like that's about the trade in value of the 328 at best. Plus, do dealers ever make deals like that where they take a trade in and then determine it's worth MORE than the care you are buying so give you the new car AND some money back? Seems like they'd try to talk you into a higher trim level if anything, but I could be wrong.

Topless 335i · 05-10-2010, 04:37 PM

don't pressure your friend into taking on a financial burden he can't handle.

chromisdesigns · 05-10-2010, 04:38 PM

if he wants a Honda to lower long-term costs, then that's what he wants. But if the car is in nice condition, he'd be an idiot to "trade" it to any dealer for anything. Do a private sale and pocket a couple thousand difference, at least.

I guarantee if he goes to some dealer looking to get cash back from the deal, they will value the trade-in so low he might as well just give it to them.

E90Graphite07 · 05-10-2010, 04:38 PM

Probably just wants a bigger car. Have you not asked him why he's deciding to do this btw?

kgb1637 · 05-10-2010, 04:39 PM

Don't forget the extra costs that come with BMW's, insurance, gas, etc everything is going to be more, but he will take a hit trading the car in bc dealers lowball trade ins.

thechoson · 05-10-2010, 04:40 PM

Quote:

Originally Posted by Topless 335i

don't pressure your friend into taking on a financial burden he can't handle.

Oh definitely, I have no intention of doing that. I told him he should do what makes him feel comfortable.

I'm just curious because he's so adamant that this will save him thousands of dollars, while I disagreed.

I mean at the very least, doesn't it make sense to at least keep the car until the free maintenance runs out THEN trade it in?

thechoson · 05-10-2010, 04:41 PM

Quote:

Originally Posted by E90Graphite07

Probably just wants a bigger car. Have you not asked him why he's deciding to do this btw?

Purely financial. He's gotten into leading a more "frugal life", which I can appreciate. Seems like a phase that will wear out though

thechoson · 05-10-2010, 04:42 PM

Quote:

Originally Posted by chromisdesigns

if he wants a Honda to lower long-term costs, then that's what he wants. But if the car is in nice condition, he'd be an idiot to "trade" it to any dealer for anything. Do a private sale and pocket a couple thousand difference, at least.

I guarantee if he goes to some dealer looking to get cash back from the deal, they will value the trade-in so low he might as well just give it to them.

Yes, I agree regarding the trade-in aspect. He thinks he can just do a straight up trade for a brand new Accord or Altima, but I don't know if any dealers would even do that

lux.sh · 05-10-2010, 04:43 PM

If he really wants to save money, he should be selling the bmw as private party, buy a reliable used car and save the rest of the money.

I think he just wants an accord.

thechoson · 05-10-2010, 04:46 PM

Quote:

Originally Posted by lux.sh

If he really wants to save money, he should be selling the bmw as private party, buy a reliable used car and save the rest of the money.

I think he just wants an accord.

Yea, I agreed with this

ENINTY · 05-10-2010, 05:04 PM

He'll loose his ass. He'll essentially pay $35K for a $23K Accord. The 328 will turn out hardly more expensive to maintain than a Honda Accord. The current generation Accord may loose it's transmission at 60,000 miles (they have been failing that soon). If he paid $35K cash for a 328 he must have thought it was a good trade for the cash. He saved thousands by not financing. The dealer will think he is a dumb-ass and take him for all he is worth with a trade. And when he starts driving a humdrum Accord he'll say "WTF did I do that for." You buy a BMW because it is a BMW not because it is a car that gets from point A to point B.

Tell him to man up and keep the 328.

What, did he get a chic pregnant or something?

RoundelM3 · 05-10-2010, 05:05 PM

Quote:

Originally Posted by lux.sh

If he really wants to save money, he should be selling the bmw as private party, buy a reliable used car and save the rest of the money.

I think he just wants an accord.

Doubtful that they'll trade straight across - dealers generally look at wholesale pricing for trade-ins or they get clever with the price of the new car. They have to make a profit and he may be thinking they'd give him what he'd get selling it to a private individual - which isn't going to happen.

My wife traded her '04 325i with 50K miles on it last year for an '09 Altima 2.5s. Warranty was running out and she wanted something bigger. We got a fair price for the trade, but not what we could have sold it to an individual for - but we also saved on the sales tax that way too. Fuel economy is about 5-7mpg better with the Altima in combined driving (and it burns regular), and the only maintenance thus far has been oil changes. What the Honda/Nissan dealer might try to do is line up a buyer for his 328 or see if he could sell it to a BMW or other high-end car dealer before he set a price, but it still won't be retail.

RambleJ · 05-10-2010, 05:29 PM

If he already paid for his car cash, the only thing he is going to save any money on would be insurance...
Or did these cars not come with a warranty? I don't understand how giving up a car that is already paid for a smart thing to do.

AS335i · 05-10-2010, 05:29 PM

In the long run, the accord would save him money for sure. They usually are more reliable, and even if they brake down the same as the BMW, the BMW parts are going to cost tons more. Also, mantinance with the BMW is really expensive compared to the Honda.

But, the BMW is a better car, you have to pay to play. In the end if hes looking to actually save money in the long run the Accord would be a better choice

sleepyx637 · 05-10-2010, 05:42 PM

Quote:

Originally Posted by RambleJ

If he already paid for his car cash, the only thing he is going to save any money on would be insurance...
Or did these cars not come with a warranty? I don't understand how giving up a car that is already paid for a smart thing to do.

insurance on a bmw 328i isn't actually that much more, if any, than a honda accord.

tim818 · 05-10-2010, 06:08 PM

In the long run it will probably save him few grands trading in for an Accord. It has higher MPG (and uses regular gas), insurance will be a tad lower, and it's a brand new car so no worry about the maintenance/car aging issues. However, you should to ask him is it worthwhile to sacrifice the driving pleasure over a few G's?

From another perspective, if he's single and still dating girls, then keep the Bimmer. If he's got drunk and proposed to his GF last night, then yeah, it's Honda time!

05-10-2010, 04:13 PM	#1
thechoson Enlisted Member 23 Rep 49 Posts Drives: 328i Join Date: Apr 2010 Location: USA iTrader: (0)	Help me settle a dispute with a friend My friend and I purchased our 2008 328s together at the same time from the same dealership. Identical cars (except for color). We were both intending to keep the cars a while. Now my friend is on some weird "save money" kick. He wants to get rid of the BMW and trade it for a new Nissan Altima or Honda Accord, although he can afford to keep the BMW. I told him that makes no sense and he'd save nothing, since he's trading a car that's depreciated for a new car that will depreciate immediately. Yes, the BMW will cost money to maintain, but I told him to just buy an extended warranty if he's worried about that. I'd understand if he had a 7 series and wanted to downgrade to a Honda Civic or something, or if he was willing to get some 5000 dollar used junker. But he owns basically the most inexpensive BMW you can buy new, and wants to trade it for a 20k dollar new car. Does not seem like he'd save any money in the long run, but he's convinced this would save him thousands of dollars. Who's right?
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05-10-2010, 04:20 PM	#2
F32Fleet Lieutenant General 3575 Rep 10,355 Posts Drives: 2015 435i Join Date: May 2005 Location: Southeastern US iTrader: (0)	Maybe he REALLY can't afford it.
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05-10-2010, 04:23 PM	#3
FLA 335 Captain 24 Rep 746 Posts Drives: 2009 335i (SOLD) !!!!! Join Date: Sep 2009 Location: Miami Fl iTrader: (7)	really depends on the deal you got when you purchased the car i would think. how much was the total OTD, down payment, APR? balance owed on the car vs. resale value (THIS IS KEY)... but i agree the 328 is one of the most reliable cars according to some study out there recently... why get rid of it !?!??! it doesnt even have the HPFP /wastegate problem like the 335s... seriously... i mean it is up to him really... but factor in what he has already put in to the car, mileage? is he reaching 50k miles ? you gave us the story but what about the facts ? __________________ 2009 BMW 335i Sedan / Auto / Paddles / Sport / BMW Assist / Heated seats / JB Matte Black Grill / Tischer First Aid Kit w\Triangle / Tischer Hood Pad / "Custom" rear fog switch <---- SOLD!!!!
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05-10-2010, 04:26 PM	#5
thechoson Enlisted Member 23 Rep 49 Posts Drives: 328i Join Date: Apr 2010 Location: USA iTrader: (0)	We both paid 35,500 OTD at the time (stripped 328 with the auto transmissions). He paid in cash, so no payments. He's only at about 25k miles right now. Since the car is paid off, he wants to do a straight up trade for a new Accord or Altima (not sure if the dealers would go for that)
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05-10-2010, 04:28 PM	#6
VTECaddict Where'd my VTEC go? 481 Rep 6,067 Posts Drives: 06 330i 6MT Join Date: Mar 2009 Location: Seattle, WA iTrader: (4)	Yes, he would save money in the long rum. BMWs are luxury items. They are not cars you buy if you want to save money. Depending on what trim level Accord/Altima he's looking at, he could pocket a couple thousand dollars right off the bat by trading in. Then the future maintenance costs, etc he would save more. Also if the BMW is being financed, interest rate and loan term will factor into the amount money saved in the long run. If he's really trying to save money, he should be looking at used cars. But even if he buys new, the initial depreciation hit isn't that big of a deal if he's really planning to keep it for a while. Honda's typically have one of the highest resale values as well. __________________ AW/Terra \| ZSP \| ZPP \| ZCW \| iDrive \| CA Mods: BC BR coilovers \| Blacklines \| M-tech rear \| dual exhaust \| M3 steering wheel \| BMW SSK \| ZHP shift knob \| High-kick CF spoiler \| NBT Retrofit M3 front control arms \| M3 rear guide rods \| Manzo rear toe and camber links \| Monroe rear shock mounts \| Varrstoen ES1 19x9.5+20 Front, 19x11+25 rear
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05-10-2010, 04:37 PM	#8
Topless 335i Captain 39 Rep 984 Posts Drives: AW E93 335i Join Date: Dec 2008 Location: SoCal iTrader: (2)	don't pressure your friend into taking on a financial burden he can't handle.
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05-10-2010, 04:38 PM	#9
chromisdesigns Lieutenant Colonel 45 Rep 1,754 Posts Drives: 2008 BMW 335i sedan Join Date: Jan 2010 Location: San Francisco iTrader: (0)	if he wants a Honda to lower long-term costs, then that's what he wants. But if the car is in nice condition, he'd be an idiot to "trade" it to any dealer for anything. Do a private sale and pocket a couple thousand difference, at least. I guarantee if he goes to some dealer looking to get cash back from the deal, they will value the trade-in so low he might as well just give it to them.
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05-10-2010, 04:38 PM	#10
E90Graphite07 Lieutenant 104 Rep 596 Posts Drives: 07 E90 335i Join Date: Dec 2007 Location: Texas iTrader: (0)	Probably just wants a bigger car. Have you not asked him why he's deciding to do this btw? __________________ 2007 BMW 335i, 2014 Audi A4, 2016 Acura MDX Join us on Facebook: E90Post - Houston Houston BMW DIY Services
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05-10-2010, 04:39 PM	#11
kgb1637 Lieutenant Colonel 21 Rep 1,519 Posts Drives: RS5 Join Date: Sep 2008 Location: Baltimore, MD iTrader: (0)	Don't forget the extra costs that come with BMW's, insurance, gas, etc everything is going to be more, but he will take a hit trading the car in bc dealers lowball trade ins. __________________ Retired - '08 E90 335i Sparkling Graphite/Gray Dakota Leather, ZSP, ZCW, ZPP, Navi, ipod, Sat
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05-10-2010, 04:43 PM	#15
lux.sh missing two turbos. 577 Rep 4,859 Posts Drives: fast around corners. Join Date: Sep 2005 Location: Curves iTrader: (12) Garage List 2006 BMW E90 330i [0.00]	If he really wants to save money, he should be selling the bmw as private party, buy a reliable used car and save the rest of the money. I think he just wants an accord. __________________ 06 AW E90 330i ZPP/ZSP/Step/Expired Warranty : Prior Design Front : ACS Rear : ACS Roof : BlackLines : Simota Intake : Carbon Fiber Interior Trim : : MTEC V3 : 24% Charcoal : V1 Hardwired : Solaris Invisibulbs/LED interior :
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05-10-2010, 05:04 PM	#17
ENINTY Banned 173 Rep 3,415 Posts Drives: 2006 325i Sport Join Date: Jun 2006 Location: Virginia iTrader: (0)	He'll loose his ass. He'll essentially pay $35K for a $23K Accord. The 328 will turn out hardly more expensive to maintain than a Honda Accord. The current generation Accord may loose it's transmission at 60,000 miles (they have been failing that soon). If he paid $35K cash for a 328 he must have thought it was a good trade for the cash. He saved thousands by not financing. The dealer will think he is a dumb-ass and take him for all he is worth with a trade. And when he starts driving a humdrum Accord he'll say "WTF did I do that for." You buy a BMW because it is a BMW not because it is a car that gets from point A to point B. Tell him to man up and keep the 328. What, did he get a chic pregnant or something?
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05-10-2010, 05:29 PM	#19
RambleJ Colonel 60 Rep 2,014 Posts Drives: F10 535i M-sport Join Date: Oct 2008 Location: Back in teh so cal iTrader: (2)	If he already paid for his car cash, the only thing he is going to save any money on would be insurance... Or did these cars not come with a warranty? I don't understand how giving up a car that is already paid for a smart thing to do.
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05-10-2010, 05:29 PM	#20
AS335i Second Lieutenant 12 Rep 237 Posts Drives: e90 335i, f30 330i Join Date: May 2010 Location: Austin, Texas iTrader: (0) Garage List 2017 BMW 330i [0.00] 2009 BMW 335i [0.00]	In the long run, the accord would save him money for sure. They usually are more reliable, and even if they brake down the same as the BMW, the BMW parts are going to cost tons more. Also, mantinance with the BMW is really expensive compared to the Honda. But, the BMW is a better car, you have to pay to play. In the end if hes looking to actually save money in the long run the Accord would be a better choice
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05-10-2010, 06:08 PM	#22
tim818 Private First Class 13 Rep 110 Posts Drives: way too fast Join Date: Oct 2009 Location: San Jose, CA iTrader: (0)	In the long run it will probably save him few grands trading in for an Accord. It has higher MPG (and uses regular gas), insurance will be a tad lower, and it's a brand new car so no worry about the maintenance/car aging issues. However, you should to ask him is it worthwhile to sacrifice the driving pleasure over a few G's? From another perspective, if he's single and still dating girls, then keep the Bimmer. If he's got drunk and proposed to his GF last night, then yeah, it's Honda time!
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