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Effective Cost
Just wondering what the approximate cost would be if I ED'd every year.
Assuming during the year the mileage was normal and there was no damage to the vehicle - if I sell my year old ED and replace it, it appears to me the difference is minimal. That would be the cost of owning the car for one year.
For example - if I purchase an ED for $50,000, drive it for a year - sell it for $45,000 and replace it with an ED for $51,000 (price hike) - my cost is $6000 for the year.
But I have noticed that my year old ED will sell extremely close to original cost. So my real cost would be tickets to Munich. With two tickets, it turns out my cost for a new car each year becomes about $150 / month.
Am I missing something?
-Harry
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Makes sense if you plan on vacationing in Europe and do not count that as an expense of going to get the car. But also remember it takes some time to get the car back stateside and that payment is due a month before pickup in Munich.
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I think you're dreaming if you think you can buy a $50,000 car and sell it for $45,000 a year later. I think it's more like $40,000. The biggest hit is always the first year. Then there's the question of sales tax, if you have to pay it.
I think a zero down payment lease is the way to go. BMWFS lets someone assume the lease for a $450 fee (if they qualify). The process takes about 4 weeks. This way you only pay sales tax based on one year of lease payments and you walk away from the car. Since ED lease deals tend to have lower payments and in some cases much lower out-of-pocket costs they tend to be attractive to Buyers. That's how I sold my last car (ED 545i).
On a related note....my 545 was going to be hit with a greater depreciation (I believe) due to the arrival of the 550i. BMW has been increasing the HP along it's model line and this might affect your resale value in the future. Also, as models mature and the market fluctuates BMW may lower the money factors significantly to move inventory....thus making your "screamin' ED deal" a little less than "screamin'". The 3 series money factors are down 20% from 6 months ago....and the prices are up only marginally. (300-600$)
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its the tax! Otherwise if u are in OR then you could easily break even.
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Does the money factor being down 20% have any indication on what going to happen to the price of the 3 series within the next few months? I am planning to do ED in March, is the money factor any indication of the price (invoice) going up or down?
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Effective Cost