To Downgrade or to Upgrade? That is the Question

[DJKapeesh]

There is a similar forum up where it partially answers my question about how people feel about the FRS/BRZ.

I Drive:
I have a 135i 2012 with 78.5k on the clock and a warranty that expires at 80k. The car is DCT and as clean as can be. I baby the hell out of this car and searched for 3 months for the color combo and options (White on Red fully loaded)

My question is this:
Currently Owe 27k on the car but want to get out from underneath it. Financially I have no problem paying for the car and make advance extra payments of $75 - $200 monthly. While saving around 1k monthly.

2 Cars:
The Subaru dealership is running a special on BRZ's where they provide 0% APR and sell them around 25k. If I get a value of 20k on trade in thats 32k for a BRZ with 0% APR. Only looking at manuals at this point but I feel this is a lot to pay for this little car.... OPINIONS Please

BMW 2008 M3 E93
There is a manual stripper hardtop at a dealership near me with 42k miles on it for around 30k. In a trade in I may end up with 35-37k for the M3. Midnight Blue with Silver (Blue) Interior. This car is worth the money to me but would be going to opposite direction of saving more money. This car would basically have the same payments I have now but on a car more worth it IMO.

Resolution:
Very interested in the M3 but feel like 1k monthly at age 25 isn't enough or am I delusional? I have been putting the pressure on myself recently to be more financially responsible to the point if I could sell my car and break even I would buy an old E30 beater and drive that...

Thoughts and opinions here?

[DJKapeesh]

Opinions if this M3 would be worth 37k bottom line?

[hgtran21]

you should just keep driving your 135i and save your money. youre only under cause of high miles but if you keep driving it youll get your moneys worth.

[DJKapeesh]

Originally Posted by hgtran21

you should just keep driving your 135i and save your money. youre only under cause of high miles but if you keep driving it youll get your moneys worth.

True because I drive A LOT.

That being said I calculated about $1250 in maintenance coming up in the next 10k ish miles.

Spark Plugs, Ignition Coils, Walnut Blast, Oil Change, Need new Wheels (Rear wheel crack), Warranty expires

[hgtran21]

if you drive alot maybe you should get a beater with that extra money!

[135TX]

Look you are going to run into maintenance issue on that E93 for sure, maybe in a couple year but nonetheless. Also at the rate you drive it will be a similar situation of you being underwater, it will be a never ending cycle unfortunately. The only way out is to keep paying to play on the 135i, or get a car that depreciates less with higher mileage. I'm thinking honda/toyota. so in that case the subaru might be a solid option.
The way I would treat it is put a down payment in at least the amount you would need to spend on maintenance for the 135i, so maybe 1-2K. on the brz at the point when you trade it in. Then you will only be down 5K the great thing is that 0% interest.

M3 scenario: If you are up side down- 7K @ lets say 4% apr, paid down over 60 months means you are going to pay 7,735 total on negative equity. So basically you are paying almost 8Gs over the purchase price of the car, that will depreciate just as quickly as the 135i with likely higher upkeep due to #m3,#convertible...

so option1: Stick with the 135i and pay extra per month drive it into the ground (because at the miles driven your negative equity will get worse unless you are making double payments every month. Also it might be prudent to refinance the vehicle at a lower rate if you can qualify that will help you chip away at the principal on the loan more quickly.

option 2: get a car that depreciates slower, or a lower priced car you can pay off easier, and obviously one you can wrap the negative equity on the loan. And with lower maintenance costs.

personally i'd look at the BRZ and if it works for you a used s2000 in good condition with lower miles. Both might be viable for option 2, obviously the BRZ is great because it's new and has 0% financing....

Whatever you do good luck, and enjoy in good health!!

[DJKapeesh]

Option 2 was precisely my thought and maintenance on BRZ would be near nil with warranty was my thinking.

My thinking for option 1 was that now 8 year old M3 has reached maximum depreciation and will hold value similar to older M3 model which will mean I will be out of negative quickly. Also M3 for 37k and 45k miles imo was not necessarily negative equity since the going value I believe is around 35k (Correct me if I'm wrong)?

I am looking at trades for cheaper older cars or even beaters with cash on top in private trades. If I start looking at dealers I am looking to pay the tax and fee which may add 1-4k depending.

Forgot to mention I also need to register the 135i after moving so make that around 1.6k in fees due...

Appreciate the opinions and keep them coming. Worst case scenario is I keep the 1er until I'm down to around 20k and sell it then in 10 months. My thought process is I would rather have payed 7k down on the M3 than the 1er.

PS. Already refinanced 3 - 4 months ago. Currently at 3.5%

[135TX]

Since you just refinanced, id say wait a little longer, NTM I have seen early 2000 accords with 80k go for 2-4G. I know it may not be prudent but you could buy a beater and keep paying on the 135i but drive it on the weekends.

Look, ultimately drive the car you want to drive while not breaking the bank. I was recently looking into a CRX for daily driving to and from work LMAO, just for a change of pace and something super cheap and easy to repair. What a contrast. 80HP crx to 300+ 135i. the great thing is im a tool in both...

[drewnel22]

You need to stop looking at what your payments are and look at the bottom line. Fact is paying 32k for a BRZ or 37k for an M3 is a stupid idea. Even dumber is paying 1k a month for it. Pay down your car and get a beater you can pay cash for until you can afford either car you are looking for.

[Z K]

Just pay it down and wait until you have positive equity in your car. That M3 may only cost a bit more but maintenance will cost a lot more over a 135i as well.

Your car may depreciate more as you drive it but an M3 will also depreciate as well. It also has big problems that can happen like rod bearing failure (new engine = $20k) or throttle actuators ($1.5-2K inc. labor per actuator). You'll end up in a bigger hole of debt after it's all done.

Drive your car, pay it down until your right side up and then sell it and buy a less expensive car. Patience is the key. If you do drive a lot, Japanese cars are very reliable and generally don't depreciate as fast as European cars.

Buying a E30 beater is also a terrible idea. If you don't plan on spending a lot of time wrenching and fixing your car yourself, you'll be in a huge hole in repairs and maintenance. Old cars are notorious for problems and breaking down.

[BloomRunsDubs]

Id get the M3 but thats me, and I have really effed up priorities

You probably wont regret the M3. I sure as hell would regret spending 32k on a scion or subaru. Especially a FRS/BRZ

On the other hand the only thing I would ever pay over 1K a month for is a Lamborghini

[DJKapeesh]

Originally Posted by drewnel22

You need to stop looking at what your payments are and look at the bottom line. Fact is paying 32k for a BRZ or 37k for an M3 is a stupid idea. Even dumber is paying 1k a month for it. Pay down your car and get a beater you can pay cash for until you can afford either car you are looking for.

I'm wondering what kind of math you are doing LMAO. 1K? Try 530-600ish range on the M3.... U must be calculating maximum APR or something lol

Originally Posted by 135TX

Since you just refinanced, id say wait a little longer, NTM I have seen early 2000 accords with 80k go for 2-4G. I know it may not be prudent but you could buy a beater and keep paying on the 135i but drive it on the weekends.

Look, ultimately drive the car you want to drive while not breaking the bank. I was recently looking into a CRX for daily driving to and from work LMAO, just for a change of pace and something super cheap and easy to repair. What a contrast. 80HP crx to 300+ 135i. the great thing is im a tool in both...

Funny thing is,
I bought a $400 beater back a year ago when I was living in Wisconsin (Ford Escort Wagon 94' manual 80hp) and had the time of my life trying to drive it in the snow and ice last winter. Sold the car for more then double after fixing it up.

I will admit every time I got back into my 135i I was ecstatic

[drewnel22]

Originally Posted by DJKapeesh

I'm wondering what kind of math you are doing LMAO. 1K? Try 530-600ish range on the M3.... U must be calculating maximum APR or something lol

I saw 1k at the bottom and didn't realize it was how much he was talking about saving. Yea it did sound a little high lol.

[Ammonia]

My advice (as someone who works at a car dealership and has bought/traded 5 cars in the last four years) is to keep the 135i. You have a decent amount of inequity, you want to avoid that, pay down the principle, and keep up the savings.

Also, unrelated, but I feel that $1k a month into savings is abit of overkill. Save up enough to support yourself for cost of living equal to 3 months, then start investing and working down your debt.

[Nitrousbird]

Originally Posted by DJKapeesh

That being said I calculated about $1250 in maintenance coming up in the next 10k ish miles.

Spark Plugs, Ignition Coils, Walnut Blast, Oil Change, Need new Wheels (Rear wheel crack)

Coils = $190
Plugs = $72
Walnut Blast = ~$300 if you don't have any of the stuff to do it (and what man doesn't have an air compressor and basic hand tools?)
Wheel = Buy used, $300 tops, probably less

Where is $1250 coming from?

[DJKapeesh]

First off the M3 I was looking at was no longer available

That makes the plan null and void...

Originally Posted by Nitrousbird

Coils = $190
Plugs = $72
Walnut Blast = ~$300 if you don't have any of the stuff to do it (and what man doesn't have an air compressor and basic hand tools?)
Wheel = Buy used, $300 tops, probably less

Where is $1250 coming from?

Plugs + Sparks $300ish
Walnut $300~
Oil $100
All maintenance done by local shop and I do not have the tools as I just moved and don't own a house.

Wheels $400-800 depending on the set I get and maybe have to get tires based on size

Warranty runs out and was considering getting extension.

+ this months payment I would have saved of $525 + extra $75 I place on top

[Nkc]

The answer is to stay put with the 1 er.

[Alfisti]

At 25 and single, debt on a vehicle that is not at 0$ or damned close is madness. Get rid of it all and buy a house and a cheap car that's not a penalty box, houses are still crazy low in the US compared to other civilised countries.

[DJKapeesh]

Originally Posted by Nkc

The answer is to stay put with the 1 er.

So what your saying is to get the M3 then?

Originally Posted by Alfisti

At 25 and single, debt on a vehicle that is not at 0$ or damned close is madness. Get rid of it all and buy a house and a cheap car that's not a penalty box, houses are still crazy low in the US compared to other civilised countries.

Reasons I have not bought a house:
1# I have had 3 jobs in 3 states over the last 2 years. I enjoy travel, project based IT work and make pretty good money for it.
2# I don't want to have to maintain the house at this point. (Repairs, Upgrades, Home owner association, ect)
3# Houses are still debts not assets

I'm considering it but not sure about a house at this point. Cars may be bad investments but they are FUN and I spend 50% of my time in them so they are important to me.

[DJKapeesh]

Originally Posted by Alfisti

At 25 and single, debt on a vehicle that is not at 0$ or damned close is madness. Get rid of it all and buy a house and a cheap car that's not a penalty box, houses are still crazy low in the US compared to other civilised countries.

PS I'm not single.... Bills are almost 1/2

[Alfisti]

Even more reason to buy a house!

[Z K]

Originally Posted by DJKapeesh

Reasons I have not bought a house:
1# I have had 3 jobs in 3 states over the last 2 years. I enjoy travel, project based IT work and make pretty good money for it.
2# I don't want to have to maintain the house at this point. (Repairs, Upgrades, Home owner association, ect)
3# Houses are still debts not assets

I'm considering it but not sure about a house at this point. Cars may be bad investments but they are FUN and I spend 50% of my time in them so they are important to me.

So don't buy a house. Bank the money and go pay off your car with the cash you're saving by not spending it on a house.