What are you going to do with the Tahoe once that gets out of warranty? I have an even stronger point, assuming you’re going to pick up a Hybrid.
If you’re going to own a boat, you’re going to need something to tow it.
Forget the 1.9% rate on the BMW. In-direct financing is cheap now. Not to mention, even if you get 1.9% or better on a Tahoe, your gas bill is going to be $400 more a month.
The difference between 1.9% and 2.9% is dollars a month, nothing worth even taking into account. Especially, because I think it makes sense to drive a warrantied, reliable car @ 3.9% than it would to drive a car that had me worried @ 0%.
How much credit card debt/unsecured debt do you have? You don’t have to answer that, but if I were you…and I’m not you… here’s what I would do…
Find something you want @ 0% or 1.9%.
Trade BMW in. Hypothetically, if you think you have $8,000 equity, theres no point in utilizing that $8,000 towards zero percent. Pull the equity out and take it as a check from the dealer. Use that $8,000 that you now have 0% on and use it to pay for anything you might not have 0% on. Use it for the boat. Use it for a nest egg, it’s 0%…who cares.
that’s definitely an interesting perspective but in 10,20,30 years, if good decisions are made now, he wont need to finance a mid-life-crisis mobile. He’ll be able to buy it outright if he chooses
but the point is important. whether the need is invented or not, i think it’s worthwhile to enjoy the finer things in life… within reason, and by that i mean not at the expense of the basics.
i would also say it’s better to enjoy those finer things earlier in life than it is to do so later on. i have a feeling you’ll ‘get over’ a lot of things you think you really want but don’t. it will make for a wiser senior and a leaner retirement i suppose.
just as an FYI if you are looking for a good interest rate, I just pulled a 30k loan from penfed at 1.49% That is some cheap money. I actually made a decision to put less down on the vehicle due to the low rate financing and my company giving me most of that payment.
Factor one to consider is how much it will cost as a realized loss to get rid of the 335. You need to look at resale and has the car’s value just dropped off a cliff or will it in the next year or two? If you like the car it might just work out better to keep it and eat any costs if they even happen at all. I see too many people these days paying anything to have a car with a warranty while claiming they are focused on saving money.
Warranty isn’t about spending money. Warranties are for peace of mind and not having to deal with it. Sure the financial obligation is nice to not have, however, I find the phrase “ok, fix it, whatever it takes” to be worth a lot more than a few hundred dollars in repairs.
Help my brother in law buy a certified 2011 Scion xD with 20k miles last weekend, seriously thought the finance lady was going jump across the desk and stab me when I told him he didn’t want her $2200 platinum extended warranty after he said “yeah, I guess just add it on”. I explained later that I pretty much reached across the desk and took money directly from her purse by telling him to skip it.
But yeah, on an overly complicated vehicles like a 335, with it’s questionable and ridiculously expensive fuel pump (and other parts) I’d be a little nervous when the warranty expired.
3k in monthly fixed expenses on a single income… yikes
I would have to be pulling in ~70k after taxes to feel comfortable with that
but im a bit cheap and hate monthly obligations
If i were you i would be reducing my monthly nut by cutting anything non essential first ( like buying a boat :lol: ) and then look at things like getting a different car after I had trimmed the fat
that boat would be a lot more fun to buy when its not a stretch to afford it
dont take this the wrong way, just trying to offer an alternate viewpoint
$3,000 in fixed month expenses, really isn’t that bad. Assuming that a large % of that is your mortgage. (Tax deductible and hopefully will provide you some form of ROI).
I mean, I’m probably in the same boat. However, I have really cool shit and a really nice house.
I mean, I guess I could cut it down to ~$2,000 but I’d live near a canal and drive a 10 year old car.
I’d speculate most people don’t get their money back on warranties (new or 3rd party) this is probably a good thing in some ways.
I’m the poster boy for owning german cars out of warranty, I have 4 of them currently. They haven’t really cost me much in repairs, a few hundred here and there (mostly on wear items). When I have had cars under warranty I’ve only ever had miserable experiences begging for things to get covered and taking them back when shit got done wrong or poorly.
If it’s a 3 year loan, that’s not bad. I do 5 year loans so long as I can get decent interest rates. at 0.9%, take the practically-free loan and use the cash to have fun.
If you’re going to have the boat on a lift, I wouldn’t worry about a tow vehicle. Just rent a truck for the couple of times a year you need to tow it. A couple of hundred bucks(at most) and you don’t have to deal with the increased fuel costs.
If you think that 2k in FIXED expenses would make you live like that, then you probably need to be better at managing money and deals. Sad statement for someone who seems to be in the finance business. We have 2 cars 2008 and 2011, a 2006 boat, a nice house and plenty of misc toys/gadgets, and I don’t think we’re really anywhere near 3k in fixed expenses. Not all of those assets have loans either.
Then again, we don’t require satnav and heated leather seats, we DIY as much as we can, keep at least 1 fuel efficient vehicle, pay cash for as much as we can, pay off credit cards, etc… If you need loans and credit cards for everything you do, then you can’t afford your lifestyle. That’s not a statement pointed JUST at Beck, but in general.
You wont see the rates there are out there now, after they go up, for a long time. If you can hold onto your cash, and still be able to cover the monthly payments, go that route. If you happen to get yourself in a situation where you can cover your payments with your monthly income, you can dig into the cash, and “buy” some time to sell something off.
As an aside, what’s a big worry with the 335? The HPFP and injectors are covered for 10/100, and I can’t think of too many common problems that are over a grand to repair.
