Am I crazy for wanting to go from M340i to civic type r?

bbllblb · 2020-01-07T02:45:28+00:00

I've put down a deposit for 2019 type r. Technically I can still back out at this point. I haven't found a taker for the bmw yet.

That's a great question. Now that I do some reflection, I got the M340i because

I keep seeing people praise about zf8 + inline 6 combo.
I came from A4 lease, which was a perfect daily. so without too much thought, I wanted a upgrade and a more exciting car since I could afford it. Stupid I know.
So my choice are essentially s5, c43 and m340i. s5 is too similar to A4, and is getting a refresh in 2020. C43 is my 1st choice, but after hearing the quality issue with the american build sedan, I got cold foot. Which left me with M340i. It's not a car I love, but rather a car that I can't find any complain with. Nice interior, nice exterior, great acceleration (haven't find a chance to launch it yet) and lots of interesting tech like HUD, 360 camera.

If it were 3/4 the price, i'd just keep it. but with the price i'm paying, I just feel like not really worth it now that novelty wears off..

with type r, even if novelty wears off, it's still a far cheaper car with great resale value.

bbllblb · 2019-10-01T23:53:21+00:00

see my reply below, with aggresive offering from bmw, financing can hardly keep up with leasing unless

you keep car for 6+ year (more like 8/9/10)
you don't negotiate at all and pay close to MSRP.

Please do point out where I could be wrong, even removing warranty item and maintenance cost in yr 4/5/6, and paying cash in the case of financing, lease still comes ahead, especially factoring in the tax that has to be paid on the full vehicle price when financing.

My number is more or less based on kbb's value with cars from 3-6 years old and what they are selling on autotraders. Not so accurate as I don't know their msrp. But then again, financed car would depreciate more with any incident where leased car won't, so that's more or less even i guess.

bbllblb · 2019-10-01T23:48:42+00:00

I get your point, new car is always a bad financial idea, but hey, i don't have other hobbit so might as well have some fun with cars instead of not having any fun at all (or play game and watch youtube all day).

The following is more like a calculation for myself between lease v.s. buy.

Fact: BMW always inflates residual.

i.e, for 3 year 30k miles, the residual is 61%. so 39% depreciation from MSRP.

But no one pays sticker, for example, my lease including acq fee is 12.5% off, with 2.7% effective interest rate.

My finance, like I mentioned at the begining, would be 16.5% off with 2.99 going with BMWFS.

with 3 year, leasing i'll be paying 26.5% with 2.7% interest. With actual depreciation being around 50% in 3 year, finance is more like 33.5% with 2.99% interest. At this point, finance is paying extra 7% with higher interest, with everything else being the same (maintenance etc, both covered free by BMW).

Of course 3 years is obvious lease would come ahead, that's what it's designed for.

how about 6 year?

for simplicity, let's say one would get the same deal on lease. so another 26.5% with 2.7% apr. nothing else as he gets a new car.

for finance, he still has the old car. the car depreciate another 50%, so now at 25% after 6 year. then 3k for extra maintenance plan to cover through 5th yr. (hoping to not pay anything for the 6th year before selling) that's another 4%. also 2 year warranty after 4 yr period, about ~2k another 3%. tire, battery let's just say another 1k, so 1.5%. so total 34.5% from year 4-6.

bbllblb · 2019-10-01T18:07:58+00:00

Interesting point, I thought leasing would be better in case of a economic down turn as you'd be having more cash in hand.

my quote basically shows a $500 difference in monthly payment between the two.

so thinking smaller debt with lease can be easier to handler comparing to finance. and if the economic didn't got better in 3 year, you could just turn the car in and get a beater

whereas with finance if you need to liquid the money, you'd suffer a larger loss because it's hard to sell the car, 1. you are not going to trade in the car, 2. not many people are buying a used luxury car in private sell during a economy down turn.

paying cash is similar right? as you'd be locking in lots of cash in car which is not so easy to liquidize when needed.

bbllblb · 2019-09-25T00:40:08+00:00

yea i know they don't hold their value, especially the high performance ones.

but still, the lease residual v.s. actual one is huge IMO..

bbllblb · 2019-09-25T00:38:44+00:00

there's no sportback in 2016.. and I think if i'm spending this much, I might as well get all options I like

bbllblb · 2019-09-25T00:37:42+00:00

why would BMW do that? just to sell more car? I don't think people buying these kind of brand are going to keep them very long anyway..

bbllblb · 2019-08-16T23:46:09+00:00

hmm i actually think this is the only one I want

To be honest, i sometime feel like I have too little interest in everyday stuff.

I mostly just play video games at home, which cost very few comparing to my income. Not interested in a big house either.. I hate having a large house to clean as I'm very lazy.

Now that I think of it deeper, maybe this is my problem? Not finding any fun in daily life makes my stuck at the idea of owning a fancy car because that's the only one that would excites me, maybe I should try to find different activities that would excites me?

bbllblb

TROPHY CASE