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Discussion Starter · #1 ·
1) November 2004 - pickup 2005 545 ED for 49K

2) January 2006 - find out I have to make business trip to Europe during May of 2006. Walk in to BMW dealer and just for laughs price out a 2007 550i.

3) Dealer offers the following

a) will take the 2005 545 as trade and will give me 45K
b) dont need to turn in the 545 until 2 weeks before departure (early May)
c) new 2007 550i (small $ over ED invoice)
d) for an additional few hundred dealer will provide loaner car (Camry:thumbdwn: ) until redelivery of 550i


I believe I drove around in a new 545 for 18 months for 4K - not a bad lease.


ED can work pretty well

Any thoughts??
 

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You are the second person whom I've seen that claims they paid $4k to drive a 545 for 18 months. If that's really the case, it's unbelievable deal and should be repeated over and over again.
 

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What about the sales tax? Was the first car a lease too? And did you factor in the BMW CCA rebates?
 

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compwhiz said:
You are the second person whom I've seen that claims they paid $4k to drive a 545 for 18 months. If that's really the case, it's unbelievable deal and should be repeated over and over again.
No kidding. If you can trade in at 90% of the original cost, that's great.

Of course, if you pay sales tax, and don't get a credit, it changes the economics a bit.
 

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Down with sales tax!
 

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texbmw22 said:
1) November 2004 - pickup 2005 545 ED for 49K

2
I believe I drove around in a new 545 for 18 months for 4K - not a bad lease.

ED can work pretty well

Any thoughts??
How many miles did you put on the 545? Thats great, nice job!!:clap:
 

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Me530 said:
Down with sales tax!
how would you prefer they take it from you?

I think states should adopt a "first sale" rule. That is, only the first sale of a product to a consumer is taxed. Any resales are not. If you did that, then car dealers could sell the used car at a higher price, equal to the sales tax that would have been paid. That means they could pay you a higher price. In other words, you would recoup most of your sales tax on the trade in. The state still gets the full amount of the tax, but just once.
 

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Tanning machine said:
how would you prefer they take it from you?

I think states should adopt a "first sale" rule. That is, only the first sale of a product to a consumer is taxed. Any resales are not. If you did that, then car dealers could sell the used car at a higher price, equal to the sales tax that would have been paid. That means they could pay you a higher price. In other words, you would recoup most of your sales tax on the trade in. The state still gets the full amount of the tax, but just once.
I know I know, I just got caught up in the moment...

I am just jealous of states where you are not taxed on the full purchase price of the car when leasing....
 

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Good bye 545i... gitty with a 550

May i ask the specs of your 545i trade in? Jump on that deal!:freakdanc

How much is a few hunfred for the loaner camry until redelivery?

Boy, do i wish i were in your shoes!:angel:
 

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Discussion Starter · #10 ·
Additional info

Just to clarify:

The original 545 transaction was not a lease. It was a purchase. However, effectively, I drove around for 18 months for $4k, so in essence I "leased" the car at a very attractive price.

The 545 did not have a lot of options - cold weather only. The 545 is in excellent condition.

mileage at trade in - 15,500

The advantage of a trade in is that no tax is charged on the trade in portion of the transaction

I am obviously going to be out of pocket for substantial dollars because the new 550 has a bunch of options that I really wanted ( nav, comfort seats, upgraded sound etc.)

Its not really accurate to say that I had it for 18 months as it was unavailable for the 5 weeks while it was being shipped before redelivery.

The dealer is charging me $500 for the loaner

The point, however, is if you buy ED the right way and you do some business in Europe (so that the cost of the trip is not that much of a factor), its possible to buy and sell in such a fashion so that the real cost of ownership is quite low. I was not smart enough to take advantage of the $1000 rebate, but I will next time. The new car also brings a full tank of gas ($100 value), obviates the need to replace tires on the existing car etc.

It will be interesting to see what the new 550i would bring in trade 1 year from now. The downside to a yearly transaction of course is the redelivery waiting time.

Comments??
 

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texbmw22 said:
The advantage of a trade in is that no tax is charged on the trade in portion of the transaction

Comments??
Yes, but you did pay sales tax on the original purchase... so you'd have to add that to the $4K... even if you paid 8% sales tax on $49K x 0.08 = $4K in sales tax for a total of $8k/18 = $444 / month -- still was a great deal... :thumbup:
 

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x3Bruin said:
Yes, but you did pay sales tax on the original purchase... so you'd have to add that to the $4K... even if you paid 8% sales tax on $49K x 0.08 = $4K in sales tax for a total of $8k/18 = $444 / month -- still was a great deal... :thumbup:
Right, but if you count it there, then he's paying no tax on the new purchase, other than the price differential.
 

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I do an annual ED, and it works for me.

1) Already planning to go to Europe every year as part of holiday so trip expense is sunk.
2) Avoid rental car expense
3) Trade in the car before I have to replace $1200 worth of runflats and avoid alignment/mounting/balancing costs.

Annual net cost (deduct the rental car and tires) of ownership is almost nothing. I have a beater that I can drive while I wait for my car to arrive.

I buy at the start of the model year (usually pick up in October) to maximize return at trade and to keep airfare/hotels low.
 

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xspeedy said:
I do an annual ED, and it works for me.

1) Already planning to go to Europe every year as part of holiday so trip expense is sunk.
2) Avoid rental car expense
3) Trade in the car before I have to replace $1200 worth of runflats and avoid alignment/mounting/balancing costs.

Annual net cost (deduct the rental car and tires) of ownership is almost nothing. I have a beater that I can drive while I wait for my car to arrive.

I buy at the start of the model year (usually pick up in October) to maximize return (trade in a 2006 model in late 2006.
When I first read this thread I immediately thought of your annual "plan". BTW, we need to meet up this weekend before I go off to Munich.
 

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afshawnt said:
When I first read this thread I immediately thought of your annual "plan". BTW, we need to meet up this weekend before I go off to Munich.
Sure thing. I have to give you list of crap to bring back for me :)
 

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texbmw22 said:
. The new car also brings a full tank of gas ($100 value), obviates the need to replace tires on the existing car etc.
:D

Can you post some numbers on what the MSRP of the car was?
So you do not lease but buy right?
And you do not pay sales tax on the trade in amount?
What is your sales tax rate?
 

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A 545i with ZCW and steptronic only...sounds like a stripper!;)


45k on a trade is about right as per KBB.

Dude do the swap/flip and don't look back:bigpimp:
 

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Airline ticket to Germany + $700 on the ground expenses: $1,200
Set of tires: $1,200 (like Xspeedy said)

Take your pic.
 

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MARCUS330i said:
Airline ticket to Germany + $700 on the ground expenses: $1,200
Set of tires: $1,200 (like Xspeedy said)

Take your pic.
You forgot the $1000 BMW CCA Rebate...:bigpimp:
 

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BayAreaBMWFan said:
You forgot the $1000 BMW CCA Rebate...:bigpimp:
True. I'll get my first rebate this coming winter for the 335 ED. (and yes, I've made provisions for the screen name change):bigpimp:
 
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