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This is my first time getting my car financed, so Im not completely sure how all this works. I bought my first car, a 2010 bmw 328i in march 2013 at a cost of $20,000. I have $16,000 left on my payment and I received an offer for $17,500 to sell my car. I am wondering if this puts me in the position to be able to get a bigger loan, thus a better/newer BMW or if I am better off sticking to the car I have now? I really want to buy a used 2012 or 2013 328i.
 

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You will need to have your credit run and will be based on your income to debt ratio and credit score. Good news is, you will make $1500.00 on your car compared to your payoff which is pretty darn good after 8 months. I would honestly not want a newer 328i. Get a Camry instead. That is what they felt like to me when driving them.
 

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This is my first time getting my car financed, so Im not completely sure how all this works. I bought my first car, a 2010 bmw 328i in march 2013 at a cost of $20,000. I have $16,000 left on my payment and I received an offer for $17,500 to sell my car. I am wondering if this puts me in the position to be able to get a bigger loan, thus a better/newer BMW or if I am better off sticking to the car I have now? I really want to buy a used 2012 or 2013 328i.
Well, it puts you in a position to see $1500 positive cash flow but on the downside, you have no transport.

So, you get a new or pre-owned car. Hmmmmmm.....what will tax + license fees come to?

Oops!

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· Philosopher-king
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I've never had a car loan.

So if I could afford a $1500 car, I'd drive a $1500 car. (Lest you think I'm looking down my nose at drivers of $1500 cars, I own and drive a $1500 car. According to the NADA guide, my old Volvo is worth $1,500 as a trade-in. It's a stick, so it's still fun to drive, even after all these years and miles.)

Is it a bad idea to trade in the BMW i got 8 months ago?
IMO, yes it would be....
 

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I took my 2011 328 in to have the rear taillight replaced. They kept it over night and gave me a 2013 328. The car was bigger, I hated the steering and I didn't care for the 4 cylinder. That car was so bland and boring. My 2008 accord with the 6 cylinder was more fun to drive. I was so happy to get my car back.
 

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Good news is, you will make $1500.00 on your car compared to your payoff which is pretty darn good after 8 months.
I'm not sure I'd consider that good news. The OP is taking a 12.5% loss in value on a 4 year old car in an 8 month period, or just about 19% depreciation per year on a last generation used car. That's a ridiculous rate for a car that old, and a nasty financial hit for someone who hasn't been in the game that long.

To the OP: If you want a newer car, get one. However, you're not doing yourself any favors financially with the deal as you have described.
 

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Depreciation

I'm not sure I'd consider that good news. The OP is taking a 12.5% loss in value on a 4 year old car in an 8 month period, or just about 19% depreciation per year on a last generation used car. That's a ridiculous rate for a car that old, and a nasty financial hit for someone who hasn't been in the game that long.
To the OP: If you want a newer car, get one. However, you're not doing yourself any favors financially with the deal as you have described.
+1 Though I didn't run the numbers I'm sure the OP might have been excited about selling his car for more than was owed. That's a good position to be in ... BUT ... as is noted, that didn't take into consideration depreciation - it happens with every car ... more rapidly at first (the old story - as soon as you drive that new car off the showroom floor that sound you hear is its value crashing! :bawling: )

I'd recommend, unless the car you bought last March is sooooo distasteful to you, that you hang in for the ride. Else you may ping pong from car to car and only increase your real (car) debt without realizing it until it was too late.
 

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You will need to have your credit run and will be based on your income to debt ratio and credit score. Good news is, you will make $1500.00 on your car compared to your payoff which is pretty darn good after 8 months. I would honestly not want a newer 328i. Get a Camry instead. That is what they felt like to me when driving them.
I have to agree. I specifically purchased an older CPO instead of a newer model. I have a 2007 Camay Hybrid. Though noisier, I thought the Hybrid drove better than the newer 328i. So did my wife, and she knows little of autos. She did notice a distinct difference between the newer and older model 328Is.
 

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Car switching every couple of years can become a bad and costly habit. Take it from someone who knows. I broke the seal so to speak and I'm finally starting to reign in in a little having a family, new home and other obligations.

Hang in to your car as long as you can so you don't get into that habit of having newer cars. It's very hard to break.


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If you want to switch cars constantly you'd likely be better off leasing.

Otherwise, get in the habit of purchasing/financing a car that you actually like and then drive it for as long as possible/financially feasible. In many cases, even a costly repair is financially a better choice on an old vehicle than buying new (and taking on a loan). This is where actually loving your car can make a difference. :thumbup:
 

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I'm not sure I'd consider that good news. The OP is taking a 12.5% loss in value on a 4 year old car in an 8 month period, or just about 19% depreciation per year on a last generation used car. That's a ridiculous rate for a car that old, and a nasty financial hit for someone who hasn't been in the game that long.

To the OP: If you want a newer car, get one. However, you're not doing yourself any favors financially with the deal as you have described.
Excellent advice.

OP - since this is your first car, you really need to keep it for at least a couple of years before lusting for a newer, albeit still USED car.

Tom
 

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I took my 2009 in to have some service done and got a 2013 for a loaner and REALLY did not like that 4 cylinder turbo engine. The straight six is much more responsive and smooth.
Interesting observations. I like the responsiveness of the 4 cyl, it is at least as good, if not better than the straight six. The car will go if you want it to. What I don't like is that if you run up the RPMs, the 4-cyl starts to sound like it's about to jump out of the engine bay and cry while the 6-cyl starts to sing.
 

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+1

OP if you want to buy a F30 3 series BMW version of Camry save your money and buy a true Camry for cheaper price and better reliability. If you want to upgrade to a newer E90 the amount of year difference is not enough to make it that great of a difference.

I have to agree. I specifically purchased an older CPO instead of a newer model. I have a 2007 Camay Hybrid. Though noisier, I thought the Hybrid drove better than the newer 328i. So did my wife, and she knows little of autos. She did notice a distinct difference between the newer and older model 328Is.
 
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