[Jyw1212]

I wanted to get out of finance from my 2012 bmw 135i after 18months (48months finance) and lease 335xi instead. They told me i owe them 16k to get out. I know i have high mileage (52k now), but it doesnt make sense for me to get out of finance now. Will it be smarter to drive longer and get out or will i be paying the same no matter how long i drive this?

Reason for trading 135i: I just want all wheel drive and 4dr sedan.

Any opinion?

[Tim@codemybimmer]

The problem is that in most cases, the car depreciates faster than you pay it off till around after the half-way paying it off. Therefore your high mileage doesn't really help your case here since it would further depreciate the car.

Therefore in your case, I think it's better to wait till your balance owing matches the actual value of your car given it's a financed vehicle. I'm estimating it'll probably be another year or so till it'll actually match up.

[Jyw1212]

Thanks for your help.
I was doing math and realized that you are correct.
I still may need to pay more after 1-2 yrs but not 16k.

[bobblehead]

You may have to sell it privately instead of trading it in after you have paid off your car. Dealer will tend to low ball you, esp with your high mileage vehicle.

[aspiring335]

You would need to look at how much you owe on the car in total and see if it's close to what you can get by selling the car privately. Without that information, it's hard to comment on how far away you are from breaking even with the car.

Originally Posted by Jyw1212

I wanted to get out of finance from my 2012 bmw 135i after 18months (48months finance) and lease 335xi instead. They told me i owe them 16k to get out. I know i have high mileage (52k now), but it doesnt make sense for me to get out of finance now. Will it be smarter to drive longer and get out or will i be paying the same no matter how long i drive this?

Reason for trading 135i: I just want all wheel drive and 4dr sedan.

Any opinion?

[Jyw1212]

$25000 my car is worth now according
$41000 i still owe them.
$4000 discount
13% of $41000 which is around $5000 will be used as tax saving on my new vehicle.
If i sell it privately, i wont get that 13%.
I looked at the autotrader.ca and my car is being listed around $27000-32000.
I am losing money either way and i knew that. I dont know if selling privately will be better option for me.

[M2Cmtl]

You can sell it privately an still make the sale at your BMW dealer, then you get the taxes back (well the savings are applied to your new lease). I just did this in quebec last year. In my case I paid the QST for the buyer since you only pay the GST on used cars in quebec for private sales. Not sure what the case is in Ontario.