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///M3 Forum
The BMW E46 ///M3 is the M version E46 and puts out an amazing 333 HP and 262 lb-ft of torque at stock specs! There are an amazing amount of modifications for both the coupe and convertible models so read up and get started modifying your cars today!

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Old 09-21-2013, 06:34 PM   #21
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Join Date: Jul 2013
Location: San Diego
Posts: 103
My Ride: e90 335i
depending on your credit and income a bank is willing to roll the negative equity of your trade in into a new car loan. fortunately used cars do not depreciate like your housing example. So typically banks will loan up to about 110% of the LTV of the vehicle. You will be very hard pressed to find a bank to roll say negative 10,000 equity into your new car loan unless your credit is stellar.

Let's say he is upside down on his trade in by $5,000. The vehicle he wants to purchase is $15,000. The bank will say the car is valued at say $16,000. Typically he will not be able to get a new loan for $20,000 on a car worth about $16,000. While it may not always be 110% LTV (Loan to actual value) its at the bank's discretion if they want to lend him the full amount. I may have been wrong on my initial statement that gap insure will not cover the negative equity. The bank will know if they want to allow them to have gap insurance at the time of the purchase. Depending on the year, make, and model I'm sure they can make their decision based on that.

So yes, if he got approved for $20,000 loan with gap insurance for a vehicle worth only $16,000 and he wrecks the vehicle they will pay off his full loan even with the negative equity from his trade in it. While it would get you out of debt completely, I guess banks don't go assuming people want to wreck their new vehicles but rather keep them.
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Old 09-29-2013, 08:23 PM   #22
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Join Date: Aug 2004
Location: Staten Island, NY
Posts: 31
My Ride: 2003.5 M3
Just do it if that's what you want

I did the "smart" thing financially this time last year and took one of the great joys of my day, driving my 2002 Steel Gray SMG, and gave it up in order to put my cash into some things more "sensible".

And what did I learn from this year driving an SUV? That once I get the cash to pay off the SUV and get back into an M3, I will gladly give up things here and there so that I can enjoy what being behind the wheel of one of these fine machines brings me.

If you have the means and it won't affect the things that have to get paid, I say you do it and enjoy every second of it!
painted reflectors, carbon diffuser, Macht Schnell intake elbow and filter, Status Gruppe rasp pipe

Last edited by drocca; 09-29-2013 at 08:24 PM.
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