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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 09-16-2013, 11:36 AM   #1
AM6174
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Negative equity for M3?

I have a 2009 328i sedan. I have always wanted a e46 M3 since 2001... I impulse bought the 328i and have the opportunity to get into a 2005 M3 Coupe CB, 6sp MT 75k. Only issue is ill have a decent amount of negative equity... Is it worth it?


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Old 09-16-2013, 11:48 AM   #2
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On an eight year old car? No.
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Old 09-16-2013, 12:01 PM   #3
AM6174
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Negative equity for M3?

I haven't had the car long so that's why I'll be in the red on it... So had I been paying it off for a while it wouldn't as bad.. Not like it makes it any better


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Old 09-16-2013, 03:13 PM   #4
SledgeHammer!
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You are asking financial advise from a car enthusiast forum where people sink thousands of dollars putting ugly mods on a gorgeous-as-stock 12 yr old model? Smart .
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Old 09-16-2013, 03:26 PM   #5
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Everyone's financial situation is different. But you have to weigh the cost of the next car, your debt on the current car (not minor when you are upside down) and your cash situation. The M3 is NOT the same maintenance cost as a 328. Know what you are buying into.

You need to (IMO) get your situation right with some cash - evening it out so your plan isn't just to keep going deeper into dept for an 8 year old car. If you biuy an M3 - IMO you need $3K CASH in reserve all the time - if something big lets go VANOS, SMG, subframe. Not to mention normal, recurring maintenance costs like Inspections, tires, brakes, regular oil changes etc. Maintenance costs on an M3 are not like a 328. Don't create a plan to try to limp by on sparing maintenance and praying that nothing will break or wear out. Tires are expensive (don't buy crap tires).
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Old 09-16-2013, 05:51 PM   #6
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Everyone's financial situation is different. But you have to weigh the cost of the next car, your debt on the current car (not minor when you are upside down) and your cash situation. The M3 is NOT the same maintenance cost as a 328. Know what you are buying into.

You need to (IMO) get your situation right with some cash - evening it out so your plan isn't just to keep going deeper into dept for an 8 year old car. If you biuy an M3 - IMO you need $3K CASH in reserve all the time - if something big lets go VANOS, SMG, subframe. Not to mention normal, recurring maintenance costs like Inspections, tires, brakes, regular oil changes etc. Maintenance costs on an M3 are not like a 328. Don't create a plan to try to limp by on sparing maintenance and praying that nothing will break or wear out. Tires are expensive (don't buy crap tires).
Yup... I went in for a battery replacement and walked out with a $3200 bill

Battery
Scheduled Service
Rear Brakes
Alignment (that an indy shop screwed up btw)
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Old 09-16-2013, 06:26 PM   #7
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Yup... I went in for a battery replacement and walked out with a $3200 bill

Battery
Scheduled Service
Rear Brakes
Alignment (that an indy shop screwed up btw)
that's a bit much..
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Old 09-16-2013, 06:58 PM   #8
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Negative equity for M3?

Quote:
Originally Posted by AM6174 View Post
I have a 2009 328i sedan. I have always wanted a e46 M3 since 2001... I impulse bought the 328i and have the opportunity to get into a 2005 M3 Coupe CB, 6sp MT 75k. Only issue is ill have a decent amount of negative equity... Is it worth it?


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If you have enough cash to pay off the negative equity, put 20% down on the M3 and keep a cash reserve for repairs, go for it.


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Old 09-16-2013, 10:16 PM   #9
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that's a bit much..
Battery was like $300
Service was like $1700
Brakes were like $800
Alignment was like $200

Can't do a valve job myself, can't do brakes or alignment myself. All I could have done is saved $100 or so doing the battery myself. Already got burned by an indy shop that screwed up my alignment and it had to be re-done.
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Old 09-17-2013, 12:17 AM   #10
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Originally Posted by SledgeHammer! View Post
Battery was like $300
Service was like $1700
Brakes were like $800
Alignment was like $200

Can't do a valve job myself, can't do brakes or alignment myself. All I could have done is saved $100 or so doing the battery myself. Already got burned by an indy shop that screwed up my alignment and it had to be re-done.
You can cut that price in half if you bought the parts yourself and had a forum member install it for you. There are several members who do jobs like this for members here.
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Old 09-17-2013, 09:06 AM   #11
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Originally Posted by AM6174 View Post
I have a 2009 328i sedan. I have always wanted a e46 M3 since 2001... I impulse bought the 328i and have the opportunity to get into a 2005 M3 Coupe CB, 6sp MT 75k. Only issue is ill have a decent amount of negative equity... Is it worth it?


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No. Of course not. Not unless you can make your current car equitable, but I imagine if you had the cash to do that you wouldn't have made this thread.
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Old 09-17-2013, 09:52 AM   #12
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You can cut that price in half if you bought the parts yourself and had a forum member install it for you. There are several members who do jobs like this for members here.
Yeah, I love having random people come over to my house to work on my car that offer no warranty and no recourse for crappy work.

As I said above, last year I took my car to an indy shop for an alignment to save a few bucks. That's not even a specialty. It was a freakin' alignment shop! and they couldn't even do that right.
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Old 09-18-2013, 12:15 AM   #13
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Originally Posted by SledgeHammer! View Post
Battery was like $300
Service was like $1700
Brakes were like $800
Alignment was like $200

Can't do a valve job myself, can't do brakes or alignment myself. All I could have done is saved $100 or so doing the battery myself. Already got burned by an indy shop that screwed up my alignment and it had to be re-done.
Man I'm sorry but I would be brushing up on DIYs and buying some tools lol but hey if you've got the money to blow for someone else to do it.... I know if the dealer came at me with those prices I would **** a brick.
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Old 09-18-2013, 07:23 PM   #14
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Dude, forget what these clowns say. If that's what you want and you are ready to pay for the costs and the negative equity then go for it. It's a great vehicle.
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Old 09-21-2013, 10:54 AM   #15
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Negative equity for M3?

Quote:
Originally Posted by SledgeHammer! View Post
Battery was like $300
Service was like $1700
Brakes were like $800
Alignment was like $200

Can't do a valve job myself, can't do brakes or alignment myself. All I could have done is saved $100 or so doing the battery myself. Already got burned by an indy shop that screwed up my alignment and it had to be re-done.
This made my day.


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Old 09-21-2013, 01:35 PM   #16
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I don't understand this thread.

Negative equity means that the value of an asset used to secure a loan is less than the outstanding balance on a loan. This implies your goal is to keep both cars? I have never heard of someone using a car as collateral for another car, I'm sure it happens, I've just never heard of it.

My first question is why are you using this term? My second question, if I can assume the answer to the first, is why don't you privately sell your current vehicle and then get a loan for the car you want based on your creditworthiness? Your payments will be spread out, you get the car you want, and you won't be upside-down (the more current term for "negative equity").

Cash in the present is king.

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Old 09-21-2013, 01:41 PM   #17
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when you have negative equity in a car and you trade it in. that negative equity can be rolled into your new car loan on the new vehicle you are purchasing... therefore you will already be in the hole when purchasing the new car...
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Old 09-21-2013, 02:14 PM   #18
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Negative equity for M3?

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Originally Posted by Hektik02 View Post
when you have negative equity in a car and you trade it in. that negative equity can be rolled into your new car loan on the new vehicle you are purchasing... therefore you will already be in the hole when purchasing the new car...
This falls into the category of things people do when they're broke in order to pretend they're not broke.

That said, can you get gap insurance for the entire balance if you roll in negative equity? If so, what's to stop you from just totaling the car in order to pay off your debts?


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Old 09-21-2013, 02:22 PM   #19
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No, it won't cover negative equity. It covers the difference between actual cash value of your vehicle, and the payoff value, for that vehicle - NOT negative equity.

Nothing wrong with people going broke to enjoy something they want, that's what credit is for.
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Old 09-21-2013, 06:10 PM   #20
Apexeon
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Originally Posted by Hektik02 View Post
when you have negative equity in a car and you trade it in. that negative equity can be rolled into your new car loan on the new vehicle you are purchasing... therefore you will already be in the hole when purchasing the new car...
Quote:
Originally Posted by AM6174 View Post
I have a 2009 328i sedan. I have always wanted a e46 M3 since 2001... I impulse bought the 328i and have the opportunity to get into a 2005 M3 Coupe CB, 6sp MT 75k. Only issue is ill have a decent amount of negative equity... Is it worth it?


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I have to apologize in advance, but the way you're using negative equity really is what bugs me.

TL;DR. You buy a house for $500,000. Market goes down making your house worth $200,000. You owe $400,000 on it. The next step will yield negative equity.,.. The asset's value used to secure the loan is less than the loan. *Debt is not the same as negative equity*.

So unless you bought a 3-series that was salvage title, worth $3k with a $40k loan, you don't have negative equity. You just have debt.

If you trade this car in to get another m3, you'll just get a new loan that will include the remaining balance due on the 3 series + the m3's cost (principal and interest) (per their terms, if they payoff for you). It is at THIS step that you have negative equity. Before this, you just have debt. The additional debt that was rolled over from your other loan is then called negative equity (it is neither the principal, fee, or interest on the current loan... it is *other* aka negative equity). I hope this makes sense, I've reread my explanation like 10 times and I don't think it's clear enough.

I'm curious, are you not able to private party sell the car for more than the dealer is willing to give you as a trade in? Or sell it so that the buyer picks up the remaining balance?

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