# Car left factory!



## 896558 (Aug 25, 2020)

Today my new baby dispatched from factory.. on way to port.. then the long journey back home and finally to PCD where I will take delivery of my new baby! expectation is around end of may or mid may maybe..


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## jvogt1 (Aug 29, 2007)

malieM said:


> ... expectation is around end of may or mid may maybe..


You might be offered a date at the end of April if your ship assignment takes place soon. I went "In Transit" on February 9th and will be taking PCD on March, 25th. Popularity of PCD may be increasing as we get into spring so there may be more of a delay. Good luck!


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## 896558 (Aug 25, 2020)

jvogt1 said:


> You might be offered a date at the end of April if your ship assignment takes place soon. I went "In Transit" on February 9th and will be taking PCD on March, 25th. Popularity of PCD may be increasing as we get into spring so there may be more of a delay. Good luck!


oh! as of now I am "dispatched from factory", so next is "at the port" and then " in transit".. so I guess depends on the amount of time it takes to get to in transit status.. will be checking! I still have to figure out if I will purchase or lease..!


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## jvogt1 (Aug 29, 2007)

malieM said:


> oh! as of now I am "dispatched from factory", so next is "at the port" and then " in transit".. so I guess depends on the amount of time it takes to get to in transit status.. will be checking! I still have to figure out if I will purchase or lease..!


I'm on the fence on how to pay for my car with three weeks to go. BMW now has 0.9% financing for my vehicle and dealership area. Got to make a decision this week. 36 months @ 655 and turn-in vs 60 months @ 999 and keep. I've done the financial analysis and it works out better to buy the car, but still not sure. Hmmm...


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## 896558 (Aug 25, 2020)

oh if they did .9 on mine I would do it for sure.... I guess it comes down to do you want the new car every 3 years and all that.. I initially wanted to lease my 2009 335 coupe but then .9 came out of nowhere! and I took it.. and 12 years later still have it with no super expensive repairs except I had to get a new water pump I think.. that was like $ 1400 or something at dealer , out of warranty. well I did find a great Indy shop since then and although repairs are not cheap on them out of warranty, its a lot more reasonable with a good Indy shop.. but now we shouldn't be thinking about that.. thats way down the line.. for now we have to think do we want a new car in 3 years or do we want to keep our cars for a few years and pay them off.. I am leaning toward a purchase and hoping .9 comes my way!


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## 896558 (Aug 25, 2020)

jvogt1 said:


> I'm on the fence on how to pay for my car with three weeks to go. BMW now has 0.9% financing for my vehicle and dealership area. Got to make a decision this week. 36 months @ 655 and turn-in vs 60 months @ 999 and keep. I've done the financial analysis and it works out better to buy the car, but still not sure. Hmmm...


btw wow on your car!! its gorgeous!!


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## ghpup (Nov 19, 2008)

jvogt1 said:


> I'm on the fence on how to pay for my car with three weeks to go. BMW now has 0.9% financing for my vehicle and dealership area. Got to make a decision this week. 36 months @ 655 and turn-in vs 60 months @ 999 and keep. I've done the financial analysis and it works out better to buy the car, but still not sure. Hmmm...


We may be unusual, but we purchase our vehicles. We keep them a minimum of 10 years. That said, while we have financed, we always pay off quickly to reduce costs. Do the math on how much you will pay in interest for an incentive to pay it off quickly.


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## 896558 (Aug 25, 2020)

my intention was to lease my E90 but ended up doing .9 when that suddenly became available.. I am still driving that car , been 12 years in May !


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## jvogt1 (Aug 29, 2007)

malieM said:


> my intention was to lease my E90 but ended up doing .9 when that suddenly became available.. I am still driving that car , been 12 years in May !


Turns out the 0.9% is not available in California (or at least not at Valencia BMW). My vehicle is an internet sale made possible by doing a PCD. Worked out the numbers and I would do a couple of thousand better financing the car, but then I couldn't turn it in and order the 2024 model!  I think the resale value is going to hold up pretty well as the Z4s are in short supply, but you never know. I really hope they'll have European Delivery again in a few years and I'll definitely do that again. I think a lot of countries are going to be looking for Yankee tourist dollars in the years to come.


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## jvogt1 (Aug 29, 2007)

ghpup said:


> We may be unusual, but we purchase our vehicles. We keep them a minimum of 10 years. That said, while we have financed, we always pay off quickly to reduce costs. Do the math on how much you will pay in interest for an incentive to pay it off quickly.


I've paid cash for two of the last three vehicles over the last 13 years. The only one I financed was at 0% for 60 months! Timing is everything.

I ran the numbers comparing cash to lease/finance and cash comes in last place. The assumption (admittedly an optimistic one over a three year period) is that I can earn more on my cash in an investment account than the lease origination and interest charges. If the investments don't work out then leasing/financing won't beat a cash purchase, obviously. No one can predict the market in the short term so it's a bit of a risk.

Two quick stories - both true. Three children inherited their dad's 401k account that was totally in company stock. Two held on to the stock but the third sold it and bought a nice car. The stock-owning children scorned their brother and let him know that he had blown his inheritance. Well, the stock was in Enron and you know how the story turns out. The second story's about a guy who bought some shares of Tesla telling anyone who'd listen that he was going to use it (after the stock appreciated) to buy a new Tesla. Again, you know how it turned out. Of course, if he had waited a bit longer he might have been able to buy two Teslas.

Oh, just a quick point of financial education. Check out a car loan amortization chart. Your first few payments contain a lot more interest than the last payments. If you pay off a car loan early you've effectively increased the interest rate of your loan. That's certainly not what you want to do on low interest loans. It does feel nice not to have a payment though.


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## 896558 (Aug 25, 2020)

jvogt1 said:


> Turns out the 0.9% is not available in California (or at least not at Valencia BMW). My vehicle is an internet sale made possible by doing a PCD. Worked out the numbers and I would do a couple of thousand better financing the car, but then I couldn't turn it in and order the 2024 model!  I think the resale value is going to hold up pretty well as the Z4s are in short supply, but you never know. I really hope they'll have European Delivery again in a few years and I'll definitely do that again. I think a lot of countries are going to be looking for Yankee tourist dollars in the years to come.


oh gosh me too I loved ED. I heard it was not popular with Americans overall ( not sure how true that is). also heard people took advantage and flooded market with new ED cars and dumping leases fast.. not using the opportunity there to drive car, just take delivery, go back to airport and dump lease soon after.. I read that too.. anyway, it hurts true ED lovers like us.. I would love to do ED again.. I heard PCD is really nice so thats the next best thing.. I heard that is really nice but there is nothing like going to Munich and getting your car and driving around Europe.. but I am looking forward to driving my car from SC back up north.. in the spring.. 
so what are you going to do, are you gonna finance at 1.9? thats still a good rate.. or will you lease and trade once lease up?


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## 896558 (Aug 25, 2020)

I am happy to report my new baby is on the boat! just changed status today from "at the port" to " in transit".. so I guess around 6-8 weeks on the boat now and then potentially another week at the port of arrival.. so I am estimating around 8-10 weeks from now I should be taking delivery ( who knows maybe even sooner but not counting on it).


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## ghpup (Nov 19, 2008)

jvogt1 said:


> I've paid cash for two of the last three vehicles over the last 13 years. The only one I financed was at 0% for 60 months! Timing is everything.
> 
> I ran the numbers comparing cash to lease/finance and cash comes in last place. The assumption (admittedly an optimistic one over a three year period) is that I can earn more on my cash in an investment account than the lease origination and interest charges.


Sorry, but I have to disagree. At the end of a three year lease, what do you have? Nothing except the proceeds of the investments. You now need to spend that money on another car.... If with cash, you still have the car.


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## 896558 (Aug 25, 2020)

for me I dont think about the investment and cash in bank/market vs car.. I disregard that totally ( because I dont really care, I know a new car is not a good investment financially). so my starting point is.. do I want to keep the car and not have a payment at some point like now and risk the repairs once out of warranty and also not have a newbie every 3 years? or do I lease and try it out and then get something new .. for me I am on the fence.. I meant to lease my 2009 335 but got .9 financing and bought it.. and had it 12 years with only 3 " major" repairs ( each about $ 1300 at the stealer, then recently last year normal maintenance stuff like shocks, struts and a few other repairs, and rear tires.. that cost me about $ 5k at an indy last year, which was painful but I do not have a car payment).. so I have to decide soon on what I will do. right now interest rate is low at 1.9 for financing and about 2.04 equivalent on a lease right now...what will they be in i 3 years ? may be much higher.given what's going on right now . so all that is a consideration.. also I do not have a garage and I live in the NE.. and I am getting a convertible..so how will it hold up here with no garage? anyway will decide soon.. I guess I have to lol


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## jvogt1 (Aug 29, 2007)

ghpup said:


> Sorry, but I have to disagree. *At the end of a three year lease, what do you have?* Nothing except the proceeds of the investments. You now need to spend that money on another car.... If with cash, you still have the car.


No need to apologize - disagreement is good. It makes one think. So...

At the end of a three-year lease, what do you have? You have 59% of the sale price of the car still in the bank. Over the lease you only paid for 41% of the car. The question is if you bought with cash is your car still worth 59%? Maybe, but probably not. The rule of thumb is 20% loss during the first year with 15% loss each year thereafter. After three years the car is worth about half of what you paid. 

With a three-year lease I'll have paid for 41% of a car saving me 9% or roughly $5,000 on my car. In addition, I'll have had the full value of the car working for me in an investment account whereas the cash buyer has to wax his investment as it loses the 3% extra depreciation a year. Now, it could be that a Z4 with its rarity will not depreciate as fast. Also, the premise is that the car is a commodity with easy substitution. Well, that certainly is not the case as I baby my cars and love to detail them (engine compartment included) and I've seen how others use launch control, ride the brakes and use automatic car washes. But, I plan on putting the full 30,000 miles on my car whereas most Z4 owners aren't going to put that many miles on them. So maybe I drive new for three years on a lease and then buy a low mileage three-year old car coming off lease for less than the buy-out of my lease. Win - win.

My plan is to return to this thread (I've got a similar one on a different forum) at the end of my lease and post my results. I'm not afraid of making a mistake and I'll admit it. It's not like we're talking about a ton of money either way $2,000 to $8,000 difference so no biggie. But I like to think outside the box and challenge preconceived notions and the cash being better than leasing is one of those notions. Stay tuned.


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## jvogt1 (Aug 29, 2007)

malieM said:


> ...anyway will decide soon.. I guess I have to lol


Yeah. I've been around and around on this since I signed the deal in January. I'm glad the papers will be finalized by this time next week!


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## 896558 (Aug 25, 2020)

jvogt1 said:


> Yeah. I've been around and around on this since I signed the deal in January. I'm glad the papers will be finalized by this time next week!


so what made you lean to leasing? you were on the fence earlier I think? I am still on the fence..


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## jvogt1 (Aug 29, 2007)

malieM said:


> so what made you lean to leasing? you were on the fence earlier I think? I am still on the fence..


A number of things:
1) Not sure I want to keep the car longer than three years.
2) Not sure I'll be happy with the sDrive30i instead of the M40i.
3) Not sure there be some cool options available on later model years that I'll feel I really would like to have. I'm looking for BMW to add integrated front and rear video capability to the Z4. They already have that as an option on some of their other models.
4) If my investments work out as calculated, the cost of leasing will actually be less than the cost of a cash purchase.
5) Lower monthly payments are easier to handle in the monthly budget.
6) Never leased a car before - got to cross it off my bucket list. 

That's about it


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## 896558 (Aug 25, 2020)

jvogt1 said:


> A number of things:
> 1) Not sure I want to keep the car longer than three years.
> 2) Not sure I'll be happy with the sDrive30i instead of the M40i.
> 3) Not sure there be some cool options available on later model years that I'll feel I really would like to have. I'm looking for BMW to add integrated front and rear video capability to the Z4. They already have that as an option on some of their other models.
> ...


all good points! I bought my last BMW and had it and still have it 12 years now.. ( and keeping it).. I am on fence but leaning toward a purchase because interest rate is so low and that is bound to go up.. I figured I would probably still like it in 3 years given the fact I like and still like my E90.. and although a finance is a bit heftier.. I currently have no debt , no mortgage. except a new HVAC system I am paying off interest free so those are all factors for me..


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