[erdillard]

I'll try an make this as short as possible. I did the Owner's Choice when I got my X3 2 Januarys ago. I need to get out of it and into something with less expensive maintenance. I can't get anyone from the dealership to return my calls or messages. I live 2 hours away.

The Dodge/Chevrolet dealership I work for says my car is worth $24,000 (lost so much value makes me sick I put 12k down too!) I owe $36,000. Instead of rolling that negative equity I could pay the remaining months I owe ($5,213.20) and then roll just that amount into a vehicle with rebates because they would front me that money.

Will BMW do this? I have the tire and wheel package I bought too. I'm hoping that will cover my scratched wheels. Any information will be helpful and appreciated. I'm really upset and frustrated over this. I have a car I paid $52,000 for and 2 years later only worth $24,000.

[TXSoxFan]

I am not seeing how the maintenance is killing you. You should be still covered under the 3/36 unless you are putting a lot of miles on. Even if that is the case, I can’t see how the 1-2 services on a 2 year old car you may require over the next 12 would outweigh eating $5,000 in the remaining payments. I would just hold it for another year and then turn it in at the end, or closer to the end.

[JayPichardo]

What is the "Owner's choice"?

[maximumeffort]

Originally Posted by JayPichardo

What is the "Owner's choice"?

Ditto..

I see the 28i's right around 24K so that offer from your dealership is actually pretty good IMO. Sad that the car lost so much value though.

[erdillard]

The tires are $560 for the back and $380 for the front...couldn't afford again so I put cheaper ones on it. Alignment is $260. I don't like how you can't rotate the tires. I only have 25,000 miles on it and this is my third set of tires. I'm mind blown at this.

[erdillard]

Yeah my General Manager showed me online. He's giving me what it is worth. Just crazy how much it depreciated in only 2 years! What a waste.

[erdillard]

It's similar to a lease but I'm the owner. I have the choice at the end of the 3 years to trade, they buy it from me, or I get another BMW (which I would never do). My ex-husband got it for me and I received it in the divorce. The closest dealer is almost 2 hours away. I did finally find a local place to do the oil changes so I didn't have to take it to dealer but no one here will do anything else on it.

[chassis]

Depreciation in the first two years is well established information. Google can tell you all about it. It’s one reason why buying a one or two year old vehicle and keeping it for a long time is a good idea.

[ParadigmDawg]

German/high horsepower cars are never the right choice for people on a budget as they do tend to eat tires, gas and brakes.

8,000-10,000 miles are what I have always been used to on my tires and it is difficult to properly rotate staggered tires.

You Ex, gave you a "gift that keeps on giving in the divorce".....

[JayPichardo]

Are you in a rural area?

[MrPorter]

Originally Posted by JayPichardo

What is the "Owner's choice"?

Are you being facetious or is Owner's Choice a localized product so rare that you haven't even heard of it?

Salesperson in Chicago was ramming it down my throat as "the best way to buy a BMW" and the GM at the dealer I bought it from told me it was pointless unless I was under a specific set of circumstances.

[JayPichardo]

Originally Posted by MrPorter

Are you being facetious or is Owner's Choice a localized product so rare that you haven't even heard of it?

Salesperson in Chicago was ramming it down my throat as "the best way to buy a BMW" and the GM at the dealer I bought it from told me it was pointless unless I was under a specific set of circumstances.

It is not something we offer in NH and I have never heard of it.

[erdillard]

Maybe they don't have Owner's Choice in New England? Yep the ex gave me such a great gift! LOl I would have taken earrings instead. HA! I wasn't on a budget then. *Sigh*

[MrPorter]

Originally Posted by JayPichardo

It is not something we offer in NH and I have never heard of it.

As I understand it, it was a product created for markets with unfavorable leasing taxes. You are the "owner" with strings attached, and at the end of your lease you can buy the car or get another BMW without repaying the taxes or something.

I think in Texas (and in Chicago before), when you lease a car you pay the tax on the full value of the car - not just the depreciation you're effectively renting. And then if you buy the car after your lease, you pay tax AGAIN on the residual.

Again, lots of "as I understand its" in there - because it's all terribly confusing, and no one's really interested in helping you truly understand it.

[arciga18]

Gotta dig up my posts from the other forum.

Here is what I remember to be true::


Owners choice is a retail balloon finance contract that was specific to Texas and Illinois for the most part (lease unfriendly states) where the bullet / ballon/ final payment matches the residual.


So you get the same residual terms as a lease and in theory the same base money factor but I never found a Chicagoland are sealer that wouldn't mark up the apr 1%. In theory you would get apr credits but not lease credits because this is not a lease.



You are the registered owner (bmw is no where to be seen except as a lien holder on the title.
There is no acquisition fee.
That means there is also no gap insurance .
You get trade in tax credit if you decide to sell.
You are free to sell / trade / whenever you like assuming you are okay with the numbers .
You can do vanity plates in Illinois.



Downside - you pay interest on the entire balance of the loan.
Lease payment in some states just include tax on the monthly.

Same-

Disposition fee of 350 and you can walk away just like a lease.

You could pull ahead back when such a thing existed.


Owners choice was the lesser of two evils in Chicago. / Illinois. I imagine it was a similar problem in Texas.

Previously , if you leased in Illinois you would pay tax on the entire value of the car. Chicago also imposes a lease tax (use tax) on you payment .


So after 36 months you had three options
- turn in the car
- payoff the loan (residual amount ) no negotion
-refinance the residual amount you owed.

You would save yourself the taxes if you kept the car.

[BMWZ4]

You must be putting serious miles on this vehicle to burn through 3 sets of tires in 2 years? And sounds like you're way over the warranty mileage which is (I'm guessing) why you can't afford to maintain the vehicle now?

I feel there are some details of the story missing, but might just be me.

[calintexas]

Assuming 77351 is her (assuming the her part too) zip code, she's in West Livingston, Tx (about 80 miles north and east of central Houston). The Texas part fits with the info about Owner's Choice that's already been posted.

[maximumeffort]

Originally Posted by erdillard

Yeah my General Manager showed me online. He's giving me what it is worth. Just crazy how much it depreciated in only 2 years! What a waste.

Hah, that's nothing. My 2017 F-Pace 'S' depreciated $25K in 14 months.
Thank god they had to buy it back due to it being a lemon and I didn't get stuck with it.

[erdillard]

Thanks so much arciga18! Yes; I'm female and live in 77351. I only have 25,600 miles on my X3. I think there may be an issue with the alignment. It's mainly been my rear tires wearing badly. Only getting a maximum of 2,000 specifically on the rear passenger tire. I opted for getting a whole new set with the same tread amount but I didn't get the Pirelli Run Flats because I was able to get another brand for only $480 for all 4. It's just hard trying to take care of all this in a small town and no time off because I'm the only one in my internet dept. and working 6 days a week. I really appreciate all the information everyone. Now if I can get someone to contact me back from the BMW dealership I would be good.