[AR1978]

I bought a 2020 CPO BMW M340i xDrive and it’s easily the best car I’ve ever owned. I was just wondering if paying it off though is the best idea or not?

I’ve extended the warranty until Dec 2026. From reading on there this model is pretty reliable and typically I keep cars 6 or 7 years. I’ve done extra payments on the principle so debating on whether to just to pay it down and re-finance to cut a few hundred off of the car payment or just pay it off outright over the course of a couple years. Any inputs would be appreciated.

[tturedraider]

What interest rate?

[gofast182]

I paid mine off at the end of my lease term. Didn't want to mess with interest rates on a used car loan.

[k4sh_90]

I bought mine at 1.99% back in 2020. About 1 1/2 years left till it’s paid off.

[toddwalton]

I lease perpetually except for our X7 which we had to buy as the lack of programs and awful money factors meant that our monthly payment would have increased by 50%, just wasn't worth it. And the X7 LCI was so gentle that it doesn't feel like we're in an old car. Will probably hold onto it until the extended warranty runs out, then lease another one when, hopefully, the financials come down to Earth.

As for the 4 Series, negotiated that lease 18 months after the X7 attempt and things had improved a bit, so I'm about to transition from an F33 into a G26 this month. I like always being in a new BMW and I don't mod, so it's just more fresh and convenient this way.

[335aw]

I have been lurking for a while because i dont do car payments. Working on saving up to purchase but like you, i keep cars for at least 7 years. Honestly more like 10.

Car prices being up (especially used) are blowing my cheap mind right now lol. I was hoping to get a m440i at about 40 but its not going to happen

[JABCAT]

The dealership "required" me to finance a portion of my purchase to get the BMW college grad rebate (which was not specified by BMW). I then paid it off as soon as my account was active with BMW Financial a week later. The only vehicle out of our current 4 that is financed is my wife's '23 Grand Cherokee because she receives a car allowance for work that covers the payment.

We don't carry debt in our vehicles.

[zazzau]

I was required to finance my car in order to qualify for rebates. In fact I told the dealer I was paying off but they encouraged me to finance the first few weeks so I get the rebates and after that I could just pay. They even gave me a better deal when I told them I’d be paying off for my car.

Anyhow, I later reconsidered my position because of the low interest rate of 1.9% that it made more sense to invest the money ($70k all told) than to pay it off. For context: this was right in the middle of CoVID when the market was bullish — so it was just a no-brainer to put that money in the market. If I were to buy now, that’s a different story and I might be more inclined to pay of!

[Cammy440iGC]

We pay cash for our cars and hold onto them...my wife's X3 M40i is paid off and I'm paying cash for my G26 M440i Xdrive which is currently in production.

Not messing with these interest rates.

Plus cars are holding their value like never before.

[Montaver]

Cash for toys, finance for everything else. My current M340i is a lease.

[chris_1001]

I have a 1.49% loan on mine (I did put a lot down) and my Savings account is 4.75%. So no... Its free money at this point. Paying it off when I'm making more on the money would be foolish (for me).

[NightOwl-M340i]

Not sure if too many people do this but I paid cash for my M340i. Full amount upfront

[rostrata]

There’s no right or wrong answer. Folks with all sorts of backgrounds and life experience have methods of paying for things that work for them. Here’s another example. I could have bought mine outright. But I refuse to put that much cash towards a depreciating “asset.” Instead I always opt for putting absolutely nothing down since I can put that cash to use elsewhere to make more. Asking this question anymore is too broad for a concise answer. Hence, there’s no right answer. You do you in whatever way makes you happy.

[randomserious]

Originally Posted by NightOwl-M340i

Not sure if too many people do this but I paid cash for my M340i. Full amount upfront

same here. i had my first car at 40yo so more than enough time to save up. (i bought it pre-owned for $54k)

[TOOLFAN69]

Putting $55,000 down on an M340 xdrive and financing the rest for 3 years.

[tturedraider]

Originally Posted by bray

same here. i had my first car at 40yo so more than enough time to save up. (i bought it pre-owned for $54k)

Wow! I had my first car at 2 1/2. I had my first internal combustion motor car on my 16th birthday.

[TheKandyman]

It is interesting to read people's financial preferences. I purchase my vehicles new or 1yo and keep them for 9 -10 years. My wife's 2018 XC90 might be the exception (getting rid of it when the extended warranty runs out).
I firmly believe in financing with low interest rates if you are financially disciplined. I got my G26 with a 1.9% rate loan from BMW. I put down no more than 20% just to make sure the loan is never upside down. Maybe that downpayment also helps with securing the low rate - I am not sure. The rest of the cash at hand goes straight into a conservative investment. Even federal bonds were paying 7% at some point. So paying 2% on a loan while getting 7% on the money not put towards the car makes perfect sense to me.

[prjkthack]

Just got my M340i. Dealer said I had to finance to get the loyalty credit, but just got my first statement and paid it off completely.

I've always leased cars, and this is my first non-lease, and I intend to keep it for a bit, so I just wanted to not deal with car payments anymore.

[zazzau]

Originally Posted by TheKandyman

It is interesting to read people's financial preferences. I purchase my vehicles new or 1yo and keep them for 9 -10 years. My wife's 2018 XC90 might be the exception (getting rid of it when the extended warranty runs out).
I firmly believe in financing with low interest rates if you are financially disciplined. I got my G26 with a 1.9% rate loan from BMW. I put down no more than 20% just to make sure the loan is never upside down. Maybe that downpayment also helps with securing the low rate - I am not sure. The rest of the cash at hand goes straight into a conservative investment. Even federal bonds were paying 7% at some point. So paying 2% on a loan while getting 7% on the money not put towards the car makes perfect sense to me.

Totally! Paying off a loan that has a low rate is like leaving money on the table. But everyone has a different financial outlook. The market is a bit different now with higher rates so that might be informing some of decisions others are posting here.

[Gladius Nova]

No. Lol. We get new(ish) cars about every other year. My wife more frequently than me. Flavor of the moment for me just happens to be a G20. We have made peace that we will both depart this world with a car payment. So be it.

[G35TOG20]

Mine is MY22, was able to lock the Apr at 0.9% when I place my order late 2021, so I'm financing the car for the whole 5 years. And I'm planning to keep for a while.

[Cammy440iGC]

Honestly...I don't get the why pay "cash" for a "depreciating asset". First, at least its an asset. Second, we all pay cash for lots of things that have no asset value...how about travel....how about expensive restaurants...how about entertainment...sporting events....all that cost plenty of cash (never finance a vacation)...and yet even though once experienced...and the cash spent...no asset value at all. In truth except for housing and financial investments (given the right time horizion)...most of our cash does not go into appreciating assets. we spend it living and experiencing life.