Car Buying (Week 6 Assignment)

Prof…
June 2015

Car Buying I decided to purchase a 7 series BWM used. The exact vehicle is a 2012 750i, white exterior. After looking at my finances I realize I can afford to finance approximately $30,000. Adding to this will be a down payment of $10,000 and a trade-in worth $5,000. That said I can look at a vehicle in the neighborhood of $45,000. I do not want my monthly payments to go over $500.00 a month and I have been pre-qualified for a 2.9% loan from the Navy Federal Credit Union which is good and will help keep the payments low.

My Choice of vehicle There are several reasons why I want to purchase the BWM 7 series. I have always liked the sleek but tough look of the vehicle. I like to call it ‘Boss’. This vehicle is the considered the top of the line in the BWM line and is equipped with all the bells and whistles; rear camera, premium sound system, moon roof, wood grain, leather and heated seats, safety features above any regulation or guideline and a host of other items. Before making this choice I took a look at the MSRP and compared it to the blue book value on Kelly blue book website, as well as what others have paid for a compatible vehicle recently on TruCar.com. The current price of the vehicle is just over $43,000, Kelly has it listed as approximately $38,000 and trocar has others paying roughly between $41k - $45k.

Pricing
Taking the numbers from the Kelly Blue Book website it would seem that the requested price is a little higher than what it is worth. However, you cannot expect Kelly’s model to be exact since it is an estimated value of features and conditions. The $3k -$5k variance is acceptable to me and I will use the data to my advantage when negotiating the final price. This will be the 9th car I have bought in my life and it seems that the experience never gets any easier. I will transfer my current license plate over to the BMW. This transaction will cost just over $200 as a registration cost.

Insurance Coverage When I purchase the BMW I will continue to use Geico, which is my current insurance provider. As I will be financing the vehicle I will need to meet the minimum in the state of NY: bodily injury - $25,000 per person/ $50,000 per accident property damage $10,000 uninsured/underinsured bodily injury - $25,000/ $50,000 per accident basic personal injury protection $50,000.
However, my insurance coverage will contain the following:
$50k per person/ $100k per accident for bodily injury
$25k property damage, uninusred/underinsured $25k/ $50K basic personal injury protection $50k
Collison
Rental Reimbursement
Emergency road
Comprehensive

The reason I want the extra coverage(s) is to ensure things are taken care of in case something happens. Having the minimum gets us buy legally but it really doesn’t cover true costs of an accident. Just look at the fact that there is a coverage titled uninsured/’underinsured’ which is a