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How many went upside-down on a M3 loan overnight?

Zorak03

Member
Nov 27, 2018
210
105
Alabama/China
Whatever, 1st world problems. Its a car loan. You agreed to get it. Now its time to pay it. You committed to monthly payments for a term. How does it change anything?

It changes a bit if you get into an accident and your insurance company will only pay the "new" cash value. Luckily Im not in that boat, Im not even really angry, but people are 100% justified to be pissed off.
 

OCR1

Active Member
Jan 28, 2018
3,756
4,103
Southern California
It’s going to be challenging for the insurance companies to come up with a value for a totaled M3 right now because the used market has not adjusted to the new pricing scheme. It will settle out in time, but for now if you total your M3 it’s a little unclear how they will calculate the value of the loss. Those who bought last year paid a much higher price, but received a greater tax incentive, which is no longer available. Who know how the insurance company will sort that out.
 
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C141medic

Active Member
Apr 9, 2016
1,714
1,496
New Jersey
I have replacement value for the first 3 years from Allstate and have GAP from my credit union on the loan so fortunately not an issue. Only issue would be if I decide I want to sell. But people always lose a ton of money when cars are resold anyway so.......
 

Uncle Paul

Well-Known Member
Nov 1, 2013
6,247
6,754
Canyon Lake,CA
People trading in their current Tesla will have little net effect. They will get less for their trade in, but also pay less for their new car.

Seems people want it both ways. They want their current car to maintain it's current value, but still get the new car a lot cheaper.
 

dmurphy

Woof.
Dec 7, 2018
3,473
4,682
New Jersey - Morris County
It’s going to be challenging for the insurance companies to come up with a value for a totaled M3 right now because the used market has not adjusted to the new pricing scheme. It will settle out in time, but for now if you total your M3 it’s a little unclear how they will calculate the value of the loss. Those who bought last year paid a much higher price, but received a greater tax incentive, which is no longer available. Who know how the insurance company will sort that out.

I can’t see how the tax incentive figures into any insurance payment .... at all. It has no effect on the resell, salvage or net present value of the vehicle....

It’s really a non sequitur. The resale value didn’t magically drop by $3750 on January 1.
 
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SammichLover

Banned
Dec 8, 2018
2,618
1,542
Yup
Don't think so. Normal cars lose 15% after the first year. You would put 15-20% down on the car.
1) You lose basically that much driving off the lot, it is near instant.
2) My LR D would cost me maybe $2000 (<edit> or $3000, kinda fuzzy) less today, although hard to nail that down exactly because I couldn't get it in the colour I did and EAP isn't available. That's not even close to 15%. So if you put 20% down how are you going "underwater"? I mean after you factor in the $7500 that the IRS should be sending you
within a few weeks (you have filed early, right?)
 

outie

Active Member
May 22, 2016
2,732
2,341
SoCal
If you finance most of the car, like 80%+, I am pretty sure most people would’ve gone under the day they drive the car off the lot. It’s not uncommon to borrow 100-110% on the S/X back when finance rate was low.
 

OCR1

Active Member
Jan 28, 2018
3,756
4,103
Southern California
I can’t see how the tax incentive figures into any insurance payment .... at all. It has no effect on the resell, salvage or net present value of the vehicle....

It’s really a non sequitur. The resale value didn’t magically drop by $3750 on January 1.

If you total a one year old M3, the insurance company has to give you the value of a one year old M3. That means the amount they give you should be enough to go into the open market and purchase a one year old M3. At the moment the resale prices of one year old M3s is higher than the price of a new one. Eventually the dust will settle but at the moment used M3s are being listed for more than new ones, and there haven’t been enough sales on used models since the last price drop last week to establish new values.
 

happyzod

Member
Nov 9, 2018
429
213
Texas
1) You lose basically that much driving off the lot, it is near instant.
2) My LR D would cost me maybe $2000 (<edit> or $3000, kinda fuzzy) less today, although hard to nail that down exactly because I couldn't get it in the colour I did and EAP isn't available. That's not even close to 15%. So if you put 20% down how are you going "underwater"? I mean after you factor in the $7500 that the IRS should be sending you
within a few weeks (you have filed early, right?)

You're saying you lose 20% driving off the lot? That means I could wait outside for someone to drive 1 foot off the lot, offer them 90% of what they just paid, and they would take it since it's better than the 80% value of their new car?
 

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