I have a 2016 X5 40e with 78k miles that is starting to have some mechanical problems. It’s the family car. Two kids.
Owe 23k
Work needed is ~5-6k
KBB 16700
Carmax 17500
My worry is this thing is just going to be problem after problem. Any thoughts on how to mitigate the loss here? A lease with a good residual at the end to make up the difference?
Thanks!
What are the problems - can you spread out the cost? What are your monthly loan payments?
Is your repair figure from a BMW dealership or an independent shop? Are there problems that need to be addressed immediately (in order to sell), or are they most preventative (at this time)?
BMW iX would be a nice negative equity buster if you can swing the payment.
i4 is a good second option if you can work it with the family.
I’m getting a few more quotes this week for the work. It might not be as high, but just preparing for the worst.
The air suspension has a leak in 2 of the 4 bags.
And the turbo seals are going bad so it’s smoking a lot on start up
Monthly - $440
You know, I hate to say it brother…but that thing is gonna be a money pit 100%.
Once you start fixing stuff more will break as the weak link trades places. It’s up to you if you want to chase it but from my personal experience in a past life: I wouldn’t.
The air suspension and bad turbo seals need to be addressed right away. I’m going to a few more shops around to get more quotes but I just wanted to see if you all folks that are smarter than me might have any suggestions.
Should’ve been dumped a long time ago.
I’m with you, man. I don’t want it anymore. I’m just trying to get out with minimal damage.
I know, I know
Have you shopped around to determine what places would potentially give you for trade or an outright purchase (as-is)? That could be less ugly than dumping a guaranteed say $6k into repairs.
Yeah, trade seems to be about 16500 at most places. Carmax was the highest at 17300.
Your best option may be as @zaimer said. Dump it as is and use your cash to pay off the negative equity. That’s the only guaranteed exit strategy on this. This is coming from the owner of an E46 M3 that rarely leaves the shop for less than $1k per visit.
I can appreciate the goal, but I get frustrated trying to accept that there is any “good” direction to go in situations like there. There is a difference between paying what one should pay vs attempting to paint a pretty picture.
For example, burying the negative equity into a heavily discounted vehicle does not fix the situation. There is still money being lost because you’re now essentially overpaying for the new one. The monthly payment is often the primary motivation in this instance.
And after you drop 4 to 6 grand in it, it’s still going to be worth exactly that.
There’s no scenario where this makes sense to repair to be brutally honest.
Yeah, that’s the conclusion I’ve kind of resigned myself to. I just figured I check in here to see. Doesn’t hurt. But you’re probably very much right.
Yeah. I mean, that’s where I’m at. I just figured I’d check if there was any other way of looking at it. I appreciate the replies from everyone though.
You have a leg up on the average consumer; you were smart enough to ask questions & weigh the options first. I feel most would’ve immediately traded in at the first sight of shiny new plastic.
It always sucks burning money, but at the end of the day your situation isn’t that bad to be honest.
Bury negative equity in a car that has a low mf with a sweet discount
A Laramie ram 
Or just drive it off a Cliff YOLO
Edit: just saw you are in OR no sales tax that makes it even better
Try to swing a 4xe wrangler if you need it to be a “suv”
I would for sure shop the car around a lot before taking an offer. Maybe you can help lessen the sting.
