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Message: <blockquote data-quote="Breezy" data-source="post: 16341" data-attributes="member: 17078"><p>I have a friend who is selling the following car:- BMW 116i- Year of Production: 2005- Year Imported: 2006- Mileage: 71,000 KM- Number of Previous Owners: 2 previous owners- Service Record: Yes- No modification- Interior: Very good- Exterior: Very good- Accidents: No accidentHe is asking for RM 90,000 for his 116i. I went on a test drive, and I like the feel of the car very much. Although 116i is criticised by many as being underpowered, I like the feel of the car. My concern is the holding cost of BMW. I have never owned any BMW so I am rather scared to take up my friend's offer. In projecting my financial cost, I have made the following assumptions. If I buy this car from him: 1) my expected annual average maintenance cost for the next 3 years is  RM 3,500 per year. 2) my exit scenario is for me to sell off this 116i after 3 years, as the terms of loans for new potential buyer would becomes difficult after the car is more than 7 years old. I am targetting to  do the milage click of additional 50,000 KM over the period of my 3 year ownership, then sell it off at the price of around RM 65K. This would mean that, if things go in accordance to my scenario, I am subject to bear the depreciation loss of RM 30,000 over a 3 year period. 3) i will take up the loan. i will bear the annual average interest charge of RM 3,000given 1,2,3 (or if 1,2,3 hold true), excluding the road tax & insurence,  i am scheduled to incur the annual holding cost of RM 14,800 per year. Q1: Is my assumtion 1) realistic? Would it be higher or lower? Q2: Is my assumption 2) realistic? Would it be higher or lower? Q3: Should I be paying less money for this car? If so, what should be the target price? Thanks guys.</p></blockquote><p></p>

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