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Am I crazy for wanting to lease a top-of-the-line 3-series out of college?

Discussion in 'Fine Living, Home, Design & Auto' started by GreenFrog, Jun 20, 2011.

  1. otc

    otc Senior member

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    I'm not saying you have to pick one of those...do something in the middle. If you are set up for saving right away, it becomes automatic and you don't really have to worry about it...then you can go ahead and have fun. The neat trick is that if you set it all up automatic right when you start working (auto-401k, direct deposit with automatic transfers to an IRA and a longer term savings account, etc), you can guilt free spend anything that is left over and you will never miss the money that goes into the savings account since you never see it. If its not automatic or you don't start right away, your expenses will probably take over and it will be hard to save it...plus you can have it increase with your income automatically without noticing. Saving is important but you don't have to eat ramen at your income level. Just give it a little time before you have $60k fun. I'm about to buy a motorcycle...sure its stupid and a waste of money but its gonna be fun [​IMG] (and honestly its only a couple months of car payment+insurance+parking on that car). If you really want to drive...get a used miata (like all the SCCA autoX people drive), pay some money for an intake/exhaust/chip combo and some improved suspension, and go have fun. It will still be a blast to drive, cheap to keep running and insured, and you won't be freaked out about parking it on the streets in boston (both because it is small and easy to park and because your car is gonna get beat to hell on those streets). It will just make you appreciate the BMW more since the modded miata is a car you probably could learn to drive at the limit in a couple years while the BMW is so much car that no 23 year old could realistically drive it at the limit unless they grew up racing karts or something (they could push it over the limit by accident or through carelessness, but they can't reliably drive it *at* the limit). But really...don't do anything until you have worked for a year and have everything figured out. Time passes much faster when you're working than when you are young so before you know it, you will be ready to reevaluate your situation. Maybe all of the sudden you will see grad school on the horizon or decide you hate your job but are stuck because you've got a grand a month in car-related expenses that you could have avoided if you kept driving your current vehicle for a year.
     
  2. GreenFrog

    GreenFrog Senior member

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    I'm not saying you have to pick one of those...do something in the middle. If you are set up for saving right away, it becomes automatic and you don't really have to worry about it...then you can go ahead and have fun. The neat trick is that if you set it all up automatic right when you start working (auto-401k, direct deposit with automatic transfers to an IRA and a longer term savings account, etc), you can guilt free spend anything that is left over and you will never miss the money that goes into the savings account since you never see it. If its not automatic or you don't start right away, your expenses will probably take over and it will be hard to save it...plus you can have it increase with your income automatically without noticing. Saving is important but you don't have to eat ramen at your income level. Just give it a little time before you have $60k fun. I'm about to buy a motorcycle...sure its stupid and a waste of money but its gonna be fun [​IMG] (and honestly its only a couple months of car payment+insurance+parking on that car). If you really want to drive...get a used miata (like all the SCCA autoX people drive), pay some money for an intake/exhaust/chip combo and some improved suspension, and go have fun. It will still be a blast to drive, cheap to keep running and insured, and you won't be freaked out about parking it on the streets in boston (both because it is small and easy to park and because your car is gonna get beat to hell on those streets). It will just make you appreciate the BMW more since the modded miata is a car you probably could learn to drive at the limit in a couple years while the BMW is so much car that no 23 year old could realistically drive it at the limit unless they grew up racing karts or something (they could push it over the limit by accident or through carelessness, but they can't reliably drive it *at* the limit). But really...don't do anything until you have worked for a year and have everything figured out. Time passes much faster when you're working than when you are young so before you know it, you will be ready to reevaluate your situation. Maybe all of the sudden you will see grad school on the horizon or decide you hate your job but are stuck because you've got a grand a month in car-related expenses that you could have avoided if you kept driving your current vehicle for a year.
    Definitely. My employer matches 7% for 401K, so I'm definitely going to max that out. Would 3% for my Roth IRA be too little? How much do you contribute to your RIRA if you don't mind me asking? As for my current situation.. I'm looking to buy a used Miata for around $6-8k. And even then, I think I might finance it just to get some better credit. I never really liked convertibles, but boy, when I test drove that 135i convertible.. absolute BLAST. I'm sure the Miata will handle just as well and I'm excited! Edit: Just did a quick search. Found this 1999 Miata http://www.autotrader.com/fyc/vdp.js...standard=false Thoughts?
     
  3. username79

    username79 Senior member

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    Edit: Just did a quick search. Found this 1999 Miata

    Thoughts?


    RON GEREN, an actor in Los Angeles, commutes to auditions and jobs throughout Southern California in a sleek black Mazda MX-5 Miata convertible. But for a recent date with a woman, he rented a Cadillac Escalade because he was so used to friends saying his Miata is "gay."

    "Guys say, "˜Hey, that's cute,' " Mr. Geren, 40, said, adding that the comments come from gay as well as straight men. "You have to fend off that perception."

    A few years ago, Meghan Daum, an op-ed contributor to The Los Angeles Times, wrote about a promising first date with a man that never led to a second one because, she later learned, the guy saw that she drove a Subaru Outback station wagon and concluded she must be a lesbian.
     
  4. Pilot

    Pilot Senior member

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    Frog, there are a ton of cool cars you can buy in the 15k or less bracket. Seriously, look around. If you are such an "enthusiast" as you say, then I'm sure you have a list of about 50 cars you would like to own? amirite? You haven't just been jerking it to bimmerforums all day have you?
     
  5. CouttsClient

    CouttsClient Senior member

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    Uh, dude, 75k is 1.5X of the national household income for a FAMILY in the United States. I really don't think it's a big risk for a single guy making that much to lease a BMW 3 series. WTF?. [​IMG]
    I believe a person making $75k (gross) annually cannot "afford" to buy a $65k car. Americans would be wise to learn this lesson.
     
  6. Benzito

    Benzito Senior member

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    calm down man.

    it would have been a lease, which is not the same as BUYING a $60k car. and no, i am not going to divulge where exactly i work. starting salary including bonuses and whatnot amounts to 75k.

    and like i mentioned, i am a HUGE car enthusiast. i LOVE driving. i drive for the sake of driving, okay?

    you probably don't even think twice when you get into your car and just drive to point b. i make excuses to drive. i love stick shifts. you probably drive an automatic (if not, i apologize; just generalizing based on the population and the odds of you, a person on the internet, falling within that demographic).

    find me a non-luxury, rwd car that handles as well as the 335is coupe (and i repeat, HANDLES AS WELL). there are none!

    and gee, i dont think i was bitching at all in my threads.. i was merely asking for advice, cause.. you know.. that's what that subsection is for.


    You can indulge your car enthusiasm, get a nice "weekend car," and get all the heads turning by looking at an older classic. BMW 2002s (the model, not the year), for example.
     
  7. GreenFrog

    GreenFrog Senior member

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    Frog, there are a ton of cool cars you can buy in the 15k or less bracket. Seriously, look around. If you are such an "enthusiast" as you say, then I'm sure you have a list of about 50 cars you would like to own? amirite? You haven't just been jerking it to bimmerforums all day have you?
    Sure, there are a ton of cars I'd like to own, but not many that fall into my now-revised budget of less than $10K.
     
  8. Nicola

    Nicola Senior member

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    I don't understand top of the line 3s. If you can afford a high end 3 you likely can afford a 6. A 3 is a company car.

    Oh and the hate for auto gear boxes. You know F1 has been running what is basically an auto box for over 10 years. So do many other racing series. It's to the point that these days the only place Ferrari sells many manuals is the US. If you think you can outshift a F1 driver [​IMG]
     
  9. GreenFrog

    GreenFrog Senior member

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    I don't understand top of the line 3s. If you can afford a high end 3 you likely can afford a 6. A 3 is a company car. Oh and the hate for auto gear boxes. You know F1 has been running what is basically an auto box for over 10 years. So do many other racing series. It's to the point that these days the only place Ferrari sells many manuals is the US. If you think you can outshift a F1 driver [​IMG]
    ... why would you insinuate that I hate autos because they suck? I know the merits of dual clutch transmissions and when did I ever imply I could outshift an F1 driver? I hate automatics because they take away from the driving experience. Manuals are more fun. [​IMG]
     
  10. MrGoodBytes

    MrGoodBytes Senior member

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    90 posts and no one pointed out insurance costs, especially with being under 25.

    I find the under 10K market to be difficult especially if your not very hands on with things.

    The other thing you really need to keep in mind is storage of said 2nd/weekend car. That will really limit your living arrangements especially around a major city. Especially when they require a dedicated garage. Trust me, it quickly becomes a bane, especially when you are really attached to it.

    Get comfortable with your job, sort out a semi-long term living situation and then see where a fun car sits in your life.
     
  11. GreenFrog

    GreenFrog Senior member

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    90 posts and no one pointed out insurance costs, especially with being under 25. I find the under 10K market to be difficult especially if your not very hands on with things. The other thing you really need to keep in mind is storage of said 2nd/weekend car. That will really limit your living arrangements especially around a major city. Especially when they require a dedicated garage. Trust me, it quickly becomes a bane, especially when you are really attached to it. Get comfortable with your job, sort out a semi-long term living situation and then see where a fun car sits in your life.
    I got some quotes. The cheapest provider I found was Amica. Through them, my annual premium is around $2500 give or take, depending on the car. I put in my old A4, and it was $2300ish. With the hypothetical 335is, it went up to $2500. I wouldn't have this as a second car. I'd sell my current car and whatever car I do end up getting would become my primary car.
     
  12. aleksandr

    aleksandr Senior member

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    So I've been working a couple of years and I make a decent amount. Instead of blowing my money on a nice car (I've been driving old beater for the past eight years or so), I discovered styleforum, so I've been blowing my money on nice shirts, pants, ties, SHOES ([​IMG]) sportscoats and whatnot. By my guesstimate, I'm no better off now financially than if I had gone to buy a douchebag car right out of school. Although I do have an awesome wardrobe.

    Anyhow, all I'm saying to the OP is - if you have a passion for something, go for it. I'm not saying that you go crazy and live beyond your means, but if you do your math and find that it works, why not? You're only young once. I don't think you would have gotten quite the same reaction that you got if you had posted this on some bimmer forum somewhere instead of SF, and in the same vein perhaps the people on that same bimmer forum would call out some of our more esteemed members for their expenditure on clothing. Why spend $700 on a pair of shoes when you can get shoes for $70 or less???

    On a somewhat related note, I'm seriously thinking about an Audi A5 Sportback. I figure if I stop buying new clothes I could afford it easily. But that means I'd have to stop hanging out on SF...
     
  13. Douglas

    Douglas Senior member

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    Oh and the hate for auto gear boxes. You know F1 has been running what is basically an auto box for over 10 years. So do many other racing series. It's to the point that these days the only place Ferrari sells many manuals is the US. If you think you can outshift a F1 driver [​IMG]

    [​IMG]
     
  14. username79

    username79 Senior member

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    I don't understand top of the line 3s. If you can afford a high end 3 you likely can afford a 6. A 3 is a company car.

    3s are a lot more fun to drive. 6 is an ugly and overweight (worse than the 3) chick car.
     
  15. username79

    username79 Senior member

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    I believe a person making $75k (gross) annually cannot "afford" to buy a $65k car. Americans would be wise to learn this lesson.
    This is stupid. First, we keep moving the 3 series up and up in value. It's actually probably about 45-50K for the 335. Second, a single person making 75K can easily afford $500/mo in a car payment, invest wisely, max out their 401K, save for the holy grail of life in this thread - a down payment on a home ([​IMG]), rent in a decent place, and still have money left over to blow on nice clothes and food. Not sure how that doesn't equate to 'afford'. Outside of StyleForum, where everyone is a closeted homosexual, take pictures of eachother's $700 shoes during circle jerks, live exclusively in rental studios in NYC, and only work as analysts in 2nd tier investment banks, $100-125K is actually the range for top end professional salaries in the United States. Someone making 75K in their early twenties is doing REALLY well and will be making 100-125K (or more!) by 30. They can afford a 3 series.
     
  16. gomestar

    gomestar Senior member

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    This is stupid. First, we keep moving the 3 series up and up in value. It's actually probably about 45-50K for the 335. Second, a single person making 75K can easily afford $500/mo in a car payment, invest wisely, max out their 401K, save for the holy grail of life in this thread - a down payment on a home ([​IMG]), rent in a decent place, and still have money left over to blow on nice clothes and food.

    Not sure how that doesn't equate to 'afford'.



    The monthly for the 335 would be around $590 including tax ... the car's MSRP is around $58K

    that plus the insurance cost equates to about $800/month not including gas and maintenance. Awful lot for a car when the OP said he will be using public transportation daily for work.
     
  17. username79

    username79 Senior member

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    that plus the insurance cost equates to about $800/month not including gas and maintenance. Awful lot for a car when the OP said he will be using public transportation daily for work.
    Yeah, the OP also stated he was going to put 8K down on the car when he was negotiating the lease deal. My hypothetical example is a much more intelligent person than the OP.
     
  18. tj100

    tj100 Senior member

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    This is stupid. First, we keep moving the 3 series up and up in value. It's actually probably about 45-50K for the 335. Second, a single person making 75K can easily afford $500/mo in a car payment, invest wisely, max out their 401K, save for the holy grail of life in this thread - a down payment on a home ([​IMG]), rent in a decent place, and still have money left over to blow on nice clothes and food.

    Not sure how that doesn't equate to 'afford'.

    Outside of StyleForum, where everyone is a closeted homosexual, take pictures of eachother's $700 shoes during circle jerks, live exclusively in rental studios in NYC, and only work as analysts in 2nd tier investment banks, $100-125K is actually the range for top end professional salaries in the United States. Someone making 75K in their early twenties is doing REALLY well and will be making 100-125K (or more!) by 30. They can afford a 3 series.


    I'm willing to challenge this statement. Part of the issue is that the OP is in Boston, which is not an inexpensive place to live. If he were making $75,000 in Omaha, he could easily afford the 3 series.

    But, on $75,000, he's looking at take-home pay of ~$4,250 a month. If he really wants to scrimp / live with roommates in a shitty neighborhood / etc., he can probably pay as little as $1,250 for fixed-cost living expenses (rent + utilities). He's going to contribue $500 a month to his 401(k) to maximize his employer match (though he will still be way short of 'maximizing' his 401(k) limits). Day-to-day living expenses are probably $1,000 a month, minimum. So he's left with $1,500/month of 'disposable' income.

    What's the 335i going to cost? $500 a month in lease payment. $300 a month in parking. $200 a month in insurance. $100 a month in gasoline (that's 1.5 fill-ups these days).

    So that leaves him $400 a month in other disposable income, with which he needs to buy other capital items (electronics, clothing, furniture, etc.) and save money to build an emergency cushion. The bottom line is that, sure, he could probably sacrifice a lot to lease a new BMW. Whether that's worth it or not is up to him.
     
  19. gomestar

    gomestar Senior member

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    oh, and if any part of the $75K is a one-time bonus, taxes are much higher for that payment. Taxes on my bonus last year were over 60%.
     
  20. Douglas

    Douglas Senior member

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    oh, and if any part of the $75K is a one-time bonus, withholdings might be much higher for that payment. Withholdings on my bonus last year were over 60%.

    Taxes != withholdings. At the end of the year you square up with Uncle Sam.
     

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