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

If you are set on getting a e92, keep in mind it is pretty difficult to find a stick one. I got one a few months ago and it was 1 of about 5 that I could find in CA.

Still thinking about it?

Let me fill you in on a little not-so-secret technique in leasing a BMW.

Negotiate your lease, get your best price and then when you are wrapping things up, before you sign, tell the dealer that you want to include security deposits.

BMW offers a deduction from the money factor (subtracts .00007) per deposit up to 7 deposits (sum of .00049 off the money factor), and you are given your deposit back at the end of the lease. This wil lower your overall payments and you can transfer the deposit after the lease is done to a new car you plan on leasing.

Take a look at this for a good amount of calculations for a 2011 model

Originally Posted by GreenFrog

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I am very familiar with the e36s and how popular they are with the tuner crowd but never really considered them. If anything, I was considering an e46 M3, but with the valve adjustments and whatnot, I think it would be a maintenance nightmare. I also hate how the exhaust is very tinny on the M3 (e46, that is).

I'm still debating whether I want to shell out $10-15Kish for a used car, or to just lease a cheaper car (i.e. GTI). But thanks for the suggestion. I'm going to go research some miatas and e36s!

Edit: any particular generation I should look at (for the miata)?

I should add that $10-15k could get you an e36 m3 that looks superb (possibly supercharged), and could be much much cleaner than any new car in that price range, since those e36 m3 in that price range are usually owned by enthusiasts that are detail freaks so you could almost expect a garage queen.

Originally Posted by CouttsClient

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That post is without balance but life isn't life without some risk. Sometimes you have to be a little frivolous. Though that doesn't mean he needs to buy a BMW if he makes $75k. Yikes

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?.

I see two arguments: - You're young, so splurge while you can and have fun with the money you make; that being said, don't be marsupialed and go broke and into debt (i.e. live WITHIN your means) - Live well below your means and save, save, save. You will retire comfortably and have millions in retirement funds if you contribute enough at an early age. My parents followed the second option to the T. My dad had a poor upbringing and is the definition of frugal. He struck it big in the business world and has made a lot of money over the years, allowing us to live a very comfortable lifestyle. But he still saved almost everything he made. He won't even buy a Porsche, which was his dream car since he was a kid, though he can afford one. I asked him why not, and he said "because I don't need it. I have the accord." So in essence, my parents are older, retired, and have a ton of money saved up. And they keep living frugally. I asked my parents at what point would they spend the money they've saved for so many years. I definitely understand the merits of saving and saving, but when do you draw the line and start to splurge? But considering the economy and lack of job security I have as an entry-level graduate, it definitely seems prudent to save. Edit: Just some background info on my finances. - I have a ROTH IRA already with a couple thousand bucks in there - I have about $15K in savings - I zero college debt (thanks Mom and Dad!) - I have zero CC debt - I have very good credit and pay my cards off every single month I'd like to think I've been doing the right thing thus far, considering I just graduated from college less than a month ago and this is my situation.

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 (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.

Originally Posted by otc

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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

(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?

Originally Posted by GreenFrog

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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.

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?

Originally Posted by username79

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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?.

I believe a person making $75k (gross) annually cannot "afford" to buy a $65k car. Americans would be wise to learn this lesson.

Originally Posted by GreenFrog

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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.

Originally Posted by Pilot

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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.

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

Originally Posted by Nicola

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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

... 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.

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.