Talk Me Into It: Financial Concerns

PrematureApex · 02-16-2008, 08:54 AM

I have the car on order...now its up to you guys to talk me into going through with it.

I make a good living ($11k/month), but also have a boat load of school loans($150k). Cars have always been my hobby, so I excuse spending more.

Bring on the puffery and lies to make sure I go through with it.

Ready.....GO!

:drinking:

kushalp · 02-16-2008, 09:06 AM

If you buy it they will come....

Gary@TireRack · 02-16-2008, 09:10 AM

You can't take it with you and there is no promise you'll wake up tomorrow....

am I on the right track....

MrRoboto · 02-16-2008, 09:12 AM

Pay off your debts first.

PrematureApex · 02-16-2008, 09:13 AM

Quote:

Originally Posted by kushalp

If you buy it they will come....

Correct

Quote:

Originally Posted by Gill@Tirerack.com

You can't take it with you and there is no promise you'll wake up tomorrow....

am I on the right track....

Correct

Quote:

Originally Posted by MrRoboto

Pay off your debts first.

Incorrect

I spent all that time in school to make a good living, now that I want to enjoy it a little, I have debt to pay back.

kushalp · 02-16-2008, 09:22 AM

Interest rates on your school loans should be dropping significantly now. Depending on your cash situation and income it would be best to take advantage of the low interest rates, pay off your school loans at the normal pace, buy the 135i and invest any saved money in something that will help hedge the school loan payments.

If none of this is feasible, buy the 135i and live in it. I would get the heated seats.

Year1of1 · 02-16-2008, 09:42 AM

dont be an old fart, buy the car its cool! you'll be cool driving it and everyone will be jealous!:headbang:

ulrichd · 02-16-2008, 09:45 AM

Allow me to give you some advice. Like many car enthusiasts I have suffered from "gotta have the hot new car" syndrome. I am 48 now and have been fortunate to make enough money to afford some serious machinery. One day, when my car payment(s) exceeded my mortgage payment, I said "Enough". I traded the M-Coupe for a Cooper S which is now 5 years old and paid off. Fine you say, I get it. Wait, there's more.

The trick to getting over the hot new car syndrome is what sits next to the Mini in the garage: a 78 Porsche 911 I picked up for 12K. In the past few years I have learned to work on the car including modifying it which is way more satisfying than just picking up a new car. Whenever HNC syndrome rears it's ugly head, like with the 135i, I just picture pulling the red winged monster next to it, and somehow, it recedes. 2-3 years from now when the Mini needs to be replaced it will be with a used 1-series coming off a lease. I am sure the 911 will still be there.

Hope I didn't come across as patronizing.
Ulrich

RktWgn · 02-16-2008, 09:57 AM

^^^^^

Wisdom.

Isn't it great that tons of folks have a bad case of HNCS though? Without them taking the initial depreciation hit you and I wouldn't have such fantastic used cars to choose from. Delayed gratification is dead in America.

Scott

DorthVader · 02-16-2008, 10:00 AM

Have you ever seen a U-haul trailer behind a hearse?

RktWgn · 02-16-2008, 10:17 AM

Have you read "The Millionaire Next Door"?

I'm not telling the guy not to get the car. I'm simply suggesting he curb his appetite a bit... for awhile. Why not think back to the car he lusted for 2-3 years ago and pick that up instead? I've owned A LOT of cars over the years. One thing is certain... the honeymoon was always short-lived regardless of the vehicle.

ARES45 · 02-16-2008, 10:25 AM

Here is the reason I am taking the leap and buying new: BMW ultimate service. I want to know while I am deployed that when my BMW tells my wife something is wrong, she can take it in and they will service/fix it. No worries. That is one less thing I have to worry about while I am gone, I want to know that she (read car or wife) is going to be taken care of. Of course while I am here she can drive her civic and I will personally ensure that her car is maintained.

I believe there is a happy medium somewhere between saving/investing all your money and blowing it on whatever your heart desires. You will just have to decide if this falls into your happy medium.

Good luck.

peppebmw · 02-16-2008, 10:50 AM

This is a morbidly depressing thread! Makes me look even more forward to my one series. Damn I should have gotten power seats. What's $995 more dollars?

Pike · 02-16-2008, 10:53 AM

Ulrich -- great description of "hot new car" syndrome. :-)

I sympathize and suffer from HNC myself. I bought an E46 M3 a few years ago, tracked it with the local BMW club, and enjoyed the hell out of it. It cost more than my rent each month.

I came to my senses after a few years and bought a great E30 which I tweaked and tinkered with and lived with happily for 4 years with no payments or significant maintenance costs.

These days, I don't have the time I used to work on an older car. I also miss the new car-ness that my E30 couldn't provide. So I'm swinging back to getting a new BMW for 2-3 years.

After that, I'll probably get sick of the payments and grab another old car to tinker with... It's a cycle. :-)

Rook24V · 02-16-2008, 11:15 AM

Its very nice to not have car payments. I'm going to try to have the bulk (50%) of my 1er paid for in cash when I go to buy it, so that the payments are as low as possible and I can pay it off quickly.

If you have debt already, its really not the smartest idea to buy a NEW car. buy used if you need a car, you lose too much right out the door for depreciation.

psyshack · 02-16-2008, 11:55 AM

For me,,, Ive given up on buying used or return lease cars. I always seem to find out why somebody didn't want to keep them. And it wasn't because they tired of them.

So as I wait on the 1er and know it is locked in battle with a G37s as my next new car purchase. There is no way in hell I will be on the must have MSRP band wagon. I can wait until my local BMW dealer wants to sell one more than I want to buy one. Its a cruel world isn't it.

So for the OP. Pay some bills. Wait for the price to drop. Nothing cool about a car. While they are more pleasurable than wiping ones butt with folding money. The out come is much the same in the long run.

Numb3rs · 02-16-2008, 12:06 PM

Quote:

Originally Posted by ulrichd

Allow me to give you some advice. Like many car enthusiasts I have suffered from "gotta have the hot new car" syndrome. I am 48 now and have been fortunate to make enough money to afford some serious machinery. One day, when my car payment(s) exceeded my mortgage payment, I said "Enough". I traded the M-Coupe for a Cooper S which is now 5 years old and paid off. Fine you say, I get it. Wait, there's more.

The trick to getting over the hot new car syndrome is what sits next to the Mini in the garage: a 78 Porsche 911 I picked up for 12K. In the past few years I have learned to work on the car including modifying it which is way more satisfying than just picking up a new car. Whenever HNC syndrome rears it's ugly head, like with the 135i, I just picture pulling the red winged monster next to it, and somehow, it recedes. 2-3 years from now when the Mini needs to be replaced it will be with a used 1-series coming off a lease. I am sure the 911 will still be there.

Hope I didn't come across as patronizing.
Ulrich

^^This fella likes driv3rs cars. I tend to agree, newer is not necessarily better, neither is more. If the car puts a smile on your face and that smile is deeply rooted, then it doesn't matter if other cars out there have more HP or more quicker !!

(I registered just to say that, :wink: )

RktWgn · 02-16-2008, 12:19 PM

Quote:

Originally Posted by psyshack

So for the OP. Pay some bills. Wait for the price to drop. Nothing cool about a car. While they are more pleasurable than wiping ones butt with folding money. The out come is much the same in the long run.

Pure wisdom if there ever was. This has to be considered the definitive word on the subject.

josh · 02-16-2008, 12:31 PM

IMHO, if you can't afford to pay cash for the 135i, you should look at less expensive transportation and save your pennies until you can afford $40k toys.

psyshack · 02-16-2008, 12:57 PM

The only reason Ive been to the BMW dealer is because Honda and Mazda don't make a car like the 1er.

If Mazda put the speed3 package in a 3 coupe or sedan and made it RWD or better yet stuffed it into the up coming Mazda2 and made it rear wheel drive. There would be no need for me to go to a BMW dealer. NONE! Think about it. A Mazda2 with the current speed3 setup RWD. It would be a shifter cart with air bags!

Same with Honda. Put the S2000 drive line and motor in a Civic or even a 4th to 8th gen class Accord or TSX. and you have one hell of a fun car.

But alast. None of my dreams will happen. So that leaves BMW and Infinity. And truth be known. Im not over joyed about it. I will hop in my current 07 Mazda3 S Touring Sedan, 5MT and have a bit of fun in it this afternoon. I will wish for RWD and more go go. But for the buck. Its Zoom Zoom is real. And Im glad I own what I think to be the true entry level sports sedan. And dollar to dollar. There is no real value going to the BMW or Infinity. When the lowly Mazda cost $17.7k OTD compared to $20k more for something better. Escalation cost big time!

atr_hugo · 02-16-2008, 01:04 PM

Ford trotted this thing out at SEMA a few years back - I asked for the 'pro' to give me a ride rather than drive it myself since the parking lot they had it in was too tight to turn a go-kart around in. I think the 1er will not be unlike what that Focus was like (just more luxurious ; -).

That Focus was fantastic and the 1ers 300 lb ft of torque in a slightly longer wheelbase than the Focus will be just fine.

http://www.streetracersonline.com/articles/rs8/

R32 · 02-16-2008, 01:05 PM

personally, i only buy a car when i can pay cash for it.

but, that's for me. how much you spend for what is so personal.

what's the ROI on going to see a movie? zero, but people do it all the time.
how about dating? spend thousands on a potential spouse, only to get married and have her/him divorce you and take half your stuff?

buying a car, especially a new car, is fun, exciting, memorable, etc. i wouldn't do it if it really stretches you out. but if you can swing it comfortably and really want it, why not?

02-16-2008, 08:54 AM	#1
PrematureApex Colonel 840 Rep 2,402 Posts Drives: N55 X1, N54 135, s54 m3 Join Date: Jan 2008 Location: Philadelphia iTrader: (0)	Talk Me Into It: Financial Concerns I have the car on order...now its up to you guys to talk me into going through with it. I make a good living ($11k/month), but also have a boat load of school loans($150k). Cars have always been my hobby, so I excuse spending more. Bring on the puffery and lies to make sure I go through with it. Ready.....GO! :drinking:
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02-16-2008, 09:06 AM	#2
kushalp Enlisted Member 4 Rep 30 Posts Drives: Join Date: Dec 2007 iTrader: (0)	If you buy it they will come....
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02-16-2008, 09:10 AM	#3
Gary@TireRack Moderator 369 Rep 4,745 Posts Drives: Formerly 1995 M3 Join Date: Oct 2006 Location: South Bend, IN, Tire Rack HQ iTrader: (2)	You can't take it with you and there is no promise you'll wake up tomorrow.... am I on the right track.... __________________ Gary. Tire and Wheel Forum Moderator. Tire Rack Sales Rep Gary@Tirerack.com http://www.tirerack.com/a.jsp?a=AH8&url=index.jsp Please refer to 'Gary/E90 Post' as your previous contact when you order online to help support this forum.
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02-16-2008, 09:12 AM	#4
MrRoboto Brigadier General 1846 Rep 4,836 Posts Drives: VO 1M Join Date: Aug 2007 Location: Canada iTrader: (0)	Pay off your debts first.
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02-16-2008, 09:22 AM	#6
kushalp Enlisted Member 4 Rep 30 Posts Drives: Join Date: Dec 2007 iTrader: (0)	Interest rates on your school loans should be dropping significantly now. Depending on your cash situation and income it would be best to take advantage of the low interest rates, pay off your school loans at the normal pace, buy the 135i and invest any saved money in something that will help hedge the school loan payments. If none of this is feasible, buy the 135i and live in it. I would get the heated seats.
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02-16-2008, 09:42 AM	#7
Year1of1 Lieutenant 32 Rep 573 Posts Drives: 2020 X5 M50 Join Date: Jan 2008 Location: New Jersey iTrader: (0)	dont be an old fart, buy the car its cool! you'll be cool driving it and everyone will be jealous!:headbang: __________________ 2008 128 - retired 2010 X5 - retired 2013 535 - retired 2015 X1 - retired 2020 X5 M50i - On Order
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02-16-2008, 09:45 AM	#8
ulrichd Colonel 210 Rep 2,233 Posts Drives: 128i M-Sport Join Date: Jun 2007 Location: Houston, TX iTrader: (6)	Allow me to give you some advice. Like many car enthusiasts I have suffered from "gotta have the hot new car" syndrome. I am 48 now and have been fortunate to make enough money to afford some serious machinery. One day, when my car payment(s) exceeded my mortgage payment, I said "Enough". I traded the M-Coupe for a Cooper S which is now 5 years old and paid off. Fine you say, I get it. Wait, there's more. The trick to getting over the hot new car syndrome is what sits next to the Mini in the garage: a 78 Porsche 911 I picked up for 12K. In the past few years I have learned to work on the car including modifying it which is way more satisfying than just picking up a new car. Whenever HNC syndrome rears it's ugly head, like with the 135i, I just picture pulling the red winged monster next to it, and somehow, it recedes. 2-3 years from now when the Mini needs to be replaced it will be with a used 1-series coming off a lease. I am sure the 911 will still be there. Hope I didn't come across as patronizing. Ulrich Attached Images
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02-16-2008, 09:57 AM	#9
RktWgn Voice of Reason 0 Rep 57 Posts Drives: '08 Space Gray E90 335i Join Date: Jan 2008 Location: Charlotte, NC iTrader: (0)	^^^^^ Wisdom. Isn't it great that tons of folks have a bad case of HNCS though? Without them taking the initial depreciation hit you and I wouldn't have such fantastic used cars to choose from. Delayed gratification is dead in America. Scott
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02-16-2008, 10:00 AM	#10
DorthVader En Route! 0 Rep 10 Posts Drives: Join Date: Jan 2008 iTrader: (0)	Have you ever seen a U-haul trailer behind a hearse?
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02-16-2008, 10:17 AM	#11
RktWgn Voice of Reason 0 Rep 57 Posts Drives: '08 Space Gray E90 335i Join Date: Jan 2008 Location: Charlotte, NC iTrader: (0)	Have you read "The Millionaire Next Door"? I'm not telling the guy not to get the car. I'm simply suggesting he curb his appetite a bit... for awhile. Why not think back to the car he lusted for 2-3 years ago and pick that up instead? I've owned A LOT of cars over the years. One thing is certain... the honeymoon was always short-lived regardless of the vehicle.
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02-16-2008, 10:25 AM	#12
ARES45 Major 34 Rep 1,002 Posts Drives: Join Date: Oct 2007 iTrader: (0)	Here is the reason I am taking the leap and buying new: BMW ultimate service. I want to know while I am deployed that when my BMW tells my wife something is wrong, she can take it in and they will service/fix it. No worries. That is one less thing I have to worry about while I am gone, I want to know that she (read car or wife) is going to be taken care of. Of course while I am here she can drive her civic and I will personally ensure that her car is maintained. I believe there is a happy medium somewhere between saving/investing all your money and blowing it on whatever your heart desires. You will just have to decide if this falls into your happy medium. Good luck. __________________ "Don't run, you'll only die tired" ~ Gunship Pilot
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02-16-2008, 10:50 AM	#13
peppebmw Lieutenant 21 Rep 412 Posts Drives: 2023 BMW X3 M40i Join Date: Nov 2007 Location: middle of CT iTrader: (1)	This is a morbidly depressing thread! Makes me look even more forward to my one series. Damn I should have gotten power seats. What's $995 more dollars? __________________ 2013 Fiat 500 Abarth 2021 Jeep Wrangler JLU Sport S 2022 RE Continental GT 650
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02-16-2008, 10:53 AM	#14
Pike Private First Class 3 Rep 146 Posts Drives: '08 E92 335i, '91 E30 325i Join Date: May 2008 Location: Santa Fe, NM iTrader: (0)	Ulrich -- great description of "hot new car" syndrome. :-) I sympathize and suffer from HNC myself. I bought an E46 M3 a few years ago, tracked it with the local BMW club, and enjoyed the hell out of it. It cost more than my rent each month. I came to my senses after a few years and bought a great E30 which I tweaked and tinkered with and lived with happily for 4 years with no payments or significant maintenance costs. These days, I don't have the time I used to work on an older car. I also miss the new car-ness that my E30 couldn't provide. So I'm swinging back to getting a new BMW for 2-3 years. After that, I'll probably get sick of the payments and grab another old car to tinker with... It's a cycle. :-)
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02-16-2008, 11:15 AM	#15
Rook24V Private 33 Rep 56 Posts Drives: 2018 X3 m40i Join Date: Aug 2007 Location: Greater Seattle Area iTrader: (0)	Its very nice to not have car payments. I'm going to try to have the bulk (50%) of my 1er paid for in cash when I go to buy it, so that the payments are as low as possible and I can pay it off quickly. If you have debt already, its really not the smartest idea to buy a NEW car. buy used if you need a car, you lose too much right out the door for depreciation.
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02-16-2008, 11:55 AM	#16
psyshack Enlisted Member 0 Rep 44 Posts Drives: Join Date: Jan 2008 iTrader: (0)	For me,,, Ive given up on buying used or return lease cars. I always seem to find out why somebody didn't want to keep them. And it wasn't because they tired of them. So as I wait on the 1er and know it is locked in battle with a G37s as my next new car purchase. There is no way in hell I will be on the must have MSRP band wagon. I can wait until my local BMW dealer wants to sell one more than I want to buy one. Its a cruel world isn't it. So for the OP. Pay some bills. Wait for the price to drop. Nothing cool about a car. While they are more pleasurable than wiping ones butt with folding money. The out come is much the same in the long run.
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02-16-2008, 12:31 PM	#19
josh Private First Class 12 Rep 127 Posts Drives: E36 M3, 135i Join Date: Oct 2007 iTrader: (0)	IMHO, if you can't afford to pay cash for the 135i, you should look at less expensive transportation and save your pennies until you can afford $40k toys.
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02-16-2008, 12:57 PM	#20
psyshack Enlisted Member 0 Rep 44 Posts Drives: Join Date: Jan 2008 iTrader: (0)	The only reason Ive been to the BMW dealer is because Honda and Mazda don't make a car like the 1er. If Mazda put the speed3 package in a 3 coupe or sedan and made it RWD or better yet stuffed it into the up coming Mazda2 and made it rear wheel drive. There would be no need for me to go to a BMW dealer. NONE! Think about it. A Mazda2 with the current speed3 setup RWD. It would be a shifter cart with air bags! Same with Honda. Put the S2000 drive line and motor in a Civic or even a 4th to 8th gen class Accord or TSX. and you have one hell of a fun car. But alast. None of my dreams will happen. So that leaves BMW and Infinity. And truth be known. Im not over joyed about it. I will hop in my current 07 Mazda3 S Touring Sedan, 5MT and have a bit of fun in it this afternoon. I will wish for RWD and more go go. But for the buck. Its Zoom Zoom is real. And Im glad I own what I think to be the true entry level sports sedan. And dollar to dollar. There is no real value going to the BMW or Infinity. When the lowly Mazda cost $17.7k OTD compared to $20k more for something better. Escalation cost big time!
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02-16-2008, 01:04 PM	#21
atr_hugo No longer moderate 325 Rep 4,401 Posts Drives: '13 135i Join Date: Jun 2007 Location: - iTrader: (0)	Ford trotted this thing out at SEMA a few years back - I asked for the 'pro' to give me a ride rather than drive it myself since the parking lot they had it in was too tight to turn a go-kart around in. I think the 1er will not be unlike what that Focus was like (just more luxurious ; -). That Focus was fantastic and the 1ers 300 lb ft of torque in a slightly longer wheelbase than the Focus will be just fine. http://www.streetracersonline.com/articles/rs8/ Attached Images
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02-16-2008, 01:05 PM	#22
R32 Second Lieutenant 7 Rep 222 Posts Drives: Join Date: Jul 2007 iTrader: (0)	personally, i only buy a car when i can pay cash for it. but, that's for me. how much you spend for what is so personal. what's the ROI on going to see a movie? zero, but people do it all the time. how about dating? spend thousands on a potential spouse, only to get married and have her/him divorce you and take half your stuff? buying a car, especially a new car, is fun, exciting, memorable, etc. i wouldn't do it if it really stretches you out. but if you can swing it comfortably and really want it, why not?
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