How do you afford a BMW?

I'm 19 years old. When I was 17 my grandmother bought me a brand new 2001 Mustang V6. I was very fortunate, no way I would have had such a nice car otherwise. I'm now realizing the downside of having a RWD car in the snow, and not just any RWD, a Mustang. I can barely go 20MPH if there is any snow or ice, and I feel like I'm about to fly off the road at any moment. I do NOT have snow tires however, but I really don't think they would help enough...maybe I'm wrong.

On to my real point here. I make $600 a month, and I will be attending college this fall. I pay $300 a month in car insurance (I have had two accidents) and I have no car payment, as my Mustang is totally payed off. Now, I was watching TV one day and saw an ad for a BMW 325xi for $319 a month on a 3year/36k mile lease. I thought "Wow, it would handle awesome in the snow and I would have a badass bimmer". So I went to the dealer and test drove a 325xi and a 325, aswell as a 330i for comparison. Long story short, I LOVE the cars. The dealer quoted me at $248 a month after my $8500 Mustang trade-in. Yes, pathetic. The 'Stang is 2 years old and has already depreciated about $11,000. TY Domestic car.

So I'm looking at $528 a month for a 03 325i (or xi, about $20 a month difference, not sure if snow tires and a 325i will be good enough for NY winters). That leaves me w/ about $30 spending cash every month. Kind of sucks. This also leaves me in another hairy situation. 3 year lease, before my 4th year of college, the lease will run out. So that means I will have to re-finance, as I plan to buy the car out at the end of the lease. I would probably have to pay over 60 months, which leaves my payments on the bubble, around $20,000, at a little over $300 a month. Which leaves me w/ NO money, except for the fact that after next December, my two accidents are whiped off my insurance, dropping my premiums about $40 a month. So I'm looking at around $560 a month then that I have to pay out. Now let's assume I get out of college and get a decent job ($30,000 a year starting lets say?) that would put me at around $2000 a month income, as opposed to my current $600. So figuring based on that, I could probably pay off my car much quicker than 60 months. So maybe I'll be paying on the car for 5 years instead of 9? Alot of variables here.

SOOOOO, now for my two questions:

1.) How old are you, how much do you make (don't have to answer if you care not to) and how much do you pay every month for car payment? insurance?

2.) Is a BMW worth all this? It's a hell of a car, but for all the God damn work I'm going to have to do, and basically going 4-5 years without being able to buy a damn thing, it makes me second guess.

Any suggestions/comments are welcome.

Brandon

Brandon,

As a prof, and a BMW driver, I can offer this bit of advice: don't buy the car.

When I was your age (I'm only 32 now), I almost bought an 83 320i in Canada (used, obviously). I was ready to take out a loan, stretch out my degree, work more, and generally just enjoy the car. I decided against it. Had I bought it, I wouldn't have continued with school given the cost of repairs, etc. I bought an old crapper of a Nissan with my saved cash instead. It last until I was finished with my undergrad. Then went off to grad school, got a PhD, got a job in NZ as a prof, bought my first BMW recently.

Insurance is dirt cheap here, and parts for BMWs are about the same as Hondas from what I've been told, so I can't give you any insight from that angle.

For what it is worth. Keep your money for now. Enjoy college. You may end up going to grad school. If you think you're poor now, wait until you get to grad school! It will be worth it. Once you're earning good cash, doll out for the BMW.

Just my two cents.

Thanks for the advice. I've decided against it. I made this same post at cardanddriver.com and got a similar answer. I need to concentrate on school now, not cars. Not to mention I need a new computer for school (Majoring in Computer Engerineering possibly, never know, I might change my mind). Thanks for advice :)

Brandon

aren't most beemers RWD ?

That leaves me w/ about $30 spending cash every month.

Well that being said..I think you have made the right decision....did you really need our input? :)

My payment on my 2001 325i is less than 10% of my income, and
a lot of the time I wish it was less. AND I LOVE MY CAR.

Don't buy the car...just relax and wait until you can afford it. You
don't want to live for your car....

30 ISN'T EVEN ENOUGH FOR GAS.....I'D PERSONALL OPT FOR A 2000 323 OR ONE WHO'S PAYMENTS ARE ABOUT $200 A MONTH.....WHAT EVER U DO, DON'T LEASE...IT'S THE SAME AS RENTING AND AFTER DISHING OUT ALMOST $11K YOU HAVE TO GIVE IT BACK :( ...THAT'S HOW THEY GET U:devil:

Focus on school and enjoy yourself. The time will come later when you get a good job, work, and have plenty of money to spend on cars, house, etc.

Besides, how many other kids in college can afford a BMW themselves? Just about none because their focus is on getting out of school...

Wow, I had to wait til age 52, but then it was sweet. I saved my income for an entire year and was able to pay cash for a loaded 2003 325. What a cool feeling that was. Save something to look forward to as you get older. You can more or less work your way up the "food chain" of autos! Lidochick

Screw it - get the car. Then get drunk, and get a girl pregnant. Marry her. Have another kid. Really go for it and drive fast, maybe get a couple of tickets. Get an unexpected root canal while you're at it. Get arrested and get a lawyer. Drop down to part time student so you can get a part time job, then drop out of school all together for a full time job. Go on vacation, maybe Europe - charge it. No, wait, your anniversary is coming up - no problem, get another credit card. Uh oh, economic down turn - no more job. No worries, you'll have to live off of your savings for awhile. No savings? Get another card.

(Not to be a smart ass but I just wanted to point out all the very real expenses that can surprise you. Yes, you can afford a nice car right now but you'll also be able to afford one later and nice cars aren't going anywhere. Keep your Mustang and drive it like you stole it - just don't get into any more accidents.)
:)

Originally posted by hondaman-iac
aren't most beemers RWD ?

yes most are RWD, with exception to certain years of the 325, which im assuming he was thinking about since he was looking for something for winter, if you really want a bimmer you could buy a '88-'91 325 which comes in an AWD version (you could probably find one for like 5k), however they look way old school. they brought the AWD 325 back in '01 which is another option, you could find a pretty good one for around 15 grand, meaning with your trade in for around 8k would get you half way there, altho i wouldnt recomment doing a trade in, youd be alot better off selling your car privately (dealers tend to pad the price on the car if your doing a trade in), trying to get as much out of it as you can, then go to the dealer and talk with them and see how much you can get it lowered, finance the rest, probably be around 5k.

My question is, how do you not afford a BMW.

I'm 16 and drive a 1995 BMW 325i. I'm satisified with mine and hope to buy an 2000 M3 when I hit 18.

Man, Ive been pondering getting a BMW lately too, especially after my friend bought a 97 328i. What a sweet car.

But you've made the right decision waiting. BMWs are generally higher to insure, which means youd be mega screwed. If you change your mind and decide you have to have one look into 318s you can get a later 90s 318 fairly reasonable. Especially the 318ti. Not the power house like the 325 or 328, but its a BMW all the same. :)

besides the 325 isnt that great anyways, save up and then you could get an M3 or a 330. O and BMW is bring back hatchbacks so you might be able to afford on of those.

Originally posted by RACER D12
besides the 325 isnt that great anyways, save up and then you could get an M3 or a 330. O and BMW is bring back hatchbacks so you might be able to afford on of those.

Sweet! I love the little hatches.. hopefully they offer one with a decent power motor.. 3.3 would be nice.. :D

im going off to college in the fall to and i think it would be better if you didn't have such a nice car

if you get exactly what you want now, what do you have to look forward to?

i think the truthful answer is barely
especially those of us under 25 because of insurance
most of the time it is worth it though you do have to put in a lot more hours

You can't put a price on hapiness ;) nothing wrong with working harder.