Quote:
Originally Posted by tfa372
There is a huge difference between being moneysmart and owning a BMW.
If you actually price out a BMW, they tend to be about the same if you can get a good deal. My personal example:
I bought a 2011 328Xi CPO (w/ 17,500 miles) for just $21,500. It was a hell of a deal and this was in 2012. I drove it for a year and a half and it had 35k miles when I sold it privately for $20k. Net cost to run the car for 1.5 years was $100 + insurance + gas. My dad bought a 2011 Honda Insight brand new for $21,000. At the time I sold my car, it was worth $14,500. His cost to run the car for 1.5 years was $6,500 + insurance + gas + maintenance.
Sure I spent more on gas and insurance, but my actual cost was LESS than him. I drove a nicer, faster, better-equipped car, however he was driving a new car, while I was driving a gently used second-hand car.
Even now, people see my car and they imediately think I am spoiled or I wasted money since I am only 19. However, I have already met all my financial obligations. I paid my tuition and have money set aside for the rest of my duration in college, have an emergency savings fund that I can live off of for 3-4 months W/O working, and I can pay for all my expenses. I do have a slush fund for fun which primarily goes into my car for parts, however, I NEVER stretch myself too thin. I have no kids, house, wife, or other things that require a financial commitment.
When I went to buy my car, the dealer tried pushing me a lease on an M5, while I could afford it, it would not put me in a comfortable financial position, which is why I bought a used-CPO 5-series.
Now you're talking about buying a 5-series that has OVER 100k miles in a few short years.  If something were to go wrong, you are instantly looking at a repair bill for a few hundred at the least but it can easily go into the thousands. My 2011 328 started getting a grinding noise when I turned the wheel and a clunking noise. The bill was for $3,700.
Unless you are ready to drop some major dough if something goes wrong, save your money and buy a newer, lower mileage BMW. |
Sounds like you've thought ahead - CPO car, money in the bank for emergencies, slush fund for fun... and at 19! Good for you! Turning down a new M5 because you know it's an irresponsible thing to do - that's will power, especially at 19 years old!
$3,700 repair bill on a "grinding noise" on a 3-series - and if that were a 5, I'm sure you could bump that price up. Chad, are you listening?