Last post on Dec 06, 2013 at 7:58 AM
You are in the Sedans
What is this discussion about?
BMW 3 Series, Infiniti G37, Acura TL, Lexus IS 350, Mercedes-Benz C-Class, Cadillac CTS, Volvo S60, Audi A4, Acura TSX, Car Comparisons, Sedan
#15776 of 16984 Re: BMW and me.... [scwmcan]
Mar 22, 2013 (6:17 pm)
Scwman- classic responce - my rebut - evenif it's 4k down and that's an if- you get a brand new BMW (with "free maintence") for 3 years - and if you are a recent grad and have an entry level job- you don't have to worry about a new transsssion -'or something similar that you would get in a used car- plus you don't have to pay the full nug at pickup. - a good used car that's 5 years old depending on model is a min 10k. Lux cars could be close to 20 or more.
Not saying anything wrong with a used car - but a new car under certain lease requirements and given certain situation is not a bad option- and could be a better option. Rock on
I got an integra GSr in 2000 for 25O a month 1500 down- could not get a better deal- had a 3 year lease- warrantee - no issues- I was a young buck just out of college - last 3 cars have been bought new- all bought- but even if I had the money I would still finance because the rates are so low- case in point- after trade we owed less then 5k for my wife's crv- I financed for 60 mths at .9 because rate was so low- not because we didn't have the extra 5- all about what fits
#15777 of 16984 Re: BMW and me.... [scwmcan]
Mar 22, 2013 (6:14 pm)
the BMW leases are usually $3,500 IIRC. sometimes a little lower. but rule of thumb, add about $100/month to get a nothing down number. No longer silly cheap, but often still a good deal.
and $3,500 down on a mew 328 is going to leave a eye watering payment!
#15778 of 16984 Re: BMW and me.... [sweendogy]
Mar 22, 2013 (6:16 pm)
well, I used an example, but was not considering a BMW for a new grad. More like a Civic, Imprezza, or maybe an ILX with a heavily discounted lease.
The goal really is to get him established, and saving money. In 3 years he can go for a BMW if he wants one, and can afford it!
#15779 of 16984 Re: BMW and me.... [stickguy]
Mar 22, 2013 (6:22 pm)
Look nothing wrong with civic or whatever he can afford- please no 320 BMW - get the civic or tsx or Mini Cooper- the 320 should be reserved for very old people given its weight and displacement and price.'
Mar 22, 2013 (7:13 pm)
pay big money upfront on a lease need to be aware that if the car is totalled, bad things ensue. Being upside-down when that happens wouldn't be an especially big deal for someone who could actually afford the car, but for those who lease because they can't. . .
#15781 of 16984 Re: Those Who. . . [cdnpinhead]
Mar 22, 2013 (7:26 pm)
Or you could roll the down payment and tax in a lease and be right side up given a total. Then lease another using the same formula-
Others love the song "upside down" by jack Johnson - me not so much
#15782 of 16984 Re: BMW and me.... [sweendogy]
Mar 23, 2013 (4:32 am)
I have no problem if they can afford the payments, as I said they can do what they want, and you did bring up the BMW which is what I replied to, it would be slightly more reasonable to get a new civics or whatever, but that was not what was being discussed here, it was the leasing or purchasing an entry level luxury car right out of college. Now nobody but the actual person knows what their financial situation is so really we have no business deciding what they should be doing with their money ( as I stated in the my original reply) and the payments on the BMW may be about the same as on the civic ( though with a bigger upfront payment) so why not go for it if you can and want to, but in general it make more sense to have fewer and lower payments to get yourself out of debt before you go adding new debt, of course I agree with the size of many peoples student debt they can't put their lives on hold for twenty years, but a lot of people seem to want it all as soon as they graduate and get into further financial difficulties, I guess all I am saying is they have to make sure they can actually afford what they buy, and that they have to be aware that just because you get a job as a fresh graduate doesn't mean they are going to still have that job in a year or two ( in today's workplace there are very few guarantees) and that they also need to budget savings so they can afford to survive and continue to pay for things in the event they do lose that great first job. In other words don't live beyond your means, its not just advice for governments it is for all of us.
#15783 of 16984 Re: BMW and me.... [stickguy]
Mar 23, 2013 (4:57 am)
Those friends I had, who paid off student loans in just a few years, did not live like paupers. This forum is about ELLPS, which has word "luxury". Last time I checked the definition, it meant things that are not necessary in life. Last time I checked the word "pauper", it meant somebody deprived of the basic goods and services. There is world between those two point. A three year old domestic or imported compact car is not beyond dignity of a recent graduate. Plenty of people live like that and are not considered living like paupers.
I'm not going to tell anybody how to live their life, I just rebuff claims that life without a nice car is somehow going to less fulfilling. There is no entitlement of having a nice car when one graduates from college, or medical school. Those feelings are internally developed due to social pressure and marketing. Does not mean we all have to obligue. However, if somebody considers a new Lexus or BMW more important than being debt free, it is their choice. But is was a choice, not necesity. All I ask then is that one does not say later "it was not my fault", "nobody could see that coming", or similar excuse phrase, when things don't go according to plan.
#15784 of 16984 Re: Those Who. . . [cdnpinhead]
Mar 23, 2013 (5:04 am)
All standard leases include GAP coverage. Putting money down on a lease is a bad idea, period. It is usually based on desire to lower payment and projecting what one should do on a loan, where large downpayment is actually a good idea. The difference is in completely different type of risk in each of those financing schemes. Loan puts risk of ownership on the buyer, lease puts it on the bank. So banks will love people putting money down on a lease.
#15785 of 16984 Re: Those Who. . . [dino001]
Mar 23, 2013 (5:54 am)
Dino - I don't like to dispute what you say because you always research before you make your point (and very well I might add), but I think GAP insurance laws vary by state. I know where I used to live (NY), that GAP insurance is included in every single auto lease & finance contract written in the state. Where I live now (CT), GAP is something they push on you in the F&I office.