[dan84]

I agree with waiting a few months to track your spending, but if you're taking home that kind of money you shouldn't have a problem affording an 235. Unless you are reeeally loose with your wallet. I take home around $32 a year after taxes, stocks, 401k, and I can afford it with little effort. Granted I have a roommate that splits the living expenses with me, but that savings doesn't equate to the additional income you would have.

Like one of the other guys said, you're young live it up while you can. Even with a steep car payment you should be able to save enough for a traditional mortgage before you hit 30. In the mean time get a fun car! (Not a 135i, they're fun to drive but they're fugly cars. The amount saved on a used 1 isn't worth it IMO.)

Good luck!

[Simbachinna]

Originally Posted by gtaccord

I have been out of college for 10 years and have never had a car payment over $400. I have also owned a prelude, sti and two 335s during this period. In all cases, keeping my payment low allowed me to mod the cars, take up other hobbies like mountain biking, pay for a wedding and still save money. I would recommend saving up enough so you can put 20% down on a used car that meets your needs and wants.

I looked at something cheaper, like the Ecoboost Mustang (36k), and with an $11k downpayment, 48 month finance, it still comes to $579 after taxes (6.25%). With a lease it's like $450 after taxes with $1700 down. If I financed, I'd sell the car after I finished financing, and I'd hopefully have the income to have a M235i then.

Thanks

[Simbachinna]

Originally Posted by Gate7

Why is your health insurance so much? Are you paying by yourself out of pocket?

Also what is the point of having a nice car if your monthly gas allowance is $120, it should be at least twice that... And yes as others have mentioned, lease is a horrible idea for someone in your situation. Oh and being out of school, living in Houston and owning m235i I can guarantee you insurance will be more than $120 a moth.

Living in the loop in Houston is very expensive, when I lived there I probably couldn't afford my 335i before I moved out to suburb ... And got a better job

Thanks. I tried to round everything upwards. I plan on living in the suburbs, but I put houston as a general location.

[Simbachinna]

Originally Posted by IEDEI

get a used 135. way more direct and entertaining than the bloated 235 and waaaaay cheaper.

I like the 135i, but I like the looks of the M235i. 1M is still my favorite car BMW has produced. Iirc they were like $45k which was the same price of a 235i now. If only the produced more so the used values would be more reasonable

Originally Posted by trinim3

Do you get a year end bonus? You'll need to work for a while and build some credit before BMWFS will lease this car to you. First auto loan is the hardest to get.

If you haven't graduated yet...I'm a bit surprised $70k is starting for an engineer...is this a petroleum company? No offense but it seems a bit in the lower end. Maybe it's because cost of living and no state income tax in Houston is so favorable. Or maybe my expectations are out of whack.

I'd say the paltry amount you can save now pales in comparison to how much money you can save when you're making substantially more. You're young and I'm assuming you're in good health. Live it up now while you can because there's no guarantee about tomorrow. People wait their whole lives for this idea that they can be happy one day. Why not be happy now. Granted 9 out if 10 ppl will tell you that's bad advice but the ones who decide to think out of the norm are the ones who either become mega rich or bankrupt and either way they'll have more fun doing so

$70k is starting for Mechanical around here. Petroleum makes around 90k+ starting I think, but I think it's to late for someone like me who would just be entering. I heard there are more new petroleum engineers then there are going to be jobs.

Originally Posted by BimmerRookie

I think you should wait on it and actually start living down here. You'll find out that even though you budgeted for some things, other things are going to cut in.

I moved down here 6 months ago also with an engineering position (Petroleum engineering) and I do make more than you do (not trying to be a dick, only trying to prove a point), but still I find myself always having to re-adjust my budget, because i went over on some things i shouldnt have. So making payments on my M3, paying rent, utilities, groceries, gas, insurance, taxes, restaurants + bars really does cost alot down here.

Be carefull, because your budget sounds a bit tight.

PM me if you wanna talk about it, we're sorta in the same boat!

Thanks!

Originally Posted by fcman

I make $72k 2 years out of college but have to pay income tax. My 135 is $551/month + $100/month insurance, and I financed for 4 years. Rent and health insurance are a little cheaper, so I have a similar car budget.

I think the payment is doable, but making that kind of payment on a lease with your income is ridiculous, especially if you are renting. Buy a GTI (or better yet a real cheap Fiesta ST), save for some inexpensive real estate (or expensive depending on your circumstances when you're ready to buy) and then you can get yourself a new BMW.

I already have a $29k car now, so I dont need to have something immediately to buy. But after all this work (4 years college, 4 years hs to get in) if I still can't afford a 228 or M235 its sorta dissapointing.

Originally Posted by ChicagoM4

What an ignorant comment. The OP obviously doesn't want to wait 10+ years to drive a car (car companies have financing and leasing programs for this very reason).

To the OP: you will get a wide variety of advice on personal financial management on this, or any, forum. In my experience, I graduated undergrad with a business degree and didn't make enough money right out of the gate to live in Chicago comfortably AND make car payments (and parking spot payments). I waited until I made about ~$70k and leased a G25 (~$350/mo). It was a great little sedan and my first new car, but it got pretty boring. After about 1 year on the lease I swapped it on SwapaLease, got a promotion and got a 2012 Z4 on SwapaLease with 25 months left (~$550/mo). I absolutely loved that car and had so many great times in it, thus I ran the lease out and just recently returned it to BMW. Now that I want a new car and make more money than I did 2 years ago, I am financing a new M4 (~$1,100/mo). Throughout this process I bought a condo and paid of student loans as well as started savings a good amount of $$.

I wanted to share my experience just so you have a point of reference. However, everyone's experience will be different.

IMO, wait at least 3 months and track your spending vs. budget. When I started to track my spending, I noticed some areas I was spending more than budgeted and some that I was spending less (somewhat obvious, but alcohol at dinner/bar/home can cost $400+/mo if you are not careful). If you are pretty close to your budget and still feel comfortable / excited about the M235i then do it. You will be working hard and to have something nice that gives you enjoyment is necessary to motivate you in some situations.

Thanks. I don't drink or anything, and I plan on doing something similar to what you did. Lease/Finance something cheaper, and then when I get promoted and make more $$, get something like a slightly used GT350 or M3.

Originally Posted by dan84

I agree with waiting a few months to track your spending, but if you're taking home that kind of money you shouldn't have a problem affording an 235. Unless you are reeeally loose with your wallet. I take home around $32 a year after taxes, stocks, 401k, and I can afford it with little effort. Granted I have a roommate that splits the living expenses with me, but that savings doesn't equate to the additional income you would have.

Like one of the other guys said, you're young live it up while you can. Even with a steep car payment you should be able to save enough for a traditional mortgage before you hit 30. In the mean time get a fun car! (Not a 135i, they're fun to drive but they're fugly cars. The amount saved on a used 1 isn't worth it IMO.)

Good luck!

Thanks. Ya, I don't want to wait till I'm like 30-35 and making $100k-120k. By then I'll have kids and stuff to worry about, and would be even harder buying a $50k car.

[hyperzulu]

If I was in your position, knowing what I know, I would probably wish I spent more time traveling instead of digging myself into car payments and luxuries of that sort. You end up realizing that unless you are able to hit the race track and/or take trips in your car often enough, your daily driver will rarely ever be worth such a huge chunk of your expenses right now. You won't be left with money to modify it or to shred a brand new set of tires on a single weekend of tracking because you still need to eat. That's where the joy of owning a car like this comes from. The rest of it is just for show, and that wears out quickly.

I understand the thought of do it now because tomorrow is not promised. But the reality is there are about a million other things you could be doing with that money right now. If you think owning a $50k car at 30 will be hard because of "kids and stuff", think about how much harder it will be to travel to India if you wanted to with a wife and two kids in tow?

If you don't think you want to travel now, maybe you're single. But you get the nice car, you then get the girl and then you'll be wishing you didn't have the nice car so you could save that $500 every month to plan a couple nice trips a year because... as you said it, you may not get the chance tomorrow.

^From experience.

[fcman]

Originally Posted by Simbachinna

Thanks. Ya, I don't want to wait till I'm like 30-35 and making $100k-120k. By then I'll have kids and stuff to worry about, and would be even harder buying a $50k car.

You save/invest that car payment now and by the time you're 30 you could buy an M3/4 in cash. Even if you just put that money in a checking account to rot away you'd have over $50k saved up when you hit 30.

[dan84]

Originally Posted by fcman

You save/invest that car payment now and by the time you're 30 you could buy an M3/4 in cash. Even if you just put that money in a checking account to rot away you'd have over $50k saved up when you hit 30.

Meh. Assuming a 2022 M4 is only $80,000 and he could earn 3% on his money, he would have to set aside ~$740 a month for the next 8 years to pull that off. All the while making payments now on a car he can actually drive in the 8 years while waiting for the M4 purchase.

So, $1100 a month (~$360/mo for an economical car) and 8 years worth of boring driving for an M4 when he's 30, or... <$600 a month and an M235i now? I'd pass on the M4. Hell, he could take that extra ~$500 a month, set that aside earning 3% and still have $65,000 to buy a 2023 M2 in 9 years. lol

All depends on whether or not BMWFS will lease to him or not. My little brother had no problem leasing at 23 years old with no prior car buying/leasing history after graduating from college 3 years ago WITH student loans. So I don't see there being much of a problem.

[hyperzulu]

Originally Posted by dan84

All depends on whether or not BMWFS will lease to him or not. My little brother had no problem leasing at 23 years old with no prior car buying/leasing history after graduating from college 3 years ago WITH student loans. So I don't see there being much of a problem.

BMWFS requires 24 months of non-derogatory prior credit history for graduates to receive their top tier financing and $1000 credit. Without prior credit history, you stand very little chance at getting a loan for a luxury vehicle without a co-signer.

[hans007]

depends on what other hobbies / things you do but i think for sure you can afford it.

10 years ago i got my first "real" job making if i recall something like $52k a year as a software engineer. i was 23, and bought what was my "dream car" at the time (a 2005 G35 coupe, i think it was like $33k+Tax). had no debt like you.

easily afforded it though I had maybe $30k saved already from working about 1 year as a contractor and through summers etc at school so it was slightly different.

like i'd say you can probably afford it fine now if you think that job is going to be stable, though i'd probably say you might want to just work for a half a year or something and save up an emergency fund if you dont have a lot of cash on hand and then buy / lease the car. you never know. hell if i were in your shoes, i'd order it in 3 months euro delivery, so it wouldnt be built for 6 months, and save the money there too...

lastly just curious but, how is your health insurance $550 a month? does this job you are taking not include health care? ive heard thats how much insurance costs outside these days, but i had just assumed most white collar full time jobs included it.

[Simbachinna]

Originally Posted by hans007

depends on what other hobbies / things you do but i think for sure you can afford it.

10 years ago i got my first "real" job making if i recall something like $52k a year as a software engineer. i was 23, and bought what was my "dream car" at the time (a 2005 G35 coupe, i think it was like $33k+Tax). had no debt like you.

easily afforded it though I had maybe $30k saved already from working about 1 year as a contractor and through summers etc at school so it was slightly different.

like i'd say you can probably afford it fine now if you think that job is going to be stable, though i'd probably say you might want to just work for a half a year or something and save up an emergency fund if you dont have a lot of cash on hand and then buy / lease the car. you never know. hell if i were in your shoes, i'd order it in 3 months euro delivery, so it wouldnt be built for 6 months, and save the money there too...

lastly just curious but, how is your health insurance $550 a month? does this job you are taking not include health care? ive heard thats how much insurance costs outside these days, but i had just assumed most white collar full time jobs included it.

I estimated it high. I think it would cost around ~300/month.

[FoxCrane]

Good luck to you! This is how I did it:

Out of uni, I bought a place, and a couple years later, used a HELOC to buy my first car (an A4). This way, the interest was Schedule 'A' deductible (versus a car loan, which would not be), plus, I could pay as much or only the interest each month. When real estate values went up last year, I re-financed to eliminate my HELOC into my 1st mortgage and took cash out for a new car, but ended up doing a kitchen remodel.

Still wanting a new car, I opened another HELOC (thank you for rising real estate values) and used it to buy the 228. Kind of wishing I had gone for the 235, though.

[PackPride85]

My rule of thumb has always been to have 25% of my net monthly income left over after ALL debts/payments. That includes everything you spend money on: bills, loans, 401k, etc...

Part of that goes into a money market as rainy day fund and part into my stock portfolio.

You're starting out at a much higher salary than I did coming out (stupid 2009 crash), and I was able to afford a 26k mazdaspeed 3 and buy a cheap townhouse. The key was sticking with the 25% method above. 6 years later I'm now about to buy my first single family home with 2 car garage (20% down), probably a cheap used utility vehicle like a discovery with all cash, and in 2016 either an M2/M3 (20% down plus whatever I sell my ms3 for).

You really just need to think about what's more important to you. Buying a bunch of expensive furniture, a huge wardrobe, giant over sized house, lots of eating out and drinking....or rooms2go furniture, regular clothes, normal sized house for a single/couple person, cooking in and a baller ass car or two.

I know alot of people who drop into 350k 5 bedroom giant homes for just themselves or 1 other with a mortgage payment that is close to 70% of their net income. They have fancy furnature and the works, but drive around 10 year old honda civics b/c they just don't care about what they drive (its a thing to get them from A to B).

[Pparana]

Originally Posted by hyperzulu

If I was in your position, knowing what I know, I would probably wish I spent more time traveling instead of digging myself into car payments and luxuries of that sort. You end up realizing that unless you are able to hit the race track and/or take trips in your car often enough, your daily driver will rarely ever be worth such a huge chunk of your expenses right now. You won't be left with money to modify it or to shred a brand new set of tires on a single weekend of tracking because you still need to eat. That's where the joy of owning a car like this comes from. The rest of it is just for show, and that wears out quickly.

I understand the thought of do it now because tomorrow is not promised. But the reality is there are about a million other things you could be doing with that money right now. If you think owning a $50k car at 30 will be hard because of "kids and stuff", think about how much harder it will be to travel to India if you wanted to with a wife and two kids in tow?

If you don't think you want to travel now, maybe you're single. But you get the nice car, you then get the girl and then you'll be wishing you didn't have the nice car so you could save that $500 every month to plan a couple nice trips a year because... as you said it, you may not get the chance tomorrow.

^From experience.

I agree, cars are fun, but in the end it's just a car. Save some cash for an emergency fund, the reevaluate. You can afford it if you want, but it's a big chunk of your income. What if your job sucks, or you want to move or any host of things. With the lease your married to it, or you have to hopefully find someone who will take it over.

My main priority at 22 was getting laid, and hanging out on the beach with friends, I would never trade any of that for any car or amount of money. No need to add stress over a car payment.

[M235guy]

I had no problem getting a lease on a M235i and I'm only a year out of college. No co-signer and no BMW grad program. At the end of the day it's your money you should do what you want with it.

[huma]

Originally Posted by Simbachinna

Alright cool. I will try to finance a BRZ, EcoBoost Mustang or used Nismo 370z (all around $31-33k) at first. With 10k down, my payments should be $500 month which I think I can do (11% of monthly income). Then I'll save for a House and buy a M235i hopefully when I'm around 30, and GTR at 50.

Why not go for a 228i and mod it with a jb4 or dinan? It'll make it almost as fast as the M235i for a lot less. You could buy a base 228i for probably around 30-31k or add some upgrades and pay a little more.

Like the above poster, you should just get what you want. You might end up regretting it 2-3 years later and trade in whatever vehicle you bought for the M235i. You'll end up losing even more money this way. I learned the hard way multiple times it's better to cough up a little more and get what I want vs settling for something more affordable.

[hans007]

i do have one thing to say that a few of my married friends have said.

if you plan on having kids or someday, you might want to get your awesome dream coupe in there.

friend of mine was going to buy another fun car like a 3 coupe or 4 series for years. has had a 2004 r32 since it was new (i suppose its a 2 door hatch but still) and was talking about getting an e92 m3 or a 4 series right around when i got my car (well and really more like tlaking about getting some sort of bimmer for 4-5 years).. one thing leads to another and he's married, got a big ass dog, wife wanted kids, and now drives a 2015 X5 diesel and has a kid now. i mean i think he's talked himself into how awesome an X5 is, but yeah.. you get the idea

[PackPride85]

Originally Posted by huma

Why not go for a 228i and mod it with a jb4 or dinan? It'll make it almost as fast as the M235i for a lot less. You could buy a base 228i for probably around 30-31k or add some upgrades and pay a little more.

Like the above poster, you should just get what you want. You might end up regretting it 2-3 years later and trade in whatever vehicle you bought for the M235i. You'll end up losing even more money this way. I learned the hard way multiple times it's better to cough up a little more and get what I want vs settling for something more affordable.

What this guy said. Definitely would go for a 228 over the other cars listed in the low 30's.

[bimmerbuff]

Originally Posted by huma

Why not go for a 228i and mod it with a jb4 or dinan? It'll make it almost as fast as the M235i for a lot less. You could buy a base 228i for probably around 30-31k or add some upgrades and pay a little more.

Originally Posted by smakdown61

What this guy said. Definitely would go for a 228 over the other cars listed in the low 30's.

I was just going to suggest this as well. Drive the 228i. You might find it to be more than enough for you.

As you've seen, the financial advice you receive here is varied. Many posters have made great points. The one I agree with most is to wait a few months before you do anything. Get a feel for your actual cash flow, how your commute to work is, social life, etc. You might find that having a nice new BMW is less important than something else.

[ynotony]

Let's throw money out of the equation for a second, and think about this in a different way. If you stretch your budget to grab an m235i now, where do you go from here?

Happiness is relative, and you will eventually get bored of whatever car you buy. It becomes the norm, and you will want to upgrade to get the same rush, no matter how sweet you think your new car is. Especially if you are "into cars".

I have friends who at 22 got M3s and 911s, and in 3 years they just wanted something better and faster. They could technically afford it, fine, but they're now 30 and have run out of room to upgrade. Where do you go when a 911 turbo doesn't excite you, but you only make $150-200k/year? You end up spending lots of money constantly switching cars.

Like others said I'd start small, have fun, save money, and leave room for something to aspire to every 3-5 years. I make substantially more money than you, and have had a lot of fun driving "last generation" BMWs. I'm looking into 5 year old 911s now and it's really exciting. Can't say the same for my friends.

[Simbachinna]

Thanks guys, lots of great advice here. I know in a lot of other forums/communities, my thread would have been ridiculed, but on here I've been getting a ton of fantastic advice. Only supports one of the main reasons why I want a BMW (great community).

[MG 228i]

Got my 228i with the Recent Grad program.
I wanted the M235i, but didn't want to pay that much every month.
I wasn't planning on getting my first car until next year or so,
but I got into an accident and needed a car ASAP.

If I didn't have car payments I'd probably be spending the money on something else.
The more money you make the more you spend! Seems like a never ending process...

[FoxCrane]

If you want an experience AND a car, do European Delivery; the savings can help offset some of the travel cost.