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      06-19-2020, 06:49 PM   #1
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Life/Financial Advice on Becoming a 2 Series Owner

Hi Everyone,

As you all are BMW-owners with far more experience and knowledge than I have, I was hoping to ask for your opinions or advice on becoming a 2 series owner. Since purchasing a BMW is a relatively major financial decision for me, I'm conflicted as to whether I'm being too hasty or if I should let myself enjoy life a bit. I've asked older family members for their thoughts, and the responses were that I'm too young and only want a BMW as a status symbol. However, none of them really find the joy in driving like I do, which is why I'm turning to this community.

For some context on my financial situation, I graduated from college about a year ago and have been working in a major west coast city. My income is low to mid $100k depending on my bonus, but I've been saving around $1k per month on just my base salary. I currently drive a GTI, which I do really enjoy.

I'm hoping to buy a CPO M240i for $30-35k.

I'd really appreciate any thoughts on my situation or love to hear how you decided to make your first major car purchase.

Thanks everyone.
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      06-19-2020, 07:32 PM   #2
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Why buy a 2 series? Go for a m4...
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      06-19-2020, 08:57 PM   #3
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That price range is good. Yeah, don't go out and buy an $80K car.

Keep it within your means---especially starting out. Lot's of guys are buying cars that are way too expensive and become "automobile poor". If someone has a $1100 car payment and lives in an apartment...then they are doing it wrong. They can argue it 20-ways-to-Sunday and it still isn't going to make any sense.

Tons of guys I know piss away money on cars and Rolex watches without much else to show for it. Then they wake-up in their 50s and realize they have to work for another 20 years before they can retire--because they blew all their disposable income on toys.

You are doing the right thing with keeping the purchase modest. It's easy to fall into the spending trap when you are younger. Real easy. It also tends to go from Cars > Watches > Single Malt Scotches > Ex-Wives > HA HA HA
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      06-21-2020, 06:09 PM   #4
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I'm going to guess you're either in tech or investment banking, based on making that kind of money right out of college? You can easily afford it based on your income. So whether or not you can truly afford it depends on how much you have saved up and how much you spend on things like rent and student loan payments. If you lost your job and were out of work for eight months, could you still make your car payments and meet your other financial obligations? If so, I wouldn't hesitate to buy it now. If not, wait another 6-12 months, focus on building up your savings, and buy it then.

I bought mine ten years ago, when I was making about 40% less than you. But I had been out of college for four years and had been able to save up a decent sum of money. I also wasn't paying west coast rent prices and didn't have student loans. So I would advise you to look at your entire financial picture, rather than just your salary.
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      06-21-2020, 06:46 PM   #5
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Is a decent plan you have... 2 series is a sleeper, and is a hidden gem as a nice spirited daily! It's a coup, so as long as you aren't worrying about a 3rd or 4th passenger, and just weekend trips (trunk space, you're good to go. For $30k+ you got a good little sleep that with a few add ons, brings you to stock M2 performance. A good deal...

Remember, buy to drive, have fun, not as an investment, as cars for the most part are depreciating assets.

Good luck!
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      06-21-2020, 06:48 PM   #6
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Consider your total debt to income ratio and how much you are ok with. If you are renting now and want to buy a home soon, a car loan could effect that some.
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      06-22-2020, 12:26 AM   #7
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I think the income level and surplus to savings you're running indicate you can afford it. But I think there are a number of questions that matter quite a lot that you need to answer for yourself before making that decision:

1. How many months worth of expenses do you have stashed in an emergency fund? 3, 6, 12? If you're right out of school and making $100k/year with only $1k/mo left over in surplus, I'd assume that the answer is 'not enough.' Building an emergency fund should be a priority as a young professional, especially in these uncertain times.

2. What does the m240i do for you that the GTI doesn't? I was damn close to buying a GTI Sport with the performance package instead of the 230i myself. Living in a big city, the GTI might actually be better in many ways. If you're tracking the car, the BMW will be a big jump for dynamics and power...but if its just about a spirited drive now and then, the GTI will get the job done and the BMW really is just a status symbol.
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      06-22-2020, 07:31 AM   #8
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Can you still save money for house and emergency fund ? GTI paid off ? How much does payment go up from GTI ?

Hurry up and get married so you have duel incomes (of course kids mean mini van sooooooo)

I'm conservative by nature, but YOLO.
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      06-22-2020, 06:09 PM   #9
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Quote:
Originally Posted by OnlyGerman View Post
Why buy a 2 series? Go for a m4...
I wish! Taking it one step at a time. I think the 2 offers more than enough power for me.
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      06-22-2020, 06:13 PM   #10
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Quote:
Originally Posted by Oldbay View Post
That price range is good. Yeah, don't go out and buy an $80K car.

Keep it within your means---especially starting out. Lot's of guys are buying cars that are way too expensive and become "automobile poor". If someone has a $1100 car payment and lives in an apartment...then they are doing it wrong. They can argue it 20-ways-to-Sunday and it still isn't going to make any sense.

Tons of guys I know piss away money on cars and Rolex watches without much else to show for it. Then they wake-up in their 50s and realize they have to work for another 20 years before they can retire--because they blew all their disposable income on toys.

You are doing the right thing with keeping the purchase modest. It's easy to fall into the spending trap when you are younger. Real easy. It also tends to go from Cars > Watches > Single Malt Scotches > Ex-Wives > HA HA HA
Definitely don't want to go down that path. Appreciate the words of wisdom!
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      06-22-2020, 06:28 PM   #11
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Quote:
Originally Posted by surge98 View Post
I'm going to guess you're either in tech or investment banking, based on making that kind of money right out of college? You can easily afford it based on your income. So whether or not you can truly afford it depends on how much you have saved up and how much you spend on things like rent and student loan payments. If you lost your job and were out of work for eight months, could you still make your car payments and meet your other financial obligations? If so, I wouldn't hesitate to buy it now. If not, wait another 6-12 months, focus on building up your savings, and buy it then.

I bought mine ten years ago, when I was making about 40% less than you. But I had been out of college for four years and had been able to save up a decent sum of money. I also wasn't paying west coast rent prices and didn't have student loans. So I would advise you to look at your entire financial picture, rather than just your salary.
Thanks for the advice.

I work in finance, but trying not to count my chickens before they hatch given the state of the economy. Fortunately I don't have any student loans (I thank my parents everyday). I have a decent amount saved up/invested, but ultimately want to buy a house in the next several years.
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      06-22-2020, 06:35 PM   #12
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Quote:
Originally Posted by cooolone2 View Post
Is a decent plan you have... 2 series is a sleeper, and is a hidden gem as a nice spirited daily! It's a coup, so as long as you aren't worrying about a 3rd or 4th passenger, and just weekend trips (trunk space, you're good to go. For $30k+ you got a good little sleep that with a few add ons, brings you to stock M2 performance. A good deal...

Remember, buy to drive, have fun, not as an investment, as cars for the most part are depreciating assets.

Good luck!
Thanks for the input! cooolone2

What cost-effective modifications do you suggest for getting the M240i to that level of performance?
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      06-22-2020, 07:00 PM   #13
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Quote:
Originally Posted by 230iZTR View Post
I think the income level and surplus to savings you're running indicate you can afford it. But I think there are a number of questions that matter quite a lot that you need to answer for yourself before making that decision:

1. How many months worth of expenses do you have stashed in an emergency fund? 3, 6, 12? If you're right out of school and making $100k/year with only $1k/mo left over in surplus, I'd assume that the answer is 'not enough.' Building an emergency fund should be a priority as a young professional, especially in these uncertain times.

2. What does the m240i do for you that the GTI doesn't? I was damn close to buying a GTI Sport with the performance package instead of the 230i myself. Living in a big city, the GTI might actually be better in many ways. If you're tracking the car, the BMW will be a big jump for dynamics and power...but if its just about a spirited drive now and then, the GTI will get the job done and the BMW really is just a status symbol.
Some really thought-provoking questions.

1. I have a fair amount of savings, but I definitely need to think about whether I'm in a comfortable position. To clarify on my monthly savings, the $1k excludes my bonus which is around 30% of my total income. My plan is to keep investing my bonuses and not touching them unless I need to.

2. You're completely right. I have a MK7 GTI Sport with the performance package and it's loads of fun. I guess my reasons for wanting to step into a 2 series are:
- More power
- RWD
- 2-door coupe while I don't have any kids
- Overall look of the car
- Currently paying the same fuel and maintenance costs anyways
- BMW CPO warranty
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      06-22-2020, 07:09 PM   #14
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Quote:
Originally Posted by 4Hockey4 View Post
Can you still save money for house and emergency fund ? GTI paid off ? How much does payment go up from GTI ?

Hurry up and get married so you have duel incomes (of course kids mean mini van sooooooo)

I'm conservative by nature, but YOLO.
Agreed. The first half of 2020 has really been a wake up call!

GTI is not paid off, so my payment would probably go up around $200 per month.
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      06-23-2020, 12:01 AM   #15
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Just do it. You have the scratch and I can see you have plenty of wisdom just from reading this thread. I've known so many people who are afraid to live a little, and then they never really live. Being overly fiscally conservative is only marginally better than being footloose and fancy free with your money. You never know what the future holds. Live now, within reason.
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      06-23-2020, 12:31 PM   #16
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Quote:
Originally Posted by B58togo View Post
Just do it. You have the scratch and I can see you have plenty of wisdom just from reading this thread. I've known so many people who are afraid to live a little, and then they never really live. Being overly fiscally conservative is only marginally better than being footloose and fancy free with your money. You never know what the future holds. Live now, within reason.
yea and right now is great time to buy, if you get a great deal and ever had to get out of...you could..risk is low
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      06-23-2020, 12:57 PM   #17
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My advice is to keep doing what you're doing. Sounds like you got your head screwed on straight so kudos to you plus great work on landing a great job! HUGE in my book.

Moving forward l would recommend looking for a hot young lady who is in the same boat at you ( head on straight, good education, rich family) and YES make sure her daddy is loaded! I find this to be the perfect formula moving forward. Gotta look out for numero uno! 36DD helps as well but the hot trust fund kid is an added bonus.

Just remember to live your life to the fullest. Have fun, work hard, be smart along the way because you never ever know when your days are coming to a quick end. Death , taxes and a bitchy wife are a certain so have fun kid!

Last edited by RMNB; 06-27-2020 at 05:16 PM..
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      06-23-2020, 03:23 PM   #18
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Originally Posted by 335xi Beast View Post
My advice is to keep doing what you're doing. Sounds like you got your head screwed on straight so kudos to you plus great work on landing a great job! HUGE in my book.

Moving forward l would recommend looking for a hot young lady who is in the same boat at you ( head on straight, good education, rich family) and YES make sure her daddy is loaded! I find this to be the perfect formula moving forward. Gotta look out for numero uno! 36DD help as well but the hot trust fund kid is an added bonus.

Just remember to live your life to the fullest. Have fun, work hard, be smart along the way because you never ever know when your days are coming to a quick end. Death , taxes and a bitchy wife are a certain so have fun kid!
This is terrible advice.
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      06-23-2020, 03:45 PM   #19
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This is terrible advice.
IF YOU HAD A SENSE OF HUMOR YOU WOULD UNDERSTAND. LIGHTEN UP DAD.
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      06-23-2020, 04:02 PM   #20
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This is terrible advice.
TRY THIS.


JIMMY DUGGAN GIVES GREAT ADVISE AS WELL.
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      06-23-2020, 04:42 PM   #21
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I just turned 30, so I might have some perspective to share with you.

Unless you own property, and your current car is giving you trouble that you cannot fix for an amount lower than the car's worth, you dont need this car.

Your job situation is likely not as stable as you imagine it to be during this Financial crisis.

If your current car isn't paid off (or worth reasonably more than what you have owed on it), you're not strong in a position to buy another, financially, so you'll be rolling over old debt to get into new debt.

With the car payment, you will also have insurance, maintenance (tires and modifications arent free).

That will easily eat the $1000/mo income surplus you're saving now.

Buy a house. Rates are historically low. I'm on house number 3 now. The only thing I've ever regretted is not buying a bigger house, when the market was prime for it, because when I sell any house Ive owned, Ive always doubled my money.


If you have 6 month's worth of living expenses saved up, you're doing solid. True living expenses. Cost of everything you pay for now, monthly.

Double that to a year's worth and keep it safe. Use that money to build a secondary stream of income or equity. Then buy whatever car you want.

TLDR: Economy is uncertain now, you have decent income, but thats without knowing relatively what your expenses are. Job can disappear and getting hired now for good money is close to impossible.

The only loan I would sign for (and currently am) would be to refinance down any interest rates on existing debts.

Cash is king.
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      06-23-2020, 05:14 PM   #22
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Quote:
Originally Posted by AleksanderSuave View Post
I just turned 30, so I might have some perspective to share with you.

Unless you own property, and your current car is giving you trouble that you cannot fix for an amount lower than the car's worth, you dont need this car.

Your job situation is likely not as stable as you imagine it to be during this Financial crisis.

If your current car isn't paid off (or worth reasonably more than what you have owed on it), you're not strong in a position to buy another, financially, so you'll be rolling over old debt to get into new debt.

With the car payment, you will also have insurance, maintenance (tires and modifications arent free).

That will easily eat the $1000/mo income surplus you're saving now.

Buy a house. Rates are historically low. I'm on house number 3 now. The only thing I've ever regretted is not buying a bigger house, when the market was prime for it, because when I sell any house Ive owned, Ive always doubled my money.


If you have 6 month's worth of living expenses saved up, you're doing solid. True living expenses. Cost of everything you pay for now, monthly.

Double that to a year's worth and keep it safe. Use that money to build a secondary stream of income or equity. Then buy whatever car you want.

TLDR: Economy is uncertain now, you have decent income, but thats without knowing relatively what your expenses are. Job can disappear and getting hired now for good money is close to impossible.

The only loan I would sign for (and currently am) would be to refinance down any interest rates on existing debts.

Cash is king.
Some good points. Better yet become an Ins broker and get 30 sales folks working under you. All 1099. They make you tons of money, Covid-19 proof industry to work in and the great thing is your income goes up every single year for life! Granted several good companies you represent, 90% + retention or better, service is great. No brainer imo. Yes, I'm an Ins broker. Work hard in the beginning and cruise afterwards. Spend most of my time on the golf course working on larger deals with company owners, etc. Find the people who OWN EVERYTHING is key. That's where the money is.
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