First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

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greenxspidey
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First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

Hello,

I am currently, during this COVID 19 pandemic, trying to purchase a brand new 2020 BMW X3 sDrive 30i. I went to two dealerships already and they offered me some numbers. I'll just list the better deal here. please see below. Thank you.

2020 X3 sDrive 30i USD 41,950 (based on google, invoice price is 39,575)

Black Sensatec 550.00

Convenience Package 2250.00

Driving Assitance Package 500.00

xLine 19" Y-spoke styl 693 600.00

Heated seats 500.00

Ambient Lighting 250.00

Net Total 46,600.00

Destination Charge 995.00

Total Suggested Price 47,595.00

*Side note: I also get $5000 in bonuses and royalties during this time (BMW bonus, college graduate bonus, and family member owns a BMW bonus,etc)

Okay, so those are the numbers so far. The dealer is willing to do a SELLING PRICE of $43,500 (from $47,595 above)

Now, I have not bargained back and forth nor have I visited all the BMW dealerships in the area yet. My ideal selling price would be $41,000 (because this is the low end of selling price on TruCar in my area).

Now on to the question: Do you think $43,500 is already a good selling price, given all the bonuses the salesperson threw in for me, or do you guys think I can bargain for $41,000 for the selling price. Again, we BARELY bargain. $43,500 was the INITIAL price he offered.

******Also: He said OTD price would be $48,800 (NOT including the $5000 bonuses)

Thank you so much for your help!! I am such a newbie.
02nz
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by 02nz »

Suggest posting this on a BMW forum, you'll get more people with recent and specific experiences that are relevant to your question.
runner3081
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by runner3081 »

02nz wrote: Sun May 24, 2020 10:59 am Suggest posting this on a BMW forum, you'll get more people with recent and specific experiences that are relevant to your question.
Yes, this is a great idea. There are a number of large ones out there.

As far as this, "Do you think $43,500 is already a good selling price"

No way would I touch any car with a 10 foot pole that was north of 40K :)
anoop
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by anoop »

Truecar prices are normally average, but good enough for me. You can normally do better, sometimes even a lot better, by haggling or shopping at multiple dealers including those that may be outside your metro area.

Would recommend running your deal by or at least checking bimmerfest and bimmerpost to see what kind of deals people are getting.
sport
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by sport »

You are a first time buyer and a new graduate. Are you going to pay cash for this car or do you need to borrow the money? I would suggest that if you need to borrow the money, the car is much too expensive. I would never buy an expensive car that I would need a loan to pay for it. You can get a very nice new car for less than 30K. You might want to consider a Toyota Camry or Honda Accord.
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Kenkat
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by Kenkat »

Either drop by a couple of additional dealers or email a couple of additional dealers asking for pricing on the exact car you want. Don’t mention the price from the first dealer; let’s call them dealer A.

If you get back prices higher than dealer A, respond to these dealers asking if that’s the best they can do as you have a better price from dealer A. You can either include the price from dealer A or just leave it at lower.

If you get back prices lower than dealer A, send an email / call Dealer A saying you got a better price from Dealer B or C but wanted to give them an opportunity to beat it since they were so nice on the test drive blah blah blah. Can or choose not to disclose actual prices, you choice.

You can probably repeat this a couple of times to get down to what is near your lowest price. At some point I usually say good enough as it’s not worth my time or theirs to save a couple hundred bucks.
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Watty
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by Watty »

Here is a post that I did a few years ago about negotiating a car deal online.

viewtopic.php?f=11&t=239526&p=3746230

greenxspidey wrote: Sun May 24, 2020 10:34 am brand new 2020 BMW X3 sDrive 30i.
There are lots of opinions about BMWs and they have a stereotype of being very expensive to maintain. It would be good to be real cautious about buying one especially since it sounds like you do not have a lot of experience with owning a car.

Leasing a car is usually a bad choice but I have heard people say that leasing a BMW may make sense because the maintenance cost are so high. Leasing would be worth looking into for a BMW.

A few things;

1) Unless you can easily pay cash for it then spending $40K on a car is excessive even if you are going to have high income. A good fundamental rule is to always pay cash for your toys.

2) Be sure to get insurance quotes for any car before you buy it, they can vary a lot for cars that seem similar. You mentioned that you are a recent college graduate and I would assume that you are in some high income field. That would mean that you would be seen as having "deep pockets" and likely to be sued if you are in an accident. For car insurance you should have a least a couple of hundred thousand dollars in liability coverage AND at least a million dollar umbrella insurance policy. Don't skimp on this. If you are under 25 this will likely be very expensive but you really need it.
eagleeyes
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by eagleeyes »

I would employ the multiple email method that has been espoused here in BH. Save your local dealerships for last. Best to negotiate with in town dealers last to make them match or beat best online offer...

Negotiating becomes complicated by these packages that you want, which makes it difficult to compare apples to apples.
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galawdawg
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by galawdawg »

Just a few observations about the price.

1. If you do not already have an emergency fund with three to six months living expenses saved, then it is NOT a good price.
2. If you are not paying CASH, then it is NOT a good price.
3. If you have student loan or credit card debit, then it is NOT a good price.
4. If you don't wish to spend a few thousand a year in maintenance and repairs after the warranty has expired, then it is NOT a good price.

Welcome to Bogleheads and congratulations on your recent graduation. :beer I hate to put a damper on your "new car" enthusiasm, but I would gently suggest you consider a gently used but reliable vehicle. That vehicle will plummet in value the moment you drive it off the lot. JMHO. :happy
fundseeker
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by fundseeker »

Be sure to always get each dealer's OTD price since it's the only way to compare apples to apples, and you won't be blindsided with outrageous doc fees, etc.

Be sure to decide before going into the F&I guy's office that you're going to DECLINE everything he tries to sell you! That is where they make a killing, especially on extended warranties. Expect high pressure, and know that he/she is looking to take all of your money. He/she will scare you about the high cost of rim damage, etc., just to take your money. Beware!

You might get a better deal in a couple of months. Chances are not many people are buying and prices may come down.

Except for test driving, try to avoid going into the dealership. Get their prices online or by phone (but confirmed in writing).

Good luck!
GmanJeff
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by GmanJeff »

Read this thread and add your question to it: https://x3.xbimmers.com/forums/showthread.php?t=1541153
bsteiner
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by bsteiner »

anoop wrote: Sun May 24, 2020 11:10 am Truecar prices are normally average, but good enough for me. ....
If you use PenFed's buying service (which is their private label version of TrueCar) you can get financing through them at 1.14%.
bfeenix44
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by bfeenix44 »

I had a very good experience using this:

https://fightingchance.com/

I was buying new model / new car so it gave me a much better understanding of the numbers and negotiations behind buying a car. I knew what I was looking for and what I was willing to spend, so it helped me put MY OWN numbers together and I faxed eight different dealers and took the best deal. I did one fax and made 2 phone calls and was done. Never went into dealer until I picked up the car.
mhalley
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by mhalley »

A new graduate and a new bmw. Can you be any more cliche? I don't want to chide you too much, but what is the state of the rest of your finances? Do you have student loans? Are you contributing to your 401k and maxing your Roth? Do you want to buy a house in the next few years? This is a new job, how stable is it? Many people are suffering layoffs during the covid epidemic, seems like a very poor time to take on such a large expense having not been with the co. very long. Last in, first out when it comes to layoffs. Look for a used one if you have your heart set on a beemer, but better yet look at a reliable car.
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greenxspidey
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

OP here.

first, I want to sincerely thank EVERYONE who has commented on this forum and took the time to answer my question. I don't usually post on forums (I just created this account 1 hour ago.) I read all your comments and they are all very helpful. I want to provide a little more background as to why I am purchasing this car and where I am at with my finance and employment and maybe I can further receive helpful suggestions from this community.

I am NOT a new college graduate. The salesperson threw in the "new college graduate bonus" for me to try to sell me the car. Here is a little background about me.

I recently just got hired at a hospital as an Internal Medicine PGY1 resident. (annual income is $60,000 - can be viewed on any hospitals' websites)
- take-home pay is about $3700/month. rent is only $700 and I do have student loan debts from medical school. ($300,000 but currently on CARES ACT so my first payment of Income-Driven Payment is 6/2021, which is about $300/month) After 3 years of residency, my starting salary should be $300k.

I already own a car (paid off). I want to purchase this brand new BMW for MY PARENTS. I understand that I have student loans and I should not be purchasing a new car right now, especially during this uncertainty. However, I want to give back to my parents because they have supported me throughout medical school and I HATE all the trash talks that my parents received from family members because my brother and I both are in medical school and couldn't have a stable income due to loans and can't work during medical schools. (my brother is a 2nd-year med student). So now that I FINALLY have a LITTLE bit of income, I want to buy them a brand new car. They are currently driving a 2002 Toyota Sequoia right now and they WILL NOT get rid of it since it still runs. Anyway, I apologize for the long post, and I sincerely grateful and thank everyone who has commented and hopefully will continue to reply to this forum. I am buying this car because this is what my parents want and please don't suggest I get another brand of cars, even though I do appreciate the suggestions. I am here looking for ways to get this BMW for a reasonable price without getting ripped off and after having read all the comments, you guys sound like experts. :) So thank you again.

I'm going to post on those mentioned forums, as well as keep emailing dealerships back and forth. So from my understanding is that I should try and get to the $40k-$41k selling price. :)
slick_dealer_05
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by slick_dealer_05 »

Buy the higher price and thanks for stimulating the economy.
bogledogle
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by bogledogle »

bimmerfest and bimmerpost forums can help with pricing.

Typically when buying a car off the lot, you have more room to negotiate the price down if you are buying a lot of optional packages. You don't have a lot of packages on this car, so it is going to be a harder negotiation, but you still negotiate due to covid-19. Tell him you will pay invoice + taxes and that's it. Shop around via email with other dealers, tell them they need to beat this price or offer a more loaded car for the same price.

Also, don't buy any wheel, paint, tire protection packages or extended warranties. They are not worth it at all. They will tell you they are refundable if you change your mind, and offer you a 50% discount - that's a trick, don't fall for it.
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galawdawg
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by galawdawg »

greenxspidey wrote: Sun May 24, 2020 12:38 pm I recently just got hired at a hospital as an Internal Medicine PGY1 resident. (annual income is $60,000 - can be viewed on any hospitals' websites)
- take-home pay is about $3700/month. rent is only $700 and I do have student loan debts from medical school. ($300,000 but currently on CARES ACT so my first payment of Income-Driven Payment is 6/2021, which is about $300/month) After 3 years of residency, my starting salary should be $300k.

I want to purchase this brand new BMW for MY PARENTS. I understand that I have student loans and I should not be purchasing a new car right now, especially during this uncertainty. However, I want to give back to my parents because they have supported me throughout medical school...
Thanks for the follow up. It is great that you want to gift your parents a new BMW. But my earlier observations remain unchanged.

It is still a very unwise financial decision. And since this is a personal finance and investing forum.... :)
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ram
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by ram »

greenxspidey wrote: Sun May 24, 2020 12:38 pm OP here.

first, I want to sincerely thank EVERYONE who has commented on this forum and took the time to answer my question. I don't usually post on forums (I just created this account 1 hour ago.) I read all your comments and they are all very helpful. I want to provide a little more background as to why I am purchasing this car and where I am at with my finance and employment and maybe I can further receive helpful suggestions from this community.

I am NOT a new college graduate. The salesperson threw in the "new college graduate bonus" for me to try to sell me the car. Here is a little background about me.

I recently just got hired at a hospital as an Internal Medicine PGY1 resident. (annual income is $60,000 - can be viewed on any hospitals' websites)
- take-home pay is about $3700/month. rent is only $700 and I do have student loan debts from medical school. ($300,000 but currently on CARES ACT so my first payment of Income-Driven Payment is 6/2021, which is about $300/month) After 3 years of residency, my starting salary should be $300k.

I already own a car (paid off). I want to purchase this brand new BMW for MY PARENTS. I understand that I have student loans and I should not be purchasing a new car right now, especially during this uncertainty. However, I want to give back to my parents because they have supported me throughout medical school and I HATE all the trash talks that my parents received from family members because my brother and I both are in medical school and couldn't have a stable income due to loans and can't work during medical schools. (my brother is a 2nd-year med student). So now that I FINALLY have a LITTLE bit of income, I want to buy them a brand new car. They are currently driving a 2002 Toyota Sequoia right now and they WILL NOT get rid of it since it still runs. Anyway, I apologize for the long post, and I sincerely grateful and thank everyone who has commented and hopefully will continue to reply to this forum. I am buying this car because this is what my parents want and please don't suggest I get another brand of cars, even though I do appreciate the suggestions. I am here looking for ways to get this BMW for a reasonable price without getting ripped off and after having read all the comments, you guys sound like experts. :) So thank you again.

I'm going to post on those mentioned forums, as well as keep emailing dealerships back and forth. So from my understanding is that I should try and get to the $40k-$41k selling price. :)
Pay attention to the "how to buy cheap" part and disregard the other part. Most people on this board including me do not like BMWs.
I think I should forward this post to my daughter who is also a PGY1. :)
Ram
sd323232
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by sd323232 »

Why not to show up with 38K in cash to dealership, they will take it. Done deal.
mortfree
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by mortfree »

I think you said this is the car they want at some point in the thread.

However just want to be sure they will be comfortable owning this car.

Make sure the car is titled in their name and not yours.

Edit: your “kind gesture” is lost for the reason you are doing this. There will always be haters.
Last edited by mortfree on Sun May 24, 2020 1:33 pm, edited 1 time in total.
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galawdawg
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Post by galawdawg »

sd323232 wrote: Sun May 24, 2020 1:20 pm Why not to show up with 38K in cash to dealership, they will take it. Done deal.
Probably because OP doesn't have $38k in cash. OP has a net worth of approximately -$300,000 and is starting a new job paying $60k annually. Once he finishes residency in three years, his financial position should improve.
eagleeyes
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by eagleeyes »

Not sure what the trash talk in the family is all about. Of course when people are in school, they don’t have a stable income.

Maybe try to tune out the trash talk. It’s harmful. Just remember, the trash talk won’t stop once they have a new car. Then it’ll be their house. Then it’ll be your spouse. Always something. Better to rise above. As Michelle O likes to say when they go low, you go high...

Alternatively, you could teach your parents how to trash talk back to family members politely. It’s an art form.

Here’s an example:

Mean family: I can’t believe your kids are still in school and not making any money.

Your family: oh the kids are doing so well. We are so proud of them. Both going to be successful doctors. How are your kids doing? Must be hard in this economy and uncertainty with their jobs of xxx. Oh, they are furloughed? Sorry to hear that. Laid off? So so sorry. Hold on, I have to take this call from my kid; he’s calling from work at the hospital.

Decrease the snark as needed.
eagleeyes
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Post by eagleeyes »

As an aside, my parents were pretty middle/lower middle class. They raised three Uber successful kids. That’s brings them so much more pleasure than a car ever would. However the car is a nice thought!
navyitaly
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Post by navyitaly »

sd323232 wrote: Sun May 24, 2020 1:20 pm Why not to show up with 38K in cash to dealership, they will take it. Done deal.
No they won’t they’ll laugh and say have a nice day. You have no idea how business works in 2020.
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galawdawg
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by galawdawg »

Here's a recent thread from another new resident with similar finances that you may enjoy reading: viewtopic.php?p=5238721#p5238721
TommyBahama
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by TommyBahama »

Assuming you have decided this purchase is something you want to go forward with, here are my suggestions.
1. Check the other forums to get a feel for prices, but I would guess the low 40’s will be in the ballpark.
2. E-mail or text your salesperson with an offer to buy, but not at their price. Do not give them an offer, just let them come down on their own. Be polite, but concise and firm. For example, “Thank you for the time discussing the Black BMW X3 yesterday. I am interested in purchasing this vehicle, but we need to work some on the price. Please see if you can get back to me with a more attractive offer this afternoon.” Be prepared to hear lots of reasons why they can’t go lower, for them to try to get you to state a price etc. Deflect the best you can until they give a better price. Repeat a couple times if needed.
3. If they will not come off the original price (or if they only drop the price a small amount), offer them something slightly below what you are willing to pay. In this case if 41k is your price, offer 40. They may counter or flat out reject. Tell them no problem, the offer stands and they have your contact info. Call if they decide to meet your price.
4. Wait. Chances are they will call in a few days with a better offer. If they don’t, remember there are always other cars to buy. There are other BMW dealers and with the magic of the internet finding the right car is a few clicks away.
5. If you decide to buy, have them email ALL the paperwork with the out the door price clearly stated. This gives you time to review and understand the numbers before getting into the high pressure environment of the dealership.

Most importantly, it sounds like you are planning to finance. Be sure to shop rates and understand financing before getting into the dealer. If you do not understand vehicle financing, spend a few hours reading about it. The internet has lots of resources. The dealers make money off financing, not necessarily a problem in itself, but they will ‘adjust’ things in their advantage to an uneducated consumer by offering things like longer terms that hide higher interest rates. Know your credit and if possible get pre approved at a bank, credit union or online bank before hand to have leverage. Keep in mind BMWs depreciate fast, so longer terms can put you upside down in the loan for a long time. Google ‘upside down loan’ if you don’t know what that is and avoid at all costs. Really try not to go more than 36 months unless they are giving 0% deals or something. Even then avoid owing more than what the car is worth.

Never sign anything you have not read and understand. Ask questions on anything that needs clarification, note any interpretations on the contract and have them initial. New car dealers aren’t much into blatantly screwing over customers anymore, it’s bad business. However they are about making money, so just be cautious.
German Expat
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by German Expat »

Since you are probably not used to the new car buying experience make sure you buy NOTHING additional after you have finished negotiating the out of the door price. The guy at the end tends to be very good trying to sell you additional things like paint protection, additional warranty and all different types of things. I always considered myself a good negotiator but a Honda dealer got me once for prepaid maintenance. After coming to my senses and doing the math at least I was able to cancel it the next day from home.
Extended warranties can make sense for a BMW but those can be bought much cheaper from other dealers (check bimmerfest or other BMW related forums for good deals). Also make sure you have the financing settled so you don't rely on dealer financing (still compare what they offer you since sometimes they have incentives for financing). How do you plan to title the car?
sd323232
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by sd323232 »

navyitaly wrote: Sun May 24, 2020 1:35 pm
sd323232 wrote: Sun May 24, 2020 1:20 pm Why not to show up with 38K in cash to dealership, they will take it. Done deal.
No they won’t they’ll laugh and say have a nice day. You have no idea how business works in 2020.
How business works to benefit the car salesmen and not the buyers? Are you a car salesman and my comment hurt your feelings? I wish all people were buying cars for cash, last thing we need in our country is to have americans paying car loans, we need to fight for debt free america.
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Nate79
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by Nate79 »

Sorry OP. You are broke, deep in debt and our economy is having a crisis and you want to buy a new BMW for your parents. You have a serious crisis and should work on your finances before buying someone else a new car. If they need a car get them a used car you can pay in cash.
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Watty
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by Watty »

greenxspidey wrote: Sun May 24, 2020 12:38 pm I want to purchase this brand new BMW for MY PARENTS.
That makes a lot more sense but how are you going to pay for it? You may be a bit early to be giving them a car.

One of the key things with car shopping is to have your financing set up before you go to a dealership. You can see if the dealership can beat what you already have but that really helps prevent them from playing games with you.

You will not be able to finance it if you are giving it to someone else.
greenxspidey wrote: Sun May 24, 2020 12:38 pm They are currently driving a 2002 Toyota Sequoia right now
I obviously don't know your parents but while the BMW is showy are you sure that it is a good choice for them? With potential high maintenance costs and insurance it could be a bit of a white elephant.

They drive a Toyota now and I am partial to Toyotas and there are a lot of possible Toyotos(or other brands) that you could get them which would likely last for 10 or 15 year with few problems. A nicely equipped Avalon or Highlander would cost about the same as the BMW and would likely be more reliable.

https://www.toyota.com/all-vehicles/
kiwi123
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by kiwi123 »

If there is approx. $5000 in bonuses etc. understand that those are paid for by the manufacturer and not the dealer. If you back those out of the dealer's price offer, it essentially means you're paying MSRP and the dealer isnt discounting the vehicle at all.

Additionally, i think it's smarter to lease a BMW vs. buying it... long term repairs on the BMW will be pricey.

I think it's good youre using TrueCar or similar to base your expectation off, but you'll need to do a lot more research especially if you want to go down the lease route.

Good thing is that the dealer's wont sell out of cars any time soon :-)

(unless there's another cash-for-clunkers!)
Topic Author
greenxspidey
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

Hello everyone,

Thanks again for the hasty responses. The entire comment section has been great with giving me your expert advice. I forgot to mention a few things in my second post. I am single. 30 years old and no mortgage, and no credit card debt. I will be purchasing this car under my name. (I asked one of the dealers and he said I can even with my student loan debt.) Yes. I am aware that I am broke. (Dam Ramsey would be very disappointed in me. loll) However, this is something that I personally planned on doing since medical school. I don't want to turn this into a personal story, that's why I only stuck with the numbers and car buying part in my original post. I know I will be in debt for a long time even after residency, however, I am okay with that. Yes, it might sound ridiculous to some people on here, but I want to give my parents the best things since they did a lot for me. My parents do not want to have their names on any more loans because they are old and will be retired soon. I understand that BMW is very costly to maintain, however, it comes with a 3-year warranty and services. I figured after 3 years when the warranty is over, it will also be when my residency is over. I will pay for my parent's BMW services then as well. If I am being honest, my parents are already 67-68 years old. If you add 10 years into owning this brand new car, they will be 77-78, and I doubt they will be driving or God forbidden, will still be alive. This is something that I finally do for my parents and I'm not going to wait if I have to power to do so. Thank you to those who commented, especially to everyone who gave me very sound advice on how to proceed with contacting the dealers and actually handling the negotiating part. I really appreciate that. I took my time and read all the comments and will proceed cautiously and accordingly based on your advice. I am not in a hurry to get this car as I have 1 month to do so. I understand that I'll be living on beans and rice for the next 3 years, and that's okay. Anyway, thank you for the very helpful comment above - that goes for everyone who is also trying to look out for me. I sincerely appreciate it. I am going to email the dealerships Tuesday and follow up on the past visits with the previous dealers and also post on other forums as well. Feel free to continue commenting and I will continue to read these suggestions. Thank you.
mortfree
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by mortfree »

Dealers might be open on Monday if you want to get those emails out sooner.

Don’t forget about insurance.

Title, loan and insurance, let us know how that is all handled since this is a gift.

Good luck!
sport
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by sport »

greenxspidey wrote: Sun May 24, 2020 6:54 pm they will be 77-78, and I doubt they will be driving
At your age, this may seem ancient. However, there are many people in that age group that are still driving and will continue to drive for quite some time. Ask me how I know. :!:
Topic Author
greenxspidey
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

@sport

I apologize for the confusion. I didn't mean that people who are at that age aren't driving or not capable of driving. I was referring personally and strictly to my parents, not society as a whole. (I saw a very old lady driving a sport/convertible luxury car recently. loll) :o
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mrspock
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by mrspock »

greenxspidey wrote: Sun May 24, 2020 10:34 am Hello,

I am currently, during this COVID 19 pandemic, trying to purchase a brand new 2020 BMW X3 sDrive 30i. I went to two dealerships already and they offered me some numbers. I'll just list the better deal here. please see below. Thank you.

2020 X3 sDrive 30i USD 41,950 (based on google, invoice price is 39,575)

Black Sensatec 550.00

Convenience Package 2250.00

Driving Assitance Package 500.00

xLine 19" Y-spoke styl 693 600.00

Heated seats 500.00

Ambient Lighting 250.00

Net Total 46,600.00

Destination Charge 995.00

Total Suggested Price 47,595.00
OR... you could plop down just $28-29k (18-20k miles) for a 2019 from Hertz which is now in bankruptcy. Or if you want a 2020 with 9k miles it can be had for $35.5k (https://www.hertzcarsales.com/rent2buy/ ... 4a553f.htm).

There's tons of cars on their site, for $43k you can get a way (way) nicer SUV/car than an X3. They even have Land Rover Velars for $35k. No "made up" fees either, just tax and you are done, plus you can rent them for a few days before you decide to buy.

Honestly, now is the worst time to buy from a dealer, cars are going to drop like rocks with all the rental car company bankruptcies we are about to see.
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galawdawg
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by galawdawg »

sport wrote: Sun May 24, 2020 7:12 pm
greenxspidey wrote: Sun May 24, 2020 6:54 pm they will be 77-78, and I doubt they will be driving
At your age, this may seem ancient. However, there are many people in that age group that are still driving and will continue to drive for quite some time. Ask me how I know. :!:
Ha! My grandfather was hell on wheels in his 1970 Plymouth Sport Fury Brougham even in his late-eighties! He didn't stop driving until a few months before he passed away at 92. I was regularly amazed that the NC Highway Patrol didn't issue their troopers a ticket book with my grandfather's name and ID information already printed on the citations. :shock:

Good luck OP. I'm sure your "future you" joins me in encouraging you to make this is a "one-off" and not the beginning of a lifetime of conspicuous consumption by a high earner but low saver. I hope your parents are as excited to receive the BMW as you are to give it!

May I recommend that you visit The White Coat Investor (https://www.whitecoatinvestor.com/)? Jim Dahle, the White Coat Investor, is a physician and a regular poster here.

Best wishes...
phxjcc
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by phxjcc »

If you belong to Costco, their dealership deals are not bad and are hassle free.

Ignore the Camry recommendations...
Haters gotta hate and misers have to mise.

Good luck...and what grade did you get in Organic Chemisty? :confused
Me...
First midterm: 43
Second midterm: 37
Final: 48.
Letter grade: C
Lab: A
Cathy, Anya, Miguel and Mary all about the same; 2 internal Meds, 1 DDS, and 1 PharmD.
And dumb old me.
boogiehead
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by boogiehead »

Although it seems like going against conventional wisdom, but I would suggest looking into leasing especially for high end German cars that have high maintenance cost down the road. If you know how to maximize your lease incentives and a dealer near you needs to move a car or two before the end of the month you should be able to snag a lease at a reasonable price.
Topic Author
greenxspidey
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

ram wrote: Sun May 24, 2020 1:17 pm
greenxspidey wrote: Sun May 24, 2020 12:38 pm OP here.

first, I want to sincerely thank EVERYONE who has commented on this forum and took the time to answer my question. I don't usually post on forums (I just created this account 1 hour ago.) I read all your comments and they are all very helpful. I want to provide a little more background as to why I am purchasing this car and where I am at with my finance and employment and maybe I can further receive helpful suggestions from this community.

I am NOT a new college graduate. The salesperson threw in the "new college graduate bonus" for me to try to sell me the car. Here is a little background about me.

I recently just got hired at a hospital as an Internal Medicine PGY1 resident. (annual income is $60,000 - can be viewed on any hospitals' websites)
- take-home pay is about $3700/month. rent is only $700 and I do have student loan debts from medical school. ($300,000 but currently on CARES ACT so my first payment of Income-Driven Payment is 6/2021, which is about $300/month) After 3 years of residency, my starting salary should be $300k.

I already own a car (paid off). I want to purchase this brand new BMW for MY PARENTS. I understand that I have student loans and I should not be purchasing a new car right now, especially during this uncertainty. However, I want to give back to my parents because they have supported me throughout medical school and I HATE all the trash talks that my parents received from family members because my brother and I both are in medical school and couldn't have a stable income due to loans and can't work during medical schools. (my brother is a 2nd-year med student). So now that I FINALLY have a LITTLE bit of income, I want to buy them a brand new car. They are currently driving a 2002 Toyota Sequoia right now and they WILL NOT get rid of it since it still runs. Anyway, I apologize for the long post, and I sincerely grateful and thank everyone who has commented and hopefully will continue to reply to this forum. I am buying this car because this is what my parents want and please don't suggest I get another brand of cars, even though I do appreciate the suggestions. I am here looking for ways to get this BMW for a reasonable price without getting ripped off and after having read all the comments, you guys sound like experts. :) So thank you again.

I'm going to post on those mentioned forums, as well as keep emailing dealerships back and forth. So from my understanding is that I should try and get to the $40k-$41k selling price. :)
Pay attention to the "how to buy cheap" part and disregard the other part. Most people on this board including me do not like BMWs.
I think I should forward this post to my daughter who is also a PGY1. :)
Hi Ram,

"I think I should forward this post to my daughter who is also a PGY1."

I am sure she is a very thoughtful and smart daughter so I'm sure she is probably saving up to buy you something nice and thoughtful gift in the near future! :)
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greenxspidey
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

phxjcc wrote: Sun May 24, 2020 7:41 pm If you belong to Costco, their dealership deals are not bad and are hassle free.

Ignore the Camry recommendations...
Haters gotta hate and misers have to mise.

Good luck...and what grade did you get in Organic Chemisty? :confused
Me...
First midterm: 43
Second midterm: 37
Final: 48.
Letter grade: C
Lab: A
Cathy, Anya, Miguel and Mary all about the same; 2 internal Meds, 1 DDS, and 1 PharmD.
And dumb old me.
HAHA I hated O-chem in college. I did not do well also so don't worry. Our class average was SOOOO low that a 60/100 was a B+. hahaha Thank god there wasn't any Organic Chemistry in medical school! ;) loll
Topic Author
greenxspidey
Posts: 17
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

boogiehead wrote: Sun May 24, 2020 7:49 pm Although it seems like going against conventional wisdom, but I would suggest looking into leasing especially for high end German cars that have high maintenance cost down the road. If you know how to maximize your lease incentives and a dealer near you needs to move a car or two before the end of the month you should be able to snag a lease at a reasonable price.
I thought about leasing it as well, however, I am not sure how I feel about it...thank you for the suggestion, though. It's not completely disregarded yet. :)
Topic Author
greenxspidey
Posts: 17
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

galawdawg wrote: Sun May 24, 2020 7:37 pm
sport wrote: Sun May 24, 2020 7:12 pm
greenxspidey wrote: Sun May 24, 2020 6:54 pm they will be 77-78, and I doubt they will be driving
At your age, this may seem ancient. However, there are many people in that age group that are still driving and will continue to drive for quite some time. Ask me how I know. :!:
Ha! My grandfather was hell on wheels in his 1970 Plymouth Sport Fury Brougham even in his late-eighties! He didn't stop driving until a few months before he passed away at 92. I was regularly amazed that the NC Highway Patrol didn't issue their troopers a ticket book with my grandfather's name and ID information already printed on the citations. :shock:

Good luck OP. I'm sure your "future you" joins me in encouraging you to make this is a "one-off" and not the beginning of a lifetime of conspicuous consumption by a high earner but low saver. I hope your parents are as excited to receive the BMW as you are to give it!

May I recommend that you visit The White Coat Investor (https://www.whitecoatinvestor.com/)? Jim Dahle, the White Coat Investor, is a physician and a regular poster here.

Best wishes...
Your grandfather was wild and so awesome! I hope I can be half as cool as he was at that age. Now, I can't even bend over without hurting my back. :( loll
Topic Author
greenxspidey
Posts: 17
Joined: Sun May 24, 2020 10:32 am

Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

mrspock wrote: Sun May 24, 2020 7:26 pm
greenxspidey wrote: Sun May 24, 2020 10:34 am Hello,

I am currently, during this COVID 19 pandemic, trying to purchase a brand new 2020 BMW X3 sDrive 30i. I went to two dealerships already and they offered me some numbers. I'll just list the better deal here. please see below. Thank you.

2020 X3 sDrive 30i USD 41,950 (based on google, invoice price is 39,575)

Black Sensatec 550.00

Convenience Package 2250.00

Driving Assitance Package 500.00

xLine 19" Y-spoke styl 693 600.00

Heated seats 500.00

Ambient Lighting 250.00

Net Total 46,600.00

Destination Charge 995.00

Total Suggested Price 47,595.00
OR... you could plop down just $28-29k (18-20k miles) for a 2019 from Hertz which is now in bankruptcy. Or if you want a 2020 with 9k miles it can be had for $35.5k (https://www.hertzcarsales.com/rent2buy/ ... 4a553f.htm).

There's tons of cars on their site, for $43k you can get a way (way) nicer SUV/car than an X3. They even have Land Rover Velars for $35k. No "made up" fees either, just tax and you are done, plus you can rent them for a few days before you decide to buy.

Honestly, now is the worst time to buy from a dealer, cars are going to drop like rocks with all the rental car company bankruptcies we are about to see.
I heard about Hertz on the news two days ago. Will also look into this option. Thank you!
Topic Author
greenxspidey
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

mortfree wrote: Sun May 24, 2020 6:58 pm Dealers might be open on Monday if you want to get those emails out sooner.

Don’t forget about insurance.

Title, loan and insurance, let us know how that is all handled since this is a gift.

Good luck!
If I am able to have the car under my name and actually bought it, I will for sure come back and post it on here! :) thank you!
Topic Author
greenxspidey
Posts: 17
Joined: Sun May 24, 2020 10:32 am

Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

galawdawg wrote: Sun May 24, 2020 1:39 pm Here's a recent thread from another new resident with similar finances that you may enjoy reading: viewtopic.php?p=5238721#p5238721
I read the comments and the original poster on this forum. OMG, my identical twin! except the person is not as dumb as me who is about to put himself in a larger debt. loll Thank you for the recommendation, but wow, it's like reading my own story. HAHA
Topic Author
greenxspidey
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

TommyBahama wrote: Sun May 24, 2020 2:54 pm Assuming you have decided this purchase is something you want to go forward with, here are my suggestions.
1. Check the other forums to get a feel for prices, but I would guess the low 40’s will be in the ballpark.
2. E-mail or text your salesperson with an offer to buy, but not at their price. Do not give them an offer, just let them come down on their own. Be polite, but concise and firm. For example, “Thank you for the time discussing the Black BMW X3 yesterday. I am interested in purchasing this vehicle, but we need to work some on the price. Please see if you can get back to me with a more attractive offer this afternoon.” Be prepared to hear lots of reasons why they can’t go lower, for them to try to get you to state a price etc. Deflect the best you can until they give a better price. Repeat a couple times if needed.
3. If they will not come off the original price (or if they only drop the price a small amount), offer them something slightly below what you are willing to pay. In this case if 41k is your price, offer 40. They may counter or flat out reject. Tell them no problem, the offer stands and they have your contact info. Call if they decide to meet your price.
4. Wait. Chances are they will call in a few days with a better offer. If they don’t, remember there are always other cars to buy. There are other BMW dealers and with the magic of the internet finding the right car is a few clicks away.
5. If you decide to buy, have them email ALL the paperwork with the out the door price clearly stated. This gives you time to review and understand the numbers before getting into the high pressure environment of the dealership.

Most importantly, it sounds like you are planning to finance. Be sure to shop rates and understand financing before getting into the dealer. If you do not understand vehicle financing, spend a few hours reading about it. The internet has lots of resources. The dealers make money off financing, not necessarily a problem in itself, but they will ‘adjust’ things in their advantage to an uneducated consumer by offering things like longer terms that hide higher interest rates. Know your credit and if possible get pre approved at a bank, credit union or online bank before hand to have leverage. Keep in mind BMWs depreciate fast, so longer terms can put you upside down in the loan for a long time. Google ‘upside down loan’ if you don’t know what that is and avoid at all costs. Really try not to go more than 36 months unless they are giving 0% deals or something. Even then avoid owing more than what the car is worth.

Never sign anything you have not read and understand. Ask questions on anything that needs clarification, note any interpretations on the contract and have them initial. New car dealers aren’t much into blatantly screwing over customers anymore, it’s bad business. However they are about making money, so just be cautious.
This post is very helpful. I will come back and re-read it again before I head out to another dealership! Thank you! :)
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greenxspidey
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by greenxspidey »

eagleeyes wrote: Sun May 24, 2020 1:28 pm Not sure what the trash talk in the family is all about. Of course when people are in school, they don’t have a stable income.

Maybe try to tune out the trash talk. It’s harmful. Just remember, the trash talk won’t stop once they have a new car. Then it’ll be their house. Then it’ll be your spouse. Always something. Better to rise above. As Michelle O likes to say when they go low, you go high...

Alternatively, you could teach your parents how to trash talk back to family members politely. It’s an art form.

Here’s an example:

Mean family: I can’t believe your kids are still in school and not making any money.

Your family: oh the kids are doing so well. We are so proud of them. Both going to be successful doctors. How are your kids doing? Must be hard in this economy and uncertainty with their jobs of xxx. Oh, they are furloughed? Sorry to hear that. Laid off? So so sorry. Hold on, I have to take this call from my kid; he’s calling from work at the hospital.

Decrease the snark as needed.
I love this post! I think you understood me the most. HAHA ;) BUT, by all means, I am not trying to compete with anyone. I just want my parents to be happy and finally live a little. Usually, whatever people say to me, I could care less, but it bothered me because they talked bad about our family behind my back. (a lot of family drama that I won't get into in public, especially over the internet. NOT the point of this forum nor my original post.) but thank you. :)
Last edited by greenxspidey on Sun May 24, 2020 8:22 pm, edited 1 time in total.
rockstar
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Re: First Time Car Buyer Needs Help. HELP ME PLEASE! Thank you!

Post by rockstar »

I had good luck with Costco pricing.

But I would never buy a BMW.
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