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

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
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 » Sun May 24, 2020 8:26 pm

galawdawg wrote:
Sun May 24, 2020 11:42 am
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
Thank you :) and you're not putting a damper on my enthusiasm. you're being realistic and I really appreciate that.

eagleeyes
Posts: 175
Joined: Sat Dec 28, 2013 2:49 pm

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

Post by eagleeyes » Sun May 24, 2020 8:40 pm

greenxspidey wrote:
Sun May 24, 2020 8:20 pm
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. :)

If you belong to a certain group of immigrants like I do, this is a fairly routine.

Good luck. Don’t let the haters get you down!

denovo
Posts: 4476
Joined: Sun Oct 13, 2013 1:04 pm

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

Post by denovo » Sun May 24, 2020 8:55 pm

rockstar wrote:
Sun May 24, 2020 8:21 pm
I had good luck with Costco pricing.

But I would never buy a BMW.
Costco pricing is just rebranded TrueCar. TrueCar doesn't provide good pricing and has been discussed ad naseum on this site.

viewtopic.php?t=270605

viewtopic.php?t=164995&start=50
"Don't trust everything you read on the Internet"- Abraham Lincoln

denovo
Posts: 4476
Joined: Sun Oct 13, 2013 1:04 pm

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

Post by denovo » Sun May 24, 2020 8:57 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.
OP, unfortunately you have gotten a lot of unhelpful replies with people lecturing you about your choice of car and promoting Toyota's even though you didn't ask for that. You simply want to know how to get the best deal. Do not bother going to the car dealer.

Read this thread and all the replies. Short sorry, you don't need to go to the dealership. Do not discuss financing or trade-in. Just get the best OTD price. Given the state of the economy, you will get a great deal like this. Use a google sheet or excel sheet to track this

viewtopic.php?t=124638
Last edited by denovo on Sun May 24, 2020 9:37 pm, edited 1 time in total.
"Don't trust everything you read on the Internet"- Abraham Lincoln

User avatar
Nate79
Posts: 6018
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

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

Post by Nate79 » Sun May 24, 2020 9:08 pm

denovo wrote:
Sun May 24, 2020 8:55 pm
rockstar wrote:
Sun May 24, 2020 8:21 pm
I had good luck with Costco pricing.

But I would never buy a BMW.
Costco pricing is just rebranded TrueCar. TrueCar doesn't provide good pricing and has been discussed ad naseum on this site.

viewtopic.php?t=270605

viewtopic.php?t=164995&start=50
I am not aware that Costco has anything to do with TrueCar. Can you clarify your point? Costco auto program is run by Affinity Development Group and is the countries largest buying program independently negotiating prices. Considering the Costco auto buying program was started over a decade before Truecar even launched it's not even close to correct to say Costco is rebranded Truecar.

User avatar
Watty
Posts: 19681
Joined: Wed Oct 10, 2007 3:55 pm

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

Post by Watty » Sun May 24, 2020 9:12 pm

I don't want to sound nitpicking but hopefully these points would be worth considering;

In your planning keep in mind that many medical facilities are struggling and laying off people right now since they are not able to do nonessential procedures. There is also no telling what the healthcare system will look like in three years. If you have variable rate student loans the interest rates could be much higher then too.
greenxspidey wrote:
Sun May 24, 2020 6:54 pm
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.....


If you Google "best cars for older drivers" you will get lots of web sites like this one;

https://www.consumerreports.org/elderly ... y-seniors/

If you parents are not real tech savvy be sure to consider how comfortable they will be with the cars controls. Some seniors will have difficulty with real complex systems. Don't underestimate how important this is.

Whenever I am shopping for a car one thing that is important to me is to just try it out to make sure it feels comfortable. Some cars just do not feel good to me. This is especially important if either of them are are short, tall, or large. My wife is short, but not unusually so, and she has had rental cars that she has driven around the block then taken them back just because they were not working for her.

It would not be as dramatic as surprising them with a new car in the driveway but you might take them car shopping with you to find out what they want. You could do this under the pretext that you are shopping for a car for yourself and you want their opinion.

random_walker_77
Posts: 981
Joined: Tue May 21, 2013 8:49 pm

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

Post by random_walker_77 » Sun May 24, 2020 9:16 pm

Car buying programs aren't going to get you the best price. Seriously do consider getting the used and fairly new car -- there's a steep discount to be had when it's not a brand-spanking new car, and in the midst of record unemployment, it's now a buyer's market. Save the completely brand new car gift for next time, when you have a positive net-worth and an attending's salary. (And note, this kind of exceedingly generous gesture is both amazing, and also pretty bad for your finances).

If you insist on getting the new car, go the online route. Get a tracking list setup with the numbers/contacts of all dealers within 3 hrs' drive. Call them and get email info. Email them all requesting out the door prices for the exact model, min features, and acceptable color choice(s). Make sure it's at least 5 dealerships, and more is better. Some will come back with laughable bids, and some might just make it worth your while to drive several hours.

Once you have a good set of prices, you then see if anyone local is willing to match. Do as much communication via email or text message as you can, and keep a notebook.

fundseeker
Posts: 835
Joined: Mon Dec 24, 2007 9:02 am

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

Post by fundseeker » Sun May 24, 2020 9:23 pm

Nate79 wrote:
Sun May 24, 2020 3:45 pm
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.
Gotta agree with this post. Sounds like this is in large part to show others that medical school was a great idea and that you've made it (financially), when you're not there yet. If your salary is online and if those nosy people are enough into your business that they're giving your parents a hard time, they'll know that you're not making big bucks yet and may take this purchase as an indication that you're family is still not making wise choices. They will likely see through this scenario you have planned to show them that you made it. You're familiar with Dave Ramsey, so you've probably heard his saying about spending money you don't have to impress people you don't even know (at least here, you know those people :) )

Glad to hear that your parents are aware of this plan and have a say in what car they'll be driving. But, are they aware you will make $60k, that you owe $300k, and that you are borrowing $40k more? I'm surprised they'd support this plan, especially the part about them not wanting the debt, but they're good with you adding it to the debt you already have (which is five times your pre-tax income).

Hate to rain on your parade, but for some reason there is little opposition in the responses so far, which you might take as tacit approval from the Bogleheads. Maybe they're taking the weekend off. I imagine that if your subject had been different, e.g., "Should I buy $40k car for parents with $300k debt and $60k income?" I expect this thread would be about five pages long, with many "No" votes.

Anyway, you're very generous, and no doubt very smart! But, can't your purchase wait three more years?

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 » Sun May 24, 2020 9:41 pm

fundseeker wrote:
Sun May 24, 2020 9:23 pm
Nate79 wrote:
Sun May 24, 2020 3:45 pm
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.
Gotta agree with this post. Sounds like this is in large part to show others that medical school was a great idea and that you've made it (financially), when you're not there yet. If your salary is online and if those nosy people are enough into your business that they're giving your parents a hard time, they'll know that you're not making big bucks yet and may take this purchase as an indication that you're family is still not making wise choices. They will likely see through this scenario you have planned to show them that you made it. You're familiar with Dave Ramsey, so you've probably heard his saying about spending money you don't have to impress people you don't even know (at least here, you know those people :) )

Glad to hear that your parents are aware of this plan and have a say in what car they'll be driving. But, are they aware you will make $60k, that you owe $300k, and that you are borrowing $40k more? I'm surprised they'd support this plan, especially the part about them not wanting the debt, but they're good with you adding it to the debt you already have (which is five times your pre-tax income).

Hate to rain on your parade, but for some reason there is little opposition in the responses so far, which you might take as tacit approval from the Bogleheads. Maybe they're taking the weekend off. I imagine that if your subject had been different, e.g., "Should I buy $40k car for parents with $300k debt and $60k income?" I expect this thread would be about five pages long, with many "No" votes.

Anyway, you're very generous, and no doubt very smart! But, can't your purchase wait three more years?
My parents do not know that I am buying them a car. This will be a Father's Day surprise gift to the both of them. My parents live very frugally. I only know that they like this car because when we were driving on the freeway, they mentioned it. They did not expect me to buy them a car. This is my OWN doing. My parents would kill me if they knew I am getting into more debts for this car.

User avatar
Nate79
Posts: 6018
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

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

Post by Nate79 » Sun May 24, 2020 9:57 pm

greenxspidey wrote:
Sun May 24, 2020 9:41 pm
fundseeker wrote:
Sun May 24, 2020 9:23 pm
Nate79 wrote:
Sun May 24, 2020 3:45 pm
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.
Gotta agree with this post. Sounds like this is in large part to show others that medical school was a great idea and that you've made it (financially), when you're not there yet. If your salary is online and if those nosy people are enough into your business that they're giving your parents a hard time, they'll know that you're not making big bucks yet and may take this purchase as an indication that you're family is still not making wise choices. They will likely see through this scenario you have planned to show them that you made it. You're familiar with Dave Ramsey, so you've probably heard his saying about spending money you don't have to impress people you don't even know (at least here, you know those people :) )

Glad to hear that your parents are aware of this plan and have a say in what car they'll be driving. But, are they aware you will make $60k, that you owe $300k, and that you are borrowing $40k more? I'm surprised they'd support this plan, especially the part about them not wanting the debt, but they're good with you adding it to the debt you already have (which is five times your pre-tax income).

Hate to rain on your parade, but for some reason there is little opposition in the responses so far, which you might take as tacit approval from the Bogleheads. Maybe they're taking the weekend off. I imagine that if your subject had been different, e.g., "Should I buy $40k car for parents with $300k debt and $60k income?" I expect this thread would be about five pages long, with many "No" votes.

Anyway, you're very generous, and no doubt very smart! But, can't your purchase wait three more years?
My parents do not know that I am buying them a car. This will be a Father's Day surprise gift to the both of them. My parents live very frugally. I only know that they like this car because when we were driving on the freeway, they mentioned it. They did not expect me to buy them a car. This is my OWN doing. My parents would kill me if they knew I am getting into more debts for this car.
Sounds like your parents are smart then. I would listen to them and not do this horrible idea of yours. Buy it when you can actually afford it which is going to be many years from now.

Don't get Docitus.

NewMoneyMustBeSmart
Posts: 260
Joined: Sat Jun 01, 2019 10:28 pm
Location: Midwest

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

Post by NewMoneyMustBeSmart » Sun May 24, 2020 10:01 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.
...
Thank you so much for your help!! I am such a newbie.
Recommend don't do that. Get a Corolla. Much better deal.

https://chicago.craigslist.org/search/c ... srchType=T
-- | Few are those who see with their own eyes and feel with their own hearts - Einstein

sd323232
Posts: 515
Joined: Thu Jun 21, 2018 4:45 pm

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

Post by sd323232 » Sun May 24, 2020 10:04 pm

Nate79 wrote:
Sun May 24, 2020 9:57 pm
greenxspidey wrote:
Sun May 24, 2020 9:41 pm
fundseeker wrote:
Sun May 24, 2020 9:23 pm
Nate79 wrote:
Sun May 24, 2020 3:45 pm
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.
Gotta agree with this post. Sounds like this is in large part to show others that medical school was a great idea and that you've made it (financially), when you're not there yet. If your salary is online and if those nosy people are enough into your business that they're giving your parents a hard time, they'll know that you're not making big bucks yet and may take this purchase as an indication that you're family is still not making wise choices. They will likely see through this scenario you have planned to show them that you made it. You're familiar with Dave Ramsey, so you've probably heard his saying about spending money you don't have to impress people you don't even know (at least here, you know those people :) )

Glad to hear that your parents are aware of this plan and have a say in what car they'll be driving. But, are they aware you will make $60k, that you owe $300k, and that you are borrowing $40k more? I'm surprised they'd support this plan, especially the part about them not wanting the debt, but they're good with you adding it to the debt you already have (which is five times your pre-tax income).

Hate to rain on your parade, but for some reason there is little opposition in the responses so far, which you might take as tacit approval from the Bogleheads. Maybe they're taking the weekend off. I imagine that if your subject had been different, e.g., "Should I buy $40k car for parents with $300k debt and $60k income?" I expect this thread would be about five pages long, with many "No" votes.

Anyway, you're very generous, and no doubt very smart! But, can't your purchase wait three more years?
My parents do not know that I am buying them a car. This will be a Father's Day surprise gift to the both of them. My parents live very frugally. I only know that they like this car because when we were driving on the freeway, they mentioned it. They did not expect me to buy them a car. This is my OWN doing. My parents would kill me if they knew I am getting into more debts for this car.
Sounds like your parents are smart then. I would listen to them and not do this horrible idea of yours. Buy it when you can actually afford it which is going to be many years from now.

Don't get Docitus.
I agree, you simply cant afford the car right now, what happens if down the road you will not be able to make payments? Will car get repossessed, will you expect your parents to take over payments? you are deep in debt and you a hanging another stone on your neck. too risky

User avatar
galawdawg
Posts: 839
Joined: Thu Dec 14, 2017 12:59 pm
Location: Georgia

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

Post by galawdawg » Mon May 25, 2020 5:41 am

greenxspidey wrote:
Sun May 24, 2020 9:41 pm
My parents do not know that I am buying them a car. This will be a Father's Day surprise gift to the both of them. My parents live very frugally. I only know that they like this car because when we were driving on the freeway, they mentioned it. They did not expect me to buy them a car. This is my OWN doing. My parents would kill me if they knew I am getting into more debts for this car.
This will be my last post on the subject but in light of the above, I again recommend that you reconsider your plan, not only because it is very unwise from a financial standpoint, but because the gift may NOT be received in the manner you hope. Speaking as a very frugal parent myself, if one of my kids who was just starting out a career went into ADDITIONAL debt to buy me a new car, I would be disappointed in the lack of wisdom such a decision involved and would absolutely not accept the gift. I would perceive that they somehow thought that "big spending" on a gift would impress me when it would actually have the opposite effect. Did your parents intend to pass along their values of being frugal and conservative in spending or are they hoping that because you have MD after your name that lenders will extend you LOTS of credit so you can live well beyond your means?

While there are stylish cars that I admire driving down the road, unless and until I get behind the wheel and spend time in one, I have no idea whether I would like to own it. Just because someone admires the look of a car or even the experience of riding in it as a passenger, there is no substitute for driving and comparing different vehicles when making a purchasing decision. What will you do if your parents HATE driving it, for whatever reason. Also, as a frugal person, I am going to consider total cost of ownership. What is the cost of insurance, oil changes, replacement tires? Am I going to get many years of reliable service out of it or is it going to sit in the shop incurring expensive repair bills? Are you going to foot the bills for all of the increased costs incurred by your parents for the lifetime of the BMW? And I don't know if your parents "worry" about you like most parents do, but what if having the vehicle in their garage only causes them to fret and be concerned about your debt? Will it bring them joy or distress?

So while I am not in your parents shoes, I think this is a mistake on several fronts. That BMW may end up just being an albatross around their neck...

Perhaps it is just a cultural thing, but if you feel a strong need to express your thanks in a tangible way, why don't you think about taking them on a nice weekend getaway if it is safe in your area to do so? Stay at a nice hotel, see some sights, enjoy great meals together, and relax together before you begin your residency. Or if they have a "milestone" coming up (wedding anniversary, birthday, etc.), plan something really special and memorable for them. But save up and pay cash for whatever you do.

For me, seeing my children become happy, productive and well-adjusted adults who have their priorities in life straight and who make wise decisions is all the thanks I would ever hope to receive. That is reward in and of itself.

fundseeker
Posts: 835
Joined: Mon Dec 24, 2007 9:02 am

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

Post by fundseeker » Mon May 25, 2020 7:03 am

Wow! I'm glad you cleared that up! You had written that this is the car they want, and I took that to mean they approved of your plan and had personally test driven the car. Sorry, but if you're going to surprise them with this, it is going to turn out really bad!

I think most parents, like me with children nearing the end of their schooling, don't want their children spend any money on them, and if my adult children bought me anything that put them in debt, the first immediate step would be to return it and have a serious talk to them about making good financial decisions. Plus, you cannot return a car, so they will be stuck with making the huge payments on this huge debt you just laid on them. I say they because either they are going to make the payments to save you from yourself, or they are going to refuse the car and let you deal with the debt so you learn a lesson.

When word of this idea and information about how badly it turned out between you and you parents (in all likelihood), you will have really given those family members something to talk about. It'd be one thing if you just signed a pro sports contract and had just deposited a $10 million bonus, then buying them a car would not be a bad idea. But even then, they should get to pick the exact car they have to drive for years to come.

Please, find something simple to show your appreciation, and do it for the right reasons.

atikovi
Posts: 446
Joined: Tue Sep 10, 2019 7:20 pm
Location: Suburban Washington DC

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

Post by atikovi » Mon May 25, 2020 7:14 am

greenxspidey wrote:
Sun May 24, 2020 6:54 pm
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.
1) BMW's come with 4 year warranties
2) Most people in that age range are still driving and are far from the grave.

Either OP is uninformed or is trolling.

Planner01
Posts: 194
Joined: Mon Dec 26, 2016 2:44 pm

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

Post by Planner01 » Mon May 25, 2020 1:03 pm

If your parents are not in favor of taking on debt for a new car for themselves and they are content with their Toyota while looking forward to retirement with peace and comfort, I highly doubt they will be happy that you took out a loan for $40k to gift them a car when you owe $300k in a $60k income.
It’s a very nice gesture what you want to do but I’d suggest you wait until your income increased dramatically before taking on this debt.
You say you want to give them this gift to make them happy, do you think that seeing their son spend an entire year of his salary after taxes on a car would make them happy, while he’s renting and has this huge medical debt? Besides, a car is just a car! Put it in perspective.

jpelder
Posts: 780
Joined: Mon Jan 26, 2015 3:56 pm
Location: Concord, NC

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

Post by jpelder » Mon May 25, 2020 1:35 pm

Hi greenxspidey,
I hate to sound like a broken record, but don't buy this car now. If you really want to do it, wait until you get that $300,000 per year job before you do. You really can't afford it now. For perspective, I'm a science teacher, and I make almost as much money as you do as a resident, and I have no debt outside my mortgage. I'm planning on spending about $20,000 on my next car.
You're talking about spending about 20% of your take-home pay on a car loan, and that's if you do a 72-month (6-year) loan. It's not worth it, in my opinion.

I'd also say from a personal view, men in my wife's family have a bad habit of buying cars for wives and daughters without discussion beforehand. It's a source of tension, ranging from mild ribbing to outright anger. The car commercials make a surprise car seem like a good idea. It's emphatically not.

If you must do it now, I'd suggest a certified pre-owned 2-3 years old. The price will be a good bit lower. You should also try to get dealers to compete against one another. You could also seek out a private party seller, but you may have to range a long way to do it. You're going to be pretty busy over the next couple of years, so travel to see cars isn't going to be a high priority.

In summary, don't buy your parents a car without asking, and definitely don't buy a car that costs more than half of your salary.

stoptothink
Posts: 7845
Joined: Fri Dec 31, 2010 9:53 am

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

Post by stoptothink » Mon May 25, 2020 2:19 pm

When dealing with a gift of this magnitude (cost), a surprise is likely a terrible idea. OP, even if you are hell-bent on going through with this, find a way to talk to your parents about it first. Finances aside (and you know from that perspective that this is a terrible idea), I can think of several ways that this can go bad.

hmw
Posts: 726
Joined: Sun Mar 02, 2014 11:44 am

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

Post by hmw » Mon May 25, 2020 3:06 pm

I think the OP will get better advice on pricing in a Bimmer group than here.

My own observation is that it is very common for medical residents to buy fun expensive cars. I realize that the OP is somewhat different than the examples below.

When I was a surgery resident, one resident in my program drove a Bimmer, and another drove a used Porsche.

A very good friend of mine from med school bought a 70k Bimmer right after finishing his residency, and I knew that he had hundred of thousands of debt.

One surgical resident where I was a young attending bought a 45k Lexus when she had 300k of educational debt. :shock:

There is something about many years of delayed gratification causing people to make unBH purchases.
Last edited by hmw on Mon May 25, 2020 7:28 pm, edited 1 time in total.

core4portfolio
Posts: 531
Joined: Thu Dec 26, 2013 2:12 pm

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

Post by core4portfolio » Mon May 25, 2020 3:11 pm

Bogleheads forum is really not interested in expensive cars due to frugal behind their principle.
Its very common that people like to buy what they are passion to himself or loved ones even its very costlier and doesnt make sense some times.

In your scenario, if you really like buying car then yes its good but we advocate save all the money for ROTH, 401K, Emergency and then go for these luxury items

Here is invoice prices listed
https://www.car-buying-strategies.com/d ... rices.html

BMW forum - pricing thread. Your post deal here to confirm if they are reasonable pricing
https://x3.xbimmers.com/forums/showthre ... 53&page=49

One of my friend who got BMW few years before and while i talked to him last year, really worried on insurance costs and its high maintenance. Dealer sales team also somehow made him to buy the tire warranty which is 2k for 4 times and he never used until now.

On the other incident for supporting BMW, when my friend Honda civic got hit by BMW, damage for BMW was just a MINOR damage but honda civic bumped damaged badly and to be replaced. When my old 2001 camry got side hit on BMW while taking reverse, its not even a paint damage but my camry side mirror broked and there is a crease on the door. I was just admired with the quality of that built in both the cases except its price
Allocation : 80/20 (80% TSM, 20% TBM) | Need to learn fishing sooner

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 » Mon May 25, 2020 7:09 pm

Thank you, everyone, who has responded. I have a lot of information to work with as of now. I will not be responding to this message for a while until I have some news to update. I will reconsider not purchasing the car because a lot of people here have made really great points. Thank you for looking out for me! I really appreciate it.

wfrobinette
Posts: 1093
Joined: Fri Feb 20, 2015 3:14 pm

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

Post by wfrobinette » Tue May 26, 2020 1:55 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

*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.
Go in and tell them what you want to pay what truecar has as the lowest and not a penny more.

This is your first car and you want to spend 40k on luxury brand? Be responsible and buy a used one or go for a different brand.

atikovi
Posts: 446
Joined: Tue Sep 10, 2019 7:20 pm
Location: Suburban Washington DC

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

Post by atikovi » Tue May 26, 2020 2:12 pm

Anyone else see the irony of this poster wanting a new $40K+ first car and OP in viewtopic.php?f=11&t=315865 who makes $350,000 a year can't decide on a $20,000 used car?

User avatar
leeks
Posts: 856
Joined: Thu Apr 07, 2011 4:33 pm
Location: new york

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

Post by leeks » Tue May 26, 2020 2:14 pm

What is wrong with a 2002 Toyota Sequoia that still runs well? Your parents don't seem to want a new car.

Reminds me of this fun headline
"Toyota Recalls 1993 Camry Due To Fact That Owners Really Should Have Bought Something New By Now"
https://www.theonion.com/toyota-recalls ... 1819577805

They'd probably rather you cook dinner and have them over for a nice visit once a month (when safe to do so). They would rather see you make wise financial decisions to pay them back for what they have given you.

They know you have debt and I guarantee they would not want you to borrow more money this way to get them a blingy car they don't need or want. If you don't believe me, ask them.
Last edited by leeks on Tue May 26, 2020 2:28 pm, edited 2 times in total.

User avatar
leeks
Posts: 856
Joined: Thu Apr 07, 2011 4:33 pm
Location: new york

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

Post by leeks » Tue May 26, 2020 2:17 pm

atikovi wrote:
Tue May 26, 2020 2:12 pm
Anyone else see the irony of this poster wanting a new $40K+ first car and OP in viewtopic.php?f=11&t=315865 who makes $350,000 a year can't decide on a $20,000 used car?
I am laughing because this is similar to my recent post about buying a $30K car as a pandemic overreaction for a similarly high-income family that hasn't owned car in 10+ years. We ended up getting a $20K used one.

Jack FFR1846
Posts: 12021
Joined: Tue Dec 31, 2013 7:05 am
Location: 26 miles, 385 yards west of Copley Square

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

Post by Jack FFR1846 » Tue May 26, 2020 2:19 pm

Don't buy your parents a BMW. First, perhaps they won't like it. A surprise car can end up being a surprise for you. To pay your parents back, give them an envelope full of $100 bills. and it doesn't have to be 400 of them either.

My first thought when I read that you're buying this to pay back your parents was "How are they going to feel when their first visit for maintenance to the BMW dealer costs them $1500"?

I don't know, man. If this were like the absolute dream of theirs and they came with you to the dealer before you made the purchase and they were fine with it, that's one thing. But this isn't that. I know what my mom would do if I did this. She'd go sell it to Auto Nation and send me a check for whatever they gave her.
Bogle: Smart Beta is stupid

02nz
Posts: 4752
Joined: Wed Feb 21, 2018 3:17 pm

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

Post by 02nz » Tue May 26, 2020 2:37 pm

Leaving the finances aside - unless I knew they wanted a BMW X3, I would get the parents something that'll be much nicer than their Sequoia but still be economical to operate. The upcoming Venza looks good - it's basically a Lexus RX with a Toyota badge, very nice inside, hybrid powertrain is standard so the fuel cost will be cut in half (or more). It's significantly smaller than the Sequoia, but drives more like a car and easier to get in and out of (relatives used to have a Sequoia, I found it a total pain in this regard). And it's still plenty spacious, just doesn't have a third row.

illumination
Posts: 666
Joined: Tue Apr 02, 2019 6:13 pm

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

Post by illumination » Wed May 27, 2020 11:05 am

I'm in the camp that if you are going to insist on a European luxury car, you should probably just lease it. Let's be honest, neither purchasing nor leasing a BMW is the "frugal" thing to do. If this is about a "splurge" and you can comfortably make the numbers work, I'd just lease it.

I really view BMW as something that's disposable when the warranty runs out. You don't want to own a lemon and sometimes they can be hard to unload if word gets around particular models are time bombs.

muffins14
Posts: 208
Joined: Wed Oct 26, 2016 4:14 am

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

Post by muffins14 » Wed May 27, 2020 11:50 am

greenxspidey wrote:
Sun May 24, 2020 9:41 pm
My parents do not know that I am buying them a car. This will be a Father's Day surprise gift to the both of them. My parents live very frugally. I only know that they like this car because when we were driving on the freeway, they mentioned it. They did not expect me to buy them a car. This is my OWN doing. My parents would kill me if they knew I am getting into more debts for this car.
I think you just need to slow down a bit and be patient. You may be making this purchase more due to a desire to feel like you've "made it" yourself than a true consideration of what your parents need and place value on. If I were in your parents position, personally I couldn't imagine my child giving me a BMW. I would feel like they ignored the frugal example I tried to live by. Why not wait a few years, and when you are actually financially stable, help them with more important items, mortgage, medical, or gifts etc.

If you really want to get them a car, why not get them a 2012 Sequoia? A 2020 Camry? And then with the next $20k, spend it on things you know they like and appreciate: vacations together? A trip for them to go on solo? To visit relatives? Fund some hobbies or memberships for them?

caffeperfavore
Posts: 323
Joined: Thu Aug 06, 2015 11:45 am

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

Post by caffeperfavore » Wed May 27, 2020 12:05 pm

This is sweet, but I agree, it's a terrible idea.

Do your parents even want the car? A BMW X3 is very different and smaller than a Sequoia, that will run forever with low costs unlike the BMW. If I were your parents this wouldn't make me happy, it would just make me really sad. They're going to find out soon enough you're not making much and that you're deep in debt.

The older I am the less I care about cars. Having a successful, financially secure child would make me far, far happier than a stupid car. Buy it for yourself, but they probably couldn't care less about a BMW. How about a nice vacation to somewhere they want to go instead?

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 » Sat May 30, 2020 9:21 am

Hello Everyone,

LAST UPDATE

I took the majority's advice on this forum and spoke with both of my parents. They said no to me buying them a car. They said they do not need a new car from me and for me to save money in the next 3 years. My dad actually got mad at me for even bringing up the idea. LOLL I guess it's what I wanted for them but never took their feelings into consideration. They said they will use the money they saved up to buy their own car, something like a Camry or Toyota would be fine. I'll just buy them a nice house in 5-6 years then. hehe, Thank you for all your help!

- OP

User avatar
galawdawg
Posts: 839
Joined: Thu Dec 14, 2017 12:59 pm
Location: Georgia

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

Post by galawdawg » Sat May 30, 2020 9:27 am

greenxspidey wrote:
Sat May 30, 2020 9:21 am
Hello Everyone,

LAST UPDATE

I took the majority's advice on this forum and spoke with both of my parents. They said no to me buying them a car. They said they do not need a new car from me and for me to save money in the next 3 years. My dad actually got mad at me for even bringing up the idea. LOLL I guess it's what I wanted for them but never took their feelings into consideration. They said they will use the money they saved up to buy their own car, something like a Camry or Toyota would be fine. I'll just buy them a nice house in 5-6 years then. hehe, Thank you for all your help!

- OP
Glad it worked out. Please continue to use Bogleheads as an investing and personal finance resource throughout your career and into retirement!

Post Reply