[Pdemarco]

I’m looking at an m240i without Xdrive in the current market. Shocker nothings changed. I had a creative idea to lease that I thought made a ton of sense but please if anyone could chime in, would be greatly helpful

I’m a recent college grad, making good money for my lifestyle (100k gross) and still living at home until rates come down. After a couple years of saving. I’m thinking about treating myself but wanted to do it the most efficient way possible.

What if I am able to roughly $15,000 down on a 2.5 yr lease. Payments would roughly be $500/month. After 2.5 years my intent would be to buy the vehicle outright after the lease is up and sell the car or if the dealer can buy it back early, even better. (Residual Values in low 30’s?)

My thought process here is that if I only have to spend $30,000 in 2.5 years. I’m almost sure, assuming good condition that I can see the car for more than that. Am I on the right track? Or is this a horrible idea?

Any advice would be much appreciated, thanks!

[KJ10]

Originally Posted by Pdemarco

I’m looking at an m240i without Xdrive in the current market. Shocker nothings changed. I had a creative idea to lease that I thought made a ton of sense but please if anyone could chime in, would be greatly helpful

I’m a recent college grad, making good money for my lifestyle (100k gross) and still living at home until rates come down. After a couple years of saving. I’m thinking about treating myself but wanted to do it the most efficient way possible.

What if I am able to roughly $15,000 down on a 2.5 yr lease. Payments would roughly be $500/month. After 2.5 years my intent would be to buy the vehicle outright after the lease is up and sell the car or if the dealer can buy it back early, even better. (Residual Values in low 30’s?)

My thought process here is that if I only have to spend $30,000 in 2.5 years. I’m almost sure, assuming good condition that I can see the car for more than that. Am I on the right track? Or is this a horrible idea?

Any advice would be much appreciated, thanks!

I personally think this is a horrible idea. Any money put down on a lease will be lost in the event of the car being totaled. Insurance does not pay you out for that money. I also tell everyone I know, leasing with the intent to buy is the worst way to buy a car unless you are doing it through a business for a write off. You will certainly end up paying the most for the car doing it this way. There is no such thing as a good lease on a 2 series right now. Don't forget when you want to buyout a car you have to factor in the rest of the sales tax that wasn't covered in your lease. And when your lease ends the car market will almost certainly be well on its way down, I would not plan on making any money on this car doing it that way or any way for that matter. Unfortunately the 2 series is not a car that does well with depreciation.

[Ricochet48]

Originally Posted by Pdemarco

I’m looking at an m240i without Xdrive in the current market. Shocker nothings changed. I had a creative idea to lease that I thought made a ton of sense but please if anyone could chime in, would be greatly helpful

I’m a recent college grad, making good money for my lifestyle (100k gross) and still living at home until rates come down. After a couple years of saving. I’m thinking about treating myself but wanted to do it the most efficient way possible.

What if I am able to roughly $15,000 down on a 2.5 yr lease. Payments would roughly be $500/month. After 2.5 years my intent would be to buy the vehicle outright after the lease is up and sell the car or if the dealer can buy it back early, even better. (Residual Values in low 30’s?)

My thought process here is that if I only have to spend $30,000 in 2.5 years. I’m almost sure, assuming good condition that I can see the car for more than that. Am I on the right track? Or is this a horrible idea?

Any advice would be much appreciated, thanks!

You're a recent college grad, even at $100K I would just wait and buy used. Max out your 401K instead, you'll thank yourself in the long run.

I also would aim for 33% of your gross. If you're really a car guy, maybe stretch to 40%. So a decently loaded M240i xDrive after TTL is like $60K, so you'd need to make $150K minimum.

Americans need to stop buying way more car than they can afford.

[OriginalFake]

Originally Posted by KJ10

I personally think this is a horrible idea. Any money put down on a lease will be lost in the event of the car being totaled. Insurance does not pay you out for that money. I also tell everyone I know, leasing with the intent to buy is the worst way to buy a car unless you are doing it through a business for a write off. You will certainly end up paying the most for the car doing it this way. There is no such thing as a good lease on a 2 series right now. Don't forget when you want to buyout a car you have to factor in the rest of the sales tax that wasn't covered in your lease. And when your lease ends the car market will almost certainly be well on its way down, I would not plan on making any money on this car doing it that way or any way for that matter. Unfortunately the 2 series is not a car that does well with depreciation.

Totally agree with this. Putting $15K down on a lease, particularly right now, is not a good idea.

[G42UPRA]

Originally Posted by Ricochet48

You're a recent college grad, even at $100K I would just wait and buy used. Max out your 401K instead, you'll thank yourself in the long run.

I also would aim for 33% of your gross. If you're really a car guy, maybe stretch to 40%. So a decently loaded M240i xDrive after TTL is like $60K, so you'd need to make $150K minimum.

Americans need to stop buying way more car than they can afford.

Meh... he's living at home making $100k. With a decent down payment and possible trade in, he'll have plenty for retirement.

[MPR]

You only live once, enjoy your hard earned money a little. You don't want to be the richest guy in the cemetery. I put $40K down to make my payment around $340 and I pay $500/month to get it paid off early. High car payments always gave me anxiety.

My Roth IRA has been at 8% contribution with employer match at 8% since I started with my company in 2008. I consider the best piece of advice for college grads is to immediately begin your retirement account at least at what your employer will match. You won't notice a few bucks less in your check and overtime you'll thank yourself

[G42UPRA]

Originally Posted by MPR

My Roth IRA has been at 8% contribution with employer match at 8% since I started with my company in 2008.

Jealous of that match!

[Jonesymx29]

Originally Posted by meshuggah

Jealous of that match!

Second that, sheesh!

[port_tech_240i]

Originally Posted by Ricochet48

You're a recent college grad, even at $100K I would just wait and buy used. Max out your 401K instead, you'll thank yourself in the long run.

I also would aim for 33% of your gross. If you're really a car guy, maybe stretch to 40%. So a decently loaded M240i xDrive after TTL is like $60K, so you'd need to make $150K minimum.

Americans need to stop buying way more car than they can afford.

150k minimum is a comical amount for an M240i xDrive, let's be real. $7500/month take home for a 60k car after benefits/retirement contribution?
Especially if he's living at home, $15k down even @ 60 months is roughly $900/month for financing if he wants the car. It's not like he's going to be struggling to live with 100k gross buying a 60k car.

[RockCrusher]

Originally Posted by Pdemarco

I’m looking at an m240i without Xdrive in the current market. Shocker nothings changed. I had a creative idea to lease that I thought made a ton of sense but please if anyone could chime in, would be greatly helpful

I’m a recent college grad, making good money for my lifestyle (100k gross) and still living at home until rates come down. After a couple years of saving. I’m thinking about treating myself but wanted to do it the most efficient way possible.

What if I am able to roughly $15,000 down on a 2.5 yr lease. Payments would roughly be $500/month. After 2.5 years my intent would be to buy the vehicle outright after the lease is up and sell the car or if the dealer can buy it back early, even better. (Residual Values in low 30’s?)

My thought process here is that if I only have to spend $30,000 in 2.5 years. I’m almost sure, assuming good condition that I can see the car for more than that. Am I on the right track? Or is this a horrible idea?

Any advice would be much appreciated, thanks!

There are 3 ways to make money: Man at work; men at work; money at work. You are a man at work. Put your money to work.

IOWs, you have two jobs. Your day job which pays you $100K gross which reads nice but after a few years $100K/year will have you behind the curve. So you need to look ahead regarding the job market.

Second job is managing your finances to get the most out of what you bring home.

I won't take the trouble to list what all you can do. That is your job to learn the various ways to save invest and grow your money.

I do suggest you save for next summer's vacation, a house down payment, more schooling (I had to change careers 3 times to ensure a better job with a higher salary), and of course cars, plus last but by no means least retirement. For the latter my recommendation is save/invest as is there will be *no* Social Security Benefit.

[LivingInSalt]

what's this guy's deal?

[Bimmer Pleaser]

does anyone knows what this mean?

"Base Price Discount - Pre 1/2023 Inventory: -$1,000"

I asked a dealer for the build sheet and this was one of the lines.

[G42UPRA]

Originally Posted by Bimmer Pleaser

does anyone knows what this mean?

"Base Price Discount - Pre 1/2023 Inventory: -$1,000"

I asked a dealer for the build sheet and this was one of the lines.

BMW raised the price of the car $1000 starting 2023.

[KJ10]

Originally Posted by Bimmer Pleaser

does anyone knows what this mean?

"Base Price Discount - Pre 1/2023 Inventory: -$1,000"

I asked a dealer for the build sheet and this was one of the lines.

I interpret this as them saying inventory “cars” that have been around before January 2023 are discounted $1000 to move some units.

[AWcoupe]

Originally Posted by MPR

You don't want to be the richest guy in the cemetery.

This is GOLD and so true. I think I’m adding that one to the file cabinet! I used to say “You never see a Brinks truck pull in behind the hearse.”
OP, go get your car.

[MPR]

Originally Posted by AWcoupe

This is GOLD and so true. I think I’m adding that one to the file cabinet! I used to say “You never see a Brinks truck pull in behind the hearse.”
OP, go get your car.

I've been living by this lately. You can work you a$$ off being as frugal as possible for 40+ years and die before retiring.

[AWcoupe]

Originally Posted by MPR

I've been living by this lately. You can work you a$$ off being as frugal as possible for 40+ years and die before retiring.

Truth!! Best buddy of mine passed away 2 months after his 50th. Shocking to say the least. Changed the way I've lived since his death.

[viperx100]

I was in Pittsburgh last month for a weekend getaway with my girl and as we were leaving the hotel, I was getting into my F-Type and there was a guy outside smoking a cigarette who gave me a compliment on how good the Jag looked, and we started chatting. He told me that he remembers back when he was younger, he had a chance to buy a 90s Jaguar XJ-S, but he never pulled the trigger because he hesitated, and he now deeply regretted that decision and often thinks about iT. I don't want to be that guy with similar regrets. I bought my 2018 Jaguar F-Type 400 Sport Coupe when I found out that a wheelchair fits in the hatch. I am in a manual wheelchair. The car was the furthest from practical but I always loved the design and never thought that it was an option because of the lack of backseats to put the wheelchair in. When I drove solo, I'd put the wheelchair between the glove box and the passenger seat and the wheels fit nicely on top of the hatch cover behind my head. If I drove with my best friend or my girl, they'd put the chair in the hatch and take it out for me. As far as I know, I am the only crazy person in a manual wheelchair who owned an F-Type. I owned it for a little more than a year and now traded it last month for a 2022 M240i (gonna be getting married this summer so I decided to go back to practicality and the market was heavily in my favor, and I sold it for more than what I bought it for a year ago). It was an awesome experience and I can now happily say that I owned one of my favorite cars (and it was a big F U to the wheelchair, haha).

Anyway, my rule for myself is that as long as I don't have to reduce my TSP (401K for the government) maximum monthly contribution, I buy things that I really want. This way I am responsible with my retirement and still get to enjoy the present with no regrets.

[AWcoupe]

I remember when Jaguar released that coupe. I sat in it at the NY Auto Show at the display booth. I think that was back in 2017. It was white, so of course I loved it. LOL Killer looking ride man. Great story. We are only here for a short time. Enjoy the 240 and congrats on the wedding!

[Angel Tears]

Originally Posted by viperx100

I was in Pittsburgh last month for a weekend getaway with my girl and as we were leaving the hotel, I was getting into my F-Type and there was a guy outside smoking a cigarette who gave me a compliment on how good the Jag looked, and we started chatting. He told me that he remembers back when he was younger, he had a chance to buy a 90s Jaguar XJ-S, but he never pulled the trigger because he hesitated, and he now deeply regretted that decision and often thinks about iT. I don't want to be that guy with similar regrets. I bought my 2018 Jaguar F-Type 400 Sport Coupe when I found out that a wheelchair fits in the hatch. I am in a manual wheelchair. The car was the furthest from practical but I always loved the design and never thought that it was an option because of the lack of backseats to put the wheelchair in. When I drove solo, I'd put the wheelchair between the glove box and the passenger seat and the wheels fit nicely on top of the hatch cover behind my head. If I drove with my best friend or my girl, they'd put the chair in the hatch and take it out for me. As far as I know, I am the only crazy person in a manual wheelchair who owned an F-Type. I owned it for a little more than a year and now traded it last month for a 2022 M240i (gonna be getting married this summer so I decided to go back to practicality and the market was heavily in my favor, and I sold it for more than what I bought it for a year ago). It was an awesome experience and I can now happily say that I owned one of my favorite cars (and it was a big F U to the wheelchair, haha). [...]

Nice touch with the personalized license plate.

[viperx100]

Originally Posted by Angel Tears

Nice touch with the personalized license plate.

Haha, thanks! I get a ton of honks at traffic lights and get stopped in parking lots for it.

[rad_thundercat]

This is an interesting discussion

Both points are valid imo, you need to plan to retire comfortably, yet you could also get hit by a bus tomorrow. So we try to land on a spot between those bookends.

We’ve got this take on one end,

I also would aim for 33% of your gross. If you're really a car guy, maybe stretch to 40%. So a decently loaded M240i xDrive after TTL is like $60K, so you'd need to make $150K minimum.

And the other end here,

150k minimum is a comical amount for an M240i xDrive, let's be real. $7500/month take home for a 60k car after benefits/retirement contribution?
Especially if he's living at home, $15k down even @ 60 months is roughly $900/month for financing if he wants the car. It's not like he's going to be struggling to live with 100k gross buying a 60k car.

Personally, I fall just outside of OP1’s algorithm so naturally I’m more biased with OP2. But this is the part I find interesting;

I know it’s more responsible to have a Camry as a daily driver, but if I’m on the hook for working 40 hours a week with high stake responsibilities, I need some sort of offset.

Maybe this is a character flaw, but either way it’s important to be honest with yourself about it. I need to feel the benefits of that labor even if it’s just during the drives to and from work.