Car of your dreams vs. the car that is logical... Oh dilemmas
 

So i'm caught in a little bit of a dilemma here... The time is coming up soon where I will be finishing school this year, and have a job for when I graduate.

I've been in school all my life, so finally coming out and making decent paycheques is going to be a totally new experience, but at the same time, i'll finally have that sense of achievement.

My first large purchase is most likely going to be a vehicle. I currently have a car that although has proven to be more than reliable, there is no denying that it is getting up there in terms of age (~280k kms). Although I can try to hold out as long as I can, buying a car will become an inevitability once anything major goes wrong because I don't want to dump any more money into the car.

I am caught between a car that I love, versus the car that I could live with and makes more economical sense.

The cars in question are the new bmw 3 series coupes, vs. a new honda civic coupe. Not necessarily the top of the lines, but the regular 328 and the civic LX or EX is fine

The price difference is pretty big obviously, and although my mind tells me that I have student loans to pay off and I should go for the civic, the irrational part of me just can't get over the bmw.

I'm sure everyone's been in this situation before... how did you cope?
Technically I could afford either car, so that's what makes it even more difficult. If my dream car was a ferrari enzo or something, then it'd be easier to put those desires aside.

I've done the price calculators over and over, to try and figure out the best financing/leasing options, etc. I don't mind getting used since the two cars are still quite new models, but I would probably have to get it as a used car from the dealer so i can finance/lease it. I thought leasing the bmw would lead to less monthly payments up front, and better affordability while i'm paying off student loans, but then i'd get stuck with the residual payment since I would want to buy it out at the end, and have to finance that remaining portion (so it doesn't seem like such a great deal). The finance payments on the bmw are $1000 a month or so, versus the civic which will be about 500 a month. I've tried budgeting my monthly earnings to fit it in, and although it is theoretically doable, i wont get to buy as much other stuff or eat out as much to compensate.

I've even looked into getting them from the states, and even used in the states, but again that requires me having the full amount up front which I won't have at the beginning of my career.

There's so many things to take into account... Yes I know a car is a depreciating asset, and it is not wise to invest in one at this age. While i'm young, I figure driving a nice car would be pretty sweet as opposed to driving a nice sporty car when i'm 50 and people think that i'm having some sort of mid life crisis. Time when i'm young I can never get back, which is another thing driving this irrationality.

Argh... this is frustrating, i've been checking prices, and planning and thinking and budgeting and I cannot figure out what to do! Although I'm not ready to buy the car until at least summer, I want to make sure I rationalize it all prior, so that I don't make a random impulse buy, but at least a semi-thought out one.

Experiences? Advice?

buy the cheapest car possible that will satisfy you for the next 5 years or so. since you have a student loan to repay, it isn't logical to go deeper in the hole than you need to. there are plenty of cars in the $10-15k mark that are still fairly new and reliable, so choosing one of those may not be such a bad idea. there's more to life than buying a dream car. i was in your situation once, but eventually common sense took over and i scrapped the idea of buying a dream car to save up for my own place.

I was exactly the same as you 8 years ago. Dreaming everyday
that I drive a fancy car, picking up friends/chicks, rolling @ 20km/h
and catch people attention. We all have gone through the same
stage in our life. Do whatever that comes to you mind, so you
won't regret when you are in your 30s. My first car: a teg...
second car: a bimmer...then my first bike etc. I never regret how
much I spent on those toys.

I am not going to educate you how you should spend your money
wisely, but I just want you to know a car will never get you
popular. If you want attention, ride a bike or build a kit car or
buy an exotic car.

if your doubting, then wait off a bit. life is full of surprises, and if your going to be living paycheck to paycheck, what if something really comes up and you really do need the money? might as well play it safe, wait for a bit. cars only get better and faster, and you just keep earning more money =)

The gas that you have to pay is also double, from about 140 a month to 280 a month.

buy a nice, used, lower priced car (~$20K), and save up..
I'm sure you don't wanna live paycheck to paycheck just to drive a new bimmer..
You can get some nice used cars for ~20K, and then save the rest so you can jump straight to M3 or something later.

fuck it, you only live once, get the bmw :D

i'd say go with the civic. u dont wanna living with a larger debt.

although i dont have a debt, i cant imagine how others cope with it (esp when it's 15g's+)

Maybe consider leasing an economy car for a few years until your debts are paid off before making the jump to purchase a nicer car? The Civic, for example, has had some pretty aggressive lease rates in the last couple months. All trims (DX to Si) are at 1.5% from 24-60 months, which is quite low for Honda.

I opted for the BMW.

Seriously a matter of your priorities. I wasn't in the same situation, I had no loans back then.

I'm in a similar situation now, but took the more economical route. Leasing a car isn't a good thing, unless you can write it off. Cuz in the end, you still have nothing after you spend all that money.

If you can safely put aside approx 1K a month for car payments and still get by then go for it. Only live once, I loved the bimmer I had. Awesome handling car. Just remember, once you get to that kind of car, its VERY hard to go back to economy cars.

I agree with what most of you are saying to hold off (my logical side)...

The whole bmw thing was just the "want" side of me kicking in...

Just to clarify, getting the bmw shouldn't put me in a going from paycheque to paycheque situation. Even if i get it, i should still have money to save/invest/spend... just 500 less per month due to the additional cost of the bmw.

I also have thought about getting a used nice car in the 20k range, but that again requires coming up with 20k as a lump sum which would take time to accumulate... As opposed to just coming up with a down payment for the others.

Oh one more thing... Another thing that popped into my head was that in about 3 years my gf will be graduating, and I know she'll want to get married around that time (if we're still together).

Weddings cost money! I'm concerned about what happens if I held off, and then I end up having to spend my BMW fund on a wedding and ring, then I would just keep pushing it back to the point that i'm like 35 before I get it. Whereas if I got it now, I would deal with the wedding costs at that particular time...

edit: and as for the bike, I would get one if I moved out of town to a quieter area to live... but here in busy vancouver, i'm paranoid that someone will nail me and kill me since it's so much busier... So that doesn't work so much

I don't know if you have factored this into your budget, but a BMW will undoubtedly cost you a LOT more in annual insurance as well as more in maintenance.

Fancy daily drivers are over-rated anyways. The best thing about a crappier car is that you worry less about it, ie: when you park, if someone dings you etc etc.

I figured it'd be a bit more, but didn't have any concrete numbers... Anyone have any concrete numbers for me about the insurance differential?

get honda, save extra 500 a month for buy-out. buyout honda and sell when u have more money, buy nicer bimmer then a base model.

also why not check out some of those new mazdas, they are sweet, well priced, easy to sell later ect...

And I know you look at your budget and it looks like you can work the BMW, but your budget is wrong. There's always things that pop up. Always. Not always big things either. A lot of it is nickel and dime stuff that adds up.

you only live once
get the beeemer
take the bus

You're only young once.

You can always get something inbetween a 3 coupe and a civic. GTI for example.

what major you gonna be graduating in? have you had any job offers? are you settled on where you going to live? do you now how much more it costs to live after college life?

if that is the case dont get yourself in to debt..
you dont wanna be going into marriage with a bunch of debts.. that is the easiest way to ruin a marriage and end in divorce...

QFT, i pay $140 a month for gas on my 95 civic

getting a bike is one of the greatest things u can do for urself, i don't regret buying mine, its not as bad as u think, ride more safely on your side, but anything can happen whether ur on ur bike on in a car


get the honda! 0.9% financing right now, have fun with your bike during the sunny days, and drive ur econobox when ur not! its a good compromise, but for me right now it SUCKS.... but i'll be the happiest kid 4 months from now

plus ur getting married soon so i would save up for that!

Honestly, it's not easy to answer this question until you disclose your monthly income and your living arrangements. Then at least people who are in similiar situations can tell you what's realistic and what's not.

Also, in case you didn't know, you can always finance a used vehicle through your bank.

ok well i have a few thoughts, might not be that experienced with the situation, but here goes:

im thinking this, the 500 that you think your gonna be spending extra with the bimmer is actually, i might be nuts, but more like 750-1000. Insurance will be a lot more expensive. Also, most likely driving a bmw your gonna want to go out more, show it off (nothing wrong with that!!) but when your out and your girl is hungry, someones gotta pay for food;)

if you are going to just lease, dont. Unless you figure your going to buy it out, that 1000 a month is GONE. like GONE GONE.

so maybe wait it out, if putting down 20grand is tough right now, even if its tough for like 6mths. wait it out. when your ready, really ready, get the bmw with your bmw paycheque!!

if you feel like you can wait half a year and save up, it doesnt seem like you have to pay a mortgage or anything, so id say try to save up like mad and get that bimmer asap!!

you dont want to get something that you dont really want, especially when its gonna cost you around $25k (the civic)

goodluck!

Without knowing how much income potential you have, it is impossible to say. Are you living at home? What type of career are you getting into? What will your average salary be?

I bought a Porsche 911 when I was 28 and I don't regret it one bit. It's brought so much fun and enjoyment. You're young only once, and if you can financially swing it, and have a bright career ahead of you, have fun.