Thinking about buying a new car. Any advice? 

"Chuck 2(O=[][]=O)2" (pompei426) 09/13/2017 at 10:21 • Filed to: None

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For the longest time I thought that buying a new car was foolish, especially if you’re in your early 20s. Well, I’m 22 (23 on Thurs), and I think I’d like a new/new-to-me vehicle. I currently have a 2002 BMW 330i (photo below). It’s fine, but it’s falling apart and costs a f*ckton to repair. Yes, I was aware of this when I purchased it. Yes, I made a bad decision. I’ve put a new clutch in it, and it’s still rather clean, so I’m hoping I can get 4k for it. Who knows?

Anyway, a few friends of mine have VW Golfs, GTIs, and Rs. They can’t recommend them enough. In my area, GTIs are selling for bargain prices. I’m seeing $16.9k on the low-end. I know I won’t walk out the door spending under 18, but the car also MSRP’s for $26k. So, all in all, it looks like a tempting deal. Bonus points for being a decent Autox car. Now, as far as affordability, it’s certainly not a used Honda (sadly). If I can get away with spending less that $260-275/month over 60 months, it’s comfortably feasible. Now, on to insurance. I’m 22, almost 23, with no accidents and no tickets, KNOCK ON WOOD. I got a quote from my current provider and the 6mo quote was $655. So. about double the e46. But, then again the e46 is a POS.

At this point, I’d like a refrigerator on wheels and the BMW is not that.

So, should I do it? Am I being foolish? Do you have any buying advice? Is the GTI as good as everyone says? Give me your perspective.

CB > Chuck 2(O=[][]=O)2 09/13/2017 at 10:29

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Look at it this way: over the next year, could you see yourself needing to spend over $650 on the BMW? If yes, the insurance isn’t a problem.

Are there any CPO GTIs? Does VW even offer a CPO program?

Aaron M - MasoFiST > Chuck 2(O=[][]=O)2 09/13/2017 at 10:33

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This may be projection, but I’d recommend you buy the least practical vehicle you can get away with. Early 20s is the perfect time to buy a two seater and have fun with it, and the older you get the more practicality you’ll need and the more compromises you’ll have to make. The GTI is a great compromise car, but in your early 20s you can get away with a 370z, Toyobaru, S2000, or Miata.

If you actually need the cargo space and backseat, then I guess ignore the above. Lame...

Chuck 2(O=[][]=O)2 > CB 09/13/2017 at 10:34

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I see myself spending at least 2k in the near future on the e46. I’m trying to get something else before the coolant lines decide to crack (as they do) and I’m stuck dding the 2002 in DC winter traffic. That’s not happening.

Have’t seen anything about CPOs. New is relatively cheap, so I doubt it’d really be a better deal in the long run.

Future ND Owner > Chuck 2(O=[][]=O)2 09/13/2017 at 10:36

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Focus ST or Fiesta ST’s will have a much lower cost of ownership (maintenance/repairs) than a GTI. I used to own a VW (never again) and now own a Focus ST (which I love).

Chuck 2(O=[][]=O)2 > Aaron M - MasoFiST 09/13/2017 at 10:37

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I already have a toy I spend too much money on.

Chuck 2(O=[][]=O)2 > Future ND Owner 09/13/2017 at 10:38

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My second choice is the Fiesta ST, but I’m a sucker for tartan seats. I’ve driven the new ST and I just didn’t like it as much as the GTI.

Nothing > Chuck 2(O=[][]=O)2 09/13/2017 at 10:39

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What about other appliance cars in the same category, there’s usually a ton of cash on the hood for Focus STs, although I know they aren’t German. My niece has a 2013 Jetta GLI that’s been in the shop four or five times. All covered under warranty, but still, it’s down time for the car. I don’t think her father has had any issues with his Golf R, but he doesn’t drive it much.

It’s almost always a wiser answer financially to keep what you have, especially if it’s paid off. With the difference in insurance and car payments, will you be spending $3700/yr maintaining the BMW? However, I get the frustration of a car that needs constant upkeep to keep it reliable and trustworthy. And if it’s not a labor of love, then it just sucks.

Life’s short. If you’d be happier in another car. Do it.

promoted by the color red > Chuck 2(O=[][]=O)2 09/13/2017 at 10:45

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Toyobaru or ND Miata. Either one’s a winner.

R Saldana [|Oo|======|oO|] - BTC/ETH/LTC Prophet > Chuck 2(O=[][]=O)2 09/13/2017 at 10:46

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Is the BMW paid for?

Factor this against your repair costs. If you have zero monthly cost for the vehicle besides insurance, then divide whatever your maintenance/repair cost by 12 months.

Be wary of the it’s only $250-275 a month with warranty, because your warranty will end before you finish paying for the car, unless you put some serious money down.

Chuck 2(O=[][]=O)2 > Nothing 09/13/2017 at 10:46

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My second choice is a Fiesta ST. It’s cheaper, but I didn’t like it as much as the GTI. I am worried about reliability, but thankfully it’s not on my dime for a while. Trust me, I know it’s always wiser to keep what’s paid off, but it’s also a 15 year old BMW. No, it won’t need $3700/yr, but I foresee at least 2-3 in the upcoming 6 months. I just don’t want to put that money into a car that’s not worth anything and will continue to deteriorate.

I like the idea of not worrying about non-routine maintenance on my DD for a few years. The e46 was fun, but it’s at the point where I need to make a decision to keep, or sell it. It’s still clean, and runs well. No codes.

Aaron M - MasoFiST > Chuck 2(O=[][]=O)2 09/13/2017 at 10:46

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Yeah, I checked your post history *after* I wrote that. Whoops...

The GTI is a fine car, a wagon may be more versatile if you aren’t worried about parking length.

Chuck 2(O=[][]=O)2 > promoted by the color red 09/13/2017 at 10:48

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I love the Miata, but it’s not practical. I need a car that I can throw an engine block in the back of, or if I have to, sleep in at the track. The Toyobaru never appealed to me, probably because it’s a Scion.

Nothing > Chuck 2(O=[][]=O)2 09/13/2017 at 10:49

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In the same situation, I’ve done the same. I pretty much always cut bait on cars that were fun for a bit, but got tired of it, and the maintenance became a chore. Like I said, life’s short. Get what you want and enjoy it, especially since you’re looking at reasonably priced vehicles.

Chuck 2(O=[][]=O)2 > R Saldana [|Oo|======|oO|] - BTC/ETH/LTC Prophet 09/13/2017 at 10:49

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BMW is paid for. Yes, the savings would be huge, but I foresee major repairs in the near future that I just don’t want to deal with.

Noted.

j250ex > Chuck 2(O=[][]=O)2 09/13/2017 at 10:52

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If your monthly budget allows for it then I don’t see why not. I’d sit down and write down all your finances. If your making enough where you could comfortable afford a down payment, monthly car payment, and insurance then I’d say go for it.

LimitedTimeOnly @ opposite-lock.com > Chuck 2(O=[][]=O)2 09/13/2017 at 10:59

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I have greatly enjoyed my 2016 GTI . I purchased it recognizing that the cost of ownership would likely be higher than a FoST, and reliability may be worse, but as much as I enjoyed the FoST, I preferred how the GTI fit me, how the interior looked, and that it was a bit more maturely styled outside.

I would recommend it, as long as you are comfortable with the VW risks. On balance, it is likely only marginally more risky than the Ford.

Nisman > Chuck 2(O=[][]=O)2 09/13/2017 at 11:00

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Sorry about your shit box. I think you should still consider a used car. You can get so much more bang for your buck getting something just 3-4 years old. It will already have taken the huge depreciation hit but if you do some research hopefully you’ll have better luck with it.

Chuckles > Nisman 09/13/2017 at 11:08

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Spot on. It’s definitely possible to get a big upgrade in reliability without getting a new car. Sure it might not have the same new car warranty, but you save so much up front that you can afford the repairs, and it will need a lot less than an old BMW. I recently bought a 5 year old Fiat 500 sport with only 53,000 miles on it. The new model of that car costs over $17,000. Knock a bit over $10,000 off of that to get what I paid for it. Not to mention insurance on a used car should be a bit cheaper. I pay less than $600 a year to insure it.

Chuck 2(O=[][]=O)2 > LimitedTimeOnly @ opposite-lock.com 09/13/2017 at 11:19

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My sentiments exactly. I think the GTI is the most mature hot hatch. I know reliability will be an issue at some point, but that for my future self to worry about. Who knows if I’ll still have it by that time.

Neil drives a beetle and a fancy beetle > Chuck 2(O=[][]=O)2 09/13/2017 at 11:39

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They definitely have cpo program and they are using it pretty liberally right now. If a new car can be had for $17-18k though, probably not much gain over brand new.

Jason Spears > Chuck 2(O=[][]=O)2 09/13/2017 at 11:59

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I don’t have recent car shopping experience, but a GTI sounds good to me. Just don’t be so laser focused that you don’t cross-shop at least a Focus ST.

Of course, beware the impending flood of flood cars.

BrianGriffin thinks “reliable” is just a state of mind > Chuck 2(O=[][]=O)2 09/13/2017 at 12:19

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It’s not a direct comparison, but I love my ‘16 Golf and haven’t had a single issue for nearly 30k miles. VWs are a little better than they used to be.

E90M3 > Chuck 2(O=[][]=O)2 09/13/2017 at 12:36

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I got rid of my first car, a 1997 Explorer, when it started to give me issues. It was paid for, as was my M3, and at some point I was going to replace it. So I said what the hell and bought a 128i. If you can afford a newer car then go for it. If you’re stretching then I’d say keep the e46 for awhile.

merged-5876237249235911857-hrw8uc > Chuck 2(O=[][]=O)2 09/13/2017 at 12:36

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I would caution you making a purchase you can’t pay off in 3 years. You’ll likely be upside down on the purchase for a little while, and might not be worth the risk. I’ve been there and done that in the past, now I have a 3 year max window to figure if the payments and the vehicle are truely “affordable”. What’s the major repairs you are looking at with the BMW? And what are the likely costs for those repairs? So you’re insurance is going to double as well, that $600 a year needs to be factored into the mix. If you’re talking a $300 or so monthly payment, you could dump $3000 into the BMW in a year and still be ahead by $1200 compared to the VW. Do you think you’ll be in a different financial situation in the next couple years? Better or worse? Again, it might be better to keep the devil you know rather than jump into another one of unknown history. Then again, if you’re figuring you’ll be in the same spot in a few years and you hate driving what you have, then, by all means, replace it, but be smart about it and get the car paid off ASAP. Or go down market a bit to make it more affordable.

Wrong Wheel Drive (41%) > Chuck 2(O=[][]=O)2 09/13/2017 at 12:37

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Its impossible to like the Miata and not like the Toyobaru, it pretty much drives the same! I would rather have a 86/BRZ new than an ND if I were to be replacing my Miata with something new. It was a wonderful car to drive and quite spacious inside. Ive still been debating having BOTH my Miata and an FRS just because I liked it so much.

Chuck 2(O=[][]=O)2 > E90M3 09/13/2017 at 12:38

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I can afford it, and the e46 is a ticking bomb, so to speak. I won’t get any satisfaction spending more than what it’s worth on it.

Chuck 2(O=[][]=O)2 > merged-5876237249235911857-hrw8uc 09/13/2017 at 12:42

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I foresee 2-3k in repairs that will need to be done sooner than later. Probably within the next few months. At this point, it’s still in good condition and I’d like to get rid of it while it’s still functioning properly. I can afford the payment with my current job if it’s over 5 years. I understand the underwater sentiment, and that something I might just have to face. I have a potential job opportunity that would drastically improve my income, but I’m not counting on it till it happens. Either way, I don’t think my income or situation will worsen.

Wrong Wheel Drive (41%) > Chuck 2(O=[][]=O)2 09/13/2017 at 12:44

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Not a bad idea, I cant imagine you can go wrong with a mk7 GTI. I will be renting one this weekend so I am looking forward to trying it out. Might make a good daily for me too (id rather get a mk6 though for cost savings).

But otherwise, adding a car payment is never fun. Id much prefer to daily the ticking time bomb while saving up to buy a car in 100% cash. That way you get the nice newish reliable thing and avoid the car payments. I plan to daily my Miata long enough to save up like $15k to buy a nice daily. Then I can easily get a Focus ST, Mk6 GTI, a WRX, or a MS3 and have the fun hot hatch daily I always wanted.

E90M3 > Chuck 2(O=[][]=O)2 09/13/2017 at 12:49

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Then go for it. Only reason you shouldn’t is because you can’t afford it. You could also get a CPO car, which usually comes with an extended warranty. I mean that’s why I got my 128i, not because it was the wisest finical move, but because I could easily afford it.

merged-5876237249235911857-hrw8uc > Chuck 2(O=[][]=O)2 09/13/2017 at 12:51

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That’s good to hear about the job prospects, and you’re probably right about unloading the BMW while it’s error code free. And if the better pay works out, you can pay off early.

Sounds like you’ve got the right idea and you’re not being irresponsible by looking at brand new cars or something silly like that, so I say go for it. Will you sell your BMW yourself or trade in? I assume you will do aright with a private sale. Are the GTIs CPO at the price point you’re looking at? Cause that makes it a better proposition if so. Good luck with the sale and purchase.

Chuck 2(O=[][]=O)2 > merged-5876237249235911857-hrw8uc 09/13/2017 at 13:10

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I will sell the BMW privately. I’ve fixed a few things and installed a new clutch and assembly this past winter. I know I won’t recoup anything from the dealer. I’m hoping private sale will be fruitful. I’ll start at 5 and hopefully won’t have to go below 4. i just looked at the CPO options and it doesn’t look all that different from the new cost. I’m thinking I can walk out the door for less than 20. Even if it’s 21, CPO isn’t a deal.

Jordan and the Slowrunner, Boomer Intensifies > Chuck 2(O=[][]=O)2 09/13/2017 at 14:10

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I love my FiST, and a 351 can fit in the back hatch, so say a 2002 engine should fit easily. There are already a few nearing 200k miles, without issue.

merged-5876237249235911857-hrw8uc > Chuck 2(O=[][]=O)2 09/13/2017 at 14:50

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Wow that’s not too bad for a year old vehicle, don’t those run over 30k new? High teens to 20k isn’t too bad

Chuck 2(O=[][]=O)2 > merged-5876237249235911857-hrw8uc 09/13/2017 at 14:54

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They MSRP from 26-35. Here’s the one I’m looking at. It’s new. Granted, $17k is with ever promotion. So, no real point of going CPO if new is the same price.

https://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?listingId=460643868&zip=20707&referrer=%2Fcars-for-sale%2Fsearchresults.xhtml%3Fzip%3D20707%26listingTypes%3Dnew%26startYear%3D1981%26sortBy%3DderivedpriceASC%26incremental%3Dall%26firstRecord%3D0%26endYear%3D2018%26modelCodeList%3DGTI%26makeCodeList%3DVOLKS%26searchRadius%3D0&listingTypes=new&startYear=1981&numRecords=25&firstRecord=0&endYear=2018&modelCodeList=GTI&makeCodeList=VOLKS&searchRadius=0&makeCode1=VOLKS&modelCode1=GTI

merged-5876237249235911857-hrw8uc > Chuck 2(O=[][]=O)2 09/13/2017 at 15:33

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Wow, that’s downright reasonable. If that’s the new car price, you’re right, buying used would be folly. Very cool.

Mike > Chuck 2(O=[][]=O)2 05/24/2019 at 12:40

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I bought a new 2015 GTI, I love it and it has been problem free it’s entire life. Fun and more fun to drive plus it’s pra ctical. I haven’t done anything as far as tuning. Stock out of the box. I take it for back road blasts frequently and I’ ve been on several road trips of over a thousand miles too. Comfortable, sporty, practical..I think it’s a great all around car. Go buy one, I don’t think you’ll have any regrets .