[johnyj89]

Hello Bimmers

I plan to buy a new car, the current choice would be 2nd hand M2 / M2C or a brand new convertible pony mustang (2.3T). I'm living in Sydney, In australia, M2 and M2C are charged with LCT(luxury car tax), it's more expensive than in other countries.

1. M2/M2C
I'd only buy the m2/m2c sold from dealer.

-M2 2017 LCI with 28,000kms - $80,000 [drive away price, which means it includes the expensive stump duty(car tax)]

-M2C 2018 with 2000kms, Demo car - $94,000 (Drive away price). M2C has 3 year warrianty and 1 year free service covered.

The insurance cost of M2/M2C are same.

My question is that in terms of running cost (Fuel, repaire, maintainese), which car is more cheaper to run for next 5 years?

2. Car Loan

My current salary is $80,000 p.a. after deduct tax and super, i have $60,000 p.a. I does not own a property, I'm 29 years old.

If I take a car loan with 20%-30% balloon payment, is it worth? If it is too stupid, i would go for mustang. My job is stable, My main concern is that the car might be damaged or stolen. Insurance covered it but it would make lots of trouble.

I posted in here because i believe people in here is more real, not some high school kids or unemployed bloke pertending to be car enthusiast in the internet.

*I thought about 2nd 2017 M4, but I assume the running cost for M4 is much more expensive than M2C. The insurance of M4 is also much more expensive than M2C.

[btbossman]

Damn, communism sucks. Good luck but I would never take a loan with a balloon. Especially a balloon in the double digits. I would get an old bimmer or stang to have a little fun, save up, and buy what you want after you already own a home and have significant savings. By then you will get a great deal on a lightly used m2c or cs

[junx]

I'd try to buy some property before considering a loan for a used M2.

[Yvette]

Originally Posted by mute

I'd try to buy some property before considering a loan for a used M2.

At least a home first, even it's a smaller one

[AUSf22]

Hmm, just know that you are financing/loaning a depreciating asset.

You will end up paying 110-120k for a car that will be worth a lot less in the coming years. Also depends on what interest rate you are offered.. keep in mind your first repayments you will be paying off the interest first and the final balloon payment will seem like a large amount in comparison to what the car will be worth then.

[LuvMyE92]

I wonder why you think buying the car from a dealer is a requirement. You would probably save a lot of money if you could find someone selling their car on their own. You would also then have a chance to obtain any service records, get a feel for the person and how they treated the car.

However, I'd have to agree with the others that you'd be better off buying your own home first. That's the best investment that you can make, and it makes you more attractive to future mates, helps to build your credit history, and can give you a safer place to garage your car once you decide what to buy.

[Artemis]

Originally Posted by johnyj89

I do not own a property, I'm 29 years old.

Originally Posted by btbossman

save up, and buy what you want after you already own a home and have significant savings.

Originally Posted by mute

I'd try to buy some property before considering a loan for a used M2.

Originally Posted by Yvette

At least a home first, even it's a smaller one

Originally Posted by LuvMyE92

I'd have to agree with the others that you'd be better off buying your own home first.

OP, take that sound advice. Resist the automotive itching and first secure a home. It's the smart choice.

[///M TOWN]

Originally Posted by Artemis

OP, take that sound advice. Resist the automotive itching and first secure a home. It's the smart choice.

Not everyone is in a place in time, or currently lives in an area where they want to buy a house 🏡

In many major metropolitan cities for example, the price of owning real estate is astronomical.

[Ikester19]

I can only give you my opinion taking into account the information provided.

1. Buy a lightly used M2/M2C on the private market, IMO a low km OG M2 will give you best bang for buck and will save you $$ and depending on the age of the car it may still be under manufacturer warranty and you can still have it independently inspected prior to purchase.

2. Regarding the balloon or residual payment at the end of the loan term, there is no harm in doing this as it helps with cashflow, however, just be sure the balloon amount is as small as possible and that it will be lower than the anticipated value of the car at the end of the loan. Depending on the terms of the loan agreement you may be able to make additional payments towards the balloon amount in which case you can throw extra cash to reduce/pay this off during the term of the loan.

As per comments above cars are generally depreciating assets and usually a great way to lose money!!

On the flip side the M2 is a great car and you only live once! Only you can decide how to spend your hard earned cash!

[johnyj89]

Originally Posted by ///M TOWN

Not everyone is in a place in time, or currently lives in an area where they want to buy a house 🏡

In many major metropolitan cities for example, the price of owning real estate is astronomical.

Finally, Thanks for the comments.

In Sydney where i live, the unit price is 800,000+ and house price is 1.6 mil + . If i can purchase a house, i would not consider to buy a nice car now.

Investing a property in other states or cheap region is not a great idea. Most ppl in Sydney who bought the cheaper property or property in other states ends up living with their parents.

To be honest, if one is trying to be “reasonable”, then no one would buy a BMW car, instead, everyone should have an hybrid Camry.

[TemjinX2]

i would just add to compared the interest rates as well. getting a low mileage CPO M2 is probably best bang for your buck right now, given the current m2c lease is garbage.

Balloon payments are usually designed to give you as low of a monthly payment as possible but you might be better off financing at 75 months if you can get 3% or less. You would probably save a few grand over the long run compared to a balloon payment. Ballon payment financing with BMW isn't very good right now, so you would have to run the numbers.

In the US, you can find low cost financing through credit unions.

[BMW ///M]

Originally Posted by johnyj89

Hello Bimmers
1. M2/M2C
I'd only buy the m2/m2c sold from dealer.

My question is that in terms of running cost (Fuel, repaire, maintainese), which car is more cheaper to run for next 5 years?

2. Car Loan

Hey Jonny. You and I are in a similar situation.

So by my calculations the best way to get that car is through novated lease.

A loan (6.7% over 7 years) will cost you about $675 per fortnight ($337pw) if you finance the loan from a bank - no balloon. Those thieves at the dealership will have you believe it is $400 per week and have a $40k balloon at the end

A novated lease will cost me about $704 per fortnight (5years, 39k balloon) but that includes fuel tyres etc as well as the car. You need to find out if your employer does novated leasing ( or move to one that does ) and get a quote from them

In all these calculations the car is assumed to be $100,000 which should be your aim when you walk-in the dealership. Nothing more. Dealers are desperate at them moment. If they are not try Newcastle or Western Sydney

Running cost:
Cost of running M2C per year is
Fuel = $4,570.83 (calculated at 11L/100x 30,000km)
Maintenance = $600
Tyres = $1848 (Sport Cup 2 $415+$509 x2)
Insurance = $3000-$4000

For the Stang I'd expect the fuel to cost twice the M2

However, that said, you really should invest your money in something that will earn you money. Cars depreciate and after 20 years you'll be left with a $20,000 car you paid $100,000 for.

The only reason I am considering it is to reduce my taxable income ( and get a great car ) and since I'll save 5000 a year in tax.

pm me and I'll send you my spreadsheet.

[Happy Motoring]

Buy a Holden. Faster and cheaper.

[BMW ///M]

Originally Posted by Happy Motoring

Buy a Holden. Faster and cheaper.

Would that be a 2019 Holden Commodore? 0-100 = 7 seconds?

Not faster. Worse quality.

Or would that be a HSV? Not faster. Worse quality. Costs more.

[Happy Motoring]

Originally Posted by BMW ///M

Would that be a 2019 Holden Commodore? 0-100 = 7 seconds?

Not faster. Worse quality.

Or would that be a HSV? Not faster. Worse quality. Costs more.

I underestimated the M2 and overestimated the Holden. Fastest production HSV seems to be GTS-R W1 that will beat the M2 by .1 in 0-100. OP probably can't afford it anyway let alone find 1 of 300 so I'll leave it at that.

OP I was in your shoes 2 years ago. Housing prices in my region were going up and I didn't want to pay inflated prices. So I decided to splurge and get my M2. I don't mind renting and am slowly building back the house fund. Everyone has different goals and what they want in life. You decide what's best for you but anyone with financial sense will tell you to wait on the car. Besides, having a car in Sydney is more hassle no? Good luck on whatever you decide.

[GMe90]

Originally Posted by johnyj89

Hello Bimmers

I plan to buy a new car, the current choice would be 2nd hand M2 / M2C or a brand new convertible pony mustang (2.3T). I'm living in Sydney, In australia, M2 and M2C are charged with LCT(luxury car tax), it's more expensive than in other countries.

1. M2/M2C
I'd only buy the m2/m2c sold from dealer.

-M2 2017 LCI with 28,000kms - $80,000 [drive away price, which means it includes the expensive stump duty(car tax)]

-M2C 2018 with 2000kms, Demo car - $94,000 (Drive away price). M2C has 3 year warrianty and 1 year free service covered.

The insurance cost of M2/M2C are same.

My question is that in terms of running cost (Fuel, repaire, maintainese), which car is more cheaper to run for next 5 years?

2. Car Loan

My current salary is $80,000 p.a. after deduct tax and super, i have $60,000 p.a. I does not own a property, I'm 29 years old.

If I take a car loan with 20%-30% balloon payment, is it worth? If it is too stupid, i would go for mustang. My job is stable, My main concern is that the car might be damaged or stolen. Insurance covered it but it would make lots of trouble.

I posted in here because i believe people in here is more real, not some high school kids or unemployed bloke pertending to be car enthusiast in the internet.

*I thought about 2nd 2017 M4, but I assume the running cost for M4 is much more expensive than M2C. The insurance of M4 is also much more expensive than M2C.

Be honest with yourself, as it will serve you well financially. You can't afford the M2. The price of the car you buy should AT MOST be 33% of your annual salary, and even that's a high price for a car. Buy a used BMW with high mileage/age that is well taken care of. It is still a BMW and will be fun to drive, especially the older ones. And the repair costs will not exceed the depreciation hits you'll take on the M2.

[BMW ///M]

Originally Posted by GMe90

Be honest with yourself, as it will serve you well financially. You can't afford the M2. The price of the car you buy should AT MOST be 33% of your annual salary, and even that's a high price for a car. Buy a used BMW with high mileage/age that is well taken care of. It is still a BMW and will be fun to drive, especially the older ones. And the repair costs will not exceed the depreciation hits you'll take on the M2.

Unfortunately it doesn't work that way in Australia. The average new car price is about 30K and due to luxury car tax on anything more than $66,000 prices over that quickly escalate.

If what you said about 33% was true no-one would buy new cars in Australia at an average wage of about $82k

Let's face it, if you're earning 80k and you live at home with mum and dad and have no rental/household expense. You certainly can go nuts and buy that M2 - no problem at all.

Is it a good idea? No. Neither is buying a car new. Or putting on PPF but people still do it.

However I will say that I wish I had invested in property (or Apple) at 18 - I'd be a very rich man today if I did.

At 80k he's earning $1800 per fortnight and the OP definitely can afford the $400 p/w the dealer is asking.

And really 300 grand a year is your affordability price for an M2?
///M

[TemjinX2]

yeah from what i heard...the US and the Uk are probably cheapest places to buy used cars. After brexit...it might be worth it to import some used UK cars into the US lol.

[Yvette]

Originally Posted by TemjinX2

yeah from what i heard...the US and the Uk are probably cheapest places to buy used cars. After brexit...it might be worth it to import some used UK cars into the US lol.

Canada is probably cheaper than US

[babaikram]

Percentage for percentage M2 holds its value most well amongst the current M cars. It is the cheapest to lease in the UK currently amongst the M cars because of this.

What about m240i, granted it does not have the chassis, handling and the overall exterior look of M2. It is basically the same interior as OG M2, the straight line speed is the same or faster than OG M2. The handling is significantly improved with LSD (from BMW or aftermarket). It is far cheaper to buy used and far cheaper to maintain than M2 or M2c. If you get one with MPE, it might not be as loud as OG M2 or M2c but it sounds better than M2c and probably than OG m2. You would satisfy the need for speed whilst you maintain a healthy bank balance. m240i is probably the closest m performance car to its full M sibling in the current BMW lining up

Just a suggestion

[10"]

Uh. Don't buy a car equal to your income. Ever.

Stick to the 30-40% rule. Someone else here said 33%—-good idea. Pretty sure there are plenty of cars in the $30-$35 range for you.

Work hard, get a higher income, then get that M2.

[Artemis]

Originally Posted by 10"

Uh. Don't buy a car equal to your income. Ever.
Stick to the 30-40% rule. Someone else here said 33%—-good idea. Pretty sure there are plenty of cars in the $30-$35 range for you.
Work hard, get a higher income, then get that M2.

"The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind." (Thornton T. Munger)