First car as new grad?
Will be graduating in May and need to purchase a car as my job (AM; base 100k, bonus 50-100k expected) requires that I commute daily. I was initially just considering getting a new Honda civic or Toyota Corolla Cross (cSUV) but am now finding that some used luxury cars are available at the same price point with relatively low mileage. For instance, I can get a 2020 BMW x1 with 20-30k miles on it for ~30k all-in, vs a brand new Honda Civic for 2-3k less. Obviously maintenance and insurance would be more on the BMW, but is it worth getting something like that as opposed to the reliable, brand new Honda?
I'd hope to stay at this firm long-term (fingers crossed) so I'm not concerned with needing to offload the car in 2-3 yrs if I change jobs and move to a city. My thinking is that I should just get the reliable Honda now and then upgrade to a newer, more luxurious car in the future once my comp is higher if it's needed. I'm also not too worried about what some girls might think of a Honda vs BMW-type.
Based on the most helpful WSO content, it seems like there are a few things to consider when choosing your first car after graduation.
Practicality: As a new graduate, you might have many expenses and should also be trying to save if you can. Therefore, it might not be the best idea to go for a luxury car right away, even if it's used. The additional expenses such as higher insurance, parking, premium gas, and occasional repairs can hit your budget hard, especially if you're working on a 100k-200k pre-bonus salary.
Value: A new Honda Civic or Toyota Corolla Cross might hold their value better than a used luxury car like a BMW x1. German cars, in particular, are known to depreciate quickly and can be expensive to maintain.
Image: You mentioned that you're not too worried about what some girls might think of a Honda vs a BMW. That's a good mindset to have because at the end of the day, a car is a tool to get you from point A to point B. It doesn't define who you are.
Future plans: You mentioned that you hope to stay at your current firm long-term and aren't concerned about needing to offload the car in 2-3 years. That's another point in favor of getting a reliable car like a Honda now and then upgrading to a more luxurious car in the future once your compensation is higher.
In conclusion, based on the WSO threads, it seems like the more practical choice would be to go for a new Honda Civic or Toyota Corolla Cross. They are reliable, hold their value well, and have lower running costs compared to a used luxury car. Plus, you can always upgrade to a more luxurious car in the future when your financial situation allows for it.
Sources: First car after graduation?
f80 m3 in yas marina blue
Imo, get the ~cheapest most reliable car you can right now. Nothing like having a reliable paid off car when young. Go up a rung when you’re 25-30yo if you so wish. But save as much as possible today. The BMW could be sweet but if you end up unlucky, they can get real expensive and PITA to maintain
Go for a cheap car you’re first car out of college. I love cameros and miatas if you like something sporty. Everyone has a mercedes/bmw/audi these days anyone so those cars aren’t worth it unless you genuinely really like them.
Thes Teslas are a steal right now at 30k-40k after the tax brakes. They have less depreciation then any other normal car for the most part and are pretty reliable. The interior is a bit plastic-y but overall still feels nice.
I get that it’s not a BMW or a Porsche but it’s got some pep and can be fun to drive. The autopilot is also incredible for any traffic you encounter.
Teslas are great for date nights with your boyfriend at the gay bar
Not everyone needs a monster truck to overcompensate for what’s down there like you.
second this. Teslas are gay. They scream liberal LGBTQ enjoyer, I meant... supporter... yes, supporter
get yourself a Mercedes C63 AMG Copue and never look back
Why do so many people purchase that car? Not much of a car person
big dick energy
Realistically you're not providing enough context. How far is your commute - stop/go vs freeways? What's the weather like - do you expect a ton of snow or rain?
Rates (and prices) are still pretty bad, especially for used cars, so I'd focus on getting a brand new car personally. Honestly the new Prius is getting pretty rave reviews from boring people and automotive enthusiasts alike. Also, the Honda Civic is always a solid contender, and the new design looks pretty upscale.
Also, a girl who judges you for driving a honda vs a bmw is not the type of girl you want in your life long term lmao.
Agreed. The 2024 Prius LE is one of the most sensible cars to get for anyone (assuming you commute more than a couple miles and gas isn't crazy cheap). It's as close as you can get to an "investment-grade" decision when it comes to automobiles.
I don’t know what’s more alarming, the fact that you really expect you’re getting 50-100% of base as a bonus in AM, or the fact that you consider an x1 as a luxury car lmao
Ut omnis qui quo aperiam iure enim non. Sunt voluptatem est et nam. Quia omnis nesciunt commodi nesciunt.
Est dolores rerum voluptatem assumenda consequatur mollitia. Minima voluptatem eum doloribus dolores voluptatem non. Minima delectus libero voluptatum quis minus aliquid blanditiis. Aut voluptatem nihil corporis aliquid aliquid laboriosam neque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...