Just had my SUV breakdown on me and it's become a money pit with what I keep putting into it on a yearly basis, so have started looking at new rides. I will be commuting to work because I'm in a LCOL city, so can't go without one, and am heavily leaning towards buying used. I was wondering if anyone has insights/thoughts on trying to "time" the car market and postponing the purchase until early summer or if prices aren't going to really move in that time frame and I should go ahead with it right now?
Additionally, what would a sportier car like an M3/M4, S4, or something of that style look like as a junior?
TIA
If you need a vehicle right now, you're going to have a bad time. If you can postpone until summer at the earliest, that'd give more time to see if any of the pricing is going to revert or continue on at an elevated level. With your experience with the SUV, I'd suggest just getting something reliable and comfortable for now that can last a solid 5-7 years and get the fun car as an extra later. Especially if you need a commuter and practicality first.
As for feeling pigeonholed by a particular car? Most people just see an M3 or S4 or an AMG as another 3 series or A4 or C/E class anyways. You're more likely to get a nod from another car person who wants to give you a fist bump for good taste, or out yourself if you're one of those braggards who runs around talking about how "I GOT THE MOST SWEET ASS RIDE YO!" (we've all worked with one of those guys, DON'T be that guy.)
I do pretty much need one now at school, but I could probably manage waiting until May. My dad used to have an M3 and I loved it, so that's why I'm looking there. Agree with next 5-7 years timeframe, which is why I'm leaning towards a lexus RX 350 because I think maintenance and other unforeseen costs will be much lower than an M3/4. I will definitely not be the Analyst running around the office saying how sick my car is, if I go with the M, though. Thanks for the comment.
Can vouch for Rx350, great car. Can't speak on long term reliability >5 or so years, but the last 4 years I have had one it has been great.
second the RX, love it.
Definitely go used, and if you want to go the sporty coupe route, get an E46 / E92 M3 or an M2 Competition. It all depends on your budget really.
Timing the car market is next to impossible right now, but patience will get you a long way. Find the make and model (s) you want, and track those cars closely. Reference KBB and Edmunds for a fair purchase price and check places like Autotrader.com where you can potentially buy from a private party. If you want a BMW, you gotta check out Bimmerpost, where you can find great folks who will provide you with a much more reasonable price if you buy their car.
I am by no means saying the M3 / M2 is the way to go (personally my M3 has brought me more joy than any other material purchase), but if you do want one, that would be my approach.
If you are looking for something more practical, happy to provide suggestions, I know a fair bit about cars.
I am currently looking at an RX 350 F sport for ~41k. Also have found a few M3's and M4's for ~45k or so. I love the M3, my dad used to have one and when I would get to drive it was a fucking blast. I'm in IB and have a base of 110, so feel anything 45 and under is extremely feasible. My biggest thing is my previous car was a BMW so am a little weary of maintenance costs with an M3/4 whereas the RX would probably run until 150k miles with minimal shit other than oil, tires, and brakes. Would appreciate your thoughts given my budget. Thanks!
I'd follow DealTeam's advice. He's spot on about the BMW forums to get more info from. Whichever mfgr you go with, three things to keep in mind for maintenance: 1) do a lot of homework on places like Bimmerpost for BMW or Audiworld to see what the common things are that may seem big from a distance but are almost trivial if you do some homework, 2) find a CPO with an included warranty once you've decided on the model, or 3) make good friends with a local specialist shop instead of getting overcharged at the stealership.
I'll defer to DealTeam about specific model suggestions for BMW. He knows more of the current BMW stuff so outside of something like a 2022 M5 CS that needs no help, I'd be hitting them up myself. My wheelhouse is the BMWs from three generations or so back.
I don't know enough about the RX 350 to give you even a half decent reply, but I know Lexus SUVs are historically phenomenal cars. A close friend of mine ran up 190k miles on his before trading it in (it never failed him). Another one of my friends has a late 90s Lexus SUV that is going strong at ~130-140k miles. That is Honda / Toyota level reliability, but with the premium Lexus quality. From my 2 minutes of research the car appears to have gotten some mixed reviews, some great (see the Straight Pipes on Youtube) some less than ideal (Car and Driver). My assumption would be if you're looking for a reliable SUV that can handle all terrain and seasons, you probably found a solid one with a higher degree of luxury without paying the big 3 (Merc / Audi / BMW) price tag.
When you say you found M3s / M4s for 45k are you referring to high milage F80 / F82s? I don't know much about how they price but if you found a low mileage one for 45k with no accidents I would assume you're getting a solid deal. Nice thing about the F series is you pay a fraction of the sticker price (car probably depreciated 40-50% yet was only driven 15k-30k miles), AND you can still get a warranty through a dealership (obviously not the case if you use Bimmerpost).
The thing about BMWs is that their engine quality does vary significantly, and you need to know what you're getting into. If you go no warranty or you plan on owning the car past the warranty end date / max mileage you need to understand what is likely to go wrong with the engine. I did extensive research into my M3 and when I bought it I brought it into the shop for around $6k of preventative maintenance. The downside of a newer car is the engine flaws are not always known, as many people with M3s / M4s have less than 40k miles on them.
Out of curiosity, any reason you like the M4 over the M2 Comp? Also, is this just a daily driver / weekend fun car, or do you intend to track it?
Why are you recommending used? With the way the used market is right now you're within spitting distance of new and you're going to be way underwater on a used car with any turn in the economy (or supply increase). It may take a little longer to find a new car, yes, but it doesn't make sense to pay the high used prices right now.
The BMW X5 M Competition is a pretty sweet ride also. 0-60 in 3.7 seconds.
https://www.bmwofturnersville.com/2021-bmw-x5-0-60/
I love the X5 M, think it's a little bit out of my price range currently though. Will see what I find online
As any trader will tell you, immediacy and specificity are expensive. The guy who wants the preferred model and color today, is going to pay a lot more than the guy who can wait and who isn't picky.
So if you can be flexible on which car, then maybe you don't have to wait because at least then you're only paying up for immediacy. 1 out of 2 aint bad.
These days I would definitely go used because the companies have done a lot to improve that experience. Carvana pretty much started it and others have been forced to make it easier as a result. Would still do Carvana though because I think they're the only one offering a true national inventory.
Used is a horrible idea IMO. Used car prices are highly inflated and rival new car prices. Why buy a used car (which is way out of warranty - especially helpful if you're looking at a BMW) when you can pay an extra few $k to get brand new (with factory warranty)?
I just ordered a brand new RS5 at MSRP. They are out there. Dealers are getting in trouble for adding the market adjustments to MSRP (Audi, Ford, others). I'd consider going new vs. used in this current environment.
First off, as has been stated, the used market is way too fucking hot right now because of what's happening. The question I think you should ask is how much will the money sink will cost to fix to tide you over until the market starts to come down. Remember, if you use the car as part of your trade-in, the dealer can discount the trade-in value by the cost of the repairs needed. So let's say you have totally shot brake pads and rotors, you're talking about $400 in costs if you fix it yourself. If the dealer has to replace it, they will take off the costs to fix it (let's call it $650) based on parts and labor. Unless you can find a buyer who wants a fixer-upper, you'll be hard-pressed to get as much value as you can out of the car. As far as the inflated delta on your car, I don't think it will be as high as you expect. Take a look at its KBB value using "Good" condition, and using the lowest setting. Just keep that one in the back of your mind because dealers will try to offer on the lower end of what you'd expect.
Second, if you are buying used, you need to do a ton of due diligence on the make and model you are buying. It's not just the cost of the car and issues with the specific car you want to drive off the lot. I'm talking high level - what's the engine? Are there any problems to be aware of? What's the maintenance like? How much is an oil change going to be? Are you dealing with offset tires? Stupid stuff that no one thinks about but is important. I got into this conversation with my dad about his car (a 2020 Benz C-Class) and how much it costs to do an oil change on his car vs my car. Mercedes makes it hard to even check the oil on some of their newer cars, and replacing it requires a decent amount of work. I drive a Subaru and can do my own oil change for under $60 bucks. Something as stupid as that matters. Personally, I'd advise going with a Japanese car over a German brand if you plan to keep it for a few years as well. The maintenance costs will be lower in general.
Additionally, and this is just something to consider, but what are the winters like in your LCOL? Have you calculated that into what kind of car you should be looking for? While a sporty car is great, if you're in a place with shitty winters, having an SUV or a car with AWD may be a better option. Remember, this is your Daily Driver. It's supposed to handle all your daily needs. A sports car is great, but does it give you what you need in a Daily Driver? If this is going to be driven for 5-7 years, you have to think about this over a longer time horizon.
So, I'd happily suggest a more 'normal' car with AWD if you live in a LCOL city. If you want the car to last for awhile, I'd suggest TOY, HON, KIA or SUB (but new given how inflated current prices are). Pocket the rest of the cash into your bank account/savings for now and let it keep growing. Keep fixed costs low and keep saving away. This would allow you to position your financial position to a point in 5-7 years time to make that "fun" purchase with all cash-in, or borrowed at a low APR%. I thought it was nonsense that a used 100,000 miles vehicle was worth $15,000-$25,000. You can get a new car for that price. Avoid the dealers that charge more to the MSRP to the vehicle. They are getting in trouble with that practice.
Honda CR-V (I lease one, GREAT car, I'm 6'4 and fit comfortably, and it is easy enough to park in NYC)
Lexus RX
Toyota Rav-4
Believe it or not Hyundai Tuscon or Santa Fe
OR say fuck it and get a Bronco...in white.
Dad just got a 7 series. Bimmers are in solid supply right now, especially the nicer trims. New m3/m4 might be trickier because of demand but worth a shot.
Thought you might be interested in seeing this re: used cars. https://fortune.com/2022/02/10/used-car-prices-soar-45-percent-in-a-yea…
I know you're looking for sportier cars, but I'd recommend the following:
- Subura BRZ/WRX/WRX STI. Pros: high-value for less $, top-tier reliability, any mechanic can work on them, you can run them into the ground. Cons: people may wonder if you hug your Vin Diesel posters before going to bed each night, not really luxurious especially when compared to German engineering, 'dude... a Subaru? Nice Birkenstocks' comments from others
- Lexus IS 500/RC F/LC. Pros: understated but high quality, most mechanics can work on them, since Lexus is from Toyota maintenance/repairs are usually cheaper compared to German luxury cars. Cons: Less focus on performance compared to German cars, less 'bells & whistles' / gadgets, may leave you wanting 'more' that German cars typically provide
Good luck man. Let us know where you land.
Ideally it'd be best to wait until the end of '22 or early '23 cause new and used car prices are absolutely juiced right now. That definitely applies to M3s and M4s (both F8x and G8x). F8x prices are like 10-15K higher than what i recall seeing in the early stages of the pandemic (trust me, I've been looking at M4s too). That was the golden time to buy. But I understand the urgency of your situation may not allow you to wait much longer. You're not likely to get a good deal on any ///M cars but other brands may be more forgiving.
Don’t worry about timing the industry. It’s going to remain the way it is for a while now. If you are going used the only thing I would caution is the dealer mark up will be significantly more so less of your down payment will go towards actually lowering your LTV. It will likely go straight to a dealers pocket. New cars will still have a mark up but you can get them closer to MSRP in most cases except for the highly coveted units. I will emphasize doing research on good/fair pricing on a unit in your area before purchasing! Good luck
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