WSO-
Would like to get everyone's opinion on a particular situation. I am starting as a first year IB analyst very soon. Im going to be living home with my parents (paying no rent) nor will I have any other costs besides maybe cell phone service. With that being said, I would like to ask if it is outlandish to lease a new car (think Audi A4, 3 series, C class).
Keeping in mind that I dont have many other costs, is it absurd of me to pay ~$440-$500 per month on leasing a new car? Im not a flashy person nor am I trying to show off, I simply just love cars. My question is that is it too much at this stage? The alternative would be to lease a Honda Accord or something around the $320 per month range.
Would like to hear your guys' opinions. Honestly just confused. Thanks for the help everyone
Leasing is rarely a wise move financially, especially with the fees they get you with at the end of a lease. You are much better off buying a three year old A4 and letting someone else pay for the depreciation.
An even better move would be to get buy with what you have now and save to pay cash for this car. Remember it's fun every rung up the car ladder you move. If you start 3/4 of the way up, there's less far to go.
I wouldn't recommend spending $500/month on a car lease when you're living at home with your parents. Why not go with the $300 range and save up to get your own place?
No offense but I never got the people who buy/lease a higher-end car whilst still living with their parents. If I were in your situation I'd be buying a decent 2-4 year old car and strategizing how I'm going to get out my parents' basement
Thanks everyone for your response. I guess I may have framed the question wrong. My issue is not moving out of my parents' home. I can do that anytime I wish. But when I can commute to work and not have to pay for rent all while living in better conditions than a small overpriced apartment, then why not? Kind of confused by the sentiment here.
The sentiment is likely due to the fact that most people don't enjoy living with their parents. The lack of independence/freedom is frustrating/unenjoyable for most young professionals. (I know I would hate it). But that said, if you don't mind it, it definitely doesn't hurt. Think most people find your priority of splurging on a nicer car before living independently as different from their own priorities
I don't think you framed the question wrong; it's just that everyone is picking up on how you want to live at home rent-free and lease a new Audi. You have a job now, so quit milking your mom. You're probably still going to get the Audi, but I'd recommend getting used car and save up to get your own apartment. Its part of growing up.
Dorkiest thing I've read on here in the last 15 minutes
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If you do take a lease on this car, then when it is time to move out (because that time has to come at some point), you can automatically add that lease to your rent for monthly expenses. So no, do not lease a high end car out of undergrad. Save your money, save all your money. If the point of living at home is to save cash, you will feel defeated if at the end of the year you actually didn't.
Go to CarMax and buy a used Honda Accord or Toyota Camry. Why on Earth would you lease a luxury car at this age? You really aren't earning that much money.
This. You aren't going to be driving much to enjoy it anyways. You would be better off spending more money to live closer to the office as you will cherish the saved commuting time you can use for sleep. Not being a prick, just being honest.
NOT this. Carmax? I thought you we are supposed to be "deal guys". Go to used car lot and make them bleed.
Dude just buy a used car
Is this car appropriate for a first year analyst? (Originally Posted: 05/05/2016)
I am graduating and accepted an operations analyst position outside of NY/SF 55k a year and I will have a bit of a commute. I have been saving for a bit through college and also have some trade in money from my current car. Would it be appropriate for a first-year analyst to buy something like a 2012 cadillac cts, chevy camaro, or ford mustang? Definitely remembered at my internship (with another firm) the guy who had a brand new C63 and all the jr analysts never took him seriously.
Dude, you should ride a bus or subway or smth.
I don't understand why people care so much about this stuff (and why you wouldn't take someone seriously who drives a c63...there is a level of jealousy around these boards and other places that is just strange).
As far as whether the car is "appropriate", drive whatever you want. Get a car that you like and if you enjoy cars decide how much you want to spend on that and get it.
Personally, I wouldn't spend much on a car at beginning of my career. You are just starting off, you will have many financial obligations, and you never know how things will work out at a new job.
You'll make 55k a year, and you want to buy a car which will only depreciate in value, and require money to maintain?
Hmm...
so you suggest no car?
Hmmm...
Well, there's nothing wrong in getting what you want for yourself but you have to be practical in spending your money. As what @worlikeamachine said maintaining a car requires a lot of money.
It's your money. Do what you want. Don't pay attention to other's possessions, it's none of your business.
any of the cars i listed have less maintenance costs than the car I'm trading surprisingly
Which is more than none.
You don't need a car in NYC, and I don't know why you'd want one while making 55k. It's your life, do whatever you want, but realize how much you're actually spending on a car and how little you're going to be saving.
Bunch of pretentious and fake people here.
I said i was outside of NYC, i have a 30 minute commute
If you need a car, just drive a car. any car.
Just get a reliable car that's within your budget. Don't worry about what other assholes think. If you do a good job at work, it doesn't matter what car you're driving. Make sure you factor in maintenance when considering how much car to buy.
Google it - various websites (I prefer Edmund's) has car buying guides, tips, etc. I would get the most economical car you can afford without breaking the bank. I have had numerous sport cars in the family before. Unless you are breaking in a lot of cash, I would not recommend it. People abuse these things and then sell it off or trade it in when it starts having issues (they race it, not realizing the damage they are doing to it), and roll over the negative equity to the new car loan --- rinse and repeat.
Being in NYC, I would assume to think a hybrid or electric vehicle will work greatly towards your favor. However, it being the east coast, look towards an AWD vehicle that will not break the bank. Bottom line, safety and reliability is the idea, it is your life not anyone's else.
...You could always move into the city and not have to worry about having a car...easier lifestyle and less stress involved. Bills are the worse thing for anyone.
I'd get something fuel efficient and as said previously with all wheel drive. Sporty cars with low ground clearance will be a huge pain in the snow, but I'd probably take the train. Parking in the city is easily 300+ a month, it's also a huge pain to get a spot. Will you actually be driving in or are you driving to the Metro North, LIRR or PATH station? Because if that's the case the parking issue is moot.
In California you don't need all wheel drive and can go get something sporty, just try and keep it relatively inexpensive.
That 55k is going to get hit by state and federal taxes, plus you should be saving for retirement and for short and mid-term goals (a home, rainy day fund). It makes zero sense to pour money into a depreciating asset. No one cares what you drive I've known plenty of analysts through MDs and partners who drive affordable cars or even pieces of crap. Nobody cares what you drive. I've known very successful businessmen who drove Honda civics and pick ups. I doubt they cared what anyone thought.
i personally like driving something a little more on the fun side, but I got into a 2010 Infinity G37 sedan. So far Im happy with it and the payments aren't a huge fraction of my take home pay
It is not the monthly payments that count, it is the upkeep of the vehicle that will hurts the most. Have fun!
Used to have a 2004 BMW 3 series, so I think I know what to expect. Thanks though
Poe's Law is getting me on this one.
Ignore all these knuckleheads that live in NYC without a car and can't comprehend your question. Amazing that some people don't read . . .
I think that your priority should be work and no one likes a first year guy that misses days. So my advice to you would be to get something that is reliable and easy (in effect, quick) to maintain. I would go with a Honda or Toyota. Highly reliable and everyone out there works/fixes these cars and parts are really affordable. You can get oil changes on your lunch break and if you have an issue, you wont have any shortage of shops competing for your business and get you back on the road quickly. With something like this, you wont even have to think about maintenance on your car (i.e. missing days at work) and you'll be better off for it.
Definitely the Toyota Yaris. It has future BSD written all over it .
http://www.toyota.com/deals/yaris
2 questions:
-if you're an IB analyst, I'm assuming you're in a city like NYC or SF, why do you want a car in the first place?
sidebar: if you're in Charlotte, Houston, ATL, or somewhere else, then yeah you might need a car
-why a new car? what I would do if I was in your shoes (what I did personally) is look for luxury cars that just came off lease that are the same body style as the new ones. you'll get it for about 50-70% of the cost and they'll have low miles. since this year is 2016, I'd look for 2012 or 2013 models.
an even smarter play here would be to get something like an accord or camry. you don't need a luxury car unless you're entertaining clients (which you're not as an analyst). I only own what I own because it comes with the territory.
but yeah, you should bank all that money you're not paying on rent so you can get out of living with mom and dad. unless you have a separate guest house, I doubt you're getting much action with women living with your 'rents.
Car Recommendations - First Year Analyst (Originally Posted: 04/12/2016)
Hi All,
I'll be doing IBD next year in a city that requires a car. My base is the standard 85k and my rent is around 1500 including utilities. Do you guys have any recommendations for what sort of car or range I should look at? Also would appreciate if anyone had advice on car insurance. From what I've seen so far, insurance rates are ridiculous for someone my age (200+ a month), but don't seem to scale up that much when I enter a nicer vehicle (maybe 20-30 bucks). Thanks everyone
Edit: Also, in TX we are required to pay sales tax on the entire cost of a vehicle even if leasing, so not sure if leasing is ideal (though there's owner's choice?).
Used Honda Accord or Toyota Camry. Don't be one of those analysts who buys a used BMW 3 series. Once your warranty expires, it will be a nightmare to maintain.
Honestly surprised you're being quoted so much for insurance, I pay like $90 a month. I bought a car off my parents btw.
If you must go for a more upscale brand, maybe look into Acuras. The new grills are ugly af though.
Find a good insurance broker for your car. The best ones know how to play the system and get you a killer deal. Try bundling in renters insurance as well.
I'm probably only going to keep a car for 2-3 years. If after 2-3 years I decide I want to stay in banking, then I'll probably get a nice car. If I decide I want to do something else, I'll likely move to SF or NYC, so I won't need a car. Does this change your answers at all? This is one reason I was considering leasing, since I wouldn't have to deal with the payments after and could easily transition out.
Thanks, yeah I have been thinking that a used reliable car would be the best option. One thing I noticed was that Honda's that are a couple years old have barely depreciated at all. Seems like new nissan or mazda are selling for comparable prices. Are you over 25? Apparently the rate drops a lot then, but this is the cheapest I've found. If not, do you have any recommendations for insurers? A couple companies I've found were quoting me up to 400 a month, which is frankly ridiculous. Not sure what accounts for this huge discrepancy in pricing for similar coverage, but ~190 a month is the cheapest I've found. Thanks, I will check out the Acuras. I was also looking into infiniti. Both seem to be fairly reliable and cheap to repair since they're Japanese. Would likely lease if I went with these upper end cars, as I'm not sure how reliable older luxury vehicles are and I really don't want to worry about maintenance and taking my car to the shop when I'm working banking hours. Thanks, I'm on the hunt for a good broker. Bundling seems like the way to go, as I can save money on both policies.Lease a car. If you plan on potentially not having it anymore after 2-3 years if you decide to move to SF/NY, just lease it. You can probably lease something nice (like a low end 3 series) for ~400 a month. With the lease then you also don't have to deal with trying to sell your car when you move.
I'm also considering this. If roughly 200 a month regardless, the difference between buying a used 15-20kish car or leasing a new low-end luxury amounts to about an additional 200 a month or 2k a year. I'm pretty into cars and don't spend money on alcohol or going out generally, so doesn't seem like a bad deal
Check out esurance for quotes, they are way less than everyone else, at least for me.
I just went through the online process and they quoted me literally 423 dollars a month when I inputted a used 2013 honda accord. Not sure how that is even possible lol
Also I would recommend buying a new Toyota camry, with multiple quotes via their online emails. You can get dealer incentives and extremely competitive prices to the point of one year used cars.
Which used car under £25k? (Originally Posted: 06/04/2011)
Hey all,
Apologies for starting another thread about cars, but I was wondering which cars you'd recommend in London for £25k or less? I'd prefer a sports car, but would also consider a 4x4. Ideally it'd have less than 30/40k miles on the clock and be at most 5 years old. Links to for sale ads would be much appreciated!
So far I'm thinking about Jaguar XK or a BMW 650i. A decent XKR or M6 would probably be outside my budget, but if it's not too far off then I'd be open to stretching a bit.
Thanks!
If you buy a used - bmw, audi, benz, lexus - you will have to pay for the maintenance, which will be astronomical. Imagine every month you pay $300-500 for your monthly payment, then any time a dashboard light turns on you take it to a good inexpensive mechanic (take to a dealer you're talking 3x more $) you're looking at +/-$800 in repairs probably every month. Not to mention those cars will usually take premium gas, full syn oil changes etc... Everything is more expensive & everything brakes.
Get a used honda civ/accord
We are talking about BMW/Mercedes/Lexus not Ferrari/Lambo... come on. $10k/year? Get out of here
2005ish M3 coupe.
Just had a look on autotrader and you could pick up a decent one of those for around £15k, but it would be an E46. E92 would be closer to £30k, which would be out of my budget.
http://www.google.com/imgres?imgurl=http://farm4.static.flickr.com/3474…
I would definately take porsche caymans/boxsters in consideration. For 25k you can get a 2007+ porsche with 30k miles on it. Obv the 911's will be a lot more expensive, but the caymans and boxsters are really just as much fun.
Also Mercedes SLK is a real fun ride, for 25k you can get a 2005/2006 55 AMG model, which is incredibly fast. For the same price you could get a regular 2.0ltr-3.0ltr 2009+ model. Guessing the latter would money wise be the best option, knowing you probably pay 1.60 pound per litre of gas in london. The AMG really slurps down the gas.
Not that big a fan of the Boxster but the Cayman is a good shout. It'd have to be a Cayman S though, as I've driven the 2.7 L version and found it quite dull. Even then, would you take a Cayman over an XK or a 650i?
Petrol is ridiculously expensive over here, but I'd only do 5k miles/year at the very most so I'm not that bothered about fuel economy. I quite like the idea of an AMG tuned Merc if I can find a decent one within my budget...
Here's a few I found:
SL 55 AMG http://www.autotrader.co.uk/classified/advert/201121387992539/sort/pric…
CLK 55 AMG http://www.autotrader.co.uk/classified/advert/201112382722397/sort/pric…
BMW 650i http://www.autotrader.co.uk/classified/advert/201117385581128/sort/pric…
Jaguar XK http://www.autotrader.co.uk/classified/advert/201122389259987/sort/pric…
BMW M3 E92 http://www.autotrader.co.uk/classified/advert/201122388601759/sort/pric…
BMW M6 http://www.autotrader.co.uk/classified/advert/201118386063182/sort/pric…
Taking into consideration cost, age, mileage, etc., which would you go for if you were me?
Thanks!
1) M3 E92 - I've driven this car and from a fun/performance perspective, it's way ahead of every other car in your list
2) SL 55 AMG - Good looking car, but a big heavy engine which will probably kill you on insurance as well
3) BMW M6 - Engine in this car is phenomenal and it's fun to drive but nothing like an M3
4) Jag XK - Looks nice
I would consider the M3 E46 if you can find a CSL version. Best M3 ever made.
Your kidding right, the CSL is a shitty car for an actual driver. Its awesome track car but is far to uncomfortable for just driving.
Have you considered a sports motorcycle or just looking for cars?
Only cars, I'm afraid. I've never driven a proper motorbike, only a scooter, and even that scared the crap out of me...
From that list I'd say go for the M3. It's relatively young, but has had it worst depriciation period already(first 3 yrs). 30k miles is nothing really. Tbh it's hard to give "advice". Buying a car is so personal..all those cars you listed are from good quality and can be driven hard. Then someone can say "Go buy the M3, it's really the best driving experience!!!" but then someone else will tell you "Take the Merc man, steering is really good and when accelerating it feels like you're in a plane". Point is: everyone experiences a car differently and I think moneywise it's not all gonna differ that much. Also If a car is dealer maintained and has 50k miles on it, there's not much to worry about IMO. It just comes down to personal preference, regarding looks, driving experience, space etc..
BTW yes I can imagine taking the cayman over a XK/650i..but I don't care so much about speed, anything above 200hp will do for me. I just go for looks
Yeah, it really is a subjective thing. The roads over here aren't as big as in the US so you'd rarely get a chance to drive it particularly hard. So for me, the most important things are looks and noise and on those fronts I think the XK and the SL55 pip it. I have a slight preference for the XK because of the extra seats, but it's a tough one to call.
I'm going to see the 650i today. It's the ugliest of the bunch by a long way, but it's incredibly good value - £18k for a 2007 plate with less than 20k miles on the clock.
If you like noise the AMG's are probably going to win out. The problem is your bang in the era of crappy mercedes built quality and those AMG's are notoriously expensive to fix. Check out an M3 with a meistercraft system.
btw if you drive 5k miles/year there's not much to worry about regular maintenance :)
Just took the 650i for a test drive. It was so, so. Felt very big and it's even uglier in person, but boy is it fast! It really is good value for money, but I'd probably get very bored of it quite quickly and end up changing it within a couple of years.
The SL55 AMG is a no-go. I called them to find out if it was HPI clear and it turns out that it's a Cat D. They conveniently left this out on the advert... No wonder the price was only £25k.
I just picked up a low mileage e46 M3 and couldn't be anymore happier. I also looked into an e92 but could not justify the 70k price tag new, even 50k used. E46 is the last naturally aspirated straight 6 M3 BMW will produce. The M3 is the best bang for your buck guaranteed.
Yeah, the CSL would be a no-go for me. I have no doubt that it'd be a lot of fun to drive, but it would be wasted on me.
I'm going to a Jaguar garage tomorrow to test drive an XK. I've never really had a proper look at one in person, but from youtube videos I can see my self ending up with one of these. It's quite easily the prettiest car within my budget and has a gorgeous sounding V8.
Dude. I get it. I know how you feel. I'm in a similar situation as you where I'll be starting my first year (but I'll be in a townhome with 2 other roommates). Yes I love cars too. I love the C63 AMGs. I even entertained the thought of leasing one. However, it just doesn't make sense right now. Wait a few years. You'll be ok.
Don't buy/lease a car if you have to. Use your parents spare car, use your girlfriends car, take the bus, ride your bike.
Save your money and mooch m'fer!!
Yeah, I made a killing at my last job eating other people;s lunch our of the fridge every day. Saved about $5,00 over the course of the year!
Who are you going to work for? I wanna know who is hiring SAs who can't do a cost benefit analysis of leasing vs owning a car and short the fuck out of them.
Indeed, going to be major stock driver, that; :D
makes more sense to get something "responsible" like a Ford Escape, Honda CRV, Toyota Rav4, ect... i understand that having a vehicle gives you freedom, but you want to be careful about the message that your choices send. Spending frivolously (an extra 10-20k on a car is indeed frivolous if you are not independent) sends all kinds of bad messages when you are not already well off.
Do you own your own home? Have 500k in the bank? Have zero debt?
if you answer no to any of these questions, then you should minimize your expenses until you can say YES to all of them.
Also, you should wait to see how you feel AFTER you have some money coming in and your bank account starts to grow. There is a good feeling to watch that balance grow.
Why spend so much for a car when you're going to be working all the time and not enjoying it? Kinda a waste in your first two years when you're just going to be going to and from work, which you'll be doing 70-80 hours a week. Save that paper son.
I would totally do it. I firmly believe you should always spend large sums of money on assets that only ever depreciate with virtually no chance of any sort of return, but think how cool you'll look driving an expensive car to and from your parents.
Lol ok dude funny line gotta give you that. Just a matter of different views
If you decide to go the $4-500 lease route, you really aren't going to get much value with the models you listed. Most at that price point are coming with synthetic leather and minimal options/packages.
Enjoy a nice car while you're young. If it's something you enjoy, why not? Better to drive a nice car now than to go through a mid-life crisis in your 40's and embarrass yourself by buying a shitty Corvette.
Save money now and then go straight for A8
I would personally save the cash; when you get to the point that you move out you have a realistic possibility to buy a place or at the very least, rent a really nice apartment
FWIW: I'm a car guy as well and wanted to treat myself to a car for graduation. If you do your research you'll find good deals. I ended up getting a 2013 C350 coupe for about 35k before trade-in and down payment at 2.99%. They even gave me my first two services for free, paid my first two payments, and it is certified until 2019. You can find a better deal buying used than leasing.
Lol some of you gotta chill out. But thank you to the others, appreciate the advice. I will look into other options and put the nice cars on hold haha
I can't fathom how you thought this forum would provide any other advice. You live with your parents and want to waste money on some 30k millionaire C-Class... if you expected to receive the green-light for a bad financial decision you came to the wrong website.
Wasnt expecting anything. Wanted to see the general sentiment around here since Im sure others have at least entertained similar thoughts.
Thought about leasing a luxury car too... don't forget the insurance, maintenance, and premium gasoline that goes with that.
I ran the cost/benefit analysis for you: bank the $$$ and get your cabs/Uber reimbursed by the office. If you love cars that much, use all the extra money you'll save to rent nice cars on the weekends when you can actually enjoy them.
+1
Assuming the commute is fine and you definitely don't need the car, then there's a lot of fun to be had renting good cars on free weekends.
No
Why would you even do this if you live in NYC?
Get the all-new, fully loaded 2016 MTA monthly metro pass - starting at $116, your's for a limited time only.
I'm going to provide a different perspective. Get the car.
You work in banking for a reason, and if you're not paying rent, then you're saving a ton of money as it is (this assumes you don't have debt etc). If you were paying rent, then no don't do it, but since you're not...yeah splurge on something else. You're still better off than your peers. The guy who said that you shouldn't do anything until you have 500k in assets is a nut. There's a thread that seems to run on this website that the best financial decisions are to be as cheap as possible until you're rich and then, only then, do you spend. But seriously, if I wanted to do that I would've just become a high school teacher and had summer vacations off.
if you are living in suburb of NYC/NYC this comment does not apply, do not buy a car under any circumstances here
I agree, it's not like OP is talking about leasing a 100K car. On an 85K analyst's salary with no rent (and likely minimal food expenses, etc) you'll have tons left over. I agree with others that it is a bit odd that your priorities aren't moving out, but 400 or so a month on a car isn't outlandish. I knew plenty of analysts who would easily drop that amount on like a Wednesday at 1Oak and weren't hurting at all financially. As others have eluded you shouldn't necessarily lease and could easily find a good deal on a 2012-2013 3-series for mid-20K and still have a warranty.
If you're in a regional city where costs are much less than NY then you should have even more of a spending buffer. I'd always find it funny when the analysts/associates from the Houston office would visit and talk about the cars they drive down there (way more outlandish than an A4), but I guess it is just part of the culture. In LA you will also potentially spend a lot of time in your car
Either way you should get a used car. what type of used car depends on where you're commuting to. If you're commuting to the train station and taking the subway into work might as well just get yourself a used honda. if you're commuting to you're actual place of work get a certified pre-owned benz with low miles so its less expensive but still a nice looking car.
I like leasing and BMW typically has very attractive terms for their leases. I don't want to deal with the long-term maintenance problems that most luxury cars come with after a couple years, and bmw covers all maintenance for the period of the lease.
Second, look into factory cars / service loaners. You can lease a 1 year old, fully loaded car with 5kish miles for the price of a used car. My first 3 series I leased fully loaded for a little over 300 a month. Current car is a 5 series nearly fully loaded for under 500 a month. You can get similarly great deals if you look for them.
Buying a used car is obviously the most financially savvy way to go, but for the features I wanted, the used cars I was looking at were like fully loaded accords or camrys. The monthly payment for these fully loaded a couple years used was over 300, and I knew that I would be getting a new car two years later when my income went up, so I pulled the trigger on the 3 series. Yes, you actually get ownership of the car if you buy, but knowing that I was going to get a new car in a couple years and that I got a fantastic deal deal on my lease, the numbers actually didn't end up being so different.
While I could never live at home with my parents, I totally understand your decision to do so for a year or two given that you live in a very expensive area. Not really sure why people are berating you. The difference between a good used car payment and a entry level luxury lease isn't that different. Even if it was, let's assume 200, that's not a huge deal if you have the rest of your finances in line and you're a first year analyst. If you're 100% set on living at home, then I don't think this decision is a big deal. Getting an entry level luxury car isn't the best use of money, but it's not going to break the bank and if it'll make you happy go for it. I don't regret my decision and I probably have far above average savings for an analyst.
Edit: Typo
^^ Had very similar thinking to this
Could you provide some insights on where you found a used 3-series fully loaded for just over 300 per month?
Sure thing! Check your local dealership for "factory demo" or "service loaner" cars. These are cars used by the dealership or BMW, or given out as loaners when people need repairs. They're often less than a year old with between 5 and 10 thousand miles, usually on the lower end.
In general, you can't lease used cars. However, you are allowed to lease factory demo or service loaner cars. Their selling price is often heavily discounted. It's not uncommon to see a loaded 40k 3 series for 32k. Since lease is calculated based on residual prices, the heavy discounting already accounts for much of the depreciation you would have paid. The residual is adjusted slightly for these cars, but it's still a fantastic deal. Further negotiation, good credit, and low-mileage terms will put you in the range I paid.
Btw, for those interested in leasing. There's a really cool site called leasehackr which features some really great lease hacks from time to time. These are usually bare bones cars though, and I like to go with fully loaded, so the above is my preferred method.
How would you find these lease deals for used cars? I've seen dealerships only post the listing price of the car.
Also, I advice a BMW as well only because all maintenance is covered for the period of the lease. Usually, with other cars you would have to take care of that on top of the lease price. But BMW leases tend to be slightly higher than its competitors but its totally worth the piece of mind in my opinion. And if your looking into purchasing a car, I'd say go for a Lexus since they have the best reliability in the luxury car market and you can lease a CPO Lexus and buy it out afterwards.
Actually in my experience BMW's usually have cheaper monthly payments than Mercedes and Audi because the residuals are inflated to lower monthly prices.
Regarding your initial question, it's generally very difficult to lease a used car. The only exceptions are the examples I listed above: factory demos and service loaners. Dealerships will always only list the price of the car for leases or financing. That's what your payment is based off of in either case. Leasing is just another way to finance the purchase of your car, but you get no equity and only pay off the depreciation. You need to first negotiate a capitalized cost, then look at residual rate and money factor (interest rate / 2400).
I would also add that as a banker you're not going to be driving very much per year (for me it was largely just to and from work), so you qualify for ultra-low mileage leases. These have higher residuals further lowering your payments. I drove probably 7,000 miles a year and my car was actually worth more than the lease-end buyout so I ended up selling my car to the dealership for a profit.
Meh I don't see what the big deal is. I say do it and who cares what other people say.
1) A used C-Class or 3-Series is marginally more expensive than a fully loaded Accord (which are actually quite nice in terms of feature and comfort). For a new lease, an incremental couple of hundred bucks a month is frankly negligible. This assumes you'll actually need a car regardless, and you're not working in NY or SF where it's just a pain in the ass to have a car in general. 2) If I could live at home for a few years to save some money, I would as long as it didn't hinder my (very limited) social life as an IB analyst. Between work and going out the rare times you can, you'll barely be home anyway. 3) If it's not incremental payments on cars, it's something else (alcohol, eating out, clothes, watches, blah blah). Everyone always finds way to spend some level of discretionary income. 4) I would only caution that frankly the entry / mid-tier 3-Series or C-Class are meh. Better cars than the Hondas, but not exactly a "WOW" factor either. Dime a dozen depending on where you live.
You're an entry level PowerPoint monkey living at home and you want to throw away money on a 40 year olds car? Come on.... Spend the money on living away from home so on the rare occasions you get out of the office you can at least take some girls home.
If you're going to disregard all the sensible advice given so far then at least get a decent car, not a bland saloon. Used Cayman for example.
Wow, so cars is where the prestige battle ends huh?
As an analyst in banking (especially first year), buy a 3-5 year old toyota corolla - stick shift (this will keep you awake when you commute home at 2 AM). You will not need to maintain it outside of regular oil changes. Keep it for 2-3 years and then;
When you are promoted to associate or move to PE outside of a large city, buy a ~3 yr old M3 or 911.
I totally know where you're coming from, and to be honest do whatever makes you happy. I had an Audi A4 when I was in Uni (I worked full time), definitely a chick magnet if that's what you're after, but when I became a professional I ditched the car, reading 7 Habits of highly effective people and some other books heavily influenced my decision.
You are out-of-touch with reality. Buy an Escalade so you can sleep in it if you want. Have you ever googled luxury van office?
You have a workable strategy that not only reduces cashflow but actually insulates you from unwanted love interests that can be very expensive.
I'd forget the A4, 3 series, etc. because those cars are for plebes. Go out, right now, and buy a Tesla P95D. You can afford it! Not only will your trips around town be kaleidoscopically orgasmic, you'll attract beautiful people who'll want to get to know you. One of those people will most likely be an MD at Goldman Sachs who'll ask you to join the firm for mid six figures + carry on your portfolio. When you consider the risk-reward equation, you can't go wrong with the Model S.
Maybe go the Taco Corp route?
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If you want a really nice car, go for it. For a car guy like you seem to be, it's not really a rational decision, but there are some practical, non-financial considerations. Be aware that as a first-year IB analyst, you will have very little time to enjoy it, and that's really the only reason to have a nice car. Otherwise, the only thing you need is basic transportation. One point that someone else made is also important. Although you don't say where you live, if you live in the suburbs of NYC and have to commute to the train station you do not want a nice new car for that purpose.
By way of illustration, when I started out in IB several years ago, I had a new 3-Series, which sat in a garage in NYC (at $400-plus per month) and wound up gathering a lot of dust. In two years I managed to put 4000 miles on it and half of that was when I took it on vacation each summer. That much sitting didn't do the car any good mechanically either. I sold it and didn't buy another car till I made MD.
@ap2A_8 - I sympathize with you on this one with regard to living at home. I plan on living in my dad's apartment for the foreseeable future since it's a 30 min commute to the office, the fact that even with IB money, I couldn't afford a whole place as big as my bedroom at his place with a similar/better commute time, and the fact he's traveling 75% of the time. There are absolutely situations in which other things should be prioritized ahead of rent.
However, if you're starting as a first year IB analyst, unless you are working in a city that you REALLY need to drive in and your current car won't cut it/you don't have one, there are much better things to be spending (or not spending) money on than a fancy car. Personally, I drive a 14-year old Audi convertible that I picked up for ~$5k. It gets driven usually 1-3 times a week, and is fun to drive, especially in the summer. The older generations are also far more reliable - the car has never had a major repair - and it's overall pretty low cost. On the flip side, my sister is in a similar situation with my mom in another major city, and dropped ~$40k on a 3-series. When her windshield cracked, it was $3k to fix. When she lost her keys, another $3k. When she tapped her bumper - another $2500. That stuff adds up. My bumper tap cost $300 to fix. And my windshield cost $150. It is much nicer to have the money and not have to worry about it.
And with that money you save in rent, you can live a whole lot better and safer than the other analysts. You're probably going to get more utility out of being the guy who buys a round at the club/never really has to watch what he spends around other analysts AND also NOT being the guy who does that and has tons of debt.
If you do need to buy a car, I am a huge fan of the Subaru Outback (although the Honda Accord is nice as well), and the VW Tiguan/Jetta are solid too. All drive pretty well, have tons of space when you want to try to do a day trip somewhere with your buds and/or are using your car to haul a bunch of stuff (which should be the 2 main uses of your car as an IB analyst other than commuting), and are very economical. Fuck the haters who give you shit for driving a 'lesbian wagon' or whatever else. You will literally laugh your way to the bank, past the garage, the gas station, and the cabin in the woods that their silly 3-series can't make it up to. You can get any of those cars used, pretty well loaded, for $25k. If you finance 80% of it, with a conservative 3.5% interest rate at current rates, you can end up buying a solid car that'll last you 10 years for $375 a month for 5 years. Throw in insurance and gas, and you're at probably about $600-700. That leaves you a few hundred a month extra to spend that would have gone to rent, that can go to alcohol/saving for watches/clothes/other nice stuff.
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