[chonko]

Sounds like you are on the right track. Save the money and use a car that you think makes financial sense for the time frame.
I think by making such choices, you will be able to pay for an M5 or M6 in the future without breaking a sweat. I believe you understand I want I mean:financial planning

[sungmin]

get the ford focus. instant gratification makes you bored with life. all about baby steps, you know!!

what made you buy a stripped 325i?

[icewatersoda]

just dont get a ford.

[Asiann]

Originally Posted by jeffersonkim

Oh, and if it wasn't clear before. . . USAA gave me the $20,000 flat out (unsecured), and I had enough from my parents and my savings to pay for the car in cash. . . so basically, I invested the $20,000 loan from USAA because I easily can beat the 2% APR with EmigrantDirect savings or an S&P Index fund with Vanguard.

So you just finished college and got the Officer loan. Why did you not take the full $25k? Good thinking with Emigrant Direct and investing it but have you tried talking to the USAA financian advisors or other advisors about saving it into mutual funds or IRA's? Don't get me wrong the 4.65 in savings is great to start off with but you are young the compound interest is a powerful thing! Call them and check it out. You can still leave half in savings and still be good! You can search for a 0% credit card offer and save even more. Amercian Express will usually give you that kind of credit limit right off the bat.

[Asiann]

[QUOTE=jeffersonkim]Yeah, USAA's $20,000 2% APR Car loan! WOOT!

In terms of future plans. . .I have education covered by the G.I. Bill, and when I get out, I'll have the veterans' plan for 0 down on a mortagage.

The VA program is not really 0 down. Yes you do not have to put anything down but you do have to prepay for expenses such as insurance, HOA ect that are part of the normal closing cost. My builder paid for my closing cost but I still had to pay a few thousand. Don't forget that you have a VA funding fee of 2% applied to the loan. THe no down payment really means they just tack it on the end of the loan so you don't have to put anything down. Moved 7 times and bought 3 homes so I think I knwo what I'm talking about. Good thoughts for the future though. Don'e see too many people thinking that far in advace.

[StewtheBassman]

Everytime I get bored with my E90 I'll do the following:
1. Read some reviews online (Car of the Year how many times over?)
2. Drive around like a maniac (thing handles so well!!)
3. Wash it and detail it
4. Re-read the brochure and remember ALL the amazing things it does
5. Check out all the cute MILFs checking me out
6. Ask a car dealer how much he'd give me for it (lose money like crazy on deprish!!)


Other than that, if you found a buyer at YOUR price, do it. Sock away the rest of the money and get an economy car, especially since you're not travelling a lot anyway. I would do the same, but my mileage is atrocious!!

[BK]

Originally Posted by jeffersonkim

Yeah, USAA's $20,000 2% APR Car loan! WOOT!

I am a USAA member (former military) and plan to purchase tomorrow. What is this 2% loan? Is it just for deployed military? Maximum of $20K?

In response to the original question, I think you should stop the bleeding now and get the less expensive car. Sure, you'll take an immediate depreciation hit and the new one isn't as fun as the old, but at least the higher payments will end. In the long run, I can assure you that you will feel better about making a wise financial decision than about having a nice car to drive for a few years.

IMO, if you are stretching yourself to make a car payment, then you need to reevaluate your priorities. There is little in life as frivolous as an expensive car.

Also - consider a Mazda 3. I tried one during my test drives and it was better than other inexpensive compacts. Or, for a little more money, a Jetta GLI is like a mini-3er and is damn fast. Good luck.

[Asiann]

Gotta love the forum and reading reviews. I just received the BMW magazine and got excited for a little while. There is always the DVD to watch over and over!

[younghov85]

Go with your gut instinct

[txusa03]

Originally Posted by younghov85

Go with your gut instinct

ditto

[Asiann]

Originally Posted by BK

I am a USAA member (former military) and plan to purchase tomorrow. What is this 2% loan? Is it just for deployed military? Maximum of $20K?

In response to the original question, I think you should stop the bleeding now and get the less expensive car. Sure, you'll take an immediate depreciation hit and the new one isn't as fun as the old, but at least the higher payments will end. In the long run, I can assure you that you will feel better about making a wise financial decision than about having a nice car to drive for a few years.

IMO, if you are stretching yourself to make a car payment, then you need to reevaluate your priorities. There is little in life as frivolous as an expensive car.

Also - consider a Mazda 3. I tried one during my test drives and it was better than other inexpensive compacts. Or, for a little more money, a Jetta GLI is like a mini-3er and is damn fast. Good luck.

The 20k is a loan for commissioned Officers just coming into the service. Kinda of benefit from USAA for graduating school. The car is already paid off so he already has a low car payment at 2%. His parents and the 20k paid for the car.

[canucklion]

dumbass

Originally Posted by icewatersoda

just dont get a ford.

[JBOO]

You may want to look in to the VW Golf instead of the Focus. Starting price is under $15K and I think it would be a better car long term. Check with Autoexchange to see what kind of deals they have for you.

If you decide to sell, post it on here ... I could be interested as well.

[Asiann]

Originally Posted by MG_2006325i_KG

COLA pays for my car and insurance

What is the COLA in Germany? I usually get about $600 but that changes a little.

[dkizerian]

I had a 2001 focus for about a year. It was an ok car, got me around very well, and had AC, so that was nice. Don't plan on getting anything back out of it though. They have ZERO resale value.

Given what you've said, why not look at a year old focus, the depreciation has already started, and you'll save a bunch. Or better yet, a used Honda, toyota or even VW... all will have taken a hit on depreciation, and will save you some cash too...

To save money though I wouldn't go from a car you just bought new, and stand to lose some on depreciation for another new car that you'll take another initial depreciation hit on.

[timoth31]

Originally Posted by jeffersonkim

Yeah, USAA's $20,000 2% APR Car loan! WOOT!

In terms of future plans. . .I have education covered by the G.I. Bill, and when I get out, I'll have the veterans' plan for 0 down on a mortagage.

I was doing some more thinking, and I realized, it'd make more sense for me to wait it out and I'll be able to sell for a higher price back in the states. The depreciation rate for the BMW and more "budget" cars correlate around the same rate not necessarily in percentage, but gross price. Plus, as I drive it more, I may come to appreciate the ride especially when it comes to longer commutes.

As a brief aside, when my wife and I thought about buying a home a few years ago a broker at Bellmarc told me the VA zero-down mortgage is far less valuable than one might think, because all the co-op boards want proof of 30-40% in the bank with your application. You can go condo, but that tends to cost more - or at least that was the case at the time.

On the other hand, you're very smart to sign up for the GI Bill. (I assume you're enlisted or went through OCS.)

Hard to know what to say from the car angle. What does the wife think?

Be well, stay safe and enjoy your time ashore.

[fueledbymetal]

Originally Posted by timoth31

As a brief aside, when my wife and I thought about buying a home a few years ago a broker at Bellmarc told me the VA zero-down mortgage is far less valuable than one might think, because all the co-op boards want proof of 30-40% in the bank with your application.

That must be bank dependant. My wife & I had $0 in savings when we bought our first house and had no problem getting approved for a VA home loan for the full value of our house, which was valued at about 2.5 times our annual salary at the time.

[noflash]

BAN FOR ASKING!!!





j/k

Top 10 reasons to keep it
1. You got such a stellar deal on the MSRP.
2. You got a stellar deal on the APR.
3. You are already paying U.S. Focus/Fit payments for a new Bimmer.
4. You get free shipping back to the states.
5. If money's not an issue and you change the oil every 7500 miles, you can make that bimmer last 200k miles or more. That's your real savings right there.
6. Safety.
7. You may not know how bad you'll miss it (I fantasize about economy cars, go test drive them, and come back to my senses).
8. You're single.
9. You'll have to leave e90post.
10. It's the best freakin car in the world!

[voltron1011]

I just moved into a new house with a VA loan. We had to show bank statements of our account activity, but I don't think they looked at how much we actually had in savings.

[voltron1011]

noflash is right. Also, don't forget he doesn't have to pay sales tax either. And, since he is active duty, he won't have to pay the 2% Customs fees when he gets back to the US. So, basically he is getting a 325 for what most people stateside are paying out the door.

[timoth31]

Originally Posted by fueledbymetal

That must be bank dependant. My wife & I had $0 in savings when we bought our first house and had no problem getting approved for a VA home loan for the full value of our house, which was valued at about 2.5 times our annual salary at the time.

Ah, read again. The obstacle isn't the bank, it's the co-op board. From the Douglas Elliman web site:

The amount of money that may be financed is determined by each cooperative. Some buildings require substantial down payments. Generally speaking, in Manhattan prospective purchasers should be prepared to "put down" at least 20 to 50% of the purchase price (depending on the building) when purchasing a cooperative apartment.

And the co-op board's attitude is generally "VA, schmee-A. Show us the money." So the VA mortgage benefit ends up being all hat and no cattle, though not through any fault of the government. But, to be fair, all the new buildings going up may be condo, which would offer our friend some alternatives when he gets out of the military.

[dahunk007]

Hey I'm 23 and i just bought a 330xi.....
It's fun to drive!!!

Oh well, if u think in long-term....i guess it makes sense too to save money for now.....

U gotta do what u gotta do....