I just graduated college this past week and have a job lined up making 63000 a year. I was looking at buying a $27000 used 2008 BMW 328i, financing at about 500/month for 60 months.
I don't have any debt of any kind and currently don't have a car of my own (the family car now goes to my little brother). So I have to buy a car of some sort. BMW has a college grad program where I can get 2.9% APR and they pay my first three payments, allowing me to build a little emergency fund at my job before I start paying for the car.
Would this be a good idea or should I just go for a cheaper car, and if so what would be a good car to buy?
On another note: I have no extra money for a car now, my dad will pay 3 payments for me as a graduation present, and I have to buy some sort of a car within the next two months (Right before I start working)
Any suggestions on whether buying this BMW would be a good/bad idea?
I talked it over with my parents, if I hold off until September to buy the car with a down payment of 3500 (found a beater car I can borrow until then) I can get the car at about 450/month. As well, the BMW plan plus my dad's present money, I could have 9 grand saved up in an emergency fund by the time I start making payments myself.
Second, in my budget I already have set aside 400/month (almost 5k/year) to a retirement fund/savings that I would start doing after I've saved up the 9 grand emergency day fund (3 months pay) which would be by the coming march 2012.
Third, forgot to mention this, the dealer offers an extended warranty on CPO, to 6 year/100,000 miles, so I'd get another 2 1/2 years and 55k miles out of the warranty.
This way I'll also be three months into my job and have an idea of my actual living expenses.
Last, I'll have the car paid off by 26 years old at the latest, at which time I plan to go back to grad school for an MBA, ride the car for two more years (hopefully around 30k cash saved at this point). Then hop on a new ride out of grad school.