[audiphile]

http://www.msnbc.msn.com/id/25352526

[PLAYON]

[andyffer]

very interesting, I guess I'm a "Gen Y" baby.
One thing i would like to add is it says the lowest model of the smart car was yada yada and people were going for the upper model, thats because most lower models are crap.
you get nothing. So in order to have a CD player you must get the upper class model.

[Fuh Teng]

This is the kind of stuff that worries me about my peers (I'm 25). You can't buy a $62,000 car on $30,000 a year, it just doesn't work. (I also think living at home after college is simply embarassing). There is no better time than now to start saving for 30 years down the road too! That M3 isn't going to be worth much in 2038.

I want a 335i and the payments were still shocking for a $46,000 car.

Fuh

[PLAYON]

Originally Posted by Fuh Teng

This is the kind of stuff that worries me about my peers (I'm 25). You can't buy a $62,000 car on $30,000 a year, it just doesn't work. (I also think living at home after college is simply embarassing). There is no better time than now to start saving for 30 years down the road too! That M3 isn't going to be worth much in 2038.

I want a 335i and the payments were still shocking for a $46,000 car.

Fuh

Truer words were never spoken, 23 years old, came across a solid chunk of $$$ which is the ONLY reason I'm looking into the 335i. . .other than that a lease payment shouldnt be more then 20-25% of your after tax income. A lot of people don't realize that but to each his own.

[gravediggingaditch]

"It’s a similar story across the automobile industry. While fresh-out-of-school professionals, burdened with student loans and first-job salaries, might be expected to buy entry-level cars like Honda Civics or Toyota Corollas, instead many are choosing rides that fit the image they have of themselves as wealthy and successful, even though they haven’t yet achieved that status.
. . . .
“They want it now, and they feel they deserve it now,” he said.
This trend works to the benefit of automakers that produce "aspirational" vehicle models that younger buyers decide they deserve to own, even if, by conventional measures, they can’t afford them.

- Absolutely True!
The number of college students (or graduates) in debt is incredible. Credit cards, loans, cars, etc. -But this article is not just Fresh out of school professionals - I'm surprised it didn't mention the large percentage of Young BMW owners who aren't professionals. There are a lot that get these beautiful cars from their family. I'm sure that drives the number down.

[TheAcAvenger]

The article was pretty interesting, but I wonder if the M3's average customer age isn't jaded by the fact that a lot of middle aged men see the M3 as a hyped up 3 series that they would never spend that much money for. Generation Y-ers were growing up when the M3 already had an established customer base, so it's something they could grow into wanting. By the time the M3 was big, those who are currently middle aged had already decided Porsche/Benz or bust a long time ago.

[gravediggingaditch]

Originally Posted by PLAYON

Truer words were never spoken, 23 years old, came across a solid chunk of $$$ which is the ONLY reason I'm looking into the 335i. . .other than that a lease payment shouldnt be more then 20-25% of your after tax income. A lot of people don't realize that but to each his own.

IMO - 20 to 25% is a little too much for a car. I can understand it if you are living at home and saving there . . . but even so, that is still a lot. Your mortgage / rent should be around 33% of your net income. Your car payments shouldn't be close to that.
Don't forget insurance costs and gas which should be calculated into your car payments for the month.

[que2k]

Gen-Y is embarassing, although apparently I fall into that category (born 1978).

I'm getting married next year - already bought a house (first) and have just ordered my first BMW which I have been dreaming about since I graduated. Perhaps I had a better upbringing to understand that there is plenty of time to buy toys - should get other stuff in order first.

If my kids come back to live with me because they blew all their money on a fancy car, he can go sleep in the dam thing in the driveway.

My advice to all you Gen-Y's. Go to school, get a good job, invest in your retirement, buy a house THEN go and buy some toys.......

BTW - I also wanted someone to park my Bimmer before I bought it!

[Fuh Teng]

(Totally off topic but that is a beautiful car gravediggingaditch)

I don't get the attraction of an M3 when a 335i with $4k on a Dinan oil cooler and stage 2 package get you almost equivalent power... and it is still under $50k total! The M3 starts at $56k (mine would be $60+). No, I'm not bagging on the M3, I just don't get it.

Make no mistake, when I leave this pit (Saudi I mean) I'll have the money to buy a 3 series, but that doesn't mean I'll suddenly look at a 7 series!

Fuh

[JeffL]

^^ i'd take the M3 all day over a dinan modded 335

[PaulBailey@ltbmw]

I actually agree with the article. . .
Especially from first hand experience

[bimmerbimmer]

Originally Posted by JeffL

^^ i'd take the M3 all day over a dinan modded 335

+1

[Inzane]

The article just confirms what should be obvious. There are a lot of STUPID people out there.

No sympathy for them at all.

Get an education, get a decent job, establish yourself, THEN try to obtain the expensive materialistic items (whatever your taste may be).

[PLAYON]

Originally Posted by gravediggingaditch

IMO - 20 to 25% is a little too much for a car. I can understand it if you are living at home and saving there . . . but even so, that is still a lot. Your mortgage / rent should be around 33% of your net income. Your car payments shouldn't be close to that.
Don't forget insurance costs and gas which should be calculated into your car payments for the month.

I say 20-25% because we've got a fair amount of enthusiast on the board and who knows what lengths we will go to lock down a BMW.

[MikeMidd]

I think the central premise of the article is kind of common sense.

So, a lot of people who are buying the faster versions of cars are younger. Duh. Young people - especially young males - like fast cars. And in the very recent past, are realizing that maybe SUVs that get 10 MPG aren't as cool anymore (especially now that every soccer mom has one).

So the people who buy Scion tC models are younger. Duh. It is the only car in that lineup with real appeal to young people - as opposed to the heinous box vehicles that they sell.

So a lot of people are buying stuff that they can't afford, because they want the lifestyle that comes with luxury cars (houses, vacation houses, expensive watches, whatever). Duh. Why do you think we are in a mortgage crisis?

I think I'm particularly annoyed by: "Executives of Honda's upscale Acura division have found that charging more for a fancier version of the same car can attract elusive young buyers who might stick around as long-term customers."

Who is the idiot journalist who wrote this? No, Acura learned that it could put better wheels and performance items on a fancier version of the car, or nav system or other high-tech stuff, and that might attract younger buyers - because they will pay more for added content. There is no logic behind the statement "Acura charges more to lure younger buyers." Again, duh.

I'm tempted to write him and tell him to come back when he's got a real premise for a story here.

[Spec 1]

Originally Posted by Fuh Teng

This is the kind of stuff that worries me about my peers (I'm 25). You can't buy a $62,000 car on $30,000 a year, it just doesn't work. (I also think living at home after college is simply embarassing). There is no better time than now to start saving for 30 years down the road too! That M3 isn't going to be worth much in 2038.

I want a 335i and the payments were still shocking for a $46,000 car.

Fuh

Agreed. I see many of the people in my age group (assumingly 21-28) who purchase things (plasma tv's, new cars, new motorcycles, stereo systems, etc) that they really shouldn't be purchasing based on their financial situation, and I can only sit and think that me holding off on some of that will set me up better in the long run. 20 years from now my saving even $2,000 and investing rather than frivilously spending will turn into an extra $40,000 that they won't have. I'm happy to have a foot in on financial investing as well, which really helps look towards the future.

I can't say I'm not without fault though - I bought a brand new 2006 $10,000 motorcycle when I was 20, but it's paid off now.

Originally Posted by que2k

If my kids come back to live with me because they blew all their money on a fancy car, he can go sleep in the dam thing in the driveway.

My advice to all you Gen-Y's. Go to school, get a good job, invest in your retirement, buy a house THEN go and buy some toys.......

Haha, I agree fully with the first part of that statement. There's no way my parents would help me with anything if I went and spent $60k on a car. My kids will know that if they can afford that they can afford anything else and none of my help is needed.

Good advice as well. I'm 23 and saving to purchase my first house. It's a real struggle because I want to buy myself a new E93 convertible.... Just like others should be doing though, I'll keep occupied in my tricked out E30 (fully paid for) and my ZX6R motorcycle (also fully paid for).... I already invest so after I buy my house and build some equity THEN is the time for a new car

[LI E90]

Good read indeed.

that are article is spot on for many in this forum.

[AdamJ]

I guarantee there are plenty of kids on this forum living at home and spending 80% of their minimum wage paying job to a car loan. Congrats, you are a loser!

I'm 26, moved out after college, and max out my 401k every year. I'm frugal with my money but still have all the toys I could ask for. Social Security wont be around when we retire, you need to plan for the future NOW!

[bimmerque]

[gravediggingaditch]

Originally Posted by Fuh Teng

(Totally off topic but that is a beautiful car gravediggingaditch)


Fuh

Thank you

Originally Posted by PLAYON

I say 20-25% because we've got a fair amount of enthusiast on the board and who knows what lengths we will go to lock down a BMW.

I understand what you are saying but isn't that the problem that this article attempts to exemplify? The enthusiast? The person who goes to great lengths to lock down a BMW? Those lengths that are unfortunately out of their reach yet they are too immature to have the financial prowess to understand the impact it will have on their life in the future?

Originally Posted by AdamJ

I guarantee there are plenty of kids on this forum living at home and spending 80% of their minimum wage paying job to a car loan. Congrats, you are a loser!

I'm 26, moved out after college, and max out my 401k every year. I'm frugal with my money but still have all the toys I could ask for. Social Security wont be around when we retire, you need to plan for the future NOW!

You are probably amongst the very few 26 year olds who are wise enough to do things like maxing out a 401k or putting money in a Regular or Roth IRA. Additionally, not many 26 year olds can afford to put away the max of $15k (I think that's what it is now -maybe more like $16k now) in a 401k per year. In fact, not many people in general can. In any event - and it's unfortunate - a lot of people out there don't learn until its too late. most learn the importance of financial stability through experience although some are lucky to have learned it from their parents or school.

[TK-421]

R