[Syed23abbas]

Hey guys! I just put in an order for the new M3 XDrive at the Elmhurst dealership with a $3k deposit. I am on the waitlist and don't have an allocation but I'm still pretty excited I put a bunch of great options like carbon bucket seats, full Kyalami leather, and the executive package. On the website, my build comes out to $88,050 before the destination charge. When I submitted my order to the dealer, he told me there is a $3000 mark-up since the car is hard to get and said he won't budge on the price. Personally, I don't really care as I have a decent salary for a recent grad but what do you think, am I paying too much? Thank you for your input!

[jimbethesda]

Originally Posted by Syed23abbas

Hey guys! I just put in an order for the new M3 XDrive at the Elmhurst dealership with a $3k deposit. I am on the waitlist and don't have an allocation but I'm still pretty excited I put a bunch of great options like carbon bucket seats, full Kyalami leather, and the executive package. On the website, my build comes out to $88,050 before the destination charge. When I submitted my order to the dealer, he told me there is a $3000 mark-up since the car is hard to get and said he won't budge on the price. Personally, I don't really care as I have a decent salary for a recent grad but what do you think, am I paying too much? Thank you for your input!

Many are paying over MSRP, $3,000 isn't that much. You can probably call around and find one for MSRP.

Make sure you get an itemized, out the door price. Many find out once they go to pick it up, the dealership has added BS fees or other products which jacks up the price.

[merlin3008]

Hey man… Congrats! Do you live in Elmhurst too? I live in town, although I ordered my car in Chicago.

[Neles]

3k right now is nothing. I'm paying 5k. Dealers around my area are charging 10-15k.

[Syed23abbas]

Originally Posted by jimbethesda

Many are paying over MSRP, $3,000 isn't that much. You can probably call around and find one for MSRP.

Make sure you get an itemized, out the door price. Many find out once they go to pick it up, the dealership has added BS fees or other products which jacks up the price.

Okay, that's good to hear! I'm currently speaking to other dealers as well to see what else I'm offered. Thanks for your input!

[Syed23abbas]

Originally Posted by merlin3008

Hey man… Congrats! Do you live in Elmhurst too? I live in town, although I ordered my car in Chicago.

Thanks man!! And na I don't live in Elmhurst but I live in a suburb about 17 minutes away

[Syed23abbas]

Originally Posted by Neles

3k right now is nothing. I'm paying 5k. Dealers around my area are charging 10-15k.

Wow, that's a lot! And here I thought I was being ripped off hahah! Good luck to you with your new car!

[GOLFFRR]

I think the more important question is when will you get a allocation. You could be waiting for a long time.

I would suggest you get on a few wait list unless you are in no rush. As it could be a long wait depending on variety of variables. Also when it comes to price the sale price is just part of the deal. You need to look at the whole deal.

but at the end of the day, the deal is whatever the buyer and seller agree on. So you have to ask yourself if you think you can do better? The only way you will know is to search around. Also some may be willing to pay more to get the car sooner while others wont. There is sooooo much to take in account.

either way good luck

[Syed23abbas]

Originally Posted by GOLFFRR

I think the more important question is when will you get a allocation. You could be waiting for a long time.

I would suggest you get on a few wait list unless you are in no rush. As it could be a long wait depending on variety of variables. Also when it comes to price the sale price is just part of the deal. You need to look at the whole deal.

but at the end of the day, the deal is whatever the buyer and seller agree on. So you have to ask yourself if you think you can do better? The only way you will know is to search around. Also some may be willing to pay more to get the car sooner while others wont. There is sooooo much to take in account.

either way good luck

Hey man, thanks for the response I greatly appreciate it. Dealer told me I should expect a September delivery so maybe an allocation by late August/early June? I don't mind waiting since I have to save up a little bit of money for a 33000ish down payment. He (the dealer) gave me a bill of sale with my total price after tax and other fees so I have an idea of how much I will pay. I want to get onto more waitlists but I would have to put a deposit down for each one, no? I just graduated so don't have a ton of money right now.

[merlin3008]

So I'm not a fan of paying markups, but the market is what the market is. I guess I got lucky and ordered at the right time. I will tell you that other dealers right around Elmhurst are charging $5,000 over. So $3,000 isn't awful. But the post above is spot on. I would get an itemized list of all of the fees and charges now, not later. I'd also make sure to figure out if they are marking up the interest or lease rate. This a super common way to get a few more grand out of you.

Now, I'm going to play dad for a brief minute. Just make sure this is the right decision for you. I have no idea what your financial situation is or what kind of salary you make, but for me personally, buying a $90,000 car or taking on a $1,200 car payment would have been fiscal suicide for me right out of college. I'm consider myself lucky to be able to buy a car I've always dreamed of.

[GOLFFRR]

Originally Posted by Syed23abbas

Hey man, thanks for the response I greatly appreciate it. Dealer told me I should expect a September delivery so maybe an allocation by late August/early June? I don't mind waiting since I have to save up a little bit of money for a 33000ish down payment. He (the dealer) gave me a bill of sale with my total price after tax and other fees so I have an idea of how much I will pay. I want to get onto more waitlists but I would have to put a deposit down for each one, no? I just graduated so don't have a ton of money right now.

Allocation are not guaranteed each month. the amount can vary dealer to dealer month to month.

as far as the deal goes again you have to look at the whole deal. Are you leasing? if so whats the money factor look like and the fees, are you financing? if so whats the APR rate look like what are the fees. These are all things that need to be taken in account. thats what I meant by the whole deal.

as far as timeline goes. I think a good rule of thumb is to say once the car start production you are looking at on avg 6-8 weeks

[Syed23abbas]

Originally Posted by merlin3008

So I'm not a fan of paying markups, but the market is what the market is. I guess I got lucky and ordered at the right time. I will tell you that other dealers right around Elmhurst are charging $5,000 over. So $3,000 isn't awful. But the post above is spot on. I would get an itemized list of all of the fees and charges now, not later. I'd also make sure to figure out if they are marking up the interest or lease rate. This a super common way to get a few more grand out of you.

Now, I'm going to play dad for a brief minute. Just make sure this is the right decision for you. I have no idea what your financial situation is or what kind of salary you make, but for me personally, buying a $90,000 car or taking on a $1,200 car payment would have been fiscal suicide for me right out of college. I'm consider myself lucky to be able to buy a car I've always dreamed of.

Hahaha thanks so much for your response and concerns, my dad is saying the same thing but I told him I'll be fine since I'm living with him and my mom, and I don't have any other expenses plus my dad gives me extra money on the side through his business for helping out, so that will help too. Thanks a lot for letting me know about the interest rate mark-up, I'll certainly bring that up with my dealer!

[Syed23abbas]

Originally Posted by GOLFFRR

Allocation are not guaranteed each month. the amount can vary dealer to dealer month to month.

as far as the deal goes again you have to look at the whole deal. Are you leasing? if so whats the money factor look like and the fees, are you financing? if so whats the APR rate look like what are the fees. These are all things that need to be taken in account. thats what I meant by the whole deal.

as far as timeline goes. I think a good rule of thumb is to say once the car start production you are looking at on avg 6-8 weeks

I am financing. He said I would have a rate of 3.49%. He gave me a bill of sale and the only other fees on there are "dealer installed options or services" for $69.95, "documentary service fee" for $324.24, and then of course the "state license and title" fee.

[merlin3008]

Originally Posted by Syed23abbas

I am financing. He said I would have a rate of 3.49%. He gave me a bill of sale and the only other fees on there are "dealer installed options or services" for $69.95, "documentary service fee" for $324.24, and then of course the "state license and title" fee.

The current finance rate from BMWFS is 2.49%. They are marking it up. I'm glad you've thought this through, but for the record...I have never met anyone just out of school who bought a car like this and looked back on it as a good decision. You be you, but I just hate to see people make mistakes with long-lasting implications.

Edit: Wait a minute. Did they run your credit? If they have not, that finance quote is just a guess too. I doubt BMWFS would approve you at anywhere near that with such a minimal credit history. Again, I don't know your financial history or situation, but just my intuition.

[Syed23abbas]

Originally Posted by merlin3008

The current finance rate from BMWFS is 2.49%. They are marking it up. I'm glad you've thought this through, but for the record...I have never met anyone just out of school who bought a car like this and looked back on it as a good decision. You be you, but I just hate to see people make mistakes with long-lasting implications.

Edit: Wait a minute. Did they run your credit? If they have not, that finance quote is just a guess too. I doubt BMWFS would approve you at anywhere near that with such a minimal credit history. Again, I don't know your financial history or situation, but just my intuition.

I have a pretty good salary. I had an internship at this company over the summer and they liked me so much that they offered me a full-time job at almost six figures!! I'm smart and if anything happens I can cancel the order before the build starts but I don't expect to do that as this is a really nice car and I deserve it.
Edit: Yes, they ran my credit however I am cosigning with my dad.

[vj123]

MSRP allocation can be found in the Midwest with some effort. I was in the market last month and was able to find an MSRP allocation within a couple of weeks

Everyone's situation is different and people here can just give their opinions. I made some dumb financial decisions right after graduation and looking back I would not advise this purchase.

[merlin3008]

Look, I am super happy for you. But no financial advisor in the world would say that going into debt for a car with a value near your annual salary is a good idea. In fact it's an awful idea. It pretty much nadcuffs you for the foreseeable future. And having your father cosign brings him along with this awful idea. OK, I've said my bit.

[Syed23abbas]

Originally Posted by vj123

MSRP allocation can be found in the Midwest with some effort. I was in the market last month and was able to find an MSRP allocation within a couple of weeks

Everyone's situation is different and people here can just give their opinions. I made some dumb financial decisions right after graduation and looking back I would not advise this purchase.

Na I have a good salary, well above average and I'm sure the other people buying M3's are not millionaires

[Syed23abbas]

Originally Posted by merlin3008

Look, I am super happy for you. But no financial advisor in the world would say that going into debt for a car with a value near your annual salary is a good idea. In fact it's an awful idea. It pretty much nadcuffs you for the foreseeable future. And having your father cosign brings him along with this awful idea. OK, I've said my bit.

I am earning 90k a year and that's just my first year. Most software engineers quit their first job after a year and get a new one for almost double the first.

[KnightedBMW]

[astroricardo]

I don't think 3k to get on a wait list is good. I wasn't asked for a deposit until they had my allocation.

[merlin3008]

Originally Posted by Syed23abbas

I am earning 90k a year and that's just my first year. Most software engineers quit their first job after a year and get a new one for almost double the first.

Congrats. I earn a lot more and have for decades. But I've also made good financial decisions along the way. I've saved some. I've invested in a home. And I've done all of this while being able to travel and have some great experiences along the way. I consider myself fortunate.

I made $50k out of school in the late 90's. I did not go out and buy a $50,000 car even though I may have wanted to. I set myself up for the success that I have had by living well, but smart. I have friends who were not so fortunate and went for that big purchase right away. For some, it took them years to climb out from all the debt. They weren't able to move out. They weren't able to travel. They existed for their car. One of them defaulted and cost their cosigner $40,000 and a lawsuit. Ruined their parents' credit too.

I've also learned something else along the way. When you make decisions based how much you may be earning in years to come, you are asking for trouble. Technology changes. The job market changes, and we in turn may have to change. You need to think about major purchases in the context of today, not what possibly could be. That's just maturity.

Yes I fully realize I may be acting like a real a--hole. And I do appreciate your enthusiasm for the ultimate driving machine. You will have plenty of opportunities to buy an M3. You have one chance to start out your financial life on the right foot.