August 22, 2006 at 4:44 PM #7270
I was perusing the classifies and inquired on a 2002 BMW 740i for $47,000. This car new was probably $70,000.. it’s fully loaded. So turns out the guy selling it works in the mortgage industry and is under 30 years old.
Interesting?August 22, 2006 at 5:02 PM #32739barnaby33Participant
No, because its typical. Now if he had been a one-armed Lithuanian midget, that would be intesting. I will say its somewhat evidentiary of what we suspect is happening. Lots of people in the mortgage/RE sales industries are turning loose of their fancy toys. 47k for a 4 year old BMW doesn’t seem like a good price at all. Most vehicles loose 50% after 5 years.
If you are waiting till the prices on those sorts of luxury items comes down, now isn’t the time to bite, in my opinion.
JoshAugust 22, 2006 at 5:09 PM #32740
I’m not looking to pull the trigger on anything any time soon, but I am interested in looking for symptoms of a recession. That said, BMWs do retain their value very well. Especially if it’s a car like this that has 50k miles with a 100k warranty… this car is still a little overpriced.August 22, 2006 at 5:15 PM #32743burger007Participant
A co-worker just got a BMW M3 2002 with 25k miles for 36k, car has no issues, pretty good deal I think. Plus I like the body style versus the new body style of the current generation.August 22, 2006 at 8:59 PM #32767barnaby33Participant
Again, that seems like a hefty price to pay, but then again I am no expert. I have an 01 4Runner I bought from a friend. Somehow I don’t think the Ferrari spyder I want is going to come down to my range.
JoshAugust 22, 2006 at 10:23 PM #32775ezpassParticipant
2002 740i is an older style BMW, the guy selling has the same problem many RE sellers have, he hasn’t realized the truth yet, the price for that year BMW is about 9K lower. In addition prior model 7-series does not keep its value that well.August 22, 2006 at 10:44 PM #32777
If you read my post you won’t see me saying that it’s a good deal.. it’s more of a ‘young mortgage rep has a BMW and more importantly he’s selling it’. It’s not your usual car sale…August 22, 2006 at 11:05 PM #32778FormerOwnerParticipant
As a side note, the BMW 7 series has been one of the most unreliable cars on the market for quite a while. This goes for the new model as well as the previous 740i. The engine in the older 740i was notorious for seizing up and the newer models have lots of electrical problems. It figures a young hot-shot would get suckered into buying a 7 series.August 23, 2006 at 8:12 AM #32788BikeRiderParticipant
I am blown away at how much people are willing to pay for an automobile. Of course my tastes are different anyway. Currently my favorite car is my 1996 Dodge RAM 1500 4×4. Has 136K miles. I bought it new in 96 for $21K. It had 5 miles then:) Really fun to drive. Has been very reliable so far. Plenty of power and hauls whatever I want. Owes me nothing and I will keep it forever. Best part is that it is paid for. I am currently restoring a 1973 Ford Bronco. The early small Bronco. I guess I’ll have 10K in that when I’m done.August 23, 2006 at 8:14 AM #32790
Dodge Rams are good.. the same can’t be said about the Durangos! I’ve heard of lots of nasty repair bills.. 🙂
Having a paid off car is a great feeling.. I just recently paid off my 05 Tacoma.. It’s a drain on finances to be paying interest on something that depreciates anyways!August 23, 2006 at 9:18 AM #32803picpouleParticipant
I’ve had BMWs for years. I have a 1972 BMW2002 that is still ticking like a clock. I also have a 1992 BMW 535 that has over 150K miles on it. Very, very reliable. Man, that baby is still sooooo sweet!August 23, 2006 at 9:45 AM #32807smfjParticipant
This comment is nothing new but – don’t these people think to save their money? It’s great that they’ve done well in the boom years – but who cares if they end up with nothing to show for it?
I strongly believe kids should be taught about personal finance in school. People will still do stupid things, but at least they will have some underlying knowledge of the basics of financial responsibility.
By the way, some of the best advice my dad has given me was not to buy too nice of a car too quickly – that it’s a lot easier to move up than to move down.August 23, 2006 at 1:18 PM #32824BikeRiderParticipant
Very good words smfj. I was not lucky enough to have parents that were savy with money. I come from probably lower middle class income family. We got by, but didn’t have anything fancy. Problem with that upbringing is that I felt I wanted so much when I started earning money. I went through a phase in my early teens/twenties where I just HAD to have stuff. Kinda like I had been starved and was trying to compensate. But now I’m in my late forties. Wife and I combined bring in 160K. Material things aren’t as important. I don’t care much what I drive as long as it is reliable. I don’t care what people think. We slammed our mortgage hard and our home is paid for, as are all but one car (one more year!). The words are always true “if I only knew when I was twenty, what I know now”.
“Hind sight is 20/20”.
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