E90 3 Series - priced to sell or over -priced?

[GFC-Boss]

The E90 will soon be coming from Rayong, Thailand. And the 1 series from Kuantan. Once the Asean AFTA kicks in, it will too expensive to bring in cars outside Asean.

The OMV for E90 320i will be about $40k, making it one of the most expensive mid-size cars at $155k.

It is right to say that the $155k is price for the exclusive few. Research shows that the biggest disappointments from buyers who can really afford luxury cars is that luxury cars pricing itself at budget level and opening its market to those lower status beings. Something really sensitive here but it’s a fact.

The loyal Jaguar cars owners are able to live with the poor quality, constant visits to the garage and high cost in maintaining the cars. But they can never accept Jaguar coming out with the X-class, a model that caters for the mid-range buyers. The loyalist felt that they have lost their exclusivity. And these causes big problems for the company because their luxury models are not selling and their X-class are not well accept either.

Hence, company like Porsche, Aston Martins, Bentley, Rolls Royce and even Pagani will always be expensive to make their products exclusive. Something BMW and Mini are doing, and hence, the constant nagging from the manufacturer for PML to constantly upgrading their showrooms and exclusivity

:roll: :roll: :roll:

 

[GFC-Boss]

the new E90 320i is priced so that not all can afford... estimate from a 10k deposit and a 10 year loan of 1.5k monthly at 2.45%, one needs to make at least S$60160 gross per annum before a sensible bank wants to loan the fellow S$145k...

I always thought that one should be earning at least 70% of the car price. This is to ensure that one can live comfortably and able to service and maintain the car. If the 320i is going at $155k, one should be at least earning $110k salary per year. Likewise for a potential owner of a $60k Toyota, one should be earning at least $42k a year or $3.5k (inclusive of 13th mth and bonuses).

Unless one comes from a well to do family, buying a car way above their budget is attempting suicide.

Taking a 10 year loan is attempting suicide.

This is my own rule of thumb. Please don’t flame.

 

[bimmerlive]

much within expectation that the new3 will be premium-priced for the first year. Look at e60, it was some 20k+ more when it was first launched

 

[reardriven]

the new E90 320i is priced so that not all can afford... estimate from a 10k deposit and a 10 year loan of 1.5k monthly at 2.45%, one needs to make at least S$60160 gross per annum before a sensible bank wants to loan the fellow S$145k...

Aiyo! What kind of garang hero would dare to sell his soul to the devil and sign his life (10 years) away with the car loan you describe above?

It's almost as scary as getting married!! :shock:

But seriously, unless one intends to drive the car for 10years, it's always better to:
1. Buy used (there are always good condition low mileage cars that are 1-2 years old)

2. Do not loan too much and for too long (remember the charge on unearned interest when you do a full settlement to sell the car???)

Then again as highlighted by one forumer, for absolute bragging rights and to stay on the cutting (read: bleeding) edge of technology, you have to buy new.

Priorities. PRIORITIES.

 

[redwind]

hi reardriven,

correction! getting married is scarier!

yea its always wise to be prudent.

now doing calculation for a E90 325... trying to limit it to 5yr loan or max 7 yr loan.. but the initial downpayment seems abit painful..

the CFO (wife) claims that she can do facials for 3 life time!!! :shock:

 

[Puny]

I always thought that one should be earning at least 70% of the car price. This is to ensure that one can live comfortably and able to service and maintain the car. If the 320i is going at $155k, one should be at least earning $110k salary per year. Likewise for a potential owner of a $60k Toyota, one should be earning at least $42k a year or $3.5k (inclusive of 13th mth and bonuses).
Unless one comes from a well to do family, buying a car way above their budget is attempting suicide.
Taking a 10 year loan is attempting suicide.

Agreed. Considering that in Singapore's context, it's very rare for an owner to retain the car for the full 10 year period. There are too many factors against the owner. The immediate and ongoing depreciation, the penalty from the still-standing rule78 and increasing car (& house) loan interest rates. :verysad:

70% is a very reasonable gauge indeed..

 

[Turbo]

the new E90 320i is priced so that not all can afford... estimate from a 10k deposit and a 10 year loan of 1.5k monthly at 2.45%, one needs to make at least S$60160 gross per annum before a sensible bank wants to loan the fellow S$145k...

I always thought that one should be earning at least 70% of the car price. This is to ensure that one can live comfortably and able to service and maintain the car. If the 320i is going at $155k, one should be at least earning $110k salary per year. Likewise for a potential owner of a $60k Toyota, one should be earning at least $42k a year or $3.5k (inclusive of 13th mth and bonuses).

Unless one comes from a well to do family, buying a car way above their budget is attempting suicide.

Taking a 10 year loan is attempting suicide.

This is my own rule of thumb. Please don’t flame.

Hihi,

Agree. Live example of driving a brand new 1.5l japanese car for 2 yrs and the loss is $27,000 yet to factor in interest payment. Price to pay for being 1st owner.

Personally, i always feel the best bargain is to go for 1 to 2yr plus used car, that's where, sad to say the 1st owner absorb the most losses.

Just to add on, huge down payment( better still, full settlement ) and no longer than 3 yr loan will be an ideal option.

I see no point in slogging yr life away just to pay and maintain car expenses, hence i feel car related expenses should be confined to not more than 15% of yr nett income( of course,a huge down willl make a difference) . Don forget that some still got house to pay, xxxxx to feed etc etc

But to put in dollar and cents is definitely not all and fair, cos sometime heart rule over head, esp when come to mod

so be a see saw, balance well (eat well ,sleep well and drive with pride)

My 2 cents worth.

 

[zag]

much within expectation that the new3 will be premium-priced for the first year. Look at e60, it was some 20k+ more when it was first launched

wish this is true for higher cc variants though!

 

[martmode8850]

the new E90 320i is priced so that not all can afford... estimate from a 10k deposit and a 10 year loan of 1.5k monthly at 2.45%, one needs to make at least S$60160 gross per annum before a sensible bank wants to loan the fellow S$145k...

I always thought that one should be earning at least 70% of the car price. This is to ensure that one can live comfortably and able to service and maintain the car. If the 320i is going at $155k, one should be at least earning $110k salary per year. Likewise for a potential owner of a $60k Toyota, one should be earning at least $42k a year or $3.5k (inclusive of 13th mth and bonuses).

Unless one comes from a well to do family, buying a car way above their budget is attempting suicide.

Taking a 10 year loan is attempting suicide.

This is my own rule of thumb. Please don’t flame.

i fully agree with your 70% rule for comfort... However, if one earns $110k a year, that person would have to be in top management (MNC) or local SME director or any car salesman... dont think many 3 series owners here in Spore are in this top bracket in wages... i am certainly not though... :verysad:

 

[terence28]

I always thought that one should be earning at least 70% of the car price. This is to ensure that one can live comfortably and able to service and maintain the car. If the 320i is going at $155k, one should be at least earning $110k salary per year. Likewise for a potential owner of a $60k Toyota, one should be earning at least $42k a year or $3.5k (inclusive of 13th mth and bonuses).

Unless one comes from a well to do family, buying a car way above their budget is attempting suicide.

Taking a 10 year loan is attempting suicide.

This is my own rule of thumb. Please don’t flame.

Fully agreed with u GFC-Boss. That is sound financial planning. And that is why i seriously nearly bought a BMW at least 3 times in the last 6years but always E-brake after doing the sums.

 

[Welbo]

If based on this 70% rule of thumb, I can only drive a Nissan March!!!!!!!!!!!!!!!!
If I follow this rule, I can't even consider a Nissan Sunny not to say BMW and will never get to know the good pple in this forum. Life is tough but Juz DO IT! You only live once.............Never a believer of delay gratification. Call me a risk taker or financial idot but thats me.........kekeke

So many of my peers take public transport so as to save in order to put it in investment. All hope to retire early but till to date most of them got burnt badly in stocks and unit trust. I rather get burnt in buying and selling cars, at least I enjoy the machines..........


Cheers!
8)
To quote someone : MONEY IS NOT YOURS UNTIL YOU SPEND IT!!!!!

 

[Turbo]

If based on this 70% rule of thumb, I can only drive a Nissan March!!!!!!!!!!!!!!!!
If I follow this rule, I can't even consider a Nissan Sunny not to say BMW and will never get to know the good pple in this forum. Life is tough but Juz DO IT! You only live once.............Never a believer of delay gratification. Call me a risk taker or financial idot but thats me.........kekeke

So many of my peers take public transport so as to save in order to put it in investment. All hope to retire early but till to date most of them got burnt badly in stocks and unit trust. I rather got burnt in buying and selling cars, at least I enjoy the machines..........


Cheers!
8)
To quote someone : MONEY IS NOT YOURS UNTIL YOU SPEND IT!!!!!

Hi

Yup, to follow 70% rule is by no mean easy. Car is a depreicating asset - all know this fact, so what about looking at this figure, save 50% of yr earning and the rest into all kind of expenses including automobiles as well.

 

[redwind]

hi turbo,

thats why its best to always bite the bullet and give more downpayment first....

"bitter comes before the sweet" la

 

[Puny]

There are varying factors that can sway the figures...

- Firstly, combined income (w/spouse).
- What kinda family you are supporting (kids, no kids, not married)?
- Other loans (home, renovation, etc)

These are 2 extreme examples:
1) Single, with no house loans, no need to pay for utilities, makan at home. (70% of pay goes into cars maintenance)
2) Married w/ kids, large monthly home loan repayment and other family members to support. (10% of pay goes into car maintenance)

Not forgetting the intangible feel good factor.
An enthusiast who lives, eats and breathes cars will definitely be willing to stretch the limits because it doubles as a "hobby". More time spent on cars, less time (& money) spent on other stuff.

Whereas to a driver who only uses the car solely as a mode of transport, there're other better things to spend on..

2 cents.

 

[redwind]

to all bros who contributed to this topic....

was at the Padand last night,.....

once u saw the E90 in real steel (esp 325), all rational went out of the window....

much better than in pics!!!

 

[Puny]

to all bros who contributed to this topic....
was at the Padand last night,.....
once u saw the E90 in real steel (esp 325), all rational went out of the window....
much better than in pics!!!

You mean something like this? -> :fineprin: (Buy buy buy!)

 

[GFC-Boss]

the new E90 320i is priced so that not all can afford... estimate from a 10k deposit and a 10 year loan of 1.5k monthly at 2.45%, one needs to make at least S$60160 gross per annum before a sensible bank wants to loan the fellow S$145k...

I always thought that one should be earning at least 70% of the car price. This is to ensure that one can live comfortably and able to service and maintain the car. If the 320i is going at $155k, one should be at least earning $110k salary per year. Likewise for a potential owner of a $60k Toyota, one should be earning at least $42k a year or $3.5k (inclusive of 13th mth and bonuses).

Unless one comes from a well to do family, buying a car way above their budget is attempting suicide.

Taking a 10 year loan is attempting suicide.

This is my own rule of thumb. Please don’t flame.

i fully agree with your 70% rule for comfort... However, if one earns $110k a year, that person would have to be in top management (MNC) or local SME director or any car salesman... dont think many 3 series owners here in Spore are in this top bracket in wages... i am certainly not though... :verysad:

Errr.......... sorry, I quoted your message but I didn't mean to direct my response to you. I was just generalising the whole financial thingy. I am very sure you are very capable of owning your 3 series. Cheers! ...

Most people here and in VolvoSG are quite humble. You will be very surprised the income they receive each year. You need not be a top gun to earn over $100k a year. I did a poll in BMWSG more than 3 years ago, probably 4 years, when I was more active in BMWSG @ Delphi. Majority, almost all, earns above $100k with some over $250k. I know some in HRM earning $200k, GM is difinitely above $150k, govt super scale definitely $120k, MD in MNC above $500k and senior VP or CEO touching $1 mil ...etc.

But then seriously, if one is from a well of family, by earning a $50k annual salary package ...... they too can own a 525i.

Whatever it is, all I'm trying to say here is one should be prudent with their cash. Only god and you will know your financial situation. If one thinks he or she can live with simple food and a small room for next 5 years, and buying a 330Ci is the only way to live then go ahead. After all, happiness is the key to success. Be happy always ya!

Cheers again! ...........

 

[T6]

govt super scale definitely $120k,

0k

sala lah, quite a few scheme within govt service, If under normal senior officer scheme, also at least $150k, if from legal or admin svs, at least $250k even for base super scale wor...

bottom line dun juz think of car, think of retirement too yah

 

[GFC-Boss]

govt super scale definitely $120k,

0k

sala lah, quite a few scheme within govt service, If under normal senior officer scheme, also at least $150k, if from legal or admin svs, at least $250k even for base super scale wor...

bottom line dun juz think of car, think of retirement too yah

Precisely bro! ..... I know most are very humble indeed. Not forgetting they only buy used BMWs. It is not difficult to estimate the income one earns with his/her job portfolio and work experience.

Fancy seeing you here on Sat night. Me about to pack, leaving for overseas business again. :wavey: :wavey:

 

[T6]

Fancy seeing you here on Sat night. Me about to pack, leaving for overseas business again. :wavey: :wavey:

Damn shagged after hanging around BVO for the past 10 hours lah. A personal record for me. Have a gd trip and we kopi another time ya... end of OT