128i Ownership Costs

[bdardashti]

I'm really interested in leasing a 128i once the lease rates loosen up a little, though I maybe slightly short on cash to maintain the car. I have a few questions to find out if that's the case.

Please note: I am a first-year university student, and will be getting the car mostly with my own money. I will be getting around $10,000 from parents and grand parents, but I will have to cover all costs (lease/gas/insurance/maintenance). I do have a lot of savings, but clearly don't want to spend it on a car.

1) Other than lease, gas, insurance, what sort of costs am I looking at during the 3-year lease period? I'd be getting the manual transmission. Please also consider the fact that I am in Toronto, and will require winter tire/wheels. If someone could PLEASE give me a run down of all the parts (break pads, rotors, anything the tranny needs, winter/tire, etc.) I would really appreciate it. As for wear and tear (which breaks, tires, clutch pad, etc) all depend on, I am not a typical teenage driver; I drive more like a 30-year old. I normally don't speed, don't break hard, don't floor the car, hard shift, etc. I do "gun" the car SOMETIMES, but generally I take care of the car like it's made of gold, so wear and tear will be like an average 30-year driver and not a teenager :wink:

2) I understand that BMW has a extended maintenance service that they offer for wheels, tires. Is that worth it to buy (I know its standard on a lease, but I'd be getting it within the next 6 months so I wouldn't get that discount).

3) For the insurance, I can either put it under my dad's company and become occasional driver, which would cost me somewhere around $180-$200/month, or...if I have my own condo that is under my dad's name (a secondary residence for my dad which I live in), would he be able to register it under his name to this address? I know that if I live at home, the warranty will automatically go under my name even if it really is my dad's car since there are already 2 cars with 1 driver primary on each...If my dad puts it under his name on a different address would it work or do they go by person's name and not address? I hope my question is understandable.

Sorry for the very long post - I hope someone can answer a few of my questions! Thanks a lot in advance!

[Kiety]

1) gas, insurance, winter tires + cost to change them out if you don't do them yourself -- that's about it, there's not much else in a lease since almost everything else is covered, from maintenence to (yes wear and tear items are currently included until june 30th? if I remember correctly)

2) Don't get the wheel + tire warranty, expensive and chances are you'll never use it. Unless you are very paranoid or live in a neighborhood with potholes everywhere.

3) I'm in Vancouver so I don't know how the insurance in Toronto is, but if you aren't the primary driver and end up in an accident, the insurance company may hold you liable for the entire amount claimed. Since legally, if you are driving the car the most you have to be listed as primary driver, and your premium would be higher.

[bdardashti]

Thank you very much for your help. With regards to number one, what other wear and tear items would I be looking at replacing? I would not be getting it in the next few months, so I won't get wear and tear maintenance included...

I did some research, and found out that I will probably need to do the following, other than what is covered by BMW's standard maintenance program:

- Break Pads and rotors (once in the duration of lease)
- Tires and rims (once for the winters)
- Transmission oil (once at around 50,000km)
- Clutch pad (once in in the duration of lease)
Am I missing anything?

I would appreciate it if someone could please let me know of an approximate price of each of the above maintenances, done at a BMW dealership. I would do my tires and rims myself. If I get the same size tires as the 128i itself (17-inch) would I need to take it in for alignment anyways?

I truly do appreciate the assistance of kiety, and anyone else who might be able to give me some hints on this topic.

Thanks,

Babak

[xtrema]

Originally Posted by bdardashti

Thank you very much for your help. With regards to number one, what other wear and tear items would I be looking at replacing? I would not be getting it in the next few months, so I won't get wear and tear maintenance included...

I did some research, and found out that I will probably need to do the following, other than what is covered by BMW's standard maintenance program:

- Break Pads and rotors (once in the duration of lease)
- Tires and rims (once for the winters)
- Transmission oil (once at around 50,000km)
- Clutch pad (once in in the duration of lease)
Am I missing anything?

I would appreciate it if someone could please let me know of an approximate price of each of the above maintenances, done at a BMW dealership. I would do my tires and rims myself. If I get the same size tires as the 128i itself (17-inch) would I need to take it in for alignment anyways?

I truly do appreciate the assistance of kiety, and anyone else who might be able to give me some hints on this topic.

Thanks,

Babak

Rule of thumb is, if you have to ask........

Other than Winter Tires, lease payment and insurance and gas, don't think there'll be any other costs you have to pay. Alignment is only needed if you hit a curb or something.

But I hope you're paying (or your parents) you own way and not using student loans. That'll be unethical.

[koala]

I hate that saying "if you have to ask... you cant afford it" - This is the most irrelevant quote these days. Some people just like to know what they're getting in to, to decide if it's worth the cost.

Someone may be in a position to afford a Ferrari, but they might not like the idea of all the extra costs to own one, even if they could afford those extra costs.

I'm not trying to say anything rude to you personally, I just don't think that saying holds much weight.

To the thread starter-- You don't need to do an alignment when you're changing wheels/tires... but you should get an alignment done on the car when it's new. A surprising number of cars are out of alignment straight from the factory...

[bdardashti]

Originally Posted by xtrema

But I hope you're paying (or your parents) you own way and not using student loans. That'll be unethical.

Thanks for your help. My parents don't really think I should be getting this car at this point (as my first car) but I really love it and yes, I can personally afford it without any help from parents/loans. I hate loans in general (except mortgage on a house) so I won't be doing any type of borrowing. I'll be leasing the car, but again, since I don't want to have to owe anyone, I'm doing a single-payment lease.

Thanks for the ideas/tips!

[bdardashti]

Originally Posted by koala

I hate that saying "if you have to ask... you cant afford it" - This is the most irrelevant quote these days. Some people just like to know what they're getting in to, to decide if it's worth the cost.

Someone may be in a position to afford a Ferrari, but they might not like the idea of all the extra costs to own one, even if they could afford those extra costs.

I'm not trying to say anything rude to you personally, I just don't think that saying holds much weight.

To the thread starter-- You don't need to do an alignment when you're changing wheels/tires... but you should get an alignment done on the car when it's new. A surprising number of cars are out of alignment straight from the factory...

Absolutely. I can fully afford this car at this point, but I'm buying a condo with my dad, and I'm just trying to find out if I should put in 50% to the condo or buy it in full and have no money left over for my car.

Thanks again to all the help!

[spudw]

Cost of ownership over the first three years should not be more than payments (if any), registration, insurance and gas. Regular maintenance is covered for four years and the full warranty is four years.

So unless you need a $100 alignment or have some kind of accident (knock wood), it shouldn't be more than that. I would suggest investing a $1,000 in snow tires, as this will preserve your other tires and it's obviously safer in the winter.

If you really want it and can afford it without any pain, go for it!

[bdardashti]

Thanks for your help spudw!

I can definitely afford it. I just wanted to make sure there aren't any hidden fees down the road that I'd bump into. Since I'm doing a single payment lease, all I'll have to worry about after is gas, and I'll get my dad to put the car under his business so I pay $120 or so for it ~ that's how much I pay to drive his X5 now... except that the X5 IS REALLY a company car where as this will be mine... oh well if I gotta lie to get it, so be it

Thanks again for everyone's input!

[xtrema]

Originally Posted by bdardashti

Thanks for your help spudw!

I can definitely afford it. I just wanted to make sure there aren't any hidden fees down the road that I'd bump into. Since I'm doing a single payment lease, all I'll have to worry about after is gas, and I'll get my dad to put the car under his business so I pay $120 or so for it ~ that's how much I pay to drive his X5 now... except that the X5 IS REALLY a company car where as this will be mine... oh well if I gotta lie to get it, so be it

Thanks again for everyone's input!

I can't be yours and under his business at the same time.

Your name on the title, your name on the registration, your insurance rate.

Unless you let daddy lease it under the company.

I don't know the condo scene in TO but I heard with the your market cooled significantly so I would assume it's good time to buy. Especially mortgage is dropping again.

At least you know there a chance condo will appreciate. Cars, just money waster. A bad addiction to have. :thumbup:

[Kiety]

you are pretty lucky (or hard working) to be getting a 128i as your first car. The safest way to go about it though, since you don't like borrowing so much, is to pay off the condo and then save for a car. Housing can be considered an investment, whereas buying a vehicle is just... spending money, although you'll be VERY happy every time you step into your 128i

You may run into lease problems though, if your insurance for lease works in the same way as over here in Vancouver. The primary driver must be the leasee, and for your dad to be able to write off the lease payments for the company he's got to be the primary driver (unless it's a considered fleet vehicle, in which I don't know how it works). I don't know if it's any different in Toronto, so you should probably talk to an insurance agent about it, as well as your dad/his accountant. It would suck *if* you got into an accident and the insurance company denies your claim since you aren't the primary driver. (better safe than sorry)

[mtla4]

Get a car!! On your own. If you put your car under youre parents name well youre insurance cost will never go down(or very slowly). You need some experience as a primary driver. I think you should get a car on your own take a loan build some credit put the other cash in the bank. Make your own path. You'll really appreciate what you'll have. The day I bought my first brand new car I was so happy to tell my parents they said 18 you want a brand new car they were laughing at me.....well got it on my own(got approved with only 4 months of credit and new job....trading that 263 000 km shitbox that left me stranded 50% of the time for a 18 km car= Priceless......I didnt say start with a crapbox but a nice GTI or Civic Si pay off than upgrade in a few years. Whatever you decide its your money. We're mostly older than you and giving you advices because you know what: We all made mistakes and you can maybe avoid doing the same by taking some of our tips advices.

[bdardashti]

Originally Posted by Kiety

you are pretty lucky (or hard working) to be getting a 128i as your first car.

Thanks! I'd say both lucky (for having the opportunities) and big on saving money. No video games, no $300 jeans, etc I spend my money wisely...don't mean to be bragging but compared to other teens, I think I spend my money more "conservatively" so I have savings for something I REALLY want (ie. 128i)

Originally Posted by Kiety

You may run into lease problems though, if your insurance for lease works in the same way as over here in Vancouver. The primary driver must be the leasee, and for your dad to be able to write off the lease payments for the company he's got to be the primary driver (unless it's a considered fleet vehicle, in which I don't know how it works).

Wouldn't I be able to get my dad to be the leasee (and I pay him the money) and he be the primary driver, and the name on the registration...this would be a company car, and so he's the owner of the company, he becomes primary driver, then I become secondary/occasional? Even if I do get into an accident, how can they prove that I wasn't only driving at THAT POINT...? I know a few people that have done this and they are fine, however thankfully none of them have gotten into any accidents...

[Klinn]

Originally Posted by xtrema

At least you know there a chance condo will appreciate. Cars, just money waster. A bad addiction to have.

Heh-heh, quite true. One of my standard jokes is that I found cars do not depreciate quickly enough, so I also "invest" in gaming computers. :biggrin:

[koala]

Meh, I've had brand new cars (paid 100% by myself, payments/insurance/maintenance, etc) since the day I turned 16... I think it's a good way to learn some responsibility. It's when your parents are paying for everything that there is no lesson learned.

xtrema is right on one thing-- if you want it insured under the company, you can't have ownership of the vehicle, the company has to own it.

Just be prepared to have a lot of people say you're a spoiled rich kid or whatever. I went through that at your age, having a nicer car than the other kids did.

One other suggestion... $10k is a big gift from your parents. That should go into a savings account for when you graduate from university. If it means you have to lower the budget on your new car by that 10k, then so be it... but pay for it 100% on your own, and you'll appreciate it more down the road, I promise you on that one.

[bdardashti]

Originally Posted by koala

One other suggestion... $10k is a big gift from your parents. That should go into a savings account for when you graduate from university. If it means you have to lower the budget on your new car by that 10k, then so be it... but pay for it 100% on your own, and you'll appreciate it more down the road, I promise you on that one.

Absolutely. I guess I made it confusing in my original post; my parents and grandparents in total are giving me $10,000 or so (tops) but I'm not allowed to spend it on my car. I need to pay for the car from my own pocket. My parents are giving me the $10,000 so I have it for when I finish university.. (I don't know why I'm getting it now, but I'm not going to be using it; I'm sure it'll be more useful in the future anyhow. Thanks for your tips and advice! Much appreciated.