///M-Spec
Staff Emeritus
- 4,928
So this summer I have the opportunity to get a new car for myself. Good idea? Bad idea?
As it stands, I "own" the majority of the GTI at the moment. And the agreement is that I pretty much have the car whenever I'm home, but it stays in Seattle. And then when I graduate from college, the money I have in the GTI will be put toward a "new" car for me.
I'm considering taking that money out now and putting it toward a car. I really want to, but it's a big financial decision and I have no clue how stupid it would be.
Here are my thoughts on the issue:
- I really want a manual car. +
- I really enjoy driving, and not having a car with me in Michigan really sucks, so I'd like to have something to take out there. +
- I'd like a car that I can modify and work on myself +
- It's a lot of money being thrown around -
- I'd be paying for maintenance, but I don't have much money to work with after the purchase. -
Thoughts? I have a few cars in mind already, but I don't think I'd get too far into research until I decide whether or not to actually go through with this.
There's only really one question you need to answer: Do I need a car while I'm in Michigan?
Keeping the money locked up in the GTI doesn't make any sense because as a depreciating asset, it's constantly losing value whether you are there to use it or not. If you want to preserve the equity you've built up in the GTI, then the smartest thing to do is to sell it and put the cash in a short term CD or similar financial product.
But don't cash out on the GTI simply to put it in another car, you're just transferring cash from one asset that depreciates to another --unless you decide that you NEED a car in Michigan.
The only thing I'd advise against doing is to decide you are willing to walk in Michigan and keep paying on the GTI in Seattle which slows hemorrhages money while you aren't there. Bad idea.
Re: 540i. I looked at getting one of these when my plan was to buy a cheap daily driver and keep the M Roady. It's a good all around car and a really good value right now if you can find a clean example. Unfortunately, there are a lot of tired ones out there.
A clean, low milage late model V8 E39 commands 12 to 16k. The very nice '03 540i Sports (with the M5 style aero kit) are running from 14 to 18ish. E39 540s are not subject to the Nikasil problem as they are all 4.4 liter M62, with Alusil blocks.
At 10k, you're generally looking at a pre-facelift car with 100k miles or more. The powertrain is fundamentally long lived and the chassis is strong, but unless you are willing to turn around and invest some $$$ to refresh the suspension, possibly replace the clutch and fix numerous small problems --it's a German car, you know the drill-- you may not be too thrilled with what you get.
I was looking at some older 528s in the 7-9k range. Seems there are a few of them out there with 5MTs and low milage, probably owned by older folks. They're glacially slow, but handle well and are very comfy.
If you decide you're willing to throw some money and refresh a higher milage BMW, you may as well do what Azure did and get an E36 M3. The aftermarket support is WAY stronger for it.
M