Financial Advice for my next car, 70% towards M6 GC

[Abran_tasrif]

After Researching throughly, Wether to Upgrade to an M6 GC 2014-2015 or M4 2018 from my 2015 535i M sport,
Im 70% towards the M6 GC.

I live in New York City (Queens)
I had a few questions, First, the most important one actually, I came to USA 3 years ago, and hence to Geico ( My insurance company ) My driver license is "new" to them. My driver license is 2 years and 5 months old to this date. (no crash/accident/traffic ticket whatsoever).
I used to pay $850 a month for my 535i but now I pay $550 a month. I got quoted $1025 a month for a 2016 M6 GC and $900 a month for 2014 M6 GC. My question is, is it worth it to save $125 a month and get the 2014? Im also financing the car( will keep it for 2 years) so there is the depreciation fact too, I dont wanna lose too much money. Whats your financial advice for that and the insurance? Is there any way to lower the insurance at all? My friend was telling me to find a relative far away and use their insurance, I tried one with a long island address and it becomes $500 a month instead of 900 for the 2014 M6 GC. I dont know anyone that is willing to take that risk of using their address so is there any other way to decrease it. ( I took defense drive course too )

Other than that, What are the major issues I should be worried about the M6 GC?
Its gonna be a daily drive, ( I know the MPG is horrible) I will sometimes speed,but not always.

Thanks!

[Abran_tasrif]

Originally Posted by Abran_tasrif

After Researching throughly, Wether to Upgrade to an M6 GC 2014-2015 or M4 2018 from my 2015 535i M sport,
Im 70% towards the M6 GC.

I live in New York City (Queens)
I had a few questions, First, the most important one actually, I came to USA 3 years ago, and hence to Geico ( My insurance company ) My driver license is "new" to them. My driver license is 2 years and 5 months old to this date. (no crash/accident/traffic ticket whatsoever).
I used to pay $850 a month for my 535i but now I pay $550 a month. I got quoted $1025 a month for a 2016 M6 GC and $900 a month for 2014 M6 GC. My question is, is it worth it to save $125 a month and get the 2014? Im also financing the car( will keep it for 2 years) so there is the depreciation fact too, I dont wanna lose too much money. Whats your financial advice for that and the insurance? Is there any way to lower the insurance at all? My friend was telling me to find a relative far away and use their insurance, I tried one with a long island address and it becomes $500 a month instead of 900 for the 2014 M6 GC. I dont know anyone that is willing to take that risk of using their address so is there any other way to decrease it. ( I took defense drive course too )

Other than that, What are the major issues I should be worried about the M6 GC?
Its gonna be a daily drive, ( I know the MPG is horrible) I will sometimes speed,but not always.

Thanks!

P.S, im 37.

[Abran_tasrif]

Originally Posted by Abran_tasrif

After Researching throughly, Wether to Upgrade to an M6 GC 2014-2015 or M4 2018 from my 2015 535i M sport,
Im 70% towards the M6 GC.

I live in New York City (Queens)
I had a few questions, First, the most important one actually, I came to USA 3 years ago, and hence to Geico ( My insurance company ) My driver license is "new" to them. My driver license is 2 years and 5 months old to this date. (no crash/accident/traffic ticket whatsoever).
I used to pay $850 a month for my 535i but now I pay $550 a month. I got quoted $1025 a month for a 2016 M6 GC and $900 a month for 2014 M6 GC. My question is, is it worth it to save $125 a month and get the 2014? Im also financing the car( will keep it for 2 years) so there is the depreciation fact too, I dont wanna lose too much money. Whats your financial advice for that and the insurance? Is there any way to lower the insurance at all? My friend was telling me to find a relative far away and use their insurance, I tried one with a long island address and it becomes $500 a month instead of 900 for the 2014 M6 GC. I dont know anyone that is willing to take that risk of using their address so is there any other way to decrease it. ( I took defense drive course too )

Other than that, What are the major issues I should be worried about the M6 GC?
Its gonna be a daily drive, ( I know the MPG is horrible) I will sometimes speed,but not always.

Thanks!

Using Relative's Address, Not insurance*********

[BM dnobagaV]

MPG shouldn't be terrible, what are you expecting haha, diesel numbers?
I get 21 in both the 28i and the AMG. I'd love to get 40+ in a diesel, but that is a future bridge to cross. ~20mpg is perfectly average.

In terms of insurance, sorry but I'm pretty uninformed on that topic. They don't teach you how to pay bills in high school or college...

[MO_23]

Can't really comment on your financials without knowing your whole financial story; take home after taxes, debts, bills, etc...

It's your world but paying that in insurance only is a little astronomical. I'm assuming you have a tight budget and not boat loads of cash since you're asking for advice. If you're stretching yourself, this is not a good idea, what happens once you get scratches on your bumper in Queens, winter's? etc..I can go on and on.

With very limited knowledge of your financials it's hard for anyone to say this is a good or bad decision. What I can say is if you're stretching yourself do not do it. and I would never pay those insurance numbers unless I was in Aventador.

[mastatikle]

I agree ^ $1000 a month and you’re 37 with a clean history is beyond astronomical. I’m 22 with tickets and other bs on my license and was only quoted 500-600 a month for my M6GC. I thought that was too high lol. I’m also in NY. I however have the car primarily insured in someone else’s name with me listed as a driver and it’s around ~$150/month for full coverage. I do understand that NYC rates are higher due to increased accident statistics but that’s outrageous. If the car is 60k and you get a 5yr loan that’s $1000/month. So you could in theory own two M6GC for what it costs to insure one lol

Now I would not own an M6 in NYC without another car. The roads are terrible and even worse during winter. Moving without 4wd is often impossible. So keep that in mind.

[BMWDriverX]

That is the worst I have ever seen. I pay $190 a month for full coverage on the lease of my 2016 M6GC and my record is not clean, I have won most of my tickets but I have over 30 of them on my record.

[Cincinnatus]

I'd start shopping for another insurance company, or postpone a BMW until you can find a reasonable rate. Your insurance payment shouldn't be as much as your car payment. That's absurd.

[mjposner]

Just an fyi, using a different address to lower insurance cost will likely bite you if you make a major claim, as that is fraud on the insurance company. You would also have to have your dl match the different address and that is another crime. You didn't state what coverage, so adjusting deductible, and liability coverage can change the rates. Also, look at the policy charges, is it theft that is what is causing the high coverage? If so, ask the company how this can be lowered (better alarm, lojack, etching etc.).

As for a 2014 v 2016, you get the lci, better nav/idriuve system, possible comp pack, and probably some warranty left.

[mastatikle]

Originally Posted by mjposner

Just an fyi, using a different address to lower insurance cost will likely bite you if you make a major claim, as that is fraud on the insurance company. You would also have to have your dl match the different address and that is another crime. You didn't state what coverage, so adjusting deductible, and liability coverage can change the rates. Also, look at the policy charges, is it theft that is what is causing the high coverage? If so, ask the company how this can be lowered (better alarm, lojack, etching etc.).

As for a 2014 v 2016, you get the lci, better nav/idriuve system, possible comp pack, and probably some warranty left.

Comp package is available from 2014

[thebmw]

Are you sure you are not quoting prices for every 6 months? Never heard of anyone paying $1000/month for insurance for any car.

[Abran_tasrif]

Originally Posted by thebmw

Are you sure you are not quoting prices for every 6 months? Never heard of anyone paying $1000/month for insurance for any car.

Yes 6 months is $5900 payment

[mastatikle]

Originally Posted by thebmw

Are you sure you are not quoting prices for every 6 months? Never heard of anyone paying $1000/month for insurance for any car.

No that’s about normal for this vehicle and someone with bad driving history but he has a clean license, so he says.

I knew someone that was paying ~700 a month for a 20k pickup truck, the damn loan payment was only $300 lmao. He had a LOT of tickets and accidents on his record. I believe op needs to shop around or his license isn’t as clean as he thinks/says.

[Cincinnatus]

Some insurance companies just don't specialize in, or desire to, insure this class of car.

By way of an example, when I was shopping for my F13, I was with Farmer's for home and 2 autos, an 02 Intrepid and an 04 Explorer. My monthly for auto was roughly $80 with comp only, basic liability and no collision. When I asked my agent to quote the M6, I was told $350/month. Their explanation was that they just don't care to dabble in this sort of vehicle and they don't diffentiate between cars driven for pleasure and cars that are commuters or work related.

I went with Erie, a regional insurer that specializes in the Northeastern corridor. They rated me at roughly $95/month for the M6 with full collision and comp at a $500 deductible.

The point that is that not all insurance companies are equal and many factors influence their rating schedule, including their business model and specialty... but your driving record and credit rating are significant contributors to whatever that rating schedule might be.

[mgmarsh39]

Originally Posted by Cincinnatus

Some insurance companies just don't specialize in, or desire to, insure this class of car.

By way of an example, when I was shopping for my F13, I was with Farmer's for home and 2 autos, an 02 Intrepid and an 04 Explorer. My monthly for auto was roughly $80 with comp only, basic liability and no collision. When I asked my agent to quote the M6, I was told $350/month. Their explanation was that they just don't care to dabble in this sort of vehicle and they don't diffentiate between cars driven for pleasure and cars that are commuters or work related.

I went with Erie, a regional insurer that specializes in the Northeastern corridor. They rated me at roughly $95/month for the M6 with full collision and comp at a $500 deductible.

The point that is that not all insurance companies are equal and many factors influence their rating schedule, including their business model and specialty... but your driving record and credit rating are significant contributors to whatever that rating schedule might be.

Lived in Erie, PA for a year . Using my GE discount through Electric insurance. Mine and my wifes Honda CRV are combined about $200/mo.

[mjposner]

He lives in a high accident high crime area compared to places like Erie. He may even be below 25. Its an expensive car to repair post-accident as well. he also does not say what coverage, 10/20 or 100/300 and what else is included such as unisured motorist and his deductible.

[Flying Ace]

Originally Posted by Abran_tasrif

After Researching throughly, Wether to Upgrade to an M6 GC 2014-2015 or M4 2018 from my 2015 535i M sport,
Im 70% towards the M6 GC.

I live in New York City (Queens)
I had a few questions, First, the most important one actually, I came to USA 3 years ago, and hence to Geico ( My insurance company ) My driver license is "new" to them. My driver license is 2 years and 5 months old to this date. (no crash/accident/traffic ticket whatsoever).
I used to pay $850 a month for my 535i but now I pay $550 a month. I got quoted $1025 a month for a 2016 M6 GC and $900 a month for 2014 M6 GC. My question is, is it worth it to save $125 a month and get the 2014? Im also financing the car( will keep it for 2 years) so there is the depreciation fact too, I dont wanna lose too much money. Whats your financial advice for that and the insurance? Is there any way to lower the insurance at all? My friend was telling me to find a relative far away and use their insurance, I tried one with a long island address and it becomes $500 a month instead of 900 for the 2014 M6 GC. I dont know anyone that is willing to take that risk of using their address so is there any other way to decrease it. ( I took defense drive course too )

Other than that, What are the major issues I should be worried about the M6 GC?
Its gonna be a daily drive, ( I know the MPG is horrible) I will sometimes speed,but not always.

Thanks!

Firstly - the advice to use a relative's address is terrible. While it'll save you money, if you ever get into a major claim and the insurance investigates and finds out about the fact you lied on the car's domiciled location, this is insurance FRAUD. The best outcome is that they will simply deny the claim, you breached the terms of the contract. The worst case is you can get sued by them or go to jail if you were successful in getting money initially from them and they can show you willfully lied about your location.

Second - we cannot advise you on whether it's "worth it". Only you know your financial situation. You can estimate what depreciation is for 2 years by simply looking at the used prices of 2014 and 2016 cars. Can YOU afford it? Only YOU can answer that. Same goes with the added insurance premium for the 2016. I don't know what your retirement plans are, or what your income and liabilities are.

Third - The ONLY way to shop for cheaper insurance is to actually do just that...SHOP. The best way to do it is, obtain a M6 GC VIN that you have done, and get them to quote you a rate based on a set of assumptions for zip code and coverage level. Then you go to another insurance company and get a quote on the EXACT SAME assumptions. Usually, if you can get them to give you printed quote with the coverage amounts written, it's the easiest way to shop.

Finally - Insurance premium rates is a notoriously opaque process to understand. No one will tell you exactly what is causing you to be deemed more or less risky in their model. After all, it's their model that is what makes them profitable, and everyone runs a slightly different model based on statistics, quantitative modeling and actuarial science.

But what is known is that insurers look at a broad range of factors that is beyond the direct relationship of your driving history. They also look at your personal credit. They have shown in their models that more financially responsible people have also been safer drivers. Zip code is another factor. High risk areas (read: high population areas) usually indicates high accident rates. Having lived in a low risk area (Ohio) and high risk areas (DC and SF), I can just tell by people's driving behavior here that DC and SF are high risk areas for accidents. Part of it is how safe I drive, but a lot of it is out of your control when others are negligent.

And one last thing to add. Insurance companies loves to cross-sell products. It's called bundling. Simply put, if you buy more products from them (home owners, umbrella, personal liability, life insurance), they will give you bigger discounts on all the items they sell you, including auto.

So this is why you just simply can't ask how much someone else pays with this company or that. Bc aside from the different factors I've already mentioned, the fact that customer has been buying multiple products over time will be unknown to you.


If I were to guess why your rates are so high, these will be the biggest factors:

1. There's not enough credit history on you. Credit history length-wise, you actually have less history than a US born 21 year old.
2. Your car will be parked and driven in high risk zip codes.
3. Your driving history length is only as long as a US born 19 year old.

So you shouldn't be surprised that all things considered, you are in the risk profile of high school kid's driving history, and a college kid's credit history. On top of that, you will be driving a car that's expensive to fix AND you live in a dense population center with high accident rate. (Come on, look around you, literally 50% of the cars in NYC has dents and scrapes on them).

[Flying Ace]

btw, everyone...$1000/mo is what I've seen on these forums (M3post) for foreigners who only have a few years of credit and driving history in the US.

I'm going to guess it's about the same amount a teenager will pay to insure for a $100k car.

So I'm not surprised at all.