superwoman

Hi guys,

I'm trying to decide whether I should get a brand new Fiat 500 or an used 2007 S550 for my first car.

I know this comparison is not even close but please stay with me.

Background:
I'm 23 and making about $55k a year. I've decided to get my own car because I'm tired of using my parents'. Right now, I hover around a C63, E550 coupe, Lexus ES300, RX350, and a Ford van.

The Cars:
The Fiat 500 will run about $21,000 @ 1.9% for 24-36 mo. or 2.9% for 48-72mo.

@36mo. = $600/month loan payment

The S550 is a certified car (40k miles) with warranty at $42,000 @ 1.9% for 36-60mo or 0.9% for 24mo. The interest charge for 3 years @ 1.9% is $1200.

@36mo. = $1300/month loan payment

While the S550 is double the price, it looks like a better value because it's loaded with technology. Heck, a new C250 costs $42k! S550 has 4matic which is good because 6 foot of snow is normal here. On the other hand, the Fiat 500 is a primitive car because the base version doesn't even have AC.

The drawback of the S550 is maintenance cost and price. The image of the S class is also quite mature but I like the prestige feeling.

I like the Fiat 500 because it's very chic(James May loves it), hip, and relatively exclusive compare to other budget cars like Corolla, Civic, or Mini. However, it's hard to justify the price when a flagship S550 is lurking around for $42k.

My biggest concern is financial liability. It's kind of insane on the hook for $40000 at $1300/month for 3 years. The plus side is that the interest charge is basically nil at 1.9%. The other option is to find a 2002 Boxster for about $22k. However, I'm worried about the engine problem and RMS leaks after doing some research about the 986.

If I do get the S550, I plan to keep it for a long-time and use it as a daily beater when I can afford a sports car. Obviously, I can't do that with 2-door tiny Fiat 500.

What's your take?

CharlyE500

Where do you live ? do you really need 4Matic ? $40K car is very heavy payment and S550 will depreciate $10K in 3 years. Why don't you find G37 for $25K which fits better for budget and your age group. You are too young to drive a S550 IMO. Plus, don't forget $40K car insurance and gas are not Cheap ! S550 4Matic around 16/21MPG ? and in 3 years of ownership maintenance will be much higher cost than a Japanese car.
I recommend a Japanese sporty sedan for your first vehicle. Easy to maintain, lower cost ownership and they do not depreciate as fast as S550. The Fiat is a much smaller car compare to S550 and as safety not so well.

superwoman

Hi Charly,

I live in Toronto, and I go ski a lot in the winter so 4Matic is a plus. I drove the C63 with snow tires on snow. It was doable but very tail-happy.

You are right about the insurance. The highest quote I got so far is $10k/year The lowest is about $6000/year. I might have to use my parents' coverage for awhile.

Depreciating $10k in 3 years is not too bad isn't it? I just did a quote on 2011 VW Jetta @ $20k new. The residual after 36 months is $10,000 so about $10k depreciation for a $20k car.

The G37 is a sensible choice but they are all driven by douche here in Toronto, same with 350Z/370Z. This may sound spoiled but I've experienced the power of C63 and the feeling of driving a coupe(E550C). The G37 seems incredibly boring to me. I want something different. The Fiat is very compact and hip which is new to me. While I had driven the BMW 5 series, I imagine the level of comfort of the S550 will be at another level.

I guess what I'm really after is style and character because otherwise I would go with a sensible yet bland econobox like Corolla.

superwoman

This video makes me even want it more.

Mercedes-Benz The S-Class History "Ahead Of Its Time"
http://www.youtube.com/watch?v=2gEVk...layer_embedded

lboudreau

Just wanted to say that I think his/her age has nothing to do with what car he/she gets. If he/she can afford the S class then he/she should get one. I'm 27 and I have one. These days age is irrelevant.

EDIT: To the OP: Get what makes you happy. At the end of the day, all that really matters is what puts a smile on your face and I'd be willing to bet that the S class would put way more smiles on said face.

FraKctured

RUN as fast as you can. No matter what issues the E-class has, you'll be far better off. The only FIAT I owned was a complete and utter disaster, eating up my bank account for weekly repairs that were never ending till I sold the piece of total junk for a loss and have never regretted it.

Don't hesitate--pass on the Fiat and buy anything else, then count your blessings as you dodge that Italian hollow point bullet.

The Sting

Quite interesting dilemma and I know what you mean.

So back here in Europe we also have the same scenario : often a second-hand s-class (mostly W220) are often chaeper than other second hand cars with same mileage and which are not seemingly close to it (Alfa Romeo break, Hyundai van and other "standard" cars like these...).

So the idea of owning an s-class is tempting : prestige, excellent driving feeling, quality and in your case the 4MATIC which will be very useful in winter...
Now the S-class (compared to your 500) also has some backdraws, which you also clearly seem to be aware of:
- Maitenance costs (regular and unexpected costs are really heavy)
- Fuel consumption
- Practicality of the car (5meters vs 2.3meters)
- (Youthfull looks lol)

The 500 has been in here in Europe for quite some time and it has made it's way through the market (although the competition is quite fierce : audi A1, Mini Cooper, etc...). It's a great car, yet if your planning on using in snow I'm not sure if it will handle that well.

The advantage of getting a new car is also the guarantee (warranty u call it back in the states right?). Over here the standard skeem is : 3 years or 100'000km (and often u can get an extension of 2 more years). I'm not sure if with the s-class you will be able to pull more than a year's warranty for a 2007 model.

U say also you will need the car for 5 years, trust me, those new fiats are really good cars (somehow the stereotype of the old fiat spending most it's time in the garage : "Fix It Again Tony" years are over)... It can easily last that long.

CharlyE500

Age for sure has something to do just for financial stand point. Not everybody can afford car as you do and don't matter about financial. She is 23 and I think she should get a reliable Japanese AWD car. My suggestion was G37 or G37X (4doors). There is a lot of things you have to consider, OP sounds like someone who is very smart making all the number calculation of cost. If money is not issue then S550 4Matic for sure. Just remember the insurance, gas and maintenance cost.
I used to live in Montreal for 13 years so I know how is the weather condition and high gas price. Anyways, this is base on my opinion, Good luck !

CharlyE500

Simple math, S550 loan $1300/ month + $500 insurance + $200 gas + $100 average maintain/repair cost = $2100 monthly cost.

lboudreau

Like I said, "if she can afford it" No one is too young to own and drive an S class, that's BS. Income is blind, you can be 50 and make 250K a year or you can be 20 and make the same amount. Obviously she can figure out what she can afford and what she can't. Most people wouldn't be on this forum debating the choice if they didn't have the means to purchase the car.

EDIT: Just my 2 cents on the Infiniti: What is so great about Infiniti? Obviously she wants something unique, not an overpriced Nissan. Might as well suggest a Lexus hybrid while we're on the topic of overpriced new-to-market vehicles

CharlyE500

I was not only based on her age 23, also based on her income, she mentioned $55K/year which $4580 after tax in Canada should be around $3800 ? which $2100 car expense i think its too much. its more than 60% income toward the car. Again, this is pure my opinion.
About the Infiniti, you can find infiniti or lexus or Acura as long the car is easy to maintain and AWD

745Japan

If not the S550, CLS's can be had in the 20-30K range. So consider one of those as well. They are sexy cars, so it would be a perfect match for you in your 20's.

fbracer

$500/month insurace? Not really. I pay $718/6months for my 08 s550
Edit: maybe in Canada...

lboudreau

Not in Canada either. I pay about $1500 for the year.

tc1728

buy the cheaper car...

MercedesFTW

14 replies and not one request for pics...tsk tsk, what has mbworld come to!

fbracer

I guess he was insuring his house too at the same time

lboudreau

Must have been. I don't think I ever paid 500 a month!

CharlyE500

This is based on OP info...... i wouldn't pay anything like that. I have 3 cars, 2 E55 and full coverage only for $2100 a year of course, I am much older...

Lenn777

If I was your age I would look to get something within my budget and invest in the market.

JM

i lol'd at thread title.

lboudreau

Was that a joke?

hyperion667

no doubt, F the market......

ima55r2

Go for a 987 Boxster. The cause of the leaks were corrected in the M97 engine. There are low mileage cars in the mid 30's and with the proper tires, driving in snow will not be a problem.

jbanks

Have S550...had Boxster...luckily I had the RMS replaced under warranty. 2004 Boxster S.

I vote FIAT!

I've actually considered getting the Fiat. So I would have something fuel efficient.