If you’re itching for another Bimmer, you’re not alone — the only question now is if you can afford it. As you already know, you also need to account for rising gas prices and auto insurance premiums when calculating the value of a second luxury vehicle.

The cost of living has been on the rise and everyone is feeling the squeeze, so it’s natural to want to assess your financial preparedness before going through with the purchase. Answering these questions can help provide clarity.

1. Do I Need it? 

The only thing better than owning one BMW is having two, but do you really need another car? For some families, owning a second vehicle is a necessity and for others, it’s a luxury. Ultimately, it comes down to why you’re considering it in the first place.

Is it because your current vehicle no longer meets your needs regarding functionality, space or features? Will another BMW address any specific limitations or requirements in the current car?

2. What’s My Current Financial Situation Like?

If you’ve got the cash to buy a BMW, just get it outright. However, if you’re looking at financing with an auto loan, it’s time to review your finances. Experts say a car loan repayment should not exceed 15% of your monthly income, but the requirements might be more stringent, especially if you’re still making repayments on the first car.

Consider your existing financial obligations, such as mortgage payments, utilities, insurance premiums and other recurring expenses. Can you pay for the BMW and still keep up with these? Will you still have enough to cover emergencies without dipping into your regular budget? It’s essential to have a safety net in place before committing to a new luxury car purchase.

3. How Much Car Can I Afford?

The quickest way to answer this question is to use an auto loan calculator. Use the tool to calculate how much you can afford based on set parameters like the down payment, loan term and highest monthly payment you can make.

Everything is interconnected, so your specific inputs will impact the end result. For instance, a higher down payment means a lower loan amount and a longer loan term typically means a higher interest rate. Adjusting variables allows you to compare different loan scenarios and choose the most suitable option for your budget.

The calculated amount includes additional charges like taxes and documentation fees. However, it’s not an official guarantee you’ll qualify for the loan or be approved for that specific amount.

4. Is This the Best Time to Get Another Vehicle?

Even if you can afford another BMW, you should still consider if the timing is right. Car prices tend to fluctuate and you could save a ton of money just by buying during more favorable periods. Generally, October, November and December are the best months to purchase a vehicle, as auto retail prices tend to be more negotiable.

5. Am I Buying a Regular BMW or an EV?

Electric vehicles are all the rage now and you’ll find no shortage of BMW options. Around 15% of the 2.5 million units sold in 2023 were EVs. 

BMW’s electric cars boast the same superior performance and sleek design as their fuel-powered counterparts. They’re also equipped with innovative features to address the usual limitations of EVs, such as driving range and charging time. For instance, the BMW i5 eDrive40 has an electric range of 498–582 kilometers and a DC charging time of 30 minutes.

Of course, you can expect to pay more for an EV. At the same time, several rebates and incentives can offset the cost, so feel free to explore your options.

6. Does It Align With My Long-Term Financial Goals?

You might be able to afford it now, but will owning another BMW fit your long-term financial objectives? Consider whether the purchase impacts other targets, such as saving for retirement, purchasing a home or family-related expenses. Remember — balancing luxury desires with prudence is the key to sustaining financial health.

7. Will I Get it New or Used? 

If budget is an issue, consider getting a second-hand Bimmer. BMWs are notorious for their five-year depreciation rates, typically above 50% compared to other vehicle brands. However, that can be a good thing if you’re looking to buy a used car. You already know what it takes to keep a BMW running smoothly, so maintenance is less of a concern.

Can You Afford Another BMW? 

BMWs are a considerable expense. If you catch yourself justifying your rearranging your money to buy one, it’s a good idea to step back and evaluate your financial capacity. Answer these essential questions before deciding to go to the dealership.

BMW is one of the most successful names in the automobile industry. For over 100 years, the automaker has made its mark with the i8, 3 Series, 4 Series and its line of motorcycles.

Nowadays, you can find BMWs in all six inhabited continents, with plants in Europe, Africa, North America, South America and Asia. How did BMW get so popular? Here’s a timeline of their expansion efforts in the last century. 

The Impact of World War II

World War II devastated BMW as the Allied forces bombed or dismantled its plants across Germany. The company relinquished control over its manufacturing sites for nearly a decade. During this time, BMW slowly rebuilt its post-war production with motorcycles and models like the 501.  

By the early 1960s, BMW returned to its pre-war status in the auto industry with the 1500 sedan. Twentieth-century Bimmer drivers lauded the 1500 and sparked a decade of excellent sales numbers for the manufacturer. In 1967, BMW outgrew its plant in Munich and needed to expand, so it acquired facilities in Dingolfing and Landshut, Germany. The company only needed a few more years before looking to another continent. 

First Expansion Efforts

In the late 1960s, BMW assembled the Glas 1800 at a plant near Pretoria, South Africa — the country’s administrative capital. By 1972, the automaker’s board members decided to purchase the production facility. BMW’s plant in Rosslyn became known as BMW South Africa — the first manufacturing facility for BMW outside of Germany in the country’s history. 

The Pretoria plant became significant for BMW as it continued producing the Glas 1800 SA and the BMW 2000 SA. In 1984, a decade after establishing the South African plant, the company began producing 3 Series vehicles here. 

Heading to the U.S.

The next expansion came nearly two decades later. In 1989, BMW wanted to build a plant in the United States. The country is very car-centric and has been for almost a century, so it makes great sense to build here. By 1980, nearly 90% of Americans owned at least one car, so establishing a BMW plant would be a significant step for the automaker.

In 1994, BMW opened its first American production plant in Spartanburg, South Carolina. The location gave BMW a foothold in the southern United States and a spot near the Atlantic coast. BMW initially used the Spartanburg plant to build the Z3 Roadster — but now it produces the X3, X4, X5 and X6, making it a pivotal location for the manufacturer. 

The facility is crucial for BMW’s presence in America and South Carolina, employing 43,000 people and contributing nearly $27 billion annually to the state. 

Acquiring a Big Name

BMW’s international expansion began to accelerate in the 1990s. At the end of the century, auto manufacturers, tech companies and other corporations realized globalization leads to better products at lower prices in nearly every industry. After American expansion, BMW looked to the U.K. for its next global opportunity.

In 1994, BMW purchased the Rover Group, the manufacturer of the Land Rover, the Mini, the Triumph and more. It didn’t last long, with the automotive group selling Rover by 2000. However, they kept the Mini, a staple for Bimmer fans today. 

In 1998, BMW made a massive decision by purchasing Rolls-Royce — one of the world’s most famous luxury car brands — away from Volkswagen. The automaker built a new headquarters and plant in Goodwood, a hub for motor enthusiasts in southern England.

Expanding to Asia

In 2003, BMW began producing Rolls Royces at its Goodwood location and made plans to expand into Asian markets. The manufacturer announced it would construct a plant in Shenyang, northeast of Beijing. BMW vehicles rolled off the production lines in 2004 for Shenyang residents. By 2012, BMW grew again with another plant in Shenyang — Plant Tiexi. 

Crossing into South America

By the 2010s, BMW left its mark on Europe, Africa, North America and Asia. In 2014, it expanded into South America for the fifth continent with a manufacturing plant in Araquari, Brazil. The southeastern Brazilian plant produced its first car in early September and has been integral to BMW’s presence in Latin America since. 

BMW in Mexico

The most recent development for BMW is opening a plant in Mexico. The San Luis Potosí facility opened in 2019 and will be a significant part of the future for the manufacturer as it looks to electric vehicles (EVs). BMW announced substantial investments to build high-voltage batteries and hire more employees to meet the demand for EVs. 

EVs are the future for BMW and other manufacturers, but what about hydrogen-powered cars and other alternative energy sources? Currently, BMW produces hydrogen-powered vehicles at its Munich plant, but watch for even more international expansion as technologies and markets evolve. 

BMW’s Global Impact

BMW is one of the most recognizable names in the automotive industry. For over 50 years, the company only produced in Germany, but its gradual globalization has led to success on multiple continents.