I'm in a similar predicament. A couple years older, a few thousand less each year, a year out of college. I have thought long and hard about buying a new E92 but will probably still get one ED next summer.
My living expenses are quite a bit lower and I have and will continue to skimp on everyday expenses (no cable, make my own lunches, going out infrequently, etc) to instead put money towards the car. Once the payments begin I want to be sure I can still bring home at least $500 a month for emergency expenses, even after the increased insurance and gas bills. I've been saving for a year now for a decent down payment (~$25k). And I'm not considering any real estate purchases for awhile.
I plan on keeping this car for 10+ years so Iíd prefer to buy new, and I want to get one before the eco cloud rains on the parade that is the S65 V8. Is it a poor financial decision? I will admit that it is. Iím trying to lessen the financial burden by making sacrifices elsewhere but I know thatís still not protection against job loss or other unforeseeable circumstances. Everyone in this thread has given good advice but as persian said, youíre only young once. As long as it doesnít consume all your disposable income, I would go for it.
BTW, I also made the mistake of test driving an M3