Originally Posted by truths2k05
I was waiting for all the financial guru's here to eat crow. Why is it every time someone comes here for financial advice all these idiots tell that person that they can't afford it, or how they pay cash. If you guys were truly financially savvy you would leverage by borrowing at low interests rates so that your money wouldn't be tied up on one thing.
125k a year with zero obligations he can drive a Porsche if he likes. I guarantee that if you pay cash for everything as the idiots have suggested, you will never have an ounce credit. Learn what Donald Trump learned the hard way, always use money that isn't yours to get the deal done. And never borrow what you don't have the ability to repay.
Who has no obligations? Also, do not forget he lives in San Francisco, which the median home costs $775,000. If he purchased the median home, he would commit $4000 per month of his $6,771 monthly take home pay. Let's say he buys a $50,000 M3 on top of that, just to have have a median home and an M3 he is committing to $4865.00 per month in bills. Now he has to insure the car, assuming since he just graduated college, 23 Y/O male in an M3, so his rate would be anywhere from $150 to $200 per month. This leaves him with $1700 to survive every month. I'm not saying buying a home is a great investment, but some sort of shelter is necessary in life.
I think it's better to get advice on not to do it, than from idiots like you telling people they are fine without looking at the true finances and telling him he can afford a new 911. You sound like mortgage lenders of the 2000's.
He just graduated college and getting his first paycheck so he wants to get himself a bad ass car. I understand that, but having a bad-ass car and not being able to fill it up or move out of Mom's house isn't very bad-ass.