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      04-13-2013, 02:35 PM   #23
persian54
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Quote:
Originally Posted by Skiptomylou37 View Post
A little credit card debt is around 1k with a much higher limit. I originally was thinking of buying an 08 M3 with low miles. No warranty doesn't scare me because I am a USAA member and they offer bumper to bumper warranties I could get up to a 3yr/36k mile warranty for 3k.
I don't know about USAA warranty coverage, but if that is true, then what I said changes. You can get M3s in the 30s nowadays, which is pretty cheap.


For the 200k comment, I can understand that if one has to support a family (wife+kids), a nice house with a fair mortgage, wife's car, save for kid's college, insurance for all of them, food, etc etc etc

....but for a single individual with no responsibilities except enjoying life, you should be driving a better car than just a M3 if your income is 200k.

lots of factors, as with every other decision in life

I would say pay that 1k off already... interest on it is worthless.

Invest more of your income so it builds up and you can then put it towards an investment property, do more sales to increase commission, wait for F8X to come out so E9X prices drop and then find a nice, clean lease return with low miles driven by an older family man


Obviously I am in this exact situation right now, hence my comments and rather excessive involvement in this..

I want to get a 911 Turbo/991S, but my gut is telling me not to and to just get another M3 or Z4 and call it a day.
(heck i was about to sign a SLS lease when I got my E350 4 months ago but realized what an idiot financial decision it would've been and backed out lol)
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      04-13-2013, 02:37 PM   #24
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Quote:
Originally Posted by robotk View Post
I'll just put it out there- personally I think you need to be making at least $200k to get an m3. I'm sure others have different opinions on this. Where you live and having kids/wife obviously factor into this as well.
Think you could explain your reasoning for this? Maybe it's because I'm young and foolish, but if I was making 200k a year I think I would be talking about getting a Murciealgo, not an M3
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      04-13-2013, 02:39 PM   #25
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It is wise to think about the future than to only think about the present. If you play your cards in a wise manner when your young, you can live a more prosperous life down the road. My 2 cents.
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      04-13-2013, 02:40 PM   #26
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I would be talking about getting a Murcielago, not an M3
Better!
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      04-13-2013, 02:41 PM   #27
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Better!
Spelling eror, my bad.
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      04-13-2013, 02:42 PM   #28
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Quote:
Originally Posted by Skiptomylou37 View Post
Think you could explain your reasoning for this? Maybe it's because I'm young and foolish, but if I was making 200k a year I think I would be talking about getting a Murciealgo, not an M3
Just because you can afford it, doesnt mean you should. I make over 200k a year and my daily driver is a 09 prius. Enjoy life but invest in your life and your familys lives before luxury toys.
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      04-13-2013, 02:47 PM   #29
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Just because you can afford it, doesnt mean you should. I make over 200k a year and my daily driver is a 09 prius. Enjoy life but invest in your life and your familys lives before luxury toys.
Sorry to go OT.. but I noticed you just joined a month ago... and scored the S65 username? Damn.. no one thought of that in all these years?? Congrats!



It also depends on what someone's priorities are... vacations? large home? a family? single-income household or double income household? being single?
Lots of factors to consider...
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      04-13-2013, 02:55 PM   #30
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Quote:
Originally Posted by persian54 View Post
Sorry to go OT.. but I noticed you just joined a month ago... and scored the S65 username? Damn.. no one thought of that in all these years?? Congrats!



It also depends on what someone's priorities are... vacations? large home? a family? single-income household or double income household? being single?
Lots of factors to consider...


It basically comes down to what you value in life. To each his own.

Some people drive big cars and rent a place. Some people have a big house and drive a honda. Some people have a big house and a nice car. A small percentage actually have
multiple cars and a few homes. Few people can actually afford it, most people chase it.
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      04-13-2013, 02:57 PM   #31
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Its not what others percieve you to be but what you percieve yourself to be. I wear jeans and tshirts and I drive an old prius.
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      04-13-2013, 02:57 PM   #32
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If you:

1) Have you own place and are financially independent
2) Can comfortably save/invest at least 1/2 your after-tax income
3) Can live a comfortable lifestyle including good food, drinks, and company
4) Travel frequently and learn new things, enjoy freedom
5) Pay off all your credit card balances monthly or use 0% APR cards wisely (E.g. never pay a finance charge, ever)

and still have the cash leftover for a M3, tires, maintenance, and gas

You're fine. I would say that requires min. 200K/yr in the USA for a single person.

Quote:
Originally Posted by persian54 View Post
....but for a single individual with no responsibilities except enjoying life, you should be driving a better car than just a M3 if your income is 200k.
As a single guy in my late twenties: when do you ever "have no responsibilities except enjoying life?" Unless you are completely bankrolled by someone else whatever income you have has to go to rent, tuition, food, dating, investing, traveling, insurance, clothes, etc. all of which add up to far more than a fancy car payment. A M3 is a suitable purchase for someone who makes 200K before tax and still has responsibilities, even if single.

Last edited by Goat Rodeo; 04-13-2013 at 03:06 PM.
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      04-13-2013, 02:59 PM   #33
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This thread is about financial responsibilty not how much car can I afford.
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      04-13-2013, 03:19 PM   #34
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Quote:
Originally Posted by Skiptomylou37 View Post
Think you could explain your reasoning for this? Maybe it's because I'm young and foolish, but if I was making 200k a year I think I would be talking about getting a Murciealgo, not an M3
Say a tree fell through your roof (if you eventually own property) and your s65 throws a rod. Are you still reasonably comfortable? Say you meet the woman (I'm assuming here) of your dreams tomorrow and she has expensive taste. Can you step up? God forbid you have a kid in the next few years. Life gets expensive very quickly. The car you can afford is one that will allow this kind of flexibility, in my opinion.
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      04-13-2013, 03:23 PM   #35
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Sorry for your loss, first of all.

Life is meant to be lived, but some decisions you make now can really screw things up for you down the line.

Cars are depreciating assets, and you need to consider the lost opportunity cost of not investing the money you'd spend on the car.

Before I bought my M3 (used), I had a nice house, a big chunk built up for retirement + 20% of salary going there, life insurance & 529s set up for our kids, and my wife already in a nice mom-mobile (the family stuff doesn't apply to you yet, obviously).

Getting an '08 with a good insurance option from USAA sounds like something you could manage pretty easily, just make sure you're also set up well for the future.

Here's some advice on this I saw recently:

- Put down at least 20%
- Finance the vehicle for no more than four years
- Keep total monthly vehicle expense - including principal, interest, and insurance - under 10% of gross income

Cars like these are meant to be enjoyed; make sure there's no way you'll end up regretting the purchase.

Best of luck on your decision.
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      04-13-2013, 03:35 PM   #36
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sounds like you've already had your fun

i'd play is conservative and build a nest egg for more serious things.
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      04-13-2013, 03:47 PM   #37
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payment? that's for civic owners.
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      04-13-2013, 04:32 PM   #38
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I like to think in percentages as well, but let's all be honest with ourselves, if we were making car buying decisions based solely on economics, none of us would be on here. That said, you definitely don't want to over do it. I think it's a good idea to think about a worst case scenario - what if you lost your job, how long can you last on your savings? A year? It's also good to think about income growth, and your visibility there. If your income will remain as is for the next few years, you may want to think differently than if you expect 30% annual growth.

And for those who think young single guys making over $200k should be driving around in Lambos, that just seems a bit absurd to me.
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      04-13-2013, 04:43 PM   #39
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Quote:
Originally Posted by davesaddiction View Post
Sorry for your loss, first of all.

Life is meant to be lived, but some decisions you make now can really screw things up for you down the line.

Cars are depreciating assets, and you need to consider the lost opportunity cost of not investing the money you'd spend on the car.

Before I bought my M3 (used), I had a nice house, a big chunk built up for retirement + 20% of salary going there, life insurance & 529s set up for our kids, and my wife already in a nice mom-mobile (the family stuff doesn't apply to you yet, obviously).

Getting an '08 with a good insurance option from USAA sounds like something you could manage pretty easily, just make sure you're also set up well for the future.

Here's some advice on this I saw recently:

- Put down at least 20%
- Finance the vehicle for no more than four years
- Keep total monthly vehicle expense - including principal, interest, and insurance - under 10% of gross income

Cars like these are meant to be enjoyed; make sure there's no way you'll end up regretting the purchase.

Best of luck on your decision.
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      04-13-2013, 04:47 PM   #40
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I'd personally want the house first, but it all comes down to what makes you happy.

You seem to be doing ok, and the main thing is you have no kids/wife. So i'd say go for it.
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      04-13-2013, 04:47 PM   #41
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My recommendation:

Wait until you can afford a CPO E90 M3 OUTRIGHT. M3s depreciate, so there is no point splurging on a brand new one when you're on the fence about financing one. Another benefit is you can turn around and sell it when you get engaged, buy a house, buy a better car, etc. etc. etc.

Oh and Evos have that whole Paul-Walker-vibe but M3s have this weird White-Car-Yellow-Brakes-Asian-Vibe; it's all about who can stance the best reverse entry parking spot.
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      04-13-2013, 04:48 PM   #42
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Quote:
Originally Posted by Goat Rodeo View Post

As a single guy in my late twenties: when do you ever "have no responsibilities except enjoying life?" Unless you are completely bankrolled by someone else whatever income you have has to go to rent, tuition, food, dating, investing, traveling, insurance, clothes, etc. all of which add up to far more than a fancy car payment. A M3 is a suitable purchase for someone who makes 200K before tax and still has responsibilities, even if single.
Sorry if I didn't go into detail enough, but some of the stuff was mentioned previously. Hopefully this will make my statement make more sense:

Some things mentioned are really dependent on the person.
Tuition: I didn't mention it cause he said he had it paid off. (for me, I had a full scholarship ride so I never had to worry about tuition)
Rent: Already mentioned previously that he can cover it
Food/dating/traveling/nice clothes: all part of enjoying life.
investing: already mentioned

When I said no responsibilities, I meant no responsibilties to anyone else. Meaning, you live for yourself, make money for yourself, and do what you do to enjoy yourself. With no need to pay for a wife, kids, parents (since, when you're in your 20s, your parents are generally young enough to not be retired yet). Yes, having a girlfriend has it's expenses, but in this day and age, especially with "feminism" getting a strong hold, that's becoming a cheaper and cheaper expense; regardless, paying for a gf/dating is part of "enjoying life"


Quote:
Originally Posted by SF_DCT View Post
honest with ourselves, if we were making car buying decisions based solely on economics, none of us would be on here.
I want to quote and save this; perfect truth


Quote:
Originally Posted by Mahzari View Post
Oh and Evos have that whole Paul-Walker-vibe but M3s have this weird White-Car-Yellow-Brakes-Asian-Vibe; it's all about who can stance the best reverse entry parking spot.
Unfortunately, most M3 drivers are now, what some like to call: "Hard parkers"
People who throw money at the car, yet only stare at it...
Brembos, JRZs, Aeros, TE37SLs with R-comps etc etc... and they never see a race track :/, all they see is the occasional exposure at meets

Last edited by persian54; 04-13-2013 at 04:59 PM.
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      04-13-2013, 04:57 PM   #43
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OP:

So, one of the common themes here seems to be "house first". I think this is ridiculous, for numerous reasons, not the least of which being that I have seen _way more_ people being house poor than car poor, although I don't think either is a good idea. Don't force the house situation; do it when you are ready. Maybe the people that say "house first" should rather say "be clear about your priorities, and act on them appropriately".

Another (less common) theme is "if you have to ask, then you can't afford it". Again, nonsense. If no one has ever discussed it with you, you wouldn't know . . . I would analyze the situation as follows: take your after tax monthly income, subtract amounts commensurate for things that you must pay for, and for reasonable entertainment. You can probably spare _all_ of the remaining money, but you probably shouldn't; maybe half of the remainder would be better.

Good Luck.
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      04-13-2013, 05:10 PM   #44
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It's normal to want want opinions on what you can afford from other people. I was in your situation and did the same.

Basically, the most important thing is to count your beans. Meet your financial goals and see what kind of car payment you can handle without making sacrifices in other areas, like going 1-ply toilet paper instead of 2-ply.

I was worried about this stuff because paying 500 a month on my m3 for 5 years is a ton of cash and that's scary long time. Once I pulled the trigger I enjoy the m3 and dont even notice the 500 out of my account each month, nor have I made any lifestyle changes. That's the ticket.
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