Interesting Article: M3 buyers are surprisingly young

[ArtPE]

Originally Posted by bobbo

I call it the MTV generation. Gotta bling or lose face. This is especially prevalent in the Ktown district of LA.



You are an exception. Most fresh grads don't make high 5 figures. In my book, people can't really afford 65-70k cars until they make 200-240k range.

you do realize only 3% of the population make more than 200k?

[DJ9]

Originally Posted by ArtPE

the article itself

ya, we've covered this and our opinions as to interpreting those stats a few pages back.

Thanks!

[Dascamel]

Originally Posted by ArtPE

you do realize only 3% of the population make more than 200k?

Exactly, so most likely only 3/100 households "should" be buying these cars, but reality is......

[richardg]

Most kids do not understand the value of TRUE assets or compound interest. Most of us are impatient and feel that putting away 500-1000 a month as a daunting thing. Im 20 soon to be drinking legal. Fortunately for me though I have extremely high goals that I cant afford unless Im ridiculously rich anyway. (I gotta have a 430 Scuderia) I dont have parents in my life and I take care of myself and live on my own. I make 40k a year but I only have $1200 in bills between rent food and my 2 paid off cars I own. I have been doing it since high school (cranbrook boarding student) AS a young guy sometimes I can feel inadequate when I see my friends (who all live at home and in a affluent area) driving nice cars. Sometime people including myself see it as "Why dont I, or dont I deserve?" They get jealous or just want to keep up with the Jones' or for some they generall just want whatever it is. Sometimes though I think it all comes with what you think of yourself and your own lifestyle. If you think of yourself as a hip guy with a nice car you strive for it. If you see yourself as some country bad ass who rides a harley you strive for that. EX... When I used to live in the ghetto of detroit I always dreamed my first car would have been a used b5 A4 all pimped out. I always thought I would grow up and get a moderately decent job making no more than $30k because thats what my lifestyle was. When I got my scholarship to Cranbrook (Yeah its the school in 8 mile) I moved to Bloomfield Hills. The richest city in MI, my surroundings and what I expected of myself changed. I all of a sudden saw 911s everyday. I thought even worse of myself. But I pictured myself growing up to be some corporate big shot making the big money. Now time moves forward a bit in high school I had a bunch of friends who were "Rich". In reality they drove STS cadillacs and E Classes which are all cheap leases and their parents all had high mortgages and working at a company praying not to be laid off. But they had nice cars. None of them earned a damn thing but one of my friends who took his, what I thought astronomical at the time" allowance of $500 and was investing it. Now he showed me what he would achieve and had achieved over the short span of school and It totally changed my outlook. (That friend just by so happens to be Brandon Goodman, The kid from the Mischief Assualt 07. I know all those MI guys including super hot Audrey)

Back on Subject. Some people never have been told the honest reality of things. They are not rich. (Most Likely) But they can be if they take thier time and make wise decisions. These kids and even grown men see $1000 a month for a hot car and they start thinking to themselves, "I want that, I deserve, why dont I" And it starts to bother them so much they just do it. No matter the cost. Staying at home, No savings, Paycheck to paycheck, Whatever. Some people just need a vice to make themselves happy. In this case its a car. Since I know what I want in life Im going to strive for it. The same way anyone does for anything they want. BUT Im going to go about things differently. Im going to pay for my car all cash. Im going to have a scuderia and a nice sized home. And Im going to help others as others have helped me. But then again thats what I think of myself.

[xsilvor]

Originally Posted by richardg

Most kids do not understand the value of TRUE assets or compound interest. Most of us are impatient and feel that putting away 500-1000 a month as a daunting thing. Im 20 soon to be drinking legal. Fortunately for me though I have extremely high goals that I cant afford unless Im ridiculously rich anyway. (I gotta have a 430 Scuderia) I dont have parents in my life and I take care of myself and live on my own. I make 40k a year but I only have $1200 in bills between rent food and my 2 paid off cars I own. I have been doing it since high school (cranbrook boarding student) AS a young guy sometimes I can feel inadequate when I see my friends (who all live at home and in a affluent area) driving nice cars. Sometime people including myself see it as "Why dont I, or dont I deserve?" They get jealous or just want to keep up with the Jones' or for some they generall just want whatever it is. Sometimes though I think it all comes with what you think of yourself and your own lifestyle. If you think of yourself as a hip guy with a nice car you strive for it. If you see yourself as some country bad ass who rides a harley you strive for that. EX... When I used to live in the ghetto of detroit I always dreamed my first car would have been a used b5 A4 all pimped out. I always thought I would grow up and get a moderately decent job making no more than $30k because thats what my lifestyle was. When I got my scholarship to Cranbrook (Yeah its the school in 8 mile) I moved to Bloomfield Hills. The richest city in MI, my surroundings and what I expected of myself changed. I all of a sudden saw 911s everyday. I thought even worse of myself. But I pictured myself growing up to be some corporate big shot making the big money. Now time moves forward a bit in high school I had a bunch of friends who were "Rich". In reality they drove STS cadillacs and E Classes which are all cheap leases and their parents all had high mortgages and working at a company praying not to be laid off. But they had nice cars. None of them earned a damn thing but one of my friends who took his, what I thought astronomical at the time" allowance of $500 and was investing it. Now he showed me what he would achieve and had achieved over the short span of school and It totally changed my outlook. (That friend just by so happens to be Brandon Goodman, The kid from the Mischief Assualt 07. I know all those MI guys including super hot Audrey)

Back on Subject. Some people never have been told the honest reality of things. They are not rich. (Most Likely) But they can be if they take thier time and make wise decisions. These kids and even grown men see $1000 a month for a hot car and they start thinking to themselves, "I want that, I deserve, why dont I" And it starts to bother them so much they just do it. No matter the cost. Staying at home, No savings, Paycheck to paycheck, Whatever. Some people just need a vice to make themselves happy. In this case its a car. Since I know what I want in life Im going to strive for it. The same way anyone does for anything they want. BUT Im going to go about things differently. Im going to pay for my car all cash. Im going to have a scuderia and a nice sized home. And Im going to help others as others have helped me. But then again thats what I think of myself.

See, we're not all a mess!

I just make sure I'm putting the necessary amounts in to my 401k, keeping my bills paid, and making sure I always have enough set away (on top of what I'm saving for the car), to last me 3-6 months if for some reason, I was without a job. That would be bad for you guys too, because chances are that means we'll all be driving hydrogen powered cars!

Ya know, I say all this, but there's a good chance that if I wasn't doing as well, relatively, as I am, that I would still be in the "market" for an M3. It just would be a really irresponsible decision. Maybe all us Gen-Y's really are the same. Irresponsible. Maybe, some of us just get lucky and can handle it without looking irresponsible... maybe.

[Zed]

Originally Posted by ihyln

I'm 27, I'm married, I own a house in the shittiest state when it comes to property tax, and I bought an M3 with a kid on the way for next year. Why? Because if I don't do it now I wouldn't be able to justify it with a kid starting in his teens. I know because when I get old I will not have the desire to own any fun things as conservatism takes over in that age.

Woah there. I match your future profile of doom. I keep waiting to feel different and old, having 'conservatism' take over, etc. It hasn't happened yet. Yes the years have gone by, my kids are not really kids any longer, I'm older (and fatter), but I have more discretionary income too. Overall... I still feel like a kid when it comes to gadgets, games, cars, etc. My wife has given up that I will grow out of it. Being responsible doesn't have to mean boring.

Life is too important to take seriously.

[tgcrun]

Originally Posted by Zed

Woah there. I match your future profile of doom. I keep waiting to feel different and old, having 'conservatism' take over, etc. It hasn't happened yet. Yes the years have gone by, my kids are not really kids any longer, I'm older (and fatter), but I have more discretionary income too. Overall... I still feel like a kid when it comes to gadgets, games, cars, etc. My wife has given up that I will grow out of it. Being responsible doesn't have to mean boring.

Life is too important to take seriously.

I, too, am waiting for conservatism to creep into my life. Well, maybe it has a bit. I must admit I have no desire to jump off a bridge or out of an airplane, but I'm 53 and since last year I've:

bought a 335i convertible
run the Boston Marathon in 2:54
bought a Mini Cooper S
eaten that sushi that'll kill you if it's not prepared properly
bought an M3

Who says life can't be fun when you get "old".

[Hans Delbruck]

Originally Posted by richardg

Im 20 .... I dont have parents in my life and I take care of myself and live on my own.

richardg, you have more insight than guys twice your age. Sounds like you have had to live through some ups and downs and learned a lot from it...

Originally Posted by xsilvor

See, we're not all a mess!

[AMJ_77]

If you choose wisely and work hard it is possible to reach 6 figures at a young age. Me and my fiance (she 23 and I 24) both recently graduated as pharmacists and make over 100k a year. I pick up my M3 this Friday, have money to invest (work also contributes over half to our rrsp's), save for our wedding, go on trips, pay for house, etc. I still live like a student and had to talk myself into this even with money to spare. Please don't paint us all with the same brush, there are always exceptions to the rules. I want to own the car now while I am young, without kids and the price of gas is still less than my car payment. To each their own but financial success can be obtained at a relatively young age.

[swamp2]

Originally Posted by kevinD

the reason you made high 5 figures as an engineer is because your in california. your cost of living is double what it is anywhere else in the country, as such you get compensated for it.

Absolutely false. The cost of living for middle class, and most folks above middle class, still working for a salary is dominated by housing expenses. Housing can indeed vary by a factor of 200%+ in the US. Companies paying regular salaries make some small efforts to compensate for cost of living based on regional cost of living but it does not come anywhere close to making up the the discrepancy in housing costs. The result: folks make slightly more for the same job in areas like CA, and have much less desirable homes (at equivalent price points).

[TLud]

It's pretty refreshing to hear the stories here from other young people with their heads screwed on reasonably tightly.

I put myself through college and law school, bought my first house at 24, save 20% of my income, have good investments and a sizeable financial safety cushion, and a secure job. Even though it's easily within my means, I could probably retire a year earlier if I don't buy this M3, and that's something I seriously think about. But you only live once, and I don't want to wait until I'm retired to start having fun.

Oh yeah, and I don't really feel like I fall into Gen X or Gen Y. I was born on the cusp, 1978, and I don't really relate to the stereotypical culture attributed to either segment of the population.

[J08M3]

This threads gotten way to deep...

I'm going to stick to my blowing too much money on a nice car to pick up chicks theory. That perfectly fits every guy in their 20's not so much 30's and 40's cause they're still happy with their new families. Then by 50 the midlife crisis kicks in, kids are grown up, wife's getting old, and it's time for a new thrill again.

And believe me, BMW and every sports/muscle car company knows this.

[IWearScrubs]

Originally Posted by Keto

As for my profession, I am a doctor. Patients lie to me daily, both subtly and blatantly, for various purposes. "No I didn't eat too much salt," "I've never used cocaine," "I'm not sexually active," "I was just minding my own business and then the guy shot me," and many more.

And from the sounds of it, you work in the ER as well...

hello from another ER doc.

[kevinD]

Originally Posted by swamp2

Absolutely false. The cost of living for middle class, and most folks above middle class, still working for a salary is dominated by housing expenses. Housing can indeed vary by a factor of 200%+ in the US. Companies paying regular salaries make some small efforts to compensate for cost of living based on regional cost of living but it does not come anywhere close to making up the the discrepancy in housing costs. The result: folks make slightly more for the same job in areas like CA, and have much less desirable homes (at equivalent price points).

so in other words, you agree with me my company pays those in CA more then the people here in dallas. but if you move from CA to dallas you get a pay cut because the cost is so much lower. and the reason is exactly what you and i both stated, housing is ridiculous over there.

[icemang17]

Hmm.....mid 20's and mid 50's.....this makes sense to me....think about it....both are "professionals" one just starting out with most likely no kids and the other with a recent "empty nest" so a sporty two door coupe makes sense for both....

Myself at 35 would seem to be right in the middle of "no mans land" of M3 ownership....but with my wife just becoming a Dr this year & no kids....it also makes sense for me too!!

[valeram]

I started this thread so I have to say something constructive. I got nothing against people, not just young kids, buying expensive toys as long as they can afford it. The economy problem that facing this nation was caused by the people buying properties that they cannot afford, subprime. It is always the norm that new generations are always better off than the previous ones. So maybe, young adults can afford the new M3 earlier than before. Also, coming from different culture, I stayed with my parents while I was in college and even after graduating. Back home we are expected to stay at home while still in school. The parents are obligated to pay for their children tuitions even in college. I know it is different here in the US. We can still stay at home even after college and up until we can really support ourselves. It is a double edge sword. It can make or break you and it depends on how you work things out but most of the time it turned out for the better. For me I see it as a practicality in life. You can save some money while at home. You still have to do your normal chores (and more after graduating) and you have to pitch in with the expenses at home when you already have a job.

But the difference now lies in the priority between then and now. My goal back then was to save some money to buy a house and a decent car. I love cars but I know for the fact that it can wait until all my plans are accomplished and everything in place. I also remember back then that all I was aspiring was to buy a brand new car. Nothing fancy just a normal everyday car (I know that some rich kid think that an M3 is just a normal everyday car). On the flip side, you can buy those expensive cars while you are young and single. You are enjoying your young life and reaping the rewards of your new found success. There is nothing wrong with that. That is what the TV ads are telling us. Do you see any ads of those sports luxury car wherein the driver is more than 40 or 50? Maybe only a few but I don’t recall seeing an ads recently that fits my bill. The target buyers are getting younger. It is the IN thing with a BLING. That is what the current generation we have now and we have to accept the truth. I just hope that our values in life should never change but with the given circumstances, it might be hard.

PS
We are also expected to take care of our parents when they grow old which is a pleasure and a way of showing them my appreciation in all the things that they have done to me. It is the circle of life for us.

[Dascamel]

Originally Posted by TLud

It's pretty refreshing to hear the stories here from other young people with their heads screwed on reasonably tightly.

I put myself through college and law school, bought my first house at 24, save 20% of my income, have good investments and a sizeable financial safety cushion, and a secure job. Even though it's easily within my means, I could probably retire a year earlier if I don't buy this M3, and that's something I seriously think about. But you only live once, and I don't want to wait until I'm retired to start having fun.

Oh yeah, and I don't really feel like I fall into Gen X or Gen Y. I was born on the cusp, 1978, and I don't really relate to the stereotypical culture attributed to either segment of the population.

Strange to think about, but purchases like this do delay retirement.

[lugnut]

Originally Posted by ihyln

Doctors or maybe lawyers in bigger firms but that kind of salary out of university is literally unheard of. I'm your age as well

IT work was really more what I was talking about. Any engineering degree as well. A BS in one of those and IBM will start you off @ $90k give or take. My BA in Psychology is useless, but at least I knew that by my soph. year. That being said, a Master's in any Psych field and you should be getting 85-100k to start, and you would still be well under 30 years old.

I think the largest factor is that more and more people are living with their families later.

[lugnut]

Also, when the article spoke of "stretching" for the car that can be a misleading term. A stretch based on what? When a 335i convertible is $55k, and someone buys a $58k M3 I guess they are stretching, but I find it hard to believe that someone looking to spend $30k on a car is stretching to buy an M3. I think that more people that would have purchased an RS4 got the M3, but not the econo crowd.

I think a more interesting article would focus more on annual income of M3 buyers. If person A makes 150k a year, and person B makes 150k a year what difference does it make how old they are? A bigger concern is those that overspend for the sake of appearing more affluent than they actually are. That I can attest is unfortunately a generational thing, but from my experience seems to be on the younger "MTV" end of gen-Y. My younger sister is 24, and what she and her friends focus on is mind boggling.

And for what it's worth, I'm not a lawyer, engineer, doctor, etc. I'm a cop that happened to invest in real estate, and a couple of stocks while I was in college. My time in college wasn't as fun as some of my friends, but my time now is certainly more enjoyable than theirs, so it all evens out.

And in the end, no matter how much you save, or how many salads you eat, you're still gonna end up just as dead as a vegetarian cheapskate

[Keto]

Originally Posted by IWearScrubs

And from the sounds of it, you work in the ER as well...

hello from another ER doc.

You are correct sir!

[swamp2]

Originally Posted by kevinD

so in other words, you agree with me my company pays those in CA more then the people here in dallas. but if you move from CA to dallas you get a pay cut because the cost is so much lower. and the reason is exactly what you and i both stated, housing is ridiculous over there.

Not sure if I agree or disagree with you. I was not actually replying to you directly. I scanned quite a few posts back but did not even see your comments. I do agree that many companies will pay more in some areas than others but it is a very small percentage difference, small enough to make it pretty much insignificant given the drastic differences in housing costs. For instance if a particular position for a person of a particular education and experience pays $60k in Dallas it might pay as much as $80k in San Diego (probably not that big of a difference, but maybe). Does that cover the difference in housing? Not even close. The average home in Dallas is about $170k, in here in San Diego it is about $390k. The sure as hell ain't gonna bump your pay by double when you move to SD!

[Keto]

You get paid less to be a doctor in California than in Texas.