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11-07-2011, 06:22 PM | #111 |
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I bought my M3 last year at 27, and was in similar circumstances as you when I graduated college at 22, though my financed car at the time was an '04 S2000. It's a good thing I wasn't itching to upgrade at that time!
I definitely see the point of "you only live once", but saving up some cash can only help, and serves as good protection for when unforeseeable things happen. You don't want to face a layoff 1-2 years down the road with an M3 and no savings, for example.
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2011 E90 M3 6mt AW/Speed Cloth - ZCP, Moonroof, non-iDrive - PCD 12/9/10 Painted reflectors, matte black grills/gills, Deansbimmer Belly Pan, DEI Alarm, Homelink/compass retrofit, Passport MAX2 Hardwire, GP Thunder 8500K, modmy3 LED interior, Dinan Mufflers, HRE P40 19" Satin Charcoal, Michelin PS4S |
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11-07-2011, 06:29 PM | #112 |
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Buy a Mini Cooper S (JCW) late model, like a 2010 or 2009... save up your money until you can put a significant down payment on a car as expensive as an M.
If you purchase a car like an M at such a young age, it is very possible that you will never make the right decisions to accumulate assets which appreciate and build up a savings for emergencies. Take it from a 47 year old.
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11-07-2011, 07:17 PM | #113 |
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OP - smart play.
I know its tempting - and it will probably work out for you if you do it now. But you've worked hard to get where you're at - don't take a small chance of financial failure to satisfy a want - you have a fine ride today - get an M3 later. Earlier posters shared insightful advice: 1. Never have negative equity in a depreciable asset unless you have liquidity to bridge the gap - right now you could sell your car and get cash back. An M3 with a small down payment might not allow you that flexibility. Don't expect a disaster, but have a contingency plan if one happens. Right now you could move in with the folks (they sound supportive) and figure out your next game plan. 2. You have high opportunity cost associated with other good investments - 401k max, save for a house (huge tax shield at your income level), grad school opportunity, travel, etc. 3. Get established - build your net worth, your resume, and your experience. You make great cash first year out of school so keep the momentum up and buy when you won't strain yourself. I'd add... 4. Debt capacity is a valuable intangible asset. You have it now - which allows you to be flexible in career decisions. If you need your job to meet your bills, you inherently lose flexibility. Again, good decision. Good luck - I'm excited for you to join the M crew in a few years. |
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11-07-2011, 07:46 PM | #114 |
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Better save it
I agree with auggiem3
You don't want to be the paycheck-to-paycheck guy with an awesome car and a small crap apartment. If your apartment is $900/mo, it's crap. Sorry. And it's an apartment. Just because you can doesn't mean you should. Strategically plan your career and be able to do more than barely afford a nice car. K |
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11-07-2011, 08:02 PM | #115 | |
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Yeah, great buy for me. OP, I'm serious, doesn't matter if you buy a Ferrari, get a used car, you can save a small fortune over your lifetime. |
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11-07-2011, 08:06 PM | #116 | |
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11-07-2011, 08:06 PM | #117 | |
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11-07-2011, 08:09 PM | #118 |
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Build Assets/Wealth in your 20's and 30's, not debt.
Also agree-Max out your 401k(16,500/yr) or atleast contribute your company match and open/start maxing out a ROTH IRA each year. Emergency fund-good idea to have 6 months of bills in a liquid account. For me, a 30-40k car loan is still a large debt, my girlfriend and myself are lucky and top 3% earners, we don't choose to have any car debt since focusing on building wealth is what we want during our 30's. Goodluck Pretend you have the M3 car payment and auto withdraw the money from checking each month into your trading account. You'll be so much better off than the rest of the recent graduates who are living paycheck to paycheck and don't have any downpayment for a house.
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11-07-2011, 09:06 PM | #120 | |
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I don't work in "corporate America", but from the comments posted, you might be asking for trouble if you show up to work in an M3. Unless daddy owns the business (you mentioned nepotism for a reason ), your boss might not like the idea of some 'kid' under him, parking an M3 next to his Altima. That "next job level" may not come so easily, and all that "networking" could go down the drain! |
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11-07-2011, 09:08 PM | #121 | |
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11-07-2011, 09:29 PM | #122 | |||||
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I'm not saying those jobs don't exist, but they're a lot harder to get than people seem to think. Quote:
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This is an employers market right now. Competition is so fierce that employers are more than happy to pull the "you're lucky to have a job" phrase right now. They wouldn't be saying that if the market was booming and they had significant fear of people jumping ship. |
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11-07-2011, 10:04 PM | #123 |
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I got mine at 26 years old. Have plenty in the bank and even use some of the excess cash to trade.
I got mine used. Two years old from when I got it. Fully loaded, 12K miles. $50K. I pay $600 a month for it. Sticker was $73K, so I think I did pretty well. Cars with not as many options are still going for high $40s in my area. |
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11-07-2011, 10:08 PM | #124 | |
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11-07-2011, 10:48 PM | #125 |
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$70K is plenty of cash for a fresh-faced 22 y/o straight out of college with zero kids and minimal financial obligations. Live it up. Pay some. Save some. Spend some.
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11-07-2011, 10:54 PM | #126 |
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Reading this thread has really made me wish there was an investment/money off-topic board to ask more detailed questions about that stuff. Being 24 and in the same boat as the OP, other than the obvious 401K stuff, I have no idea where to begin to invest. I'm an engineer so have zero class/school knowledge about business and only the basic supply/demand econ.
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11-07-2011, 10:57 PM | #127 | |
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Even my 08 E90 M3 was $47K before tax 4 months ago which was a "deal" and a couple thousand lower than Blue Book value at the time. Damn used car market is jacked up if used car values are appreciating! |
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11-07-2011, 11:04 PM | #128 | |
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I suggest you read up on investing at investopedia.com and open a brokerage account. seekingalpha.com is interesting to read for viewpoints on specific companies and world economic trends. And to the people who think I live in a shithole in Boston, I don't! I live in a suburb of Boston with two roommates and we live in a two story house that's split into two 'apartments.' It's definitely not a shithole and it's definitely not a ballerpad -- it's just a cozy house that gets the job done. |
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11-07-2011, 11:06 PM | #129 |
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11-07-2011, 11:15 PM | #130 |
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Op is one smart cookie
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11-07-2011, 11:19 PM | #131 | |
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You must be BALLIN! Hoes in different area codes ballin! |
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11-08-2011, 09:35 AM | #132 | |
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