Can I afford an M3?

[marcus321]

Originally Posted by Lowest_Frequency

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.

Im in the same boat as you. And anyone who's says 70k isn't good first year is stupid. I graduated from ncsu with math and computer science and got 68k my first job at cisco in Raleigh. My buddy graduated at duke with the same degrees and got a job for 70k at netapp. But I too have no real investment knowledge. Just stuff I read here and there online.

[ChE///M3]

As a soon to be college grad bringing in over 100k next year in Texas I'm not even considering seriously looking at an M3 for at least another 5 years or so. I would recommend saving up as much as possible and building up that "rainy day" fund, retirement fund, and general savings. Diversify your investments in anything from bonds (domestic and foreign), ETFs, and some more high risk investments since you're young. Saving your money and making a nice down payment will allow you to sleep easier at night and you can still have fun in the meantime. At the end of the day it's up to you but be sure to think about it long and hard before you make the leap.

[mdosu]

Originally Posted by Z K

You got some great buys... my Evos were always new - I've seen a lot of horror stories with people buying used and modded Evos. The last one I had was a 2008 model that was a loaded GSR for $40K OTD. The twin clutch Evo MRs are going upwards to $50K.

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!

you got your E90 used as well?

[askharjoon]

Originally Posted by 48Laws

$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.

Plenty of cash is a relative term. Considering inflation and the rising cost of living, $70k/year in my books is not enough to consider buying a higher end luxury car. If you want to set yourself up to be financially independent by 50 with 2 kids and a wife and not live paycheck to paycheck , even $150k/year is not much these days.

[Z K]

Originally Posted by mdosu

you got your E90 used as well?

Yeah .. I got tired of taking the first hit on the new cars so I purchased the BMW used. That also brought it into my price range - brand new is kinda pricey.

[mdosu]

Originally Posted by Z K

Yeah .. I got tired of taking the first hit on the new cars so I purchased the BMW used. That also brought it into my price range - brand new is kinda pricey.

that's a pretty good price considering you're in CA.

[E93Blackhawk]

How much do you guys spend on your m3 per month petrol wise on average?

[Black Gold]

First thing, Id add a minimum of a 25% or more deduction from your $1500 dollar budget based on the combination of "shit happens" and a general overestimation that we all make on how much we will actually be able to save.

As for your 401k, it really depends on how much you are contributing and how much your employer is matching.

I recently bought a used m3 for approximately 45k after taxes. I probably made a poor financial decision here, but I can still afford it.

Here's the breakdown for your reference just to show you how I logically evaluated my potential purchase of this car

-4500 after taxes and 401k contribution monthly take home salary

-full 16.5k 401k contribution with a full 100% employer match (total of 33k contributed each year)

-I did not include any future or current raises, bonuses or restricted stock in my budget or savings calculations and would suggest the same to you

-I have no debt, and a good savings portfolio

-total bills and spending that actually amount to an average of 3000 dollars per month, including everything except my car note

-I put down 10k on the car, and financed 35k at a 3.49 rate over 5 years

-my monthly note is ~625/mo leaving me with approximately 850 dollars in cash savings per month as it stands now

-in december, I will be moving into a townhome with a close friend and dropping 500 dollars per month in rent, and possibly more in bills, but did not include any savings from bills in my monthly budget calculation

-overall, I will be able to save a total of approximately 1350 dollars per month cash on top of my other benefits

THE reason for including that breakdown is that I think that you need to think things through a little more before committing that type of cash flow to a car, especially when you wont be putting much down and would have a significant risk of being either flat or upside down on a car loan. Like I mentioned before, I probably still made a foolish decision, but am going to try to make up for it by keeping the car for a long time.

Id also venture to guess that most m3 owners on this site are in a significantly better financial position than I am. I still feel uncomfortable with how much I can save each month. I did underestimate the amount of gas that this car consumes compared to my prior car, and thus have not been able to save quite as much as I hoped.

I would focus more on saving more cash each month for a while, and see how much you can save in a year and then re-evaluate your financial position.

In addition, as others have mentioned, with cars like these, there is always something that costs more money. New tires, mods, gas from long trips, etc....This tends to really add up, ask me how I know....:facepalm:

Stick with the 330 mate, and have some fun with it...call ESS for a SC kit if you really feel the need for speed

It seems like you are leaning towards not getting the e9x, so good on you for making that tough decision.

[Blu_Frg]

Wow, awesome breakdown. I don't know man, I honestly think you are in prime financial condition and can actually afford the M3. Plus, you're still saving a lot per month beyond your retirement account. If you don't mind me asking, how old are you and what's your occupation?

[Black Gold]

Originally Posted by Blu_Frg

Wow, awesome breakdown. I don't know man, I honestly think you are in prime financial condition and can actually afford the M3. Plus, you're still saving a lot per month beyond your retirement account. If you don't mind me asking, how old are you and what's your occupation?

Thanks mate, glad that my post helped. I try to be overly conservative in my estimation because most of the time, things are typically more expensive than we think they will be.

I will know more about how much I am actually able to save after having owned the car for a while, but hope to be able to save at close to my predicted rate.

I am a little under 30 years old and am a petroleum geologist working for an energy company.

Congrats btw for graduating with a great degree and landing a good job. Sooner rather than later, you will be able to afford exactly what you want and feel damn comfortable financially doing it.

[Blu_Frg]

Originally Posted by KennyPowers

Thanks mate, glad that my post helped. I try to be overly conservative in my estimation because most of the time, things are typically more expensive than we think they will be.

I will know more about how much I am actually able to save after having owned the car for a while, but hope to be able to save at close to my predicted rate.

I am a little under 30 years old and am a petroleum geologist working for an energy company.

Congrats btw for graduating with a great degree and landing a good job. Sooner rather than later, you will be able to afford exactly what you want and feel damn comfortable financially doing it.

Yeah, that's true. Car costs definitely encompass more than the actual car payment, insurance, and gas.

Thanks, I'm also very fortunate to have landed my dream job out of college.. I still have a lot of friends who are either unemployed or severely underemployed.. I'm very grateful for my situation.

Maybe I will slap a supercharger on my zhp...

[hubbman]

I know 70K sounds like "good money", but your expenses and an additional 1000.00 a month will put your expendable income in the RED.

You're only 22, chill out and have fun. Wait until you're making at least 90K and do it then, you'll sleep better at night.

[RichMattB]

Originally Posted by Blu_Frg

Yeah, that's true. Car costs definitely encompass more than the actual car payment, insurance, and gas.

Thanks, I'm also very fortunate to have landed my dream job out of college.. I still have a lot of friends who are either unemployed or severely underemployed.. I'm very grateful for my situation.

Maybe I will slap a supercharger on my zhp...

You are very fortunate - Don't squander it. Sit tight with the ZHP, which is a really cool car in its own right, and focus on purchasing a home of your own in the next couple years. You and I (in my late 20's) will probably never see the current conditions again with regard to depressed prices and crazy low rates.

Tons of great information in this thread....except some of the words of "wisdom" about investing. Please don't do any trading based on the ideas set forth. Educate yourself about retirement planning and/or short term wealth building. You are 100 percent correct that the volatility in certain markets allow a lot of money to be made and lost in the short term.

The idea that you must diversify, purchase domestic and foreign bonds, buy 25 positions that are each 4 percent of your total portfolio, etc. have been found printed on brochures in Merrill Lynch offices for many, many years. Most of us know what happened to Merrill Lynch and a whole lot of their customers.

[dom55]

OP, If I was in your position I would not feel comfortable getting a new M3 or any other 70K car.

I purchased my M3 after I had been working for 3 years after graduating college and was pretty established at my current company and had no worries about being laid off or fired. I was only making 70K when I got my car but I had saved up enough money to buy the car out right if I wanted to, I choose to lease though.

If I was making 70K and still owed money on my current car I would not be purchasing a car that cost as much as my gross salary. If you had 70K in the bank I would say go ahead and finance or lease the M3. If you lost your job you would still be able to make payments while you looked for a new job.

[K-M3]

Originally Posted by Blu_Frg

Yeah, that's true. Car costs definitely encompass more than the actual car payment, insurance, and gas.

Thanks, I'm also very fortunate to have landed my dream job out of college.. I still have a lot of friends who are either unemployed or severely underemployed.. I'm very grateful for my situation.

Maybe I will slap a supercharger on my zhp...

why the supercharger?? If you have decided to postpone the decision for an M3 (which is great........its a tough choice and I commend your choice) just dont get into a needless expense. The SC is going to come with its own set of expenses, maintenance and potential for downstream issues that come from mods.

Dont get me wrong, I am not against mods, but if the judgement call is to save and shore up your finances, then I wouldnt get into justifying a "lesser" expense instead of the "bigger" expense of an M3. The 330i is a great car, enjoy it while you have it......

And I am probably going to be flamed here for saying no to a mod, but you made a good strong judgement call, so dont dilute it......

[Blu_Frg]

Originally Posted by K-M3

why the supercharger?? If you have decided to postpone the decision for an M3 (which is great........its a tough choice and I commend your choice) just dont get into a needless expense. The SC is going to come with its own set of expenses, maintenance and potential for downstream issues that come from mods.

Dont get me wrong, I am not against mods, but if the judgement call is to save and shore up your finances, then I wouldnt get into justifying a "lesser" expense instead of the "bigger" expense of an M3. The 330i is a great car, enjoy it while you have it......

And I am probably going to be flamed here for saying no to a mod, but you made a good strong judgement call, so dont dilute it......

You're absolutely right. Fuck.

I should just stop coming to this website because it just keeps on reminding me of the M3. I love my ZHP. It's an excellent car.

I honestly never should have test driven that M3 lol.

I have the opportunity to relocate to Dallas from Boston and I am seriously considering it. No state income tax, lower COL, change of setting, moving expenses paid for, cash bonus incentive to go, possible salary readjustments.

I'm 22, single and think this might be something I won't have the opportunity to do when I'm older and possibly held back from responsibilities, such as a significant other or family.

I see a lot of Dallas and Texas folks on this board. How is it to live in downtown Dallas? What's the social scene like?

[K-M3]

Originally Posted by Blu_Frg

You're absolutely right. Fuck.

I should just stop coming to this website because it just keeps on reminding me of the M3. I love my ZHP. It's an excellent car.

I honestly never should have test driven that M3 lol

its called being 22 bro.......I envy you....... i totally identify with that feeling......... aaahhhhh....the impatience of that age.....man I miss it.......

anyways, holler up if you move to Dallas. I am up in Oklahoma, about a 3 hour drive from dallas..... we can definitely meet up if you move..........plus it sounds like a great opportunity that you have there....heyy....maybe with a bigger paycheck and reduced COL (trust me, it will be a lot reduced COL as compared to Boston), that M3 may not be as far away as you think!!!!!!

as far as living in dallas, better ask people here who are from dallas. For the couple of times that I have been there, its always been fun hanging out. Both Houston and Dallas have a great night life and a great singles scene ;-) PLus there are a lot of forum members here from H-town and dallas and the two cities are a straight 3 hour drive from each other on an interstate.......lots of intercity friends and contacts between these two.......

[FVM3]

probably not

[SamS]

Originally Posted by Blu_Frg

I see a lot of Dallas and Texas folks on this board. How is it to live in downtown Dallas? What's the social scene like?

I work in downtown Dallas. One thing you need to understand is that it is HOT AS FCUK here. And I don't mean just for a week or so, I mean from May to September, every damn day. Good thing is, no snow tires needed in the winter!

Some younger people live downtown, but there is not much to do downtown in the evening.

I guess the best advice is make a trip down here sometime, and see if it fits your personality. I'd say Dallas is better than Houston, but not as good as Austin. Cost of living reflects that as well.

[Blu_Frg]

Originally Posted by SamS

I work in downtown Dallas. One thing you need to understand is that it is HOT AS FCUK here. And I don't mean just for a week or so, I mean from May to September, every damn day. Good thing is, no snow tires needed in the winter!

Some younger people live downtown, but there is not much to do downtown in the evening.

I guess the best advice is make a trip down here sometime, and see if it fits your personality. I'd say Dallas is better than Houston, but not as good as Austin. Cost of living reflects that as well.

Through my research, I've been hearing a lot of references to the $30K millionaires -- people who make $30K but pretend to be rich and try to live a lifestyle they can't afford. I would be absolutely disgusted to live in such an environment.. sounds like people who are worse than guidos. To what extent would I encounter such species if I were to live in downtown Dallas? And more importantly, what's the nightlife in Dallas like?

[taleof2bricks]

Originally Posted by Blu_Frg

Through my research, I've been hearing a lot of references to the $30K millionaires -- people who make $30K but pretend to be rich and try to live a lifestyle they can't afford. I would be absolutely disgusted to live in such an environment.. sounds like people who are worse than guidos. To what extent would I encounter such species if I were to live in downtown Dallas? And more importantly, what's the nightlife in Dallas like?

Not sure about the "$30K millionaires", but I read recently that a "$70K millionaire" might be headed that way!

[Mr. ///M3 RD]

Originally Posted by username11

Pools of cocaine.

it's all Canadian cocaine and so pure thus not harmful at all