M3 affordability

[M3NACE90]

Hey guys,
I've been looking at m3s for quite sometime now, test drove a couple but there hasn't been any clean ones that really stuck out to me up until now, and I'm going to take a look at it this week. I know this is a question that pops up every so often that irks people and I'll get flamed for it but I feel the need to ask because this is a big purchase and I have a feeling this is "the one". Before I bite the bullet, picture your 22 y.o self and if you guys would buy a 40k m3 if you had 50k saved and take in roughly $1300 a week after tax + 401k benefits etc . My car is really the only thing I splurge on, (driving is my therapy I'm sure you all understand that) currently live at home with my parents, insurance won't be the worst under my fathers policy, will continue saving so I can purchase somewhere to live hopefully within the next few years (I'd like to skip the renting part but we'll see) the reason I think I am getting cold feet is because I'm considering buying the car in full so I can save a couple thousand in the long run on a loan and I'll be able to save 90% of my money every month vs say 75%-80%
Thoughts? Comments? Suggestions?

[Move Over]

Quite honestly, I could not (comfortably) afford this car 4 years ago, with about the same income you spoke about (I'm 26 now). I just bought my first M3 a few months ago at ~30k, and I have been in for an awakening on the luxury/bmw tax/fee/whateveryouwanttocallit that goes with ALL bmw parts, I just had to bite the bullet for a new felt undershield for 93 dollars...And I do 100% of my own labor. I couldn't imagine what owning this car would be like if i had to take it somewhere to get repaired/serviced.

My suggestion to you at the ripe age of 22 is buy a home while it is still a buyers market and rates are low. I did at 22 and it was the best financial decision of my life. Get a 3 bedroom house and rent out the rooms to 2 of your friends, and their rent will pay the mortgage for you.

Then comes the car. I just spent about 1500 dollars in parts alone on an OEM brake overhaul. Rotors, pads, lines, fluid. I did NOT see it costing that much. You need to be able to afford the car +++ the maintenance (plus labor if you are not a DIY'er). Think outside the price of the vehicle, and please factor in the cost of ownership.

I get it, I love to drive, love to take this thing to the track and rip around, I love it. Driving is my absolute favorite thing to do. But, i would be fooling myself if I thought I could afford the car + cost of ownership when I was 22.

That is my .02c, fwiw.

[Rich150001]

50k saved at 22 is impressive. Good job. The smartest decision would be to buy a house and rent out rooms to your buddies as the guy above said. You'll save so much and also have fun.

I am 30 now, but I did buy a 350z brand new when I was 20 for around 30k and don't have any regrets with doing so. Driving and modding cars have always been a main hobby of mine.

[OneSickM]

Wow...you are one of a kind...saved 50k at age of 22. When I was 22 I barely had 2k in my checking and savings account combined !

If I were you, I would buy m3 right now (unlike what above has suggested). I have a theory that you live the life once, if you are not enjoying it now when will you enjoy it? You never know if you will be alive next week or next month or next year

If you were able to save 50k at age of 22, I am sure you will do just fine or even better in investing your "future" income into something else probably a house while still owning a car you want

My 2 cents

[-BEASTMW-]

I would not do it. There are plenty of very fun cars to be had for a fraction of that price (both purchase price and ongoing running costs). Unloading basically 80% of your net worth on a car right now is not smart. Have you heard of compounding interest? I do believe in living life while you're young to a degree (I'm currently 31 and have been doing a lot of traveling before recently getting married and soon having kids), but I also believe in moderation. That $40k car could easily end up costing you $500k in the long run - really.

I bought an '01 M5 when I was 24, and I don't regret it. But I bought it at a great time - bottom of depreciation curve, '09 recession + $5 gas... just sold it 3 months ago for $5,200 more than I paid after 6.5 years and 29k of ownership. You're not gonna have the same outcome on a $40k M3, period.

I currently drive an '02 S2000 and do trackdays. It is dead reliable, cheap to run, and a blast to drive - especially on the track. It cost me $13k and is frankly you could get a much less nice example for cheaper. Just one example of how you can still have a blast with cars without making a potentially big financial mistake. I also bought a condo with my parents at 22 and even though the timing wasn't great (2006), that has paid off and I would recommend it depending on where you live and what your plans are.

Last comment: Living with your parents while you can is great - I did it myself for a year in 2013-14 when I was trying to find a job in another state to be with my now-wife. However, IMO having a $40k M3 while living with your parents is not something to be proud of.

[cenix]

Keep saving for the home purchase and skip the M3, it's not a do or die type of car that you should spend the majority of your savings on. It's not worth it.

[BimmerRookie]

Technically you could do it, but it wouldn't be the wisest choice. Some great advice up here. Maybe look at investing in a home and getting a new less-expensive (to own, maintain, etc.) car. There are plenty to choose from! Or if you don't really need a new car, continue to save!

[dragonsi]

It sounds like you can afford it no problem, so go for it! It seems like now is a good time to buy too according to the price trends. Make sure you get a warranty especially if you plan on buying it outright.

Not sure how good your credit is since you're only 22, but if you can get a low interest auto loan (2.5%), and are familiar with investing, I would put 30k down, and invest the leftover cash somewhere relatively safe. Cash is a good thing to have. Especially if you plan on buying a real estate property sometime soon.

Looking back at 22 was a great time and an M3 would've made it better. Just be responsible, don't drink and drive. Although it sounds like you're a very responsible individual.

[M3NACE90]

You all make very good points...thats why im so on the fence... live in the moment or thrive in the future...if i decide to buy a house now i could see my expenses raising living on my own, maintaining a house, etc and then ill decide that i cant afford the m3 at all. Wish i never test drove one now, downshifting that dct v8 gave me a boner

[Bucki14]

IDK why you have to spend 40k on an m3. Get a nicely well maintained 08 or 09 m3 with maintenance records that has hit most of its depreciation for around 28-32k. Promise to keep it maintained and invest the remaining bit into a home. Find the balance that suits you and live now while still preparing for the future.....no need to do 100% of one or the other.

BTW, I make a bit less than you (currently 25), I own a e92 m3 and also bought a town home last year. I still invest in my 401k, as well as my personal investments. It's all about finding that balance of what you spend vs what you save. Over time you can adjust it more in one direction. Just live by the budgets you set and you'll be fine.

Don't listen to the extremist...its ultimately your life and as long as you don't have any regrets all will be well.

[M3NACE90]

Originally Posted by Bucki14

IDK why you have to spend 40k on an m3. Get a nicely well maintained 08 or 09 m3 with maintenance records that has hit most of its depreciation for around 28-32k. Promise to keep it maintained and invest the remaining bit into a home. Find the balance that suits you and live now while still preparing for the future.....no need to do 100% of one or the other.

BTW, I make a bit less than you (currently 25), I own a e92 m3 and also bought a town home last year. I still invest in my 401k, as well as my personal investments. It's all about finding that balance of what you spend vs what you save. Over time you can adjust it more in one direction. Just live by the budgets you set and you'll be fine.

Don't listen to the extremist...its ultimately your life and as long as you don't have any regrets all will be well.

I'm looking for a 09-11 e90m which seem to go for a bit more... it's hard to find one with less than 50,000 miles for under even $37k. I just love the sedans soo much more. I'm going to talk to someone about real estate and get some info regarding my situation, but I'm in NY so property is far from cheap.

[Yvette]

If you are asking for it, you shouldnt
Move on, not saying you cant afford it but there mybe better options

[vsix]

Originally Posted by Babatsikos321

Hey guys,
I've been looking at m3s for quite sometime now, test drove a couple but there hasn't been any clean ones that really stuck out to me up until now, and I'm going to take a look at it this week. I know this is a question that pops up every so often that irks people and I'll get flamed for it but I feel the need to ask because this is a big purchase and I have a feeling this is "the one". Before I bite the bullet, picture your 22 y.o self and if you guys would buy a 40k m3 if you had 50k saved and take in roughly $1300 a week after tax + 401k benefits etc . My car is really the only thing I splurge on, (driving is my therapy I'm sure you all understand that) currently live at home with my parents, insurance won't be the worst under my fathers policy, will continue saving so I can purchase somewhere to live hopefully within the next few years (I'd like to skip the renting part but we'll see) the reason I think I am getting cold feet is because I'm considering buying the car in full so I can save a couple thousand in the long run on a loan and I'll be able to save 90% of my money every month vs say 75%-80%
Thoughts? Comments? Suggestions?

Won't manipulate your future.
It is all alone your decision!
But let me ask you one question:
Why do feel the need to shell out 40k, when you could easely get E92 M3's for like 28-32?
An ///M will always be an ///M...no need to throw out all that money!

[roastbeef]

buy property before you buy a car. you did good saving, now do something smart with your money instead of something stupid like blowing it on a car.

[Rat3d ///M]

My $0.02 FWIW: don't take financial advice on an automotive forum. If you are in as good of a financial situation as you say you are in, then there is no reason you cannot afford an M3. By what you described as taking in $1300 a week and having $50k in savings, you are most likely in a better financial situation than many of the people here. And guess what? Most people here own an M3.

That being said, why on earth are you asking financial advice on an automotive forum? Go see a CPA for that. No one here is qualified or within their right to analyze your life and tell you if you should or shouldn't buy an M3. That's for you to decide. If you want the car, go nuts, you only live once. If you want to prepare for the future, don't. Your priorities are your priorities. Not sure what else needs to be said

Why do feel the need to shell out 40k, when you could easely get E92 M3's for like 28-32?
An ///M will always be an ///M...no need to throw out all that money!

Because not all M3s are created equal? I could've gotten an 08 with 90k+ miles for the low 30s, but I opted to spend a little more for a 2011+ with under 50k miles optioned the way I want.

[roastbeef]

Originally Posted by ||||||||||

If you want the car, go nuts, you only live once. If you want to prepare for the future, don't.

some people ask because they know they are at the top of their budget for what they can afford. some people ask because they already feel somewhat guilty of the thought of a financial mistake and want someone to talk them down off the ledge.
either way, he's asking for a few words of guidance and most of the time, the advice from this forum isn't bad.

your advice above, however, is what gets people into financial trouble. there is a lot of youth today that are going to be in serious financial ruins in 30 years with this YOLO mentality.

[Rat3d ///M]

I didn't give him advice. My only advice in fact, was don't take financial advice on an automotive forum. My "advice" was nothing more than me saying "do what you want, it's your life." If he chooses to get the car and ruins himself financially, that is on him. But how is it mine, yours, or anyone else's concern? He is an adult and can make his own decisions.

OP: if you want serious advice (here is where the only actual advice I will offer begins) go talk to a financial expert. Invest your money in real estate. Plan for your future. Make your money work for you, not the other way around. Then revisit whether or not you want the car. Priorities change, and you are young. If after a month you have talked to someone in great detail who has some type of degree involving accounting or economics and you still want the car, come back and ask again. This is a place to come to ask for advice on what to buy when you've decided to buy the car. Not to ask advice on whether or not you should buy the car.

[roastbeef]

Originally Posted by ||||||||||

I didn't give him advice. My only advice in fact, was don't take financial advice on an automotive forum. My "advice" was nothing more than me saying "do what you want, it's your life." If he chooses to get the car and ruins himself financially, that is on him. But how is it mine, yours, or anyone else's concern? He is an adult and can make his own decisions.

OP: if you want serious advice (here is where the only actual advice I will offer begins) go talk to a financial expert. Invest your money in real estate. Plan for your future. Make your money work for you, not the other way around. Then revisit whether or not you want the car. Priorities change, and you are young. If after a month you have talked to someone in great detail who has some type of degree involving accounting or economics and you still want the car, come back and ask again. This is a place to come to ask for advice on what to buy when you've decided to buy the car. Not to ask advice on whether or not you should buy the car.

i see.

[Bucki14]

He's 22 I'm pretty sure he'll be able to recover spending (A lot) on car now. Though I also strongly agree with getting a home...you mentioned being in NYC, which can be a bit more difficult than the other generous states out there. Housing is at a all time low (buyers market), so i'd definitely get in on it. I was in your position a while back..asking similar questions...but more so for getting reassurance on if my emotional desire was really worth it. So far no regrets here as it puts the biggest smile on my face an allows me to focus on those other items rather than always pondering about that what if....

[spiceyxi]

Originally Posted by Bucki14

He's 22 I'm pretty sure he'll be able to recover spending (A lot) on car now. Though I also strongly agree with getting a home...you mentioned being in NYC, which can be a bit more difficult than the other generous states out there. Housing is at a all time low (buyers market), so i'd definitely get in on it. I was in your position a while back..asking similar questions...but more so for getting reassurance on if my emotional desire was really worth it. So far no regrets here as it puts the biggest smile on my face an allows me to focus on those other items rather than always pondering about that what if....

I believe the purchase of real estate to be something that is highly local. Where I am at it is not a buyers market. So, depending on the dynamics of your location it may or may not be an easy choice to buy a house vs. a car. You do only live once and be sure to enjoy your life (within reason). My wife came close to not making it past 27 so you never know how much time you have left.

I will caution that spending so much of your cash on a car may make things difficult (or simply question it later). I bought an expensive car early in my life and do not regret it, but some of that cash could have helped not take out loans for my masters. That is something I would have appreciated, but I am fine either way. I would ask how sustainable is the $1300/week. If it is something that even if you lost your current job you could easily get elsewhere save a bit look at your options and probably move forward with whatever makes you happy (i.e. buy the car or a house). If it isn't easily replaced I wouldn't commit so much to a car. Plus, keep in mind you are young and flexible. You will potentially lose some of that if you sink a bunch of cash in a house and mortgage. For me that loss of flexibility put me off from owning a home for a few years.

Even though you are living with your parents and it is rent free I do hope you are kicking something back to them for rent. You have cost them a lot over the past 22 years and it is time to pay them back.

[Iyzmi]

Originally Posted by ||||||||||

Because not all M3s are created equal? I could've gotten an 08 with 90k+ miles for the low 30s, but I opted to spend a little more for a 2011+ with under 50k miles optioned the way I want.

But all M3 model years are created just about equal, other than a few minor details. I bought an 09 with under 40k miles for $33.5k last year. I can't imagine spending an extra $10k for a car with similar mileage that just so happens to be 2-3 years newer and offers essentially no advantages.

OP, the biggest differences between owning an M3 and owning any other car are the maintenance and repair expenses. The repair expense is taken care of by having an extended warranty, otherwise you will be the one paying the BMW tax when something inevitably breaks. If I didn't have a warranty, my car would've cost me almost $10k more than what I bargained for when I bought it.

Once you take repair concerns off the table, the only thing left is maintenance. I only change the oil once a year and brakes will last me a long time given my commute and driving style, but obviously this varies depending on the owner. I think people tend to blow the maintenance aspect out of proportion, it's really not much different than other performance-oriented car. Just more expensive for the same things you'd do on any car, especially if you won't/can't DIY the basics on your own. The joy of owning an M3 easily compensates for the additional money spent on maintaining it if cars are your passion.

I say buy an M3 for $30-35k and don't look back.

[617E90M3]

You take home plenty of money to have a 600-700 Car payment. You have no rent, no real over head it seems. Go ahead and live a little. I was looking for my "perfect" car. I ended up spending 15,000 over my original budget because I found that perfect car.