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      11-06-2011, 08:16 PM   #23
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^ Most people lease or finance.

Would be interesting to find out what the average salary of folks around here is.
Salary is pointless. Net worth is more critical. This board has some seriously rich folks (I'm not one of them), although I'm fortunate enough that I could have purchased mine outright. I ended up leasing it because I see myself changing the car after 3 years (I'll have 60K miles on it by then), and I have two other cars that are my keepers, so I don't think I'll keep this one. I might, but unlikely. Leasing also was favorable due to tax reasons, but even without that, it just made a lot of sense for me and my situation. Looking back at it, I'm glad I didn't pay cash up front, given how good the lease deals were (and still are).
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      11-06-2011, 08:21 PM   #24
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I say save up a bit more then take the plunge on a nicely used 10-12 M3 in a year, esp when new model is about to come out.

It's not really about how much you make but how much your cost of living is. If having an M3 is to give up say a few dinners a month then do it, if it is to give up more then i say don't.
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      11-06-2011, 08:22 PM   #25
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It will be much sweeter when you can easily afford it. Stretching for a car is a mistake.
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      11-06-2011, 08:24 PM   #26
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I know I know..!!

Damn you old(er) people with financial wisdom.

Thanks for talking me out of my dream.. ASSHOLES! lol jk.
Lighten up...

I'm going to post my financials to complete strangers over on 'Castles.com' and ask them if they think that I can afford a castle. I want one with a moat!
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      11-06-2011, 08:24 PM   #27
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it's not the most financially sane decision.... but you are only young once


just remember that your car payment won't be your only expense

tripple the gas $ you spend now, call your insurance and get an exact quote on how much your new insurance may be. it may not be that bad
I only pay $1400/ year full coverage and I'm 23

But, regardless, I don't think you can afford to buy a M3

Since you mentioned that you don't drive much, you may want to look into leasing.
This won't work if you plan on buying the car though (as lease-to-buy isn't usually favorable when compared to a straight finance)

a gf will cost you $, but not all that much

I guess since my gf is someone who is independent (I wouldn't say feminist...lol) and doesn't like to have everything paid for, so my expenses are minimal (i actually think she spends more on us than I do...by a considerable amount).

So you may or may not want to count the gf as part of the equation; depends on your/the girl/etc

if you want to buy used, then wait a little more for the new gen to come out.
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      11-06-2011, 08:29 PM   #28
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It seems like you will be able to make the payments but the proportion of car payment to income doesn't make the most sense. If you purchase a new M3 at around $65K, and finance it doing BMW select with a $10k down payment, your monthly payment will be roughly $700-$750 and then after 60 months, you will still owe about $25k on the car. keep in mind the $65K car is over $70k after tax and gas guzzler

Did you consider purchasing a used M3 and put down a decent down payment? Your monthly payment will still be high but at least you won't have the lump payment at the end.

Good Luck!
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      11-06-2011, 08:29 PM   #29
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$800 for food and entertainment a month? You won't be able to go on a date. Seriously, with that budget you'll be eating ramen noodles and watch TV all month.
Damn... I don't know if it's cause I generally don't enjoy going out much (my favorite thing to do is stay at home with the lady since we can....; plus I can cook)
....but how much do you guys really spend on dates??

I have had multiple girlfriends in the past and never have I spent more than $50-100 on a date.... and this is stretching it by quite a bit
And I tend to eat out multiple times a week. KBBQ, sushi, Italian, etc.
Even with this it won't be more than $500/month.
Guess I'm just lucky in finding non-materialistic ones haha.
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      11-06-2011, 08:35 PM   #30
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Blu_Frg

When I was your age I purchased an old clunker (a 5 year old american car). I purchased 4 more cars after that (trading them as the time was right trading etc). I then realized that paying interest is for the birds so when I was in my 3 car I saved my money and purchased my first new car in cash.

I am only telling you this since the feeling you have now will only be sweeter once you can put the cash on the table and say to yourself "It's all mine" Also you do have plans for that Condo.

So my recommendation would be get a second hand M3, in fact I recommend a e46 there are quite a few on the marked around $30K IN THE USA ... then save your money and once you have half the price of a new one then go for it and get that spanking new car.

You can do it you are a fine young man making 70K ... just don't burden yourself with such a high monthly car payment ... it will spoil the fun and you may end up selling the car and loosing your investment.

Remember, you drive a $80K car off the lot and it depreciates right away.

I purchased my first 2002 e46 M3 in 2004 the price was $48K with 31K KM and I then sold it in the spring of 2010 for $25K having 97K KM on the clock.

Good luck and as others said ... if you have to think about it don't
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      11-06-2011, 08:37 PM   #31
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I would probably hold off at this point of your life especially since you just bought a nice car and are looking to buy a home/condo. You should be primed to go for the F82 M3 though!
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      11-06-2011, 08:43 PM   #32
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Blu_Frg

When I was your age I purchased an old clunker (a 5 year old american car). I purchased 4 more cars after that (trading them as the time was right trading etc). I then realized that paying interest is for the birds so when I was in my 3 car I saved my money and purchased my first new car in cash.

I am only telling you this since the feeling you have now will only be sweeter once you can put the cash on the table and say to yourself "It's all mine" Also you do have plans for that Condo.

So my recommendation would be get a second hand M3, in fact I recommend a e46 there are quite a few on the marked around $30K IN THE USA ... then save your money and once you have half the price of a new one then go for it and get that spanking new car.

You can do it you are a fine young man making 70K ... just don't burden yourself with such a high monthly car payment ... it will spoil the fun and you may end up selling the car and loosing your investment.

Remember, you drive a $80K car off the lot and it depreciates right away.

I purchased my first 2002 e46 M3 in 2004 the price was $48K with 31K KM and I then sold it in the spring of 2010 for $25K having 97K KM on the clock.

Good luck and as others said ... if you have to think about it don't
Thanks for the insight. At this point, if I don't get the M3, then I won't be selling my ZHP. It's either I sell my ZHP and get an M3, or just keep the ZHP until I can more reasonably afford an M3.. seems like it'll have to be the latter
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      11-06-2011, 08:44 PM   #33
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i make significantly less than you and just got a brand new one. I did, however, save for several years to have enough money to put down. Payments are <600.
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      11-06-2011, 08:48 PM   #34
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i make significantly less than you and just got a brand new one. I did, however, save for several years to have enough money to put down. Payments are <600.
Are you financing?
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      11-06-2011, 08:48 PM   #35
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Originally Posted by Blu_Frg View Post
Thanks for the insight. At this point, if I don't get the M3, then I won't be selling my ZHP. It's either I sell my ZHP and get an M3, or just keep the ZHP until I can more reasonably afford an M3.. seems like it'll have to be the latter
How old is your ZHP and what shape is it in, will it last 2 more years and you can put the money away ($1,500- or so every month?) then it will be so sweet when you pick up even a slightly used one at first.

You are making the right decision
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      11-06-2011, 08:51 PM   #36
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How old is your ZHP and what shape is it in, will it last 2 more years and you can put the money away ($1,500- or so every month?) then it will be so sweet when you pick up even a slightly used one at first.

You are making the right decision
It's in great condition. 2004 model with 62K miles. I've only had it for three months haha.

Definitely no way I can put away $1,500 every month for two years. Half my take home pay goes towards rent and my associated car costs and if I put $1,500 away, I'd literally have $0 for any food or entertainment/investing/saving.

Damn.. I honestly just never should have test driven that M3.. stupid me. I used to love my ZHP.. not so much anymore.
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      11-06-2011, 08:53 PM   #37
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If I was you, I'd sell the E46, buy a small used car that doesn't require much maintenance and has already taken its biggest deprecation hit. Then save save save for a while, and lease a USED M3. It's not the end of the world if you can't get it straight away, I was 16 when I first saw the M3 in pictures, decided to buy a 325XI when I was 18 because I felt like the M3 wouldn't have been a good choice due to insurance etc and then this year I brought an M3, only 20 years old. Good luck, and don't forget what others have already said, your net worth matters more than your salary because if you lose your job you'll be stuck with rent and car payments, with no-where to go.
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      11-06-2011, 08:55 PM   #38
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Originally Posted by Blu_Frg View Post
It's in great condition. 2004 model with 62K miles. I've only had it for three months haha.

Definitely no way I can put away $1,500 every month for two years. Half my take home pay goes towards rent and my associated car costs and if I put $1,500 away, I'd literally have $0 for any food or entertainment/investing/saving.

Damn.. I honestly just never should have test driven that M3.. stupid me. I used to love my ZHP.. not so much anymore.
Go test drive an nice e46 ... it will grow on you ... Good luck my Friend
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      11-06-2011, 08:56 PM   #39
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Definitely no way I can put away $1,500 every month for two years. Half my take home pay goes towards rent and my associated car costs and if I put $1,500 away, I'd literally have $0 for any food or entertainment/investing/saving.
Just FYI, a new M3 (with no money down) + gas + insurance will run you that $1500/month, or more.
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      11-06-2011, 09:04 PM   #40
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When I was dating I was living in Manhattan... so going on a date (nice restaurant, nice bottle of wine) will run you around $300 that date. But even now, going out with the wife and kid will cost me at least $100 an outing, and that's at a local family friendly restaurant.

But that's just food and drinks... you still need to buy groceries and random crap you like to buy... video games, blue-rays, books, sports, etc... If you have only $800 a month to play with I seriously don't see how anybody can have a lot of fun.
Yeah I can see it being bad in Manhattan.... not so bad being in the suburbs.
And I don't drink alcohol, nor have I ever dated a woman who drank alcohol, so I've never had to consider that as an expense.

$100 for a family is pretty standard, assuming a 4-person family.

I guess I just don't do as much as others. Netflix..no blu-ray expense, don't play video games anymore (other than the occasional Modern warfare or GT5), not at all into sports, digital books FTW (i hate carrying things around..)

I spend more than 50% of my "salary" on my car when I take into account mods and track expenses, but I seriously don't spend money elsewhere... I don't have an interest in spending money elsewhere, so it's not like I'm sacrificing anything lol.
car and investments... that's all I spend $ on. maybe 5% on the gf..maybe.


So op:
if you feel that getting M3 is worth not spending money elsewhere, but you still have enough for investments/savings, then go ahead

but it seems that, with $3200/month, you really can't afford to 'buy' it. At most leasing it.

how much $ do you have put away? you should have at least the standard 6 months worth of expenses put away in liquid-type assets.

if you don't have at least 6 months of your current expenses stored away, don't even think about adding any new type of major expense.


you mentioned a condo.... but why a condo?
with a 70k income, why not look into getting an apt complex?

if you minimize your expenses, you should be able to afford a 4 plex no problem.

Not sure how the market is in your area, nor do I know anything of your credit history.

But, at least over here, you would be able to easily afford a 4plex that's anywhere from 400k-600k, since you can use the income you get from the rent towards your own income (well up to 75% IIRC), and have no issue qualifying for the mortgage
if you plan to do this, don't get a m3, at least not in your name, it'll mess you up bad. I'm in this particular situation right now...as I have multiple leases in my name.
BUT if you do still decide to get the M3..and want to get a mortgage (be it a house or a complex), then just have someone else write the checks (you pay them in cash, they write a check). since if you can produce 6 months or so of cancelled checks proving you weren't making the payments on that lease, the lender may not hold it against your...this depends on the lender of course.

You should ask yourself this:

Why do I want a M3?
Once you really know the answer, then you'll be able to see if it's worth it or not. There is no such thing as a free lunch, so you have to see what is worth it for you.
it's your life, it's your (I'm assuming) hard earned money, use it how you please.


Quote:
Originally Posted by BMW Fanatic View Post
If I was you, I'd sell the E46, buy a small used car that doesn't require much maintenance and has already taken its biggest deprecation hit. Then save save save for a while, and lease a USED M3. It's not the end of the world if you can't get it straight away, I was 16 when I first saw the M3 in pictures, decided to buy a 325XI when I was 18 because I felt like the M3 wouldn't have been a good choice due to insurance etc and then this year I brought an M3, only 20 years old. Good luck, and don't forget what others have already said, your net worth matters more than your salary because if you lose your job you'll be stuck with rent and car payments, with no-where to go.
Not sure how it is over there...but down here, it generally costs the same or MORE to lease a used car over a new car...and that's if they'll even lease it to you...


I also personally don't see the point in paying cash for anything... ever...

paying cash for a car is a seriously waste.....

rates are low, 1.9-2.9%!!
Are you seriously trying to say you can't use that cash to make more than 3% profit?

70k cash is quite a decent chunk. there are plenty of investments one can make that will yield more than 3%/year...

but then this will turn into a lease vs finance vs buy thread..and we have enough of those, so I'll just stop here


welcome to post tl;dr lol

Last edited by persian54; 11-06-2011 at 09:10 PM.
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      11-06-2011, 09:19 PM   #41
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Some excellent commentary and insight in this thread.. thanks guys. I think I know my decision.
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      11-06-2011, 09:23 PM   #42
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I'm in a similar predicament. A couple years older, a few thousand less each year, a year out of college. I have thought long and hard about buying a new E92 but will probably still get one ED next summer.

My living expenses are quite a bit lower and I have and will continue to skimp on everyday expenses (no cable, make my own lunches, going out infrequently, etc) to instead put money towards the car. Once the payments begin I want to be sure I can still bring home at least $500 a month for emergency expenses, even after the increased insurance and gas bills. I've been saving for a year now for a decent down payment (~$25k). And I'm not considering any real estate purchases for awhile.

I plan on keeping this car for 10+ years so Iíd prefer to buy new, and I want to get one before the eco cloud rains on the parade that is the S65 V8. Is it a poor financial decision? I will admit that it is. Iím trying to lessen the financial burden by making sacrifices elsewhere but I know thatís still not protection against job loss or other unforeseeable circumstances. Everyone in this thread has given good advice but as persian said, youíre only young once. As long as it doesnít consume all your disposable income, I would go for it.

BTW, I also made the mistake of test driving an M3
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      11-06-2011, 09:28 PM   #43
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BTW, I also made the mistake of test driving an M3
Ironically I bought my M3 even though I was completely disappointed in the test drive X.x....I drove 2, both of which i was considering, and i didn't want to rev them too high as they were FOB.

But I came from a highly modified 335i, and had driven modified M3s in the past ....
I knew I'd mod my car before I bought it lol. Just never knew I'd take it this far 0_o. I'm already budgeting away for a BBK and possibly a supercharger....which would mean that I spent the same amount of $ on mods as all of my 3 years of lease payments combined...while only owning the car for less than a year lol

M3 is a nice car but it's boring in stock form...to me.
hence why I said you shouldn't expect your car payments to be your only expense... if you're on this website...you're (more likely than not) bound to do some mods lol
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      11-06-2011, 09:36 PM   #44
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hence why I said you shouldn't expect your car payments to be your only expense... if you're on this website...you're (more likely than not) bound to do some mods lol
Definitely a good point. The temptation to do a few mods will definitely be there but I think I can hold off at least for a while.

Quote:
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M3 is a nice car but it's boring in stock form...to me.
Drive a Jetta for 6 years and a stock M3 won't seem so boring any more
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