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04-18-2013, 12:16 PM | #133 |
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Have a little patient first and build up your net worth. Paid the credit card off and live on cash first. Buy the house second. Then if your not married by then get the M3.
Buying the car is far easier than keeping it when you are young. |
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04-19-2013, 03:33 PM | #134 | ||
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Sounds like you have already done the math and you are looking for justification? Just a hunch... if so go with your "assets and liabilities" brain. Imagine if you spent the additional $30,000 (just a guess) on that M3 10 years ago? For me, I would have never been able to afford a move - or to take a chance on a job that completely changed my career 1500 miles away if I committed on the M3. The equity gain and investment property stuff just fell in my lap due to the economy but it truly started the "snowball." For you, the sacrifices for the M3 over your career/house/$$-future were probably different. It is VERY hard to delay gratification even today. If it makes you feel better, now that we live in the high-altitude of Denver, I want MaxPsi's DME tuned turbo kit! My N/A screamer only "yells" now at 5,900 feet if you know what I mean. However, I also want to have a few more munchkins and still live comfortably without sleeping on the couch. In my middle 20's I couldn't even fathom having a family - let alone truly enjoying all of its rewards and inevitable sacrifices. Quote:
Your last point about "KEEPING" the M3 is huge. If I bought that new M3 in 2008 - I doubt I would still have it today in 2013. I still have my old turd of an M3 today as it is cheap, easy to DIY and still 80% of the fun at 11 years old and 97XXX miles.
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04-19-2013, 03:41 PM | #135 |
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06-29-2013, 01:37 AM | #136 |
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Just be careful with your money the first 2 years you graduate and set yourself some good financial foundations. Save for an emergency fund of 6 months of your expenses, set up a maxxed out 401K through work, get good term life insurance for you and perhaps some long term disability insurance incase you get injured... AND set up a budget and watch every bit of $ that leaks through.
You'd be surprised what you'd be saving if you got control of your expenses. A smart guy who was into cars gave me this advice, I think he was 10 years older than me, I was 26 at that time. Now that I finished training last year, I took his advice to heart and lived like a college student for the first year and will be doing similar this second year. So far, I've been doing very well in terms of my finances. I could probably buy an m3 outright, but I'm kinda in "cheap mode" right now so I think I'm just going to lurk on these forums. Last edited by pinipig523; 06-29-2013 at 10:11 AM.. |
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06-29-2013, 09:35 AM | #138 | |
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06-29-2013, 09:49 AM | #139 | |
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06-29-2013, 10:43 AM | #142 | ||
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06-29-2013, 02:30 PM | #143 | |
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Now getting back to original poster; REGARDLESS of what you take home per month the max you should be paying for ANY vehicle, short of super car status, should be $500-$600 a month for a car payment. Anything over that means in reality you cannot afford the car in hand, period. I don't care if you clear $19,000 a month...and you have a $699 a month car payment? WTF is that? Ghetto... You should be able to pay cash for that car. I was looking at a $115,000 Gallardo . Vehicle price ($): $114,999 Down payment ($): $7500 Trade-in allowance ($): $70,000 Tax Rate (%): 0% Interest Rate (%): 2% Number of payments (# months): 60 Loan amount: $37,000 Monthly payment amount: $657.29 To me this is too much of a car payment. Realistically I can't afford it. Could I? Sure, but its not worth it this close to retirement. I would do $500 a month on the 2011 Gallardo (probably could sell 2 firearms and come up with $10k but not right now). I am on the edge but right now I am about to retire with a paid off home and 3 vehicles. To me thats worth more than owing on one car and having 1 paid off with a paid off home. Bringing debt into retirement is something I don't want to do, period.
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06-29-2013, 04:19 PM | #145 | |
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This thread was resting nicely since 19 April ... why necro this???
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06-29-2013, 04:35 PM | #146 | |
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Ok, I'm done..
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06-29-2013, 05:55 PM | #147 | |
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Your post actually doesn't make sense. I'd imagine those in position to pay 1100/mo on a car are also already paying a mortgage or whatever they need to live on. You are combining the two for some reason but they are mutually exclusive. Why wouldn't you pay 1200/mo for an M3? Financing at 3%, that down payment can probably make more being invested. And 3% is probably lower than any of the other debts people have, hell even undergrad stafford loans are 3.4%. Saving up for a down payment means you can't invest the money when you earn it nor when you spend it. It's actually kind of a waste. |
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06-29-2013, 05:56 PM | #148 |
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The Ferrari wagon has a great lease special right now, $50K down with taxes and $2,700 a month! I would just so that if I were you . Think about it, whatever work you do I'm sure the more confidence you have the better you do and the more you make. You will attract a ton of chicks as you will have a hot car that is practical showing your not just making up for small things, and imagine going into a meeting with your top client or boss and feeling into your pocket knowing you have a Ferrari key in there!
You need to be on a game plan to get you north of $500K a yr once you are in your 30's. screw savings and invest in yourself! Or just buy a civic and call it a day |
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06-29-2013, 11:12 PM | #149 | |
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I would be hesitant to put that much down on a car, especially if on an M3, you can get 1.9% financing. You could do far better on a low key mutual fund with the down payment. I'm not very comfortable paying $1,000 or more on a monthly for a car - though I could easily do so. Just a mental block for me. |
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06-30-2013, 12:05 AM | #150 |
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I needed a new car and I had to have a stick shift sedan with room for a car seat in the back. There aren't many choices out there except BMW and some Audis. The M3 happened almost by accident-- I saw a great deal on it back in 2010 and bought it off Craigslist. It was $40k at the time and had 16,000 miles. Mint. Still the best car I've ever owned.
I can't really speak to what constitutes a reasonable monthly car payment because I've never made one... |
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06-30-2013, 12:08 AM | #151 | |
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Cash isn't the best way of doing it either, you can make more than the measly interest that you can get with great credit. |
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06-30-2013, 12:16 AM | #152 | |
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06-30-2013, 01:27 AM | #153 | |
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I guess I can't seem to part with that much cash, I'd rather pay a monthly on a low interest loan. |
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06-30-2013, 11:16 AM | #154 |
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My point was basically that a car is a depreciating asset. Even the precious M3 is eventually destined for the car crusher.
A cash buyer can usually pay less; in my case, it was a lot less - around $10k and you are minimizing your capital losses on the purchase. Your loss on the purchase will eventually be 100% if you keep the car long enough as the capital spent on the car is converted into driving entertainment. Houses are different, because at least in this area, they appreciate in value and yield rental income (or some equivalent value as shelter). So paying interest on that asset class can be justified. If you are seriously doing this calculation you should factor in the astronomical cost of ownership for this vehicle which includes about 32 cents/mile for gas at 14.2 mpg and 20 cents/mile for tires (the Neovas are good for about 6000 miles plus a couple of track days). I go through 1 set of brakes per year (6000-8000 miles) which even with aftermarket parts is about $1500, or roughly 25 cents/mile. Including depreciation this car probably costs upwards of $1/mile to operate, not including opportunity cost on the purchase price. As with everything, your mileage may vary. So ... if those kind of numbers will significantly impact your monthly budget then I would not even consider owning this car. |
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