Early twenties, looking at an M3

[Curt2000]

Originally Posted by dream3rr

I'm 22 and I'm currently employed making $60k/yr. I have no debt.

I have no desire to move out yet, so I've got the next 3 or so years to get the ball rolling on my own place.

The M3 is a splurge I may not deserve at this point, but given my particular situation, is it doable? I have a deep love for cars and I feel like owning an M3, especially this particular generation, would be something I would look back on in a few decades with a huge smile.

What do you think?

If you are trying to impress girls I'd recommend waiting and leasing a new 4 series coupe when they come out because girls/majority of the population will see a new bimmer next to an old bimmer if there was a 428i sitting next to a E92 M3.

[And1M3]

If you don't have any money save up, I advise you not to purchase a new M3.
Since you are making $60k a year, you have to ask yourself is your job stable?
You have to think about the future.You don't want to be layoff and not be able to make payments.
You should save up your money now and get the car later.

I just bought a new M3 myself and I had enough money save up to pay off the car in full.
But I choose not to spend all my money on the car and spend it on every day living.
I am currently financing the car for $550 a month and living a comfortable with that payment.
You should not tie yourself down at this young age. Save up and invest your money wisely first.

[h4nh]

Mid 20's with a M3 and new M5. YOLO

Get it. You'll be very happy.

[Nordstat]

Originally Posted by Curt2000

Lets put things into perspective.

A $50k car will cost you around $760/month on a 6 year used car loan at 3% (assuming you have stellar credit) Additionally you will pay around $4000 in taxes at registration depending on your location. At the end of those 6 years you will have a dated car worth maybe 1/3 of our total investment and most likely costing you more due to high cost of maintenance on a high performance car.

Why don't you invest what you would have spent on taxes/registration...say $4000 into a moderate risk mutual fund (~5.5% return) then $760 every month for six years then stop the contribution. Let that money grow until retirement age (65). At that time you will cash out over half a million dollars.

Investment calculator

On a side note...when I was your age I would have been embarrassed to be living at my parents house. But thats just me.

^ this...is...golden.

Also, prioritizing an awesome car over moving out of your parents' place at 20+ years old is something I would think long and hard about...

[Sam@Bimmerpost]

I think you should do it. Why not? Life's too short.

[jonasaurus]

Isn't this kind of question more related to what you're comfortable with and your current and perceived future financial situation. Asking a forum to play a part in deciding your future financial commitments seems a bit silly. On the other hand if you've done the math and you're comfortable with the continuous outlay associated with owning a m3 then you should get out there and test drive one to see if you like it.

[KrackerXL]

I never got this whole save save save crap... why not just make more?

don't get me wrong I save most of my money but when i want something I go and get it cause at the end of the day I deserve it and it makes me happy. Theres a chance I wont wake up the next day and then be like well shit I should of got that M3, hooker, etc. (just an example)

[S65V8]

Originally Posted by dream3rr

What do you think?

OP, you should write down a list of pros and cons tailored to your situation and make the "right" decision for yourself. Strangers are too biased.

On this forum, you'll get the extremes of "carpe diem!, life's too short" and "save for a rainy day!", but the answer is usually somewhere in between and that's dependent on the individual to determine.

If you want to go with the "wisdom of the crowds", set-up a poll here to see how many say "buy it" vs. "do not buy it". It should be interesting to see the results.

[gatorfast]

Originally Posted by dream3rr

I have no desire to move out yet, so I've got the next 3 or so years to get the ball rolling on my own place.

You must not have much of a person life if you are 22 and satisfied living at home...

But I bet once you do finally move out and see how expense rent/mortgage is, furniture, electricity, food, etc you will regret blowing all your money on an M3.

[CanAutM3]

When I started working 20 years ago, I also made a salary equivalent to 60k in today's money. I bought a used VW GTI cash. I dreamt of M3s, but did not even consider buying one at the time. I could afford modifying and tracking the GTI though, learning a lot in the process. Lived with my parents for a couple of years until I piled enough cash for the downpayment on a rental 5 appartment building. This is when I moved out. By the time I was 29, I had piled enough cash to buy my first M3. At 35, me and my wife built a nice big house to start our family. Now that I am 42, my house is fully paid off and life is quite comfortable.

I am a believer in delayed gratification. It usually gets you farther ahead in life .

[Rk-d]

Originally Posted by Rosso_Corsa

I think you should do it. Why not? Life's too short.

Advice from 2005: 0% down, mortgage with no credit? Why not?

Personally, I would want no part in encouraging foolish financial decisions like this.

[Giggs]

Originally Posted by CanAutM3

When I started working 20 years ago, I also made a salary equivalent to 60k in today's money. I bought a used VW GTI cash. I dreamt of M3s, but did not even consider buying one at the time. I could afford modifying and tracking the GTI though, learning a lot in the process. Lived with my parents for a couple of years until I piled enough cash for the downpayment on a rental 5 appartment building. This is when I moved out. By the time I was 29, I had piled enough cash to buy my first M3. At 35, me and my wife built a nice big house to start our family. Now that I am 42, my house is fully paid off and life is quite comfortable.

I am a believer in delayed gratification. It usually gets you farther ahead in life .

^this.

Think about this, is the M3 your end all car or do you eventually want something more, like an Aventador, MP-14, GTR, GT3, etc? To me the M3 wasn't my dream car so I began investing and continue to do so.

At $60k/year you could qualify for a descent real estate loan. Do your homework and buy a rental property in a market that makes sense. It will produce cash flow and eventually you can trade it up. And it also gives great tax shelter through depreciation and expense write-offs, which means you will keep more of that $60k/yr versus giving it to the government. When Im looking to buy a new toy, i first look at how i can use my money to make the money i need in order to purchase it. Before i bought my r8 i bought two more rental houses and now my tenants are paying off the houses and paying for my car and im still putting money in my pocket, can enjoy life and still have plenty of money in the bank for a rainy day. If you dont have a lot of money saved up for a down payment, the formula will still work in some markets however you'll just have to be patient and smart about moving properties etc, but you're young enough to be in a growing phase.

On the other hand if the M3 is your end all car in life then do it. If eventually you want something bigger, invest the money and one day you can have any car you want. I wish I had started doing what I'm doing now at your age, I'd probably be driving an Aventador. But instead in my mid 20's I leased a 335i and used all my money towards that and invested $0. Just food for thought.

[Professor///M]

Originally Posted by SROC5

It's doable, life's too short.

Can you theoretically afford it - sure with credit now a days you can almost afford anything. Is it realistically doable? No.

Just wait until you can make it more comfortable.

Your insurance will probably be a minimum of $3000/year. Your gas will likely be more than that. Your car payments will be about 8-12K a year.

So worst case, you're spending 1/3 your pre tax dollars to have this car.

There are so many other great vehicles out there - save it for when you can afford it more comfortably.

[6spdg37s]

go for it but if i were u with the unstable economy id keep like a year of living expenses in your savings...

but the economy can really turn and really fuck u bad ... when i was 21 i had my own apartment and was driving a viper srt10 and a g37s... economy turns and u realize u wish u didnt piss away money on cars ... luckily i bought the viper mid gas crisis and in the winter and there was snow on ground and shit.. and sold it for 2k more than i paid for it in spring time.

[besiktas]

Originally Posted by SROC5

It's doable, life's too short.

+1

I did the same 3-4 years ago!

Just create a monthly budget plan to see if your expenses does not exceed income.

[XeroZeus]

All of you ballers making more than 60k a year at less than 25 years old.

Feel free to network with me. 24 here. Really interested in what you all are doing to be making "way more" than 60k at such a young age.

Congrats to you and all good karma your way!

[Whoa1847]

I make just a hair short of 200k. I'm in my late 20s, single and have no kids. Still, I'm only toying with the idea of an M3.

Ask yourself why you want one. Will you use the car to its full potential often? Can you afford to? Or do you just one want because it's an M3? Not to say that it isn't a valid reason, but it isn't a very good one.

At this point I'm seriously considering ordering a BRZ - that car seems like a hoot to drive and I'll still have enough money left over to take 10 trips around the world. I could give two shits about whether I drive a BMW or not - the brand is actually a negative to me for producing so many cookie cutter cars with no personalities lately.

Life IS too short. Spend it accumulating different experiences - those will last in your memories. A hunk of metal won't.

[LemonOne]

Early twenties these days is equivalent to 17-18 years old mentally.
My answer would be HELL NO

[SamS]

This.

Originally Posted by baba louey

Simple answer. Take your money and get your own place, move out, and find out what life is really about.

And this.

Originally Posted by Transfer

You're too old and make too much money to live at home. Move out first and then see what you can afford.

I don't know what year it happened, but I can't figure out why/when it became OK to live with your parents after graduating college and getting a real job.

You could miss out on some great opportunities in life (girls, promotions) because you still live at home. M3s will always be around, you can walk into any BMW dealer and buy one.

[swhat]

I am going to go against what everyone else say!

I am currently 30. Biggest mistake was to move out of my parents place at 22. I would leech off the parents for as long as possible. And yes you can afford the M3 if you are living with the parents.

Unless they kick you out, why take on extra responsibilities?

[WRXXX]

Maybe I am getting old but back in my days you graduate from college, you save for a few years to pay off your for loans (if any) and then find your own place and move out. Getting a fancy car was not even in my mind (new our used).

Nowadays, I see late 28 year old's still living with their parents yet drive nice cars that are leased Its instant gratifications for the younger generation I guess. That's why household debt is climbing year after year. I know a divorced woman that is still supporting her 32 year old son! He doesn't pay for rent or food.

I would definately save and get a property first. Especially with the current real estate market in the States right now being so affordable. This won't last forever.

BTW, we have been getting an awful lot of 20 year old's living with their parents lately asking if its ok to get an M3.

[Mr. ///M3 RD]

Originally Posted by dream3rr

Thanks everyone for your input! Clearly it's best to wait it out, but if I can find a good deal on an E9x I will go for it, with extended warranty for peace of mind. I would love to have owned one when they were still "new".

Keep looking and searching ... then find a nice one returned with low milage after a 2 or 3 year lease ... when you do find it make sure of ...

A) Look over all history maintenance and inspection reports (you get them form the BMW dealer).

B) Make sure the car is inspected for safety and mechanical issues at a main BMW Dealership (not some small in the wall dealership). This normally is done if you find the car at a BMW dealership. If private sale then make sure you do the foregoing. You may have to pay for this inspection, however, the results may save you thousands of dollars. Also once the inspection is done it will help you to negotiate the best sales price for the car, based up on the inspection results (have them fix any deficiencies or lower the price so you can get them fixed).

Tip 1 - Get friendly / or get to know the lease manager at BMW let him know you are in the market for a low milage lease return.

Tip 2 - While the car is being inspected (Item B above) ask about extended warranty (you don't have to get it if you don't want to), it will make them inspect the car tom head to toe as best as they can. Believe me they would not sell you extended warranty if the car is in bad shape.

I purchased my very first M3 (2002 e46) in 2004 and all the above worked excellent for me. Good luck and happy motoring.