Can I afford an M3?

[WRXXX]

Originally Posted by e46e92love

Really? Blame the banks? Seriously, are people so retarded they need someone else to tell them 10-15 is not 0? If you need a bank to tell you that your take home pay is right at what your bills are that you shouldn't buy, then you deserve to be bankrupt. PERIOD.


Hate the "its always someone else's fault" attitude of this country, and world. Sorry Dieter, not trying to attack you just frustrated by the lack of accountability.

Cheers,
e46e92

Its always me, me, me. Then it becomes someone else's fault when things fcuks up.

[Mr. ///M3 RD]

Originally Posted by e46e92love

Really? Blame the banks? Seriously, are people so retarded they need someone else to tell them 10-15 is not 0? If you need a bank to tell you that your take home pay is right at what your bills are that you shouldn't buy, then you deserve to be bankrupt. PERIOD.


Hate the "its always someone else's fault" attitude of this country, and world. Sorry Dieter, not trying to attack you just frustrated by the lack of accountability.

Cheers,
e46e92

I know what you mean totally, however, my point only was it is just made too easy on people and the temptation is great (just look at the OP - I am glad he came to his senses). As for the Banks when I was younger and married we could not secure a $500- loan with one of the major Canadian banks. We were told you are immigrants and have no collateral.

The very same bank holds all of our money and savings today ... once I was on a project in another part of my country ... the cheques for my crew were held up in a postal strike. So I went to a local branch of my bank (it was a small Canadian town) and requested cash to be transferred so I could pay my crew. The bank manager said "Sorry Mr. .... cannot do it" I just told him if I don't have the cash here in front of me within 30 minutes I will close all my accounts, transfer them including my private and company investments.

You should have seen once he came back 10 minutes later how everyone jumped to satisfy my original request ... Bottom I'm only saying times have changed ... no more and no less

[Nine]

Originally Posted by e46e92love

Really? Blame the banks? Seriously, are people so retarded they need someone else to tell them 10-15 is not 0? Cheers,
e46e92

How about blame the Government that lended to the banks...

[Rekrul]

Originally Posted by E92_SID

CHILL THE F OUT! I bet most people on here dont make >100k. I am all about saving and investing for the future but honestly, at 22 the OP is doing very good for himself. Most people dont get to the 70k range until their mid to late 20s (if that). I know plenty of people in their 40s who would love to be making 70k.... You are acting as if this guy is trying to retire in the next 5 years. I am pretty sure he is not. As long as he has a 401k or some type of investments even started then I dont see anything wrong with choosing to spend a good chunk of his disposable income on a car. Yes its not necessarily doing the "smart" thing but buying a car never is. At 22 if he wants to reward himself for the acomplishments that he has made at his young age then I say go for it! I agree though that the OPs math might be a little bit on the low side (60 for gas a month ) but as long he can pay all his bills and not have to eat rammen to afford the car then I am behind him.

I will say this though, OP you might want to go for a lease or select financing on something used instead. A new M3 might be out of your price range as hard as that is to hear. I know when I was making 60-70k I bought a new 335 for 45k (payments of 640). I always knew that I wanted the M3 and the 335 was just a stepping stone to get to it. I told myself that once I made 100k a year then I would get my M3 and that is exactly what I did

LOL username11 is just a baller, hes trying to make us feel inferior . I highly doubt more than a handful of people on here are making over 250k a year.

[Blu_Frg]

Thanks for all the commentary guys. I am heavily leaning towards forgetting the m3 for the next year or two. If my career plans pan out, I'll be making around $120K at my next job level.

As for now, I've only been working for 3 months and I am extremely grateful that I was able to graduate from a great school, have zero debt whatsoever, and land a fantastic job. I landed this job through sheer effort and networking without anyone nepotism or strings being pulled.

Just to clarify some points:
- I wasn't projecting to spend only 60 a month on gas. Thats just how much I'm spending so far on my zhp with fairly limited driving.
- I max my 401k contributions by the amount my employer matches. My take home pay reflects retirement contributions and health insurance.
- I have a stock portfolio worth a little under $10K that I inherited as a graduation gift but I do not plan on liquidating that for anything. I consider myself to be pretty financially savvy and recognize that although the stock markets are complete shit right now, this portfolio could double within the next 5 years. So I won't be touching it. If anything, I'll be adding to it over time.
- I have excellent credit (>750) and pay off my card every month in full. But I do have a car loan for my zhp and all inclusive costs for my car including insurance and gas amounts to roughly 720 a month. I'm just so emotionally driven to have an m3 right now and think I can afford to spend a couple hundred more to have a used one; I realize a new one is out of the picture right now.

In conclusion, I will not be leasing a new m3 or whatnot. The only way I can see myself getting into one in the very near future is if I sell my zhp at market and pay off its loan and use the proceeds to put a downpayment on a used m3 in the 45-50k range and finance the rest. But even then, I'm hesitant to be in that much debt, even though I feel pretty secure in my job and future prospects.

So in the end, I'm at a battle of reconciling my pure emotional drive to drive a car of my dreams with my financial common sense saying not to.

Not sure what I'll do but I definitely won't be getting into an m3 anytime soon. If I do, maybe after winter ends in Boston :P

[Hurricane]

Originally Posted by matthewk

There's about the worst investment on the planet. With this logic after 5yrs your statistically more likely to be ahead investing in the car over a ring for a wife.

Sorry, I think the money people waste on wedding jewelry for marriages that are statistically more likely to fail than succeed is insane. I don't get why men have caved to women's desires for big jewelry so they can show their friends they've landed a guy with money..

No doubt that jewelry is the worst investment of all time. Even worse than a car purchase. I'm just giving the OP some different things to consider. Forget the ring, the $90,000 he would save over five years could be used for a home.

[eisenb11]

Originally Posted by Blu_Frg

If my career plans pan out, I'll be making around $120K at my next job level.

Never go on that kind of logic. Concentrate on the job and not the payout. You'll be surprised how often things like this don't work out and it's generally not a good idea to make plans on what you don't have and on what may or may not come to fruition.

As for now...have zero debt whatsoever, and land a fantastic job. I landed this job through sheer effort and networking without anyone nepotism or strings being pulled.

Excellent!

- I wasn't projecting to spend only 60 a month on gas. Thats just how much I'm spending so far on my zhp with fairly limited driving.

Expect the S65 to eat 30-50% more! :P

- I max my 401k contributions by the amount my employer matches. My take home pay reflects retirement contributions and health insurance.

Generally that means either 100% of 4% or 50% of 8%.

- I have a stock portfolio worth a little under $10K that I inherited as a graduation gift but I do not plan on liquidating that for anything. I consider myself to be pretty financially savvy and recognize that although the stock markets are complete shit right now, this portfolio could double within the next 5 years. So I won't be touching it. If anything, I'll be adding to it over time.

Putting more money there instead of in the M3 may bring you a house and a newer/better M3 in the future. Stock never loses in the long term (at least so far).

- I have excellent credit (>750) and pay off my card every month in full. But I do have a car loan for my zhp and all inclusive costs for my car including insurance and gas amounts to roughly 720 a month.

Credit is a funny thing. I have a higher credit rating than my dad. He has over 10 times my net worth and 0 debt.

I'm just so emotionally driven to have an m3 right now and think I can afford to spend a couple hundred more to have a used one; I realize a new one is out of the picture right now.

In conclusion, I will not be leasing a new m3 or whatnot. The only way I can see myself getting into one in the very near future is if I sell my zhp at market and pay off its loan and use the proceeds to put a downpayment on a used m3 in the 45-50k range and finance the rest. But even then, I'm hesitant to be in that much debt, even though I feel pretty secure in my job and future prospects.

So in the end, I'm at a battle of reconciling my pure emotional drive to drive a car of my dreams with my financial common sense saying not to.

Not sure what I'll do but I definitely won't be getting into an m3 anytime soon. If I do, maybe after winter ends in Boston :P

But you're making the right decision, +1 to you!

[Erhan]

Originally Posted by Blu_Frg

As for now, I've only been working for 3 months

....

even though I feel pretty secure in my job and future prospects.

I don't know what you do, how you got your job etc, but don't think your job is secure just after 3 months. I know my job is as secure in my company as it can be, and I could tell this only after 4 years of hard work and proving that I'm a good employee, capable, and dependable. I'm in my 5th year now, and I'm in a very strong position for growth. That being said, if the worst comes, even I might be let go...

[eamon]

OP, the ZHP is an awesome car, definitely shows success
Enjoy it while you can

Btw, I'm surprised no ones asked for the pics of the car! Lets seem 'em

[gatorfast]

You make $70k/yr and want to purchase a $70k car? Obviously not a smart move.

Be patient. I would prioritize things like saving to purchase a house/condo and just saving in general at your age. Now that you have graduated college life will start to move a lot faster (trust me, im in a completely different position now in my life than just 3 short years ago when I finished school). Things like buying a home, getting married, kids, etc all cost a lot of money and you wont have any if you spend every penny on an M3.

Also on a side note, I would strongly look into purchasing a used vehicle when you are ready. You will save thousands and likely never be upside down on a loan.

[persian54]

Originally Posted by benjammin

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.

That's what I said when I got my 335i in 2009.... at the time, I was 21 and had just graduated college...didn't have the income I have now, but wanted the car.... and I started modding 2 months after.... fortunately I forced myself to increase my income to feed my modding obsession..which eventually turned into a new business... yes i'm trying to justify my obsession haha

Originally Posted by benjammin

Drive a Jetta for 6 years and a stock M3 won't seem so boring any more

Yeah most likely...though the longest I've ever owned a single car during my life is 2 years...

Originally Posted by eamon

Correct me if I'm wrong, but you're saying to buy a new M3 "comfortably," one must be making 400k/yr... Serious?
Do people agree with this? That you should spend less than 1/4 of your salary to buy a car?

When I make 400k per year, I'll be driving a M3 as well as other cars

Originally Posted by Blu_Frg

No, I absolutely agree that I cannot afford a brand new M3 -- whether it be through a lease, financing, or financing select.

Is it possible to get a used e92 M3 in the $35-45K range? I'd just like to have the DCT transmission with navigation and heated seats. What kind of car am I looking at with that budget?

I think spending 40k on a used M3 is the worst thing you can do... a 40k m3 will be out of warranty, or close to out of warranty

it'll start costing you


a 3 year lease will be about 35k....yes you won't own the car, but you won't need to worry about repairs etc, nor does depreciation matter

35k in 3 years is a lot easier than 70k in 5 years.
Since even if you do lose your income, it's easier to have someone take over your current least with minimal lose (heck sometimes people will PAY you $ if you have a great deal), than selling the car and taking a depreciation hit

if you buy a new m3 at 70, and need to sell it in 2 years, you probably will get 45k for it (this is cause the new body will be rolling around)
that's over a 1k cost per month
where if you can get a 800 or so per month lease, you don't lose as much...

every situation is different and no one can predict what can happen...

I just remember when I did the math last year, i estimated my m3 would end up costing me $1100/month had I chosen to buy it and sell it in 2-3 years, where a lease would cost me 811/month flat.



I think it's obvious that you cannot afford a new M3

you should hold off and buy a good CPO, or lease. Either way, don't buy a new m3

but again it's your money....so do as you please

Originally Posted by Hurricane

If you save that $1500 for 5 years you will have $90,000 in the bank! You will only be 27! You can then afford a ring for your wife, and a substantial downpayment on a home. Your 22 and are currently driving a BMW.

I'm a little confused at what I've seen in this thread


Some make it seem like you need to have loads of $$ in savings, a 150k/year income in order to get a m3

and then others say it's fine with not as much income income..

Mixed stuff floating around...

Question: does having 90k in a savings account at 27 a good or bad thing?

This question is geared those who say you need to make 150k, and those who say you don't need 150k.

I know I'm generalizing, but I'm confident you guys understand what I'm trying to say. if it doesn't make sense, sorry... I'd like to elaborate more but i need to go

Originally Posted by Nine

This is an interesting topic, looking back a 4-5 years ago, I was in your position and I went with the car, I wouldn't do the same today.

You really have to think about your priorities here, if you would like to have roomates and drive a really nice car, and you are ok with that then sure. But if you want to live alone, maybe in a nicer apt, or whatever...

Out of college, Vacations were something I missed out on. I couldn't fly to vegas and blow 5k in a weekend because of my car situation, or I couldn't spend a weekend in a nice hotel in NY.

You are young, there are going to be parties, football games, girls, ordering shots, buying clothing, accessories, nice dinners, cigars, ...just plain living. The M3 will always be there, at your age enjoy being social, spend the extra money on traveling to places like Italy, Germany, Japan, road trips in the USA, having fun and living life. A large car payment, or being upside down on your car will be an anchor to your life, think about your priorities.

If your life is all about cars, I mean all about cars...DO IT, your life is already molded around great sacrifices related to cars, so you'll make it, and you'll eventually make more money and afford it, it will always be a bit of a stretch in the beginning.

I think you hit it on the head...
At least for me.... cause the stuff in the above paragraph don't interest me...at all.... (except the nice dinners and girls, the rest are a waste of $ and time IMO. I am not a fan of being away from home..)

Thank you for this post

Originally Posted by eisenb11

Stock never loses in the long term (at least so far).

This I have to respectfully disagree with.

Originally Posted by matthewk

There's about the worst investment on the planet. With this logic after 5yrs your statistically more likely to be ahead investing in the car over a ring for a wife.

Sorry, I think the money people waste on wedding jewelry for marriages that are statistically more likely to fail than succeed is insane. I don't get why men have caved to women's desires for big jewelry so they can show their friends they've landed a guy with money..

This is respectfully agree with

Sorry for my long posts :P

I was away for most of the weekend lol

[Z K]

There's a lot of people that live at home with the parents at 22 and they have no problems working and paying for a $70K car... of course that is different for everyone. Given today's economy, it isn't very uncommon for college grads to move back home after school.

Of course the OP's situation is not that and can't justify the cost of such an expensive car. When I made $70K, my limit was $40K on a car. I had a Evo then and even today feels faster than the M3.

[zhangzeyuandss]

Originally Posted by Z K

There's a lot of people that live at home with the parents at 22 and they have no problems working and paying for a $70K car... of course that is different for everyone. Given today's economy, it isn't very uncommon for college grads to move back home after school.

Of course the OP's situation is not that and can't justify the cost of such an expensive car. When I made $70K, my limit was $40K on a car. I had a Evo then and even today feels faster than the M3.

yeah.. excatly . For OP, I don't think you should buy the car. Always prepare for the wrost case scenario. (Got fired or got injuried from car accident etc..) Accidents happen all the time, when you are making 70k and you are trying to buy a car that worth more than 1 year of your gross salary. Obviously, what you should do is enjoy the ZHP 330 right now, save up a little bit more until everything is stable and settle down a little bit.. Don't get too over ahead of yourself. Just my honest opinion. GL OP

[Mr. ///M3 RD]

Originally Posted by erhanh

I don't know what you do, how you got your job etc, but don't think your job is secure just after 3 months. I know my job is as secure in my company as it can be, and I could tell this only after 4 years of hard work and proving that I'm a good employee, capable, and dependable. I'm in my 5th year now, and I'm in a very strong position for growth. That being said, if the worst comes, even I might be let go...

No job today is secure unless you are a professor at a University

Originally Posted by eamon

OP, the ZHP is an awesome car, definitely shows success
Enjoy it while you can

Btw, I'm surprised no ones asked for the pics of the car! Lets seem 'em

Yes like show us the money ... show us the pictures

Originally Posted by Z K

There's a lot of people that live at home with the parents at 22 and they have no problems working and paying for a $70K car... of course that is different for everyone. Given today's economy, it isn't very uncommon for college grads to move back home after school.

Of course the OP's situation is not that and can't justify the cost of such an expensive car. When I made $70K, my limit was $40K on a car. I had a Evo then and even today feels faster than the M3.

Re: living at home ... if I had a son he be on his own at age 21, I left home at 16 any son of mine (if I had one) would have made it at age 21 ... letting him live at home will only generate laziness and it would only hinder his future success not helping him in my humble opinion ...

[heart_doctor]

Don't do it ... Don't live car poor, save money and buy one in 5 years or so.

[gatorfast]

Originally Posted by Z K

There's a lot of people that live at home with the parents at 22 and they have no problems working and paying for a $70K car... of course that is different for everyone. Given today's economy, it isn't very uncommon for college grads to move back home after school.
.

If I had a kid living at home after college and he wanted to buy a $70k car instead of moving out we would have a serious problem. Of course I would hope to raise my kid with a much better sense of judgment than to do something like that...

[askharjoon]

I agree with username11. $70k/year these days is NOT much money even at the age of 22. I would never buy a car that I don't have disposable cash on the side to pay it off at any moment. The ONLY reason why you should lease or buy a new car is to free up your cash for investment at a rate of return higher than your loan interest rate.
Keep your existing car and start buying real estate at these fire sale prices, then buy yourself a nice Ferrari in your 30's.

[SamS]

Originally Posted by askharjoon

I agree with username11. $70k/year these days is NOT much money even at the age of 22.

Try telling that to the millions of people 30-50yo out there making half that.

[gatorfast]

Originally Posted by askharjoon

I agree with username11. $70k/year these days is NOT much money even at the age of 22. .

What??? Do you have any idea what the typical starting salary for a college grad right out of school is? That is if you can find a job of course. I can promise its nowhere near $70k. The only people I knew making that much right out of school were lawyers and thats to be expected after spending 7 years in school.

[Z K]

Originally Posted by Rolf-Dieter

Re: living at home ... if I had a son he be on his own at age 21, I left home at 16 any son of mine (if I had one) would have made it at age 21 ... letting him live at home will only generate laziness and it would only hinder his future success not helping him in my humble opinion ...

Today is not as it was... today's job prospects are slim for college grads. My point of view is if they are being productive i.e. actually working towards the future and might be in a bad financial positon, living at home is okay. If he/she is just a deadbeat .. well, got to give the boot.

Originally Posted by gatorfast

If I had a kid living at home after college and he wanted to buy a $70k car instead of moving out we would have a serious problem. Of course I would hope to raise my kid with a much better sense of judgment than to do something like that...

I totally agree with this. If a family member needs help, I'd be happy to help them out. But if they are just taking advantage of you, that's a no-no.

A friend of mine moved home after college, landed a decent job. Then a couple years later, he decided to buy a new E63 AMG while living at home... Things didn't go too well with the parents when that happened.

[Erhan]

Originally Posted by askharjoon

I agree with username11. $70k/year these days is NOT much money even at the age of 22.

Which planet are you from? I agree that $70k/year is not much money to live with, (especially if you have a family) but making $70k/year is not the case for many people. If that was the case, we wouldn't have the crisis now... I'm an electrical engineer, and I can tell you that if you have a MSEE, and you're from a good school, than maybe (a big maybe) you can start making $70k/year out of college, of course if you can find a job.

Originally Posted by askharjoon

Keep your existing car and start buying real estate at these fire sale prices, then buy yourself a nice Ferrari in your 30's.

I believe that house prices will go up in the future, but not in near future, and you won't be able to buy a Ferrari in 8 years if you buy a 300-400k house/condo... Those days are over.

[ajvee]

OP I commend you for your decision to hold off on the purchase. It is a wise decision.

If the itch persists, try getting reacquainted with your ZHP. Nothing like some track time to fall in love with your car again.

Good Luck.