Am I living in a fantasy land?

[Wasteland]

Originally Posted by Longboarder

OP is probably long gone...but if not...^ This. Look, I don't know you and forgive me for being presumtive, but it's time to watch the movie Crazy Stupid Love. Be Ryan Gosling. Upgrade your image a little with a new wardrobe and new-found confidence. Go out a lot and bang a bunch of 21-year olds. Go on lavish vacations in places like Ibiza and Vegas and treat your self well. Once that's out of your system, buy and M3.

holla!

[zenderm3]

Originally Posted by e1000

Magic 8 ball says: Outlook not so good.

Couple things to keep in mind:

- Even though the M3 isn't the most maintenance heavy car, it will still be significantly higher maintenance wise than an RSX. Even above and beyond oil changes and the like, things such as tires will still be a lot more. If you're planning on buying used, consider that a single front brake rotor is something like $500-$700 from the dealership.

- Insurance, gas are going to be considerably more, especially gas.

- Sounds like you have bigger financial priorities in life than a M3.

- Keep in mind, as good as the M3 is, there will always be great cars on the horizon for you to buy in the future. Focus on growing your career, saving money and setting yourself up in your 20's for future success. Splurging on a new car isn't the best financial decision.

With that said, if you still feel strongly about it, and think you can afford it, go for it.


PS, you're not living in fantasy land, you're living........ at home.

+1 - Sound advice. I understand your motivation, the e92 is an amazing vehicle! I love mine immensely! But I've got a stable career etc etc. Move out first and check your finances after 6 months, then make another call. There will always be a used e92, especially in the US!

[roastbeef]

op- save and buy a house before you do anything else. i'm 25 making six figures and i'm a little tedious about getting into a used m3...

but, the best thing i have ever done was buy a house. get a house for the tax benefits, rent a room to someone you can stand, and use that money to pay for the m3. thats doing something smart while getting what you want and setting a goal with major rewards to work towards.

[e1000]

Originally Posted by roastbeef

op- save and buy a house before you do anything else. i'm 25 making six figures and i'm a little tedious about getting into a used m3...

but, the best thing i have ever done was buy a house. get a house for the tax benefits, rent a room to someone you can stand, and use that money to pay for the m3. thats doing something smart while getting what you want and setting a goal with major rewards to work towards.

I actually disagree with this. Purchasing a home has historically NOT been an investment beyond keeping up with inflation, and in the past few years in most of the country, been worse than sticking your cash in a simple savings account.

Between property taxes, homeowners insurance, repair costs and possible association dues, any tax advantage is quickly negated. Add to that the first couple years of a mortgage you pay down interest first, and typical broker's fees for selling a home are in the 3-6% range, the promises of homeownership looks very different.

Again, not saying it's a bad idea for everyone, just saying blanket "you should buy a house" isn't relevant any longer, and should never be that way. Factors like the market you're in, job stability, your 5-10yr plan will all factor into this decision and whether it makes sense or not.

[Simma]

i own both cars ... rsx and m3 ... i haven't had to do much maintenance to my m3 yet and even then the car has warranty so i'm good ... i'd say keep the rsx on the side as a beater if you can afford to do so ... if you have low insurance payments per month then why not ... gas is night/day difference ... which is pretty obvious but i'm stressing that to you again .. NIGHT / DAY !!!

[roastbeef]

Originally Posted by e1000

I actually disagree with this. Purchasing a home has historically NOT been an investment beyond keeping up with inflation, and in the past few years in most of the country, been worse than sticking your cash in a simple savings account.

Between property taxes, homeowners insurance, repair costs and possible association dues, any tax advantage is quickly negated. Add to that the first couple years of a mortgage you pay down interest first, and typical broker's fees for selling a home are in the 3-6% range, the promises of homeownership looks very different.

Again, not saying it's a bad idea for everyone, just saying blanket "you should buy a house" isn't relevant any longer, and should never be that way. Factors like the market you're in, job stability, your 5-10yr plan will all factor into this decision and whether it makes sense or not.

i absolutely agree, i shouldn't have made a blanket statement.

based on my own personal experiences, home ownership opened some new doors for me. its generally a safe, long term investment that will appreciate. secondary to writing off the interest, i now have enough deductions to itemize other eligible expenses that i couldn't before because i didn't exceed the standard deduction.
also, i was able to rent out a few rooms to good people i really didn't mind living with, and used that money to buy an investment property.
my long term goal in doing this is to acquire properties from money saved from my renting rooms/property and buy more rental property. its like a slow "snowball" of cash flow.
i'm very much a middle class guy, and doing this slowly, but i'm achieving my goals and can see real progress by doing this both long term and short term. its been working for me, but other's situations may be different.

[boi222]

Originally Posted by sdshah

Ahhh I havent posted in a while but this thread has compelled me to write something. Especially after half the people who posted in this thread are in their own fantasy land.

I am your age 22 just turned 23. However, I work in M&A/Banking industry so I made alot more but work ALOT MORE HOURS in the long run. However, I made my first purchase of an 06 m5 when I was interning from what I saved up while being on a scholarship for school and interning during the summers. What i had saved up at that time was probably the same amount you have saved up by your year of working etc. A lot of people think living at home is a negative in this situation but if I had a chance to live at home right now I would definitely do it by saving a whole lot of money that can be saved up and used for a lot of different things. A lot of people when I made that purchase of the 06 M5 were quick to judge but I am hoping that in your case your not planning on making 40k for more than a year at a time. It seems like you college educated with a career and focused so you can definitely plan on vertical movement in salary and position during the life of your purchase. I had confidence in myself and rightly so as I am making my dreams come true and moved into a 2010 M3 in April.

The factors you need to consider:

1. where you think your annually salary can go over the next few years?
2. When are you planning on moving out of your parents place? When you do are you looking to buy or rent - alone or with someone else?
3. Definitely look into 08-09 with maybe some factory warranty left on it. Get it inspected and I think you should be okay. The m3's in my eyes are a good car/built to last and a lot less problem prone then lets say a v10 06 M5 lol.

If you can get into a car in the lower 40's and finance the rest over 60 months you will still be saving money towards a house/rent etc when you move out.

4. What alot of people are losing here is that a car is def a depreciating asset but at an 08-09 range. You are definitely not going to lose a lot on the actual purchase price on the car if you ever need to sell etc. The car is already depreciated around 35k and on top of that m3's are very hot cars. You can see how alot of the cars on our forum will find a new home within 2-3 weeks if they are advertised right, taken care of, and priced decently well. THESE CARS ARE WANTED BY ALOT OF PEOPLE/ MORE THAN ANY OTHER DD I have ever researched.

5. Just do the math on your own. If you really want the car you can cut another aspect of your life down - Ie going out/drinking/other hobbies. When you cut down expense somewhere else you can make room for other things - and at the end of the day we all have to rmr that you are still purchasing an asset. something that you put your money towards that wont appreciate but it allows you time to build up capital through financing that can be used for other things. Its not the most ideal way to borrow but you get to drive an M3 while your doing it lol.

6. Goodluck man. If you ever need help with anything just message me and Ill help you out looking and making the right choice. I am not saying yes or no. I am saying just do your math and your homework and if your feeling stressed out before the purchase is made you can just wait a couple year and find a better time. As youll be making more money throughout your career. But if you think you can make it work and have it all cleared out with financing/ and insurance etc. There is no reason why a bunch of guys who are in completly different situations than you should tell you what you should or should not do.

+1 ..i tried to say something similar but couldnt put in a words nicely

[Ohh_5H1T]

Originally Posted by roastbeef

i absolutely agree, i shouldn't have made a blanket statement.

based on my own personal experiences, home ownership opened some new doors for me. its generally a safe, long term investment that will appreciate. secondary to writing off the interest, i now have enough deductions to itemize other eligible expenses that i couldn't before because i didn't exceed the standard deduction.
also, i was able to rent out a few rooms to good people i really didn't mind living with, and used that money to buy an investment property.
my long term goal in doing this is to acquire properties from money saved from my renting rooms/property and buy more rental property. its like a slow "snowball" of cash flow.
i'm very much a middle class guy, and doing this slowly, but i'm achieving my goals and can see real progress by doing this both long term and short term. its been working for me, but other's situations may be different.

One thing that must really be considered is location. Real estate varies tremendously depending where you're located. a multi-family home in NY will be 2-3x the price of a home the same size in lets say Detroit or Orlando FL. Buying property Is a great idea before getting your dream car IF you're in the right location and your income is relatively adequate to do so. Otherwise, its better to rent and use your money for other investments... either way, whether you own a home or rent... in my opinion, your car shouldn't consume more than 15-20% of your monthly income.

[///M3THOD]

Price of a used 08' M3 w/ no warranty and 40-50k on the odo - ~40k

Soliciting financial advice from a online community who's only prereq. for membership is having
an internet connection (and maybe owning a M3?).... ~ priceless.

[highyo]

Sounds like the OP will have a backstop from his parents if he can't keep up with his payments. And maybe he can go back to HER place. This isn't the 50s. Women actually have jobs/money/no crazy m3 addictions.

And remember the sage advice: a lifetime to earn, or a second to marry

Good luck gen y.

[Gkap]

depends on your financial situation if you can do it without going into debt etc Id say
go for it. If its not the best call then stick with the RSX-S and wait until you can get whatever car you want.