Can I really afford a BMW?

[jtodd_fl]

So.... NOT endorsing this site (whoever they are) or their formulations. Just throwing this out there as a jumping off point for your own research. Everyone's situation is different and not everyone lives solely off of "income". Food for thought. The older folks on here will scoff at the low recommended DTI and talk about leverage and such. However, leverage generally relies upon a reasonable "safety net" of assets - i.e. if shit goes upside down, you won't be homeless. Anyway, for your own consideration.... http://www.clearpoint.org/blog/what-...-ratio-anyway/

[Joekerr]

Originally Posted by jtodd_fl

The leverage conversation...

Oh hai there - did someone mention leverage? Biorin ASBSECU E93

[jtodd_fl]

Originally Posted by Joekerr

Oh hai there - did someone mention leverage? Biorin ASBSECU E93

.

[bimmette]

I'd buy a house and pay off student loans before buying a brand new BMW. But that's just my opinion.

[ASBSECU E93]

Ok - the question that's not being asked...

Why a M 3/4, and why now?

If you want a fast car - MUCH cheaper options available as a first 'real' purchase.

IMO, and just my thought - buying a car that costs $1k a month and not having a garage to park in seems like a lot of sleepless nights in my house...

[smoosh]

Originally Posted by bimmette

I'd buy a house and pay off student loans before buying a brand new BMW.

Originally Posted by smoosh

Save for house. Or, at least pay off student loans first before thinking about a loan for a car.

Great minds think alike

[fecurtis]

Originally Posted by brandoningram14

I don't really have as much real life experience and no plans/projections I ever make ever come true, so I have come here for advice. I am thinking about purchasing an F80 M3. I originally started off wanting a E92 M3, but I didn't want to have one without warranty as my first euro car (I guess I could always purchase third party or get a CPO, but they're all near 50k) and at that price point, I could just buy an M2, right? I should be getting an allocation in September, but the interior just felt cheap to me and if I'm already spending the 53k MSRP on an M2, I might as well get a proper M and get the 2017 M3. I test drove the E92 and F80 back to back and fell in love with the F80. I optioned out an M3 (only option I wanted was the upgraded wheels), and it came out to 65k (63.5k invoice, best price I could find in California was 1.5k over invoice). Plus taxes and misc, it will come out to 71k.

I'm 25, graduated college 2 years ago and have been aggressively paying off my student loans since (wanted to wait until I finished paying them off before I purchased a car) and now have ~40k in the bank. I'm sure with most car enthusiasts, we purchase cars with our emotions more than our brains, but is buying a car that's twice my net worth an okay idea? My annual income is ~130k, rent is around 1700 and I don't have much other expenses except I buy a lot of groceries because I like eating. If I put 20k down (pre-approved @ chase for 2.49% @ 48months), I'm paying $1117 a month. What do you all think? Thanks in advance for the advice

I see you're in SF. Do you live in a closet?

[bimmette]

Originally Posted by fecurtis

I see you're in SF. Do you live in a closet?

Probably has a roommate.

[dreamingat30fps]

Just get an E46... better car anyways.

[jtodd_fl]

Originally Posted by bimmette

Probably has a roommate.

Are you suggesting that he and his roommate are in the closet? Bold statements!


[and... thread derailment in 3...2...1...]

[davis449]

It's all about what your plans are moving forward. I would definitely forgo a $1K+/mo. car payment. Buy used or get something performance oriented that isn't as expensive. I mean, I owned a house and sold it because I hated being a homeowner. My car was always my priority, but not even I will leverage myself that deep in a car...hell, that's one reason I got rid of the house. I'm never leveraging myself that deep in anything again unless I make the serious money to really afford it. My GF was jobless for a year and half due to injury, having already dumped that house (being mobile), and not having a sky high car payment allowed me to leverage very little from savings in order to keep us stable until she healed enough to get a new, better job. We're not having kids, so renting a nice apt. is a great life for her and I and we both drive nice cars. If things were different, if I were a different type of person I would probably change my priorities. That said, at your age, with a mind toward marriage eventually and home ownership (if that's where you think you're headed), there's no way I would take on a $1K/mo. car payment. Just get a nice sports car with a ~$500/mo. payment and stack that money in retirement and savings for a house. There's no reason you can't live a little before you imprison yourself by getting married, buying a house, and having children.

[Joekerr]

Originally Posted by brandoningram14

I don't really have as much real life experience and no plans/projections I ever make ever come true, so I have come here for advice. I am thinking about purchasing an F80 M3. I originally started off wanting a E92 M3, but I didn't want to have one without warranty as my first euro car (I guess I could always purchase third party or get a CPO, but they're all near 50k) and at that price point, I could just buy an M2, right? I should be getting an allocation in September, but the interior just felt cheap to me and if I'm already spending the 53k MSRP on an M2, I might as well get a proper M and get the 2017 M3. I test drove the E92 and F80 back to back and fell in love with the F80. I optioned out an M3 (only option I wanted was the upgraded wheels), and it came out to 65k (63.5k invoice, best price I could find in California was 1.5k over invoice). Plus taxes and misc, it will come out to 71k.

I'm 25, graduated college 2 years ago and have been aggressively paying off my student loans since (wanted to wait until I finished paying them off before I purchased a car) and now have ~40k in the bank. I'm sure with most car enthusiasts, we purchase cars with our emotions more than our brains, but is buying a car that's twice my net worth an okay idea? My annual income is ~130k, rent is around 1700 and I don't have much other expenses except I buy a lot of groceries because I like eating. If I put 20k down (pre-approved @ chase for 2.49% @ 48months), I'm paying $1117 a month. What do you all think? Thanks in advance for the advice

Originally Posted by ASBSECU E93

Ok - the question that's not being asked...

Why a M 3/4, and why now?

If you want a fast car - MUCH cheaper options available as a first 'real' purchase.

IMO, and just my thought - buying a car that costs $1k a month and not having a garage to park in seems like a lot of sleepless nights in my house...

OP - the other advice is good, but I have a great plan, the best plan really. Because nobody can devise a plan quite like I can. It's really quite a very good plan. Just buy a house and the car.

[ASBSECU E93]

This guy ^ is freaking HILARIOUS

BTW - I'm about to meet with the CEO for another 'gray' decision today

[VRG_135]

Originally Posted by M3 Number 86

Over a thousand in monthly car note sounds a bit ridiculous. You're net take home pay is around $5000/mo after taxes and 401k right?

Minus rent $1700. Minus car $1000. You have $2300 left. Minus insurance. Minus groceries. Minus bills. Minus hookers.

Or, why don't you just lease the car for three years for much less and see where you are then? I don't mind leases because I don't mind swapping cars every three years.

But I'm not the right person to be giving advice because my priorities are whack. Money goes to car first for me even with baby on the way. But as others have said #YOLO

I agree with the lease option, and I hate leases (we drive way too many miles here in TX). But for the SF area, I presume you would be driving under 12k per year? The lease option might be the way to go.

[Joekerr]

Originally Posted by Joekerr

OP - the other advice is good, but I have a great plan, the best plan really. Because nobody can devise a plan quite like I can. It's really quite a very good plan. Just buy a house and the car.

And while Mr. Trump felt that the above plan was detailed, clear and actionable, upon being pressed further, his advisors released the following support for his plan:

I know a guy, who knows a guy, and this guy lives in a very grey area with little rules or structure for lending money (this world is apparently called "commercial banking" for us plebians). So...form a corporation, get an accountant to write up a really good business plan and then see this guy. As long as you are quick on your feet and can convince him he'll be paid back, you should be able to take a significant loan out.

Then, you can divert the funds to purchase a house and get into the market, and you don't have to be limited to a BMW M3/4...why not consider a Ferrari to properly represent your new lifestyle. Bonus points if you can work this into the business plan somehow so it doesn't look odd to the bank.

[Joekerr]

Originally Posted by Joekerr

OP - the other advice is good, but I have a great plan, the best plan really. Because nobody can devise a plan quite like I can. It's really quite a very good plan. Just buy a house and the car.

Originally Posted by ASBSECU E93

This guy ^ is freaking HILARIOUS

BTW - I'm about to meet with the CEO for another 'gray' decision today

Not quite a ninja edit, but edited nonetheless to break it into two parts.

[tuco44]

The answer to the OPs original question is NO, at least not the one he is considering.

[csu87]

Does no one use the 30% rule anymore? 30% of your annual income is the total price of the car. You can still finance it if you want, but shouldnt be buying a car worth over half your annual income.

[ASBSECU E93]

Originally Posted by Joekerr

Not quite a ninja edit, but edited nonetheless to break it into two parts.

Just for the readers clarity - my official title:

All Hail the Supreme Writer of Two Comma Checks

[jaye944]

Agreed

even my CPO car has depreciated like a brick...

but cruising in the sun with the top down is how I justify it

Originally Posted by rcracin

Don't buy new. Think about how good that $40k in the bank feels and how hard it was to get there. Then think about how fast most of it will disappear in depreciation on the new car. Get a used f80 at least. I'd say start with a $30k e92 and then take it from there.

[bimmette]

Originally Posted by tuco44

The answer to the OPs original question is NO, at least not the one he is considering.

I'm curious if the OP has about 50 experienced BMW owners all telling him no, will he listen?

[Joekerr]

Originally Posted by bimmette

I'm curious if the OP has about 50 experienced BMW owners all telling him no, will he listen?

.