New college grad wanting M3

[FC]

Originally Posted by ellipsis212

Do something stupid now and learn from it while you're young.

Sure, but there are levels.

If you use a GTI as a baseline (a nice, new car that is quick and well-appointed), you are at $30k. You can convince yourself that another $10k or even $20k can be made up by the fact that you are "car guy" and don't spend on other things (assuming that's the case). But an M3 is not just a lot more than that. It is expensive to buy and it is expensive to run.

An M3 is a stretch car for anyone young, even when used. What's wrong with a CPO 3-series?

That additional 10-20k on the M3 plus the yearly added cost to run it is not trivial. Even if life turns out well for OP, the money invested could be huge down the line.

No on is implying that he buy a beater Civic or even the new GTI (which is a hell of a nice car). But saving 10k at an early age is a big deal.

At a bare minimum I wouldn't go past 40K on a new car without being able to put down serious savings first. Life gets expensive fast. Get a jump start on saving while you can.

To each their own.

[ellipsis212]

Originally Posted by FC

Sure, but there are levels.

If you use a GTI as a baseline (a nice, new car that is quick and well-appointed), you are at $30k. You can convince yourself that another $10k or even $20k can be made up by the fact that you are "car guy" and don't spend on other things (assuming that's the case). But an M3 is not just a lot more than that. It is expensive to buy and it is expensive to run.

An M3 is a stretch car for anyone young, even when used. What's wrong with a CPO 3-series?

That additional 10-20k on the M3 plus the yearly added cost to run it is not trivial. Even if life turns out well for OP, the money invested could be huge down the line.

No on is implying that he buy a beater Civic or even the new GTI (which is a hell of a nice car). But saving 10k at an early age is a big deal.

At a bare minimum I wouldn't go past 40K on a new car without being able to put down serious savings first. Life gets expensive fast. Get a jump start on saving while you can.

To each their own.

I agree with everything you said, and will only add that sometimes that amount of perspective has to be earned through experience. OP has time to change course and recover if it's too much of a burden.

My M3 didn't happen until I could prove to my wife that it had no real impact on our short term cash flow requirements or our long term plan including the kids' college savings, and although I'm a financial professional it was still a hard sell.

[JAhmed]

Originally Posted by Jaymax85

if u have 20k in your bank account, and/or your income isnt signficantly over 150k, i wouldnt buy an 80k car, you should save up to buy property

thats just me though

Disagree. OP should get a 991.2 Turbo S, post haste.

[Ibiza]

Read this article and thought about the OP.

Suze Orman: When buying a car, people are 'being dumb.' Here's why:

https://www.cnbc.com/2018/04/20/suze...aboolainternal

[cbone]

Invest the money into crypto currencies .

I can suggest BTC , ETH , VEN, RLC, and XLM

You will thank me later

[Darth One]

Originally Posted by Ibiza

Read this article and thought about the OP.

Suze Orman: When buying a car, people are 'being dumb.' Here's why:

https://www.cnbc.com/2018/04/20/suze...aboolainternal

Suze, you can't take it with you gurl

[HPIA4v2]

First do this:

Originally Posted by cbone

Invest the money into crypto currencies .

I can suggest BTC , ETH , VEN, RLC, and XLM

You will thank me later

Then

Originally Posted by JAhmed

Disagree. OP should get a 991.2 Turbo S, post haste.

A friend started a small internet company, last year after he sold the company he bought his wife 911 turbo S, 0-60 2.8S, for her birthday


For me a mere mortal, I am happy with my M3 though

[Draper]

Originally Posted by cbone

Invest the money into crypto currencies .

I can suggest BTC , ETH , VEN, RLC, and XLM

You will thank me later

Do not do this.

[GrussGott]

Originally Posted by Thescout13

Wasn't your prediction for the recession to hit last November.... what's the updated prediction? I give up on trying to predict this anymore.

You can't predict 'em you can only prepare for them by watching the trends.

Here's the 10y-2y since the summer of '76 and you can see over the last 40 years every time it falls below zero we've had a recession - so I think we're marching towards another one - the only question is will it be a small one or a giant one?

In any event, it's one of those times where "something stupid" can turn into "something extraordinarily stupid", but the <25 YO mind is not yet developed enough to understand and process risk. Hell some > 25 minds aren't. But definitely very few < 25.

[Nikolas]

Originally Posted by Ibiza

OP is going to get raped in taxes with 2 rentals (apartment and leased M3) with out a mortgage deduction. Buy a town house/house, max out your 401k, then what's left over use to lease a M3. Better yet, wait to sign up for the BMW Access program. Don't forget the car insurance payment will be significant.

Before 2018, I'd agree in general. The OP would probably be safe with a smaller mortgage, but the days of owning a home as a giant tax win are pretty much over considering the new tax laws and the cost of housing/construction.

They'd be better off starting their own business if any kind, and assigning the car for "business use".

Or, just be irresponsible like I was and go for it! I don't regret it 30 years later.

[Mr.SugarSkulls]

Anyone who says you're too young to afford a luxury car, or preaches the whole "don't exceed ____ amount of your income" - fuck them.

I know what it's like to be young and wanting nothing more than an M vehicle. My advice to you is do what makes you happy. Tomorrow is not guaranteed- just don't be in debt already, and obviously- if you have a family already (children for instance) then I don't recommend a luxury ride quite yet.

However/ if you're single, no kids- &you're a hard worker, chances are you'll likely spend a lot of time driving and in your car. I remember my first M, I was 22, and no matter what shitty day I had, NOTHING inspired me or made me feel better about myself than turning on that car and listening to the beautiful cold start of my e92 m3.

Fast forward 6 years- I've had that e92 m3, 2 m6s, 2 i8s and a huracan. Do I exceed more than 30 %of my income? Nope. But it's not on purpose- and even if I did, I fucking love my life, and I regret absolutely nothing.

If I had listened to all these old geezers, I'd be stuck in an accord until I'm 40, but rather that/ I just continued to work harder, continue generating more and more income, leased rides, bought beautiful property with the bulk of my earnings- and at 28, have a whole lot more to show for it than if I were to have been conservative.

So again, do what makes you happy. I do recommend leasing, but whatever you do- just remember that none of these material things make you better than anyone else. So keep humble, work your ass off, enjoy your decision- and live life brother!

[dopeitsphu]

Originally Posted by Mr.SugarSkulls

Anyone who says you're too young to afford a luxury car, or preaches the whole "don't exceed ____ amount of your income" - fuck them.

I know what it's like to be young and wanting nothing more than an M vehicle. My advice to you is do what makes you happy. Tomorrow is not guaranteed- just don't be in debt already, and obviously- if you have a family already (children for instance) then I don't recommend a luxury ride quite yet.

However/ if you're single, no kids- &you're a hard worker, chances are you'll likely spend a lot of time driving and in your car. I remember my first M, I was 22, and no matter what shitty day I had, NOTHING inspired me or made me feel better about myself than turning on that car and listening to the beautiful cold start of my e92 m3.

Fast forward 6 years- I've had that e92 m3, 2 m6s, 2 i8s and a huracan. Do I exceed more than 30 %of my income? Nope. But it's not on purpose- and even if I did, I fucking love my life, and I regret absolutely nothing.

If I had listened to all these old geezers, I'd be stuck in an accord until I'm 40, but rather that/ I just continued to work harder, continue generating more and more income, leased rides, bought beautiful property with the bulk of my earnings- and at 28, have a whole lot more to show for it than if I were to have been conservative.

So again, do what makes you happy. I do recommend leasing, but whatever you do- just remember that none of these material things make you better than anyone else. So keep humble, work your ass off, enjoy your decision- and live life brother!

THANK YOU!

[Draper]

Originally Posted by Mr.SugarSkulls

Anyone who says you're too young to afford a luxury car, or preaches the whole "don't exceed ____ amount of your income" - fuck them.

I know what it's like to be young and wanting nothing more than an M vehicle. My advice to you is do what makes you happy. Tomorrow is not guaranteed- just don't be in debt already, and obviously- if you have a family already (children for instance) then I don't recommend a luxury ride quite yet.

However/ if you're single, no kids- &you're a hard worker, chances are you'll likely spend a lot of time driving and in your car. I remember my first M, I was 22, and no matter what shitty day I had, NOTHING inspired me or made me feel better about myself than turning on that car and listening to the beautiful cold start of my e92 m3.

Fast forward 6 years- I've had that e92 m3, 2 m6s, 2 i8s and a huracan. Do I exceed more than 30 %of my income? Nope. But it's not on purpose- and even if I did, I fucking love my life, and I regret absolutely nothing.

If I had listened to all these old geezers, I'd be stuck in an accord until I'm 40, but rather that/ I just continued to work harder, continue generating more and more income, leased rides, bought beautiful property with the bulk of my earnings- and at 28, have a whole lot more to show for it than if I were to have been conservative.

So again, do what makes you happy. I do recommend leasing, but whatever you do- just remember that none of these material things make you better than anyone else. So keep humble, work your ass off, enjoy your decision- and live life brother!

Congratulations on being born at a time and place which allowed you to invest during one of the longest recovery periods in the history of the US.

I hope your success continues.

[FC]

Originally Posted by casperM4

This guy is absolutely right. Getting the car actually motivated me to be more active in working for promotion and raises, and I did get them. I was between a choice of M4 or a fancy apartment with endless unhealthy parties. Young people always to stupid things, just don't do too many things at once

I see. So make a dumb move to save you from even dumber moves.

Hey it if works, it works.

[jmg]

Originally Posted by Mr.SugarSkulls

Anyone who says you're too young to afford a luxury car, or preaches the whole "don't exceed ____ amount of your income" - fuck them.

I know what it's like to be young and wanting nothing more than an M vehicle. My advice to you is do what makes you happy. Tomorrow is not guaranteed- just don't be in debt already, and obviously- if you have a family already (children for instance) then I don't recommend a luxury ride quite yet.

However/ if you're single, no kids- &you're a hard worker, chances are you'll likely spend a lot of time driving and in your car. I remember my first M, I was 22, and no matter what shitty day I had, NOTHING inspired me or made me feel better about myself than turning on that car and listening to the beautiful cold start of my e92 m3.

Fast forward 6 years- I've had that e92 m3, 2 m6s, 2 i8s and a huracan. Do I exceed more than 30 %of my income? Nope. But it's not on purpose- and even if I did, I fucking love my life, and I regret absolutely nothing.

If I had listened to all these old geezers, I'd be stuck in an accord until I'm 40, but rather that/ I just continued to work harder, continue generating more and more income, leased rides, bought beautiful property with the bulk of my earnings- and at 28, have a whole lot more to show for it than if I were to have been conservative.

So again, do what makes you happy. I do recommend leasing, but whatever you do- just remember that none of these material things make you better than anyone else. So keep humble, work your ass off, enjoy your decision- and live life brother!

I get what you are saying, but for every success story, there are 10 failures. I know many people, classmates and colleagues of mine, who had the same "fuck it" attitude you did. Some were hard working, others were riding the wave of nepotism, some were delusional. Of those there were those who made it, and those who peaked at 21 and discovered real quick that reality isn't as forgiving for them as it was to others.

There are those who could be motivated by their car to either work harder to make more, or can't take the risk because of a car payment they couldn't afford otherwise. I was 20ish. I had a steady job, but I also had a dream which involved a lot of risk. I didn't have a large car payment, so I had the luxury of being able to quit my steady job and "pay my dues" in pursuit of my dream career. Now, years later, I have both my dream car and my dream job. Maybe a car as motivation might work for some, but for me, NOT having a nicer car actually opened up more options and opportunities. Just my $0.02.

[Mr.SugarSkulls]

Originally Posted by jmg

I get what you are saying, but for every success story, there are 10 failures. I know many people, classmates and colleagues of mine, who had the same "fuck it" attitude you did. Some were hard working, others were riding the wave of nepotism, some were delusional. Of those there were those who made it, and those who peaked at 21 and discovered real quick that reality isn't as forgiving for them as it was to others.

There are those who could be motivated by their car to either work harder to make more, or can't take the risk because of a car payment they couldn't afford otherwise. I was in the later group. I found myself having to "pay my dues" in an industry that everyone wants into. I took jobs that made it hard to make even just my rent, with the plan to move up. If I had a big car payment, I would probably not quit my job to pursue this dream. Now I have both my dream job and my dream car. Maybe that works for some, to have a car that becomes the motivation, but my motivation was beyond a car.

Everyone takes different paths- that's for sure, but as mentioned by OP, he seems to be in a position where he can afford to take risks. A lot of factors play into a decision when a car payment is roughly 1K a month (I think thats the average for an M3/m4)

I'm in the music industry, so trust me when I say I know a lot about failing, rejection etc-but considering I've been a musician since the age of 4, it's all I knew. And there was no way I was going to work a corporate job being micromanaged (my attitude while pleasant with my peers, shifts dramatically when someone 'tells me' what to do)

I guess my point was to give OP a perspective from someone who didn't listen to everyone who said "don't do it" or "buy property first".

But this is where factors come in- OP I assume doesn't have a "family" (kids) or a wife. I'm assuming his priority in spending isn't on 200 dollar shoes, 500 dollar jeans and a new iPhone every year. Or going to music festivals every quarter.

If he's anything like me, then he'll prioritize his spendings on two things- where he lives and what he drives. Everything else- hell, even to this day I shop at Walmart/Tj max and buy groceries at food 4 less because I don't want to change my spending habits. However the two things I won't put a price on are those two factors.

A lot of us here are happy to have gotten where we have in our vehicles. Some may have the patience you exuded but it was worth it in the end. (And I am not discrediting you nor anyone's hard work they've put in, even if it was another path that was taken) As long as OP does a short term strategy on what he's going to spend, especially if he's on a salary, he'll be ok. Especially if he leases. It's safer IMO (let's say God forbid he loses his job, or worse- he can have someone take over the lease- and simply lose the 2-3k downpayment)

I hardly consider myself a success story, fyi. I'm still traveling a ton for work which is exhausting, but it's nice coming home to what I've worked for. I'll consider myself a success once I can live off royalties and not change my taste in cars/living

[XxGhostxX]

I very much enjoyed reading through this thread. I am in a similar position to the OP but different in a few ways. I am 24, married and have a home that has 9 years left on mortgage. No debt except for my current vehicle which is a 11 335IS. I have been dying to get into a M4 for a while now. I bought my first M car when I was 19 a Imola e39 M5. I bought it as a investment though, with the seller motivated and having a misfire problem I got it very under priced. $9000 if I remember correctly with only 70k miles. After having it for 2 years I got rid of it for around $16,000.

After selling the M5 I did what some people have recommended the OP do which is by a 20-30k car and enjoy themselves before making the big leap into a $80k NEW vehicle. I love my 335IS but with it now nearing the 80k mile mark I'm not sure I want to dump money into maintenance rather then a newer car payment.

What I have come to the conclusion for myself, is that long term investing and rental properties are something I need to make sure I establish now and reap the rewards in my 30s. So once I reach that age my deeds from now will PAY for my car later on. With that being said I am still planning on purchasing a M4 but will only be looking at used CPO vehicles or well taken care of member cars etc, and wait a few more years before buying a new ED car like I really want.

Anyways sorry for the long post but I thought I would share.

[CachacoF80]

I wasn't born in the US and only came here in my late 20s. I have a different spending and savings approach than 90pct of my peers/friends. My approach (and my wife's too) was to work hard in high paying jobs and build a strong financial standing. One and a half year after business school, loan was paid off. Since then, target savings (in the bank) of 30-40pct of Gross Income (pre-tax). We were unsure about our long term location, so bought investment property in top city and with very modest leverage (not best financial move for most, peace of mind for me). Kid was born, drop big savings into 529. Found long term location, buy reasonable house with modest leverage.

In the meantime, I always wanted an M3 or a 911...but would likely delay my plans a bit. So bought a Lotus Elise and believe me...it was a blast and will satisfy many of your car needs with unrivaled steering and handling. Bought it new for 42k in 2010 (one of the very last ones in the US given regulation). Now I will be picking up an M3...and if all goes well then a 911 afterwards.

So my 2c...build up a super strong foundation, buy something fun with the remaining savings. Don't be like a few of my friends in their late 30s that have an empty 401k, still have debt from college, no college savings for their own kids, and are waiting for the next better paying job to "start saving". Think medium and long term, want to retire young with 150k plus income? You will need 4m+ in liquid and producing assets. That is not easy to achieve.

[jninja]

Originally Posted by Darth One

that's fair, and also why i was careful not to make a statement in absolutes. i also realize i made a mistake in my post. i'm dead against leasing the car and then financing the car to buy it afterwards. that's when the finance charges get horrifying.

my apologies for the error - it totally changed what my statement was meant to say

I still don't see how that changes anything

[Graves]

Knowing what I know now I would have most certainly invested more and bought a house sooner with the money I had early on. I re-enlisted 3 times getting a total of $65k in bonuses. Blew all of that plus damn near every other penny I had on cars, parts, and tuning. Wish I would have done things differently with that money and today I could have all those things I had with zero worries about the future. I'm in a good place now, but it took a lot of catching up. I'd be super good had I been smarter.

I'd buy something used and work your way up. Seriously, money is not forever so do what you can to multiply it. There are other cars that can be just as fun for a lot less. Between payment and insurance depending on what you put down and you're looking at $1k+ a month between the two with a leased or purchased M3. Just my .02.

[BMWBIASED]

Disclaimer, I did not read all posts preceding mine so if you received this advice or discarded it, please do the same with mine...

Depending on where you are located, your savings could be a down payment on a piece of real estate where your tenants will handle paying your monthly obligation. Placing your funds in an asset that will pay for your liability(M3) would be my advice. Probably not what you want to hear because it certainly wasn't what I wanted to hear at your age(I'm "only" 34) from my mother as an E60 M5 sat in the showroom in front of me.

If you want to live for today, go for it and don't look back. You're still young enough to make financial mistakes and pick yourself up. In that case, I'd opt for a CPO and enjoy until you have other investments you can look to before justifying another emotional purchase/lease.

Best of luck with whatever you decide and congrats on your degree.

[nicknaz]

^ "central California" probably means an m car is a serious % of value of property

Pretty sure it's been said before, but get a cheaper fun car OP.

Money you spend and fun you have behind the wheel are only loosely correlated.

You could also check out the "special" p car models like Boxster Spyder or Cayman R that seem to be holding value on the used market, or 1m in Bmw world. Might be worth a shot to try having your fun car with lesser cost from lower depreciation