Will I be able to afford an M3?

[FirstF80InSpace]

Not sure if this is a troll post. But if I were you, I would be driving a used Honda Civic until I saved enough for a down payment on a home.

[Aaaaaaaaa]

Join the US YOLO lifestyle. Eff it just do it.

[gatorfast]

Go for it! If you make $80k and the car cost $70k you will still have $10k left over which is plenty!

[mercedesc63]

Originally Posted by leonardman

Hi guys.

I'm new to the country and I will be living in Florida and will be earning approx $80,000 annually.

I know I have to build my credit score first. But when I finally do build up and get a great credit score, will I be able to afford a 70K M3? What is the best way to purchase/afford such a car? Cash, lease or finance?

I don't have any student loans. No debts, Rent will be around 800-1000 a month

Profession is Physical Therapist.

Thank you!

You can easily lease/buy a whole lot of cars not just the M2/M3/M4/M5/M6....


It all depends if your willing/motivated to spend the money. If you aren't willing or motivated then I just wouldn't do it.


It's your money spend it how you want and when you want....

[GrussGott]

Originally Posted by gatorfast

Go for it! If you make $80k and the car cost $70k you will still have $10k left over which is plenty!

and after beer and hookers that's, like, at least $20 for food!

[ssuene93]

If you feel comfortable after paying the rent and living expenses. I said go for it. Lift is short and you only live once!

[supsup]

This post always brings out the financial boogeymen.

If each and every buyer listened to them there would be no M or P or AMG (diet super cars for the MASSES) cars in existence because there would be no buyer. Because only on the internet does 100% of buyers of these cars make $200,000 a year and own a stable of McMansions.

Take a piece of paper. Write down your priorities for this year. Where you see yourself in 5 years. Where you see yourself in 10 years. How much money is it going to cost for you to get there?

If there's room in there for a M3. GO FOR IT!

I know guys making the same money in low cost of living states driving better cars AND they own houses with emergency money.

[Seniorleb]

Even though I dont live in the US but I will never spend more than 25% of monthly salary on a damn car! your figures = car price is not realistic, I dont get it dude yes it is ur money but common u will have 10K left - gaz, insurance and other car related cost so not sure if u will end up with 5K/ year, I assume the job will pay you free accommodation, food, medical, school fees and yearly bonus.

The only way you can afford the car is to lease it, do you math and see whats best for you

[SunnyD]

Buying a car that represents 88% of your gross salary doesn't seem like a good idea, but I'm only a CPA not a CFP, so do what you want

[GrussGott]

Originally Posted by joao

If each and every buyer listened to them there would be no M or P or AMG (diet super cars for the MASSES) cars in existence

which is also why there are only 35M people on the planet with a net worth >USD$1M

and even fewer that have it liquid.

[supsup]

Originally Posted by SunnyD

Buying a car that represents 88% of your gross salary doesn't seem like a good idea, but I'm only a CPA not a CFP, so do what you want

With low rate financing (1% at many credit unions) and leasing 88% is disingenuous.

There's more than one way to count this.

These cars are shitty purchases and bad decisions regardless of how much money one makes.

[supsup]

Originally Posted by GrussGott

which is also why there are only 35M people on the planet with a net worth >USD$1M

and even fewer that have it liquid.

Sure. But people need to get off of their soap boxes perched precariously on top of their high horse. Everyone has different priorities.

Work to Live vs Live to Work

Too different approaches. Neither is wrong.

[GrussGott]

Originally Posted by joao

Sure. But people need to get off of their soap boxes perched precariously on top of their high horse. Everyone has different priorities.

Work to Live vs Live to Work

Too different approaches. Neither is wrong.

Then you should carefully step down from that soap box because the very nature of someone asking the question means they don't have a philosophy.

Which is true of 99.99% of people who merely have an objective: "I want to be happy and fulfilled". They only do paid work to obtain money to buy things to feel as if they've met that objective.

And many people come to regret their past financial decisions because they realize too late that, had they made other choices, they'd be MUCH more happy & fulfilled now ... sadly it's a quirk of the human brain to discount the future in favor of the present only to discover over and over that they shouldn't have.

TL;DR - You're an indentured slave until you retire which isn't philosophy, it's a state of being, and the fastest way to freedom is savings.

Freedom or slavery, your financial choices choose for you, whatever philosophy you use to make them.

[Aaaaaaaaa]

You could also assume a lease and ask for unreasonable seller incentives.

[nano10]

OP, you gotta look at the hard number and make a decision I think, right now I have no car payments and been this way for over a year. I really want an M3 and I don't believe in financing more than 50% of the car so I will place a large amount down and immediately reduce my liquid assets. Then I will spend about $8k a year on car payments, then... I will want mods. When you add that up that's alot of money for a depreciating asset then keep in mind when warranty is over on a car like an M3 you will either repeat the process or spend alot of money on maintenance for current car. If you can accept all these things and this list doesn't freak you out, then go for it. I will say this though I agree with alot of people on here for owning property, I wouldn't be spending all this money on an M3 if I didn't have my own garage to park it in.

[Skid123]

You know the answer if you have to ask, NO! Even a lease-return F80 is a stretch for your current financial state. I know you want to *reward* yourself, but there are less costly ways, e.g. nice watch, gadgets etc.

If you haven't realized how expensive and somewhat impractical M3 is, think about this:
For the price of a M3, you can buy one Civic Type R and one Tesla Model 3!

[mtr3s]

I am not a Financial Advisor, but i am a VP/Branch Manager. FYI, FA do not deal with retail banking products such as installment loans, so to ask an FA if you can afford a car would be a silly question. If you make an annual salary of $80K per year, and your rent is only $800-1000, you can afford an F80 or F82. That is assuming you do not have any other high balances on installment loans or revolving debt.

Whether you would be approved for a loan is a different story. My bank, for example, has a minimum loan underwriting requirement for 36 months history of positive credit payment. Every bank has their own set of underwriting guidelines. For example, if you have a credit card for only two years, you would be instantly declined by our systems. Mitigating factors would be if you had large deposit assets, investments, or retirement funds that could be used to secure the loan (but that is a different story).

$80K is roughly $2200 bi weekly (depending on how you claim your taxes). Pay $500 towards rent and $700 towards your car, leaves you with $1000 for anything else each paycheck. On a pure dollar sense, it is doable. Now finding a bank that will approve at this amount on one of your very first installment loans, will be difficult. And if they do, for example: They are offer 1.9% for 60 months, expect them to add risk level basis points which will increase the rate closer to 4-5%

Whether you would get approved for a loan is a different story. What is your current Debt to Income (aka monthly minimum payments on all debt vs pre-taxed monthly income)? How much of that debt is in credit card or revolving lines of credit AKA highest risk debt? What is the longest credit line or installment loan that you have open currently? What is the largest loan you have had? Do you current have a 30, 60, or 90 day missed payments that have been reported on your credit?

Do not use Credit Karma, Capital One Credit Wise, etc... Most banks, including the one I work for, uses FICO Score 8, which basically puts anyone at high risk when they have balances on revolving lines of credit such as credit cards. You can use those resources to get a general idea of what your DTI is. Anything 50% or above on DTI, most banks will reject for the fact that 50% or more of your income goes to pay minimum payments. In fact, on mortgages, many banks will not go over 45% DTI.

I could go into further detail, but you get the point. And, do not get the loan directly from the dealership. They use participating banks to approve you, but add basis points to the banks loans so they profit vs. you going directly to that bank and applying. The one exception is BMW Select, which 1.9% is a great rate, understanding that you are getting into a loan which is similar to a 5-1 ARM in mortgage lending.

Guys, please do not put in your 2 cents if you do not understand how credit works, or telling him he cannot afford this car without explaining why.

[Fake News 2017]

Easy, if you have to ask, you can't afford it. Save your money!

[GrussGott]

Originally Posted by mtr3s

Guys, please do not put in your 2 cents if you do not understand how credit works, or telling him he cannot afford this car without explaining why.

Good advice:

OP - you don't make enough money.

[ake]

Originally Posted by mtr3s

Now finding a bank that will approve at this amount on one of your very first installment loans, will be difficult.

I had a .9% financing from the dealership / BMW NA when I came to the US (no credit score) - so there are scenarios where you can get a good deal. I did discuss my abroad credit score with them and got proof of my rating, this can be taken into account if you're convincing enough. And I only financed 25% of the car which is probably the best way to do it.

But as the others said: you have to calculate with the hard numbers for yourself to see if it fits.

[darkbro66]

Add up your own monthly budget, and make sure you would still have positive income (by a decent margin) after accounting for all livong expenses, the car, insurance, an emergency fund, and retirement. Dont manipulate the numbers to be what you want them to be, wait until the math says you can afford the car.

I am in almost the same scenario as you (~80k income, bought a 75k M3) and I still net positive every month while saving for retorement and maintaining a separate 6 month emergency fund. If you really want the car you can make it happen, but the only person who can answer your question is you

[Flacht3]

Originally Posted by GrussGott

which is also why there are only 35M people on the planet with a net worth >USD$1M

and even fewer that have it liquid.

Do you recommend blending or melting to get it liquid? Still trying to figure this part of it out.