What does everyone do to afford these M5's?

[MichaelJohn]

Originally Posted by TasteOfPower

=X i dont do too much. work, workout, and relax. i try not to get with too many of these dirty females out here. i been thru that life. it aint really for me.

Dirty females are the best kind.

[bobafettt]

Originally Posted by GNALUZU

Fix your credit first. Whatever your credit problem is, it is probably leading to much higher interest rates on everything you finance. Get your financial house in order, then start thinking about an M5.

Just my opinion, sorry for being harsh.

^this
Sage advice

[TasteOfPower]

Originally Posted by GNALUZU

Fix your credit first. Whatever your credit problem is, it is probably leading to much higher interest rates on everything you finance. Get your financial house in order, then start thinking about an M5.

Just my opinion, sorry for being harsh.

harsh? im a man. you can speak to me like one. good looking though. before i get a 2011+ m5, my credit will need to be on point.

but yeah, this 30k im bout to work with on this 2010 m5(cheaper more affordable right now), is at about 10%. not too bad for my credit, since ill be paying extra every month. and i figure my credit will be good enough for a refi in 9-12mo.

[stealth.pilot]

Originally Posted by TasteOfPower

harsh? im a man. you can speak to me like one. good looking though. before i get a 2011+ m5, my credit will need to be on point.

but yeah, this 30k im bout to work with on this 2010 m5(cheaper more affordable right now), is at about 10%. not too bad for my credit, since ill be paying extra every month. and i figure my credit will be good enough for a refi in 9-12mo.

Quite frankly I think you're kidding yourself. I didn't buy a car like this until my income passed 4-5X what you are making. You would be much better off investing your money at this stage.

If you have to think about whether to spend the money then that's a sign it's too much for a car.

It's better to be rich than to spend to make yourself feel rich. Most people who earn your salary drive a 3 series or an Acura TL. That's what you should buy if you are wise and plan to actually be rich one day. Otherwise, just spend it all now and be like the guys who are still working at 70 because they haven't saved enough.

[Propofoln]

^^^^^

What stealth said. If I made <200k,i would be driving a 3 series

[savela]

Originally Posted by 335iRlz

If he's bringing home 7k a month..

He could easily afford to have a 1.5k a month car payment, live in georgetown [4k including tv,water, cell, electric], buy food [500] and [200 insurance], and still be saving with some spending $$$..

6.2k and thats living lavish lmao... You can find nice stuff in nice ares for 1.5-2.5k a month.... And if he's in NC sheeeet.

Lets not forget they are giving away these cars 100k in this case is not 100k lmao.

Assuming one doesn't need a hair cut, an occasional teeth cleaning, air filters for ones air conditioner, a Christmas tree for Christmas.....and on and on and on. Let's not forget about Uncle Sam and retirement. To afford a $100k car comfortably, $7k isn't even close.

[savela]

Originally Posted by GNALUZU

Fix your credit first. Whatever your credit problem is, it is probably leading to much higher interest rates on everything you finance. Get your financial house in order, then start thinking about an M5.

Just my opinion, sorry for being harsh.

This. You can pay people to knock off bad remarks, even legit ones. Worth the expense.

[s4awd]

Agreed with everyone. This is an expensive car. I think you really need to make $300-500K to drive this car. Even with one of my dividend payments covering the monthly without touching my salary, I STILL think this car is expensive. If you're making less, you really are making compromises and sacrifices elsewhere for a depreciating asset. Get an M3/M4 if you want to push it. You'll have more fun as well

[PhilT3]

Originally Posted by stealth.pilot

Quite frankly I think you're kidding yourself. I didn't buy a car like this until my income passed 4-5X what you are making. You would be much better off investing your money at this stage.

If you have to think about whether to spend the money then that's a sign it's too much for a car.

It's better to be rich than to spend to make yourself feel rich. Most people who earn your salary drive a 3 series or an Acura TL. That's what you should buy if you are wise and plan to actually be rich one day. Otherwise, just spend it all now and be like the guys who are still working at 70 because they haven't saved enough.

+1

[PhilT3]

Originally Posted by s4awd

Agreed with everyone. This is an expensive car. I think you really need to make $300-500K to drive this car. Even with one of my dividend payments covering the monthly without touching my salary, I STILL think this car is expensive. If you're making less, you really are making compromises and sacrifices elsewhere for a depreciating asset. Get an M3/M4 if you want to push it. You'll have more fun as well

While I would agree with you to some extent. I would also add that the persons situation has a lot to do with it.
Kids? Age? Credit? Future plans? Other expenses? Ability to earn?
Many factors IMO.

[Schnell_1]

The aforementioned 10% rule is a nice standard rule of thumb. As Phil said, there are a multitude of variables that could sway your budget.

[s4awd]

Originally Posted by PhilT3

While I would agree with you to some extent. I would also add that the persons situation has a lot to do with it.
Kids? Age? Credit? Future plans? Other expenses? Ability to earn?
Many factors IMO.

Agreed as well. But if the OP is making $120k total comp, take home is about $75k. To buy a $100K car wouldn't make much sense. Of course when I was making $32K 20 years ago, I bought a $30K 325i with the sport package. The deciding factor to go for it was that I was living with my moms and insurance was under her

[PhilT3]

Originally Posted by s4awd

Agreed as well. But if the OP is making $120k total comp, take home is about $75k. To buy a $100K car wouldn't make much sense. Of course when I was making $32K 20 years ago, I bought a $30K 325i with the sport package. The deciding factor to go for it was that I was living with my moms and insurance was under her

I would agree...
IMO... If your not clearing at least $10k a month and have at least the cost of the purchase in question in the form of liquid asset (cash) in some kind of accessible account, then you should seriously consider the purchase.

[TasteOfPower]

Originally Posted by savela

This. You can pay people to knock off bad remarks, even legit ones. Worth the expense.

got Lexington Law working on it now. For a few months now.

[TasteOfPower]

Originally Posted by stealth.pilot

Quite frankly I think you're kidding yourself. I didn't buy a car like this until my income passed 4-5X what you are making. You would be much better off investing your money at this stage.

If you have to think about whether to spend the money then that's a sign it's too much for a car.

It's better to be rich than to spend to make yourself feel rich. Most people who earn your salary drive a 3 series or an Acura TL. That's what you should buy if you are wise and plan to actually be rich one day. Otherwise, just spend it all now and be like the guys who are still working at 70 because they haven't saved enough.

Ahah...I will never drive a 3 series. I would rather have a older 5 series. I have a tsx now though, thats bad enough. Gonna keep it so I dont put too many miles on the M5. I dont know about needing to make 4-5x what I make to afford a 2010 M5. You know theyre only like $35-45K. My loan will only be for $30K. About $600/mo. Ill pay more than that. ~$1000...maybe ~$1200/mo. As far as all that investing...I aint really into all that. I plan to get rich from some sort of web app or mobile app. I have some ideas. The hardest thing is to execute the idea nicely once you have it.

[Spinny02]

Originally Posted by stealth.pilot

Quite frankly I think you're kidding yourself. I didn't buy a car like this until my income passed 4-5X what you are making. You would be much better off investing your money at this stage.

If you have to think about whether to spend the money then that's a sign it's too much for a car.

It's better to be rich than to spend to make yourself feel rich. Most people who earn your salary drive a 3 series or an Acura TL. That's what you should buy if you are wise and plan to actually be rich one day. Otherwise, just spend it all now and be like the guys who are still working at 70 because they haven't saved enough.

Agreed. I was young once... I made a few dumb purchases ( Porsche turbo at age 21) and made over the 120k mark. I was only home six months a year, lived with mom and dad, and had no other bills. I could pay the car payment no issue. Do I wish I would have saved more instead now, yes.

I agree with stealths salary range. I also agree with his past advice about paying for a car in full upfront.

I just want to note that you are doing very well salary wise. 100k+ is very respectable and that in itself is a great accoplishment. Stay on the same track and it should be a non issue in a few more years.

[M5Rlz]

Originally Posted by Spinny02

Agreed. I was young once... I made a few dumb purchases ( Porsche turbo at age 21) and made over the 120k mark. I was only home six months a year, lived with mom and dad, and had no other bills. I could pay the car payment no issue. Do I wish I would have saved more instead now, yes.

I agree with stealths salary range. I also agree with his past advice about paying for a car cash.

Same I blew 50k on speaker cables and 35k a on a patek lmao.. These cars have hardly been one of my silliest purchases. That said getting married, she wants a big house, kids... Etc my playing days might limit me to the 80-120k range for cars for awhile.

[MichaelJohn]

Originally Posted by TasteOfPower

As far as all that investing...I aint really into all that.

I sincerely hope you change your mind about that (long rant coming). If you are young, you would be amazed at the long-term potential of investing in American and international companies, that is to say, equities. I have made almost as much money in the stock market as I have by working, and I make a very good living. If you can withstand the bumps and bruises of short-term swings and keep your eye on the long-term goal you will be richly rewarded. Unless some disastrous calamity befalls the human race, the long-term bias of equity markets is UP. I think the problem is that most people want too much too soon. Put some money away when you can, pick a good index fund or even good individual companies if you can stomach that and just hold on. Buy more when the market dips (this is very hard to do). I have followed this philosophy for my entire adult life, and I did not start out earning a lot of money. I have put one child through college with another to go and their considerable college funds (fully invested in index funds) are untouched. Those will become down payments on their first homes. I have a very nice home and I can afford any car that I want. I go to work every day now because I want to, not because I have to - that is a VERY good feeling (I own a small company and I love my employees and my clients - working is fun for me). If I had maxed out on my spending and bought everything that I could afford and not invested over the years there is no way I would be in the position I am now. I think investing is essential in life. It takes discipline, research, patience and a strong stomach. Yes, it takes time, I have been investing for over 30 years, but we do all eventually get old so why not take advantage of the time to build for a comfortable old age? Money may not make you happy, but it sure makes things a whole lot easier. As far as get-rich-quick schemes with web apps, no disrespect intended but good luck with that. Who knows, you may be one of the lucky few - but what if you're not? Put some money away and let it grow, you'll be glad you did. Sorry to get so preachy here but when I read your cavalier statement that you weren't into investing I had to respond. I am sure that I am older than you and I have seen the power of long-term investing. Believe me, it works.

[Ex_Stig]

Originally Posted by TasteOfPower

Ahah...I will never drive a 3 series. I would rather have a older 5 series. I have a tsx now though, thats bad enough. Gonna keep it so I dont put too many miles on the M5. I dont know about needing to make 4-5x what I make to afford a 2010 M5. You know theyre only like $35-45K. My loan will only be for $30K. About $600/mo. Ill pay more than that. ~$1000...maybe ~$1200/mo. As far as all that investing...I aint really into all that. I plan to get rich from some sort of web app or mobile app. I have some ideas. The hardest thing is to execute the idea nicely once you have it.

Let me get this straight, your gonna stretch financially to buy an M5 and then you're gonna keep the TSX so that you don't put too many miles on the M5? Do you need two cars? Why not sell the TSX and use the money to pay off some of your debt?

Sounds like a great plan. Looks like you don't need any more advice from this forum.

Best of luck with your future bankruptcy hearings.

[MSportDC]

Save and invest your money.

IMO, 120k is Lexis IS, Acura, 3-series territory.

In the words of Jack Ma, "Today is cruel, tomorrow will be worse, but the day after tomorrow will be beautiful."

Get an M5 when it feels like going to buy a Honda the day after tomorrow.

[PhilT3]

Originally Posted by GNALUZU

Let me get this straight, your gonna stretch financially to buy an M5 and then your gonna keep the TSX so that you don't put too many miles on the M5? Do you need to cars? Why not sell the TSX and use the money to pay off some of your debt?

Sounds like a great plan. Looks like you don't need any more advice from this forum.

Best of luck with your future bankruptcy hearings.

Lol. Seriously....

[SloPoke]

I'm going to break away from the pack. I for one do not feel that you need to be making $500-$600k a year to buy an M5. While it may be wise advice to not spend more than 18-20% of your annual salary on the purchase price of a car, it is by no means necessary. I would wager that the majority of M5 owners earn $150-$200k per year. It's all about what you are willing to compromise on. There are so many factors to consider, it is asinine to try to assign a salary to a car. For instance, I make $120k a year. I am about to pay cash for a $550k house. I'm about to pay cash for my wife a new Cayenne, and I'm about to pay cash for an M5 or M6 GC. At this point, I will be 100% debt free and can invest about 75% of my income. My wife is about to graduate with her masters in speech language pathology and be making $100k a year. 100% of which can be invested since we are living off 25% of my income. Even before all this, I was driving a 1M making $100k per year. You live once and it's not about who dies with the largest bank account. It's a balance between that and having a good time.