M5 as the next car!

[David 12]

What Karney, no girlfriend?? That would have to be another $500 a month or so ...

Dave

[Bönz]

Holy crap, that's like what my wife spends on shoes and purses each month

The OP said 7k was his net. I think a couple responders missed that in their calculations. Regardless, I think the cash flow is sufficient, but the other issues brought up are all solid.

Namely, current savings/investments, age, potential earnings.

[Salespunk]

Just because you can doesn't mean you should.

Sounds like a pretty large percentage of your income going to a depreciating asset. Personally I would be looking to invest or buy a house right now and wait for the hype to cool down over the M3/4. The M3/4 at $750-800/mo seems much more reasonable at your income level.

[Spinny02]

Originally Posted by Karney5

Depends on where he is. My monthy expenses don't even hit $2000 here in Omaha, NE.

Rent: $650 (brand new 2-br apartment that I split with my roommate)
Utilities: $100
Food: $500 (I eat out every other day and on the weekends)
Booze: $100 (College kid....)
Insurance: $130 ($800/6 months for my car and bike)
Clothes: $200

Total: ~$1700

Damn I went to the wrong school. $100 would be one night at the bar.

[grendel88]

If you are asking this question, then you should not get a M5. Because you are not sure what to do with your money. Spending all of your money on a car is worth it if you don't care about accumulating wealth or plan to work till the day you die or don't want to buy a house or don't want familial responsibilities. Either way, you make enough money that buying or leasing a M5 now will not really deter your long term financial future that much.

Pretty much, if you are going on a forum board and asking if something that is inherently a losing "fiscal" decision a good idea or not, then you don't have the awareness yet to gauge short term and long term goals from a financial standpoint.

Not a slam, but you should do what makes you happy, understand the cost--because there is always a cost, and be secure with your decision and consequences.

[BavariaExclusive]

Well I pay a chef once a week who charges me a $50 to come and cook for me once a week from the groceries that i buy.

1300 rent + cell phone + car note = 2k

I know some of u wishing, u were still single.

Originally Posted by PhilT3

I would also throw something in to consider... What's your life goal(s)??
Retire early? Retire at age xx? Live fast, die young...? Family? Single? Do you want to leave anything behind when you die? Etc.....
At $7k total income per month and $2k of expenses... you COULD afford an M5. BUT...with a $1000/month for your car, can you achieve your life goal(s) otherwise?
I have a question though...how the heck do you only have $2k in monthly expenses? I spend close to that in food alone! And I'm single!

[M6-Coupe]

Originally Posted by Karney5

Depends on where he is. My monthy expenses don't even hit $2000 here in Omaha, NE.

Rent: $650 (brand new 2-br apartment that I split with my roommate)
Utilities: $100
Food: $500 (I eat out every other day and on the weekends)
Booze: $100 (College kid....)
Insurance: $130 ($800/6 months for my car and bike)
Clothes: $200

Total: ~$1700

wow... here in Irvine, the rent of a 1 bed-room apartment by itself is $1700

[bronch]

Originally Posted by BavariaExclusive

Well I pay a chef once a week who charges me a $50 to come and cook for me once a week from the groceries that i buy.

1300 rent + cell phone + car note = 2k

I know some of u wishing, u were still single.

It's impossible to derive tone from these posts, so perhaps you should err on the side that people are giving you their honest opinion. I've been part of this forum for long enough to know the people you've taken issue with are just straight-shooters. Others may sugar coat things, but I really don't think anyone is trying to put you down.

It's a near impossible question to answer not knowing you. For most people, that isn't enough income to have a car like this. Is it possible? Sure, it depends on your outlook. If your ambition is to have drive a great performance car and you feel secure that if something bad happens during the time-frame of your car payments you'll be able to survive it knowing that you have that payment to make, than do it I guess. But, realize that people have different financial thresholds and will only buy a car they can afford after everything else is taken care of and they have plenty saved up. For me, my car payment will be no more than 5% of monthly net income. Good luck in whatever you choose to do.

[PhilT3]

Originally Posted by grendel88

If you are asking this question, then you should not get a M5. Because you are not sure what to do with your money. Spending all of your money on a car is worth it if you don't care about accumulating wealth or plan to work till the day you die or don't want to buy a house or don't want familial responsibilities. Either way, you make enough money that buying or leasing a M5 now will not really deter your long term financial future that much.

Pretty much, if you are going on a forum board and asking if something that is inherently a losing "fiscal" decision a good idea or not, then you don't have the awareness yet to gauge short term and long term goals from a financial standpoint.

Not a slam, but you should do what makes you happy, understand the cost--because there is always a cost, and be secure with your decision and consequences.

+1

[infamousq]

Humm I afford my car through supplemental income. 2k total expenses I wish for that. My mortgage alone is 2500 a month, plus investments, saving for a business, kids college funds plus Wifeys allowance....Yea I wish I was single and 2k was my total expenses.....

[AT LAW]

Originally Posted by Karney5

Food: $500 (I eat out every other day and on the weekends)
Booze: $100 (College kid....)


Total: ~$1700

When I was in undergrad and law school many years ago:

Food: $12 per month
Booze: $7,500 per month

[bronch]

Originally Posted by AT LAW

When I was in undergrad and law school many years ago:

Food: $12 per month
Booze: $7,500 per month

Awesome. I'll be really impressed if it's the same ratio now.

[Spiro83]

Buy a house first then get the car

[BavariaExclusive]

Lol that was the best, short and simple advice I got this whole post.

Thanks man.

Originally Posted by Spiro83

Buy a house first then get the car

[AT LAW]

Originally Posted by Spiro83

Buy a house first then get the car

Don't just buy a house to buy a house.

Make sure you buy it right.

Just because you own a house, does not mean you will not lose money on it when you sell it. Be wise with your personal home purchases.

Invest in other people's housing, if the opportunity arises....

[NewM3driver]

Buy a house. I built my first house in 1985 when I was 24. I sold it, cleared 100 grand on it (back then that was like a half million) and spent 32K on my first porsche, and bought two more building lots, cash, with the rest. In 1986 I sold two houses and cleared another 100K on each. I purchased 25 acres and put in a road. See the pattern? In 1991, at 30, I purchased the property where I currently live in a very exclusive neighborhood. I spent 1992 working with one of the best architects in the country, and in 1993 I built the house I currently live in. I spent the next 5 years paying off the mortgage.

So at 39 I owned a house worth about 3 million bucks, and I owned it free and clear. That porsche had 200 thousand miles on the clock and I was still in love with it. With your primary residence paid for everything else financial in life gets easier.

The M5 would be fun right now, but while you have little responsibility use your disposable income to set yourself up for life. Start with a house, then other property. If you do there will be plenty of nice cars in your future.

[BavariaExclusive]

Thanks for your response!

Originally Posted by NewM3driver

Buy a house. I built my first house in 1985 when I was 24. I sold it, cleared 100 grand on it (back then that was like a half million) and spent 32K on my first porsche, and bought two more building lots, cash, with the rest. In 1986 I sold two houses and cleared another 100K on each. I purchased 25 acres and put in a road. See the pattern? In 1991, at 30, I purchased the property where I currently live in a very exclusive neighborhood. I spent 1992 working with one of the best architects in the country, and in 1993 I built the house I currently live in. I spent the next 5 years paying off the mortgage.

So at 39 I owned a house worth about 3 million bucks, and I owned it free and clear. That porsche had 200 thousand miles on the clock and I was still in love with it. With your primary residence paid for everything else financial in life gets easier.

The M5 would be fun right now, but while you have little responsibility use your disposable income to set yourself up for life. Start with a house, then other property. If you do there will be plenty of nice cars in your future.

[Squddie]

Don't cut it too right.

End-of-lease money can be significant. Dings. Tires. Wheels. Not everything is either covered by warranty or insurance.

Thingie needs a bit more gas.

If you have unexpected long distance trips you might have to rent due to the limited mileage, or pay extra.

Do not forget excise tax. Getting a super lease deal does nothing about excise tax in most states that have it.

[Mbdurham17]

If you have to ask.......

[soooma]

Wouldn't recommend it but life is short and it's your life and let nobody tell you what you should or shouldn't do but let's say not advisable -

I make a lot more and I can't prevent myself everyday from thinking whether I really can afford this expensive ride! Especially when I see some of my coworkers who work more hours and make more and sometimes way more and they love my car and praise it on a daily basis yet they always say "We wish we could afford it"!!!

That tells you something, sometimes people with 5 or even 10 times your income will never think they will ever afford such a car simply because they are frugal may be when it comes to cars especially when some of them own houses twice the value of my house !!

You'd think sometimes power lies in buying the M5 when you can afford it or hardly so, but I beg to differ, real sheer power lies in the will power to not do it and still be happily content with a more modest sporty ride when you can comfortably afford the M5 Or the better ride - These people I look up to and one day I hope and pray will be as financially savvy - But till then, heck I love this darn thing THE BEAST !!

My 2 cents

[BavariaExclusive]

Great advice. Appreciate it!

Originally Posted by soooma

Wouldn't recommend it but life is short and it's your life and let nobody tell you what you should or shouldn't do but let's say not advisable -

I make a lot more and I can't prevent myself everyday from thinking whether I really can afford this expensive ride! Especially when I see some of my coworkers who work more hours and make more and sometimes way more and they love my car and praise it on a daily basis yet they always say "We wish we could afford it"!!!

That tells you something, sometimes people with 5 or even 10 times your income will never think they will ever afford such a car simply because they are frugal may be when it comes to cars especially when some of them own houses twice the value of my house !!

You'd think sometimes power lies in buying the M5 when you can afford it or hardly so, but I beg to differ, real sheer power lies in the will power to not do it and still be happily content with a more modest sporty ride when you can comfortably afford the M5 Or the better ride - These people I look up to and one day I hope and pray will be as financially savvy - But till then, heck I love this darn thing THE BEAST !!

My 2 cents

[mrainv23]

My advice is if you have to think about whether or not you can afford one i would personally pass on the car until later. You can always find a way to justify a decision, but the true decision comes ~ 6 mos after the purchase, when the thrill wears off and the pmts are still due. This is why so many people put their cars up on leasetrader etc. Be patient and purchase the car when you do not have to think about the trade offs. If you are making 7k after taxes, think about the time value of money, be patient and get one down the road. You will be in a better situation and enjoy it more!