Avg net income of M5 owner?

[saflang]

Definition of a split-second.... Paying off the mortgage and then buying my first BMW, an M5.
Since I saw a poster of one in university it was my goal to one day own one.

So yeah, other than saving for retirement and kids education, it is my largest monthly debt. Sure I could have saved a bit and bought something lesser, but every morning when I walk up to my car in the garage I have the worlds biggest smile on my face and then there is the sound of the cold morning start

I would hope everyone knows when they can or should by a car like this. For me to justify a luxurious expense like this I had to know it wouldn't change my current life style nor my families.

[M6-Coupe]

Originally Posted by saflang

...but every morning when I walk up to my car in the garage I have the worlds biggest smile on my face and then there is the sound of the cold morning start

BIG LIKE

[DrewM5]

Originally Posted by Fantasm

If you do research, you can find some, for example I have a preferred stock (not a true bond tho) with a very strong residential/commercial utility company paying me 8.75% dividend. I also have capital appreciation because the shares have increased in value from the initial par value at inception.

I've owned it for like ~5+ years and it has been absolutely stable and will continue to be. It, amongst a few others, are where I put any cash I don't need to touch or use for higher returns in my other investments (IT Services/Real Estate).
It matures in 2069 and unless they buy me out, I don't expect this utility company to be going anywhere.

Making 8.75% on a 55+ year equity investment is a far, far cry from making 5-9% on a bond with a remaining life matching your 3-5 year 1.9% auto loan. You might want to risk weight your invesment strategy or there may not be very many more M5s in your future. And while you are taking offense to my statement, let me also say that I have absolutley zero respect for any person who would use the phrase "my woman's car".

[Fantasm]

Originally Posted by DrewM5

Making 8.75% on a 55+ year equity investment is a far, far cry from making 5-9% on a bond with a remaining life matching your 3-5 year 1.9% auto loan. You might want to risk weight your invesment strategy or there may not be very many more M5s in your future. And while you are taking offense to my statement, let me also say that I have absolutley zero respect for any person who would use the phrase "my woman's car".

OK.... thanks for the update. Did you want a tissue for your issues?
I'm not even going to address any of your points

[s4awd]

I recently paid off my mortgage. I can tell you one thing. I stared at the screen for weeks and couldn't click on the mouse to pay it off but once I did.....The rush of relief and knowing full well that my kids will always have the home they love for all the holidays to come is priceless. Of course they have to go to community college

[MichaelJohn]

Originally Posted by Fantasm

Sure, you can easily get 1.9% or even lower APR's. I have 0.9% I think on my woman's X1.

I was trying to figure out whether you meant that it was your wife's/girlfriend's car or that the X1 is a woman's car?

[Fantasm]

Originally Posted by MichaelJohn

I was trying to figure out whether you meant that it was your wife's/girlfriend's car or that the X1 is a woman's car?

my gf's car

[M6-Coupe]

Originally Posted by MichaelJohn

I was trying to figure out whether you meant that it was your wife's/girlfriend's car or that the X1 is a woman's car?

X1 is woman's car anyways!

[Fantasm]

Originally Posted by M6-Coupe

X1 is woman's car anyways!

Thats true too, its not bad overall though. I have a fully, fully loaded X1 w/ M-Sport package and its a pretty good overall package and deal. It can tow too... I can tow some ATV's, dirt bikes, or jetski's.
I will be throwing on a BMS piggyback tune just for good measure (F it, why not? lol)

I would not own it as a single guy though. Definitely for a woman, I feel weird when I drive it even if she's in it, lol.
I regret not getting a used X5 instead though - just would've been more beefy and even nicer.

[Bro-m5]

Wow. There is so much bad financial advice in this thread. Leveraging a depreciating asset to buy junk bonds? Not a very wise move on the balance sheet.

The fact is that the m5 is a 100k car that has a 20 to 30% salvage value 5 to 6 years out. Even if we assume 40k resale, depreciation runs at least 10 to 12k a year. Plus if you finance, have to pay whatever lending costs are. Lease usually more expensive than traditional loan.

No way around the costs to own this car. But cold start is awesome!

[Palomequet]

Words of wisdom, congrats.

[RPiM5]

Originally Posted by Bro-m5

Wow. There is so much bad financial advice in this thread. Leveraging a depreciating asset to buy junk bonds? Not a very wise move on the balance sheet.

The fact is that the m5 is a 100k car that has a 20 to 30% salvage value 5 to 6 years out. Even if we assume 40k resale, depreciation runs at least 10 to 12k a year. Plus if you finance, have to pay whatever lending costs are. Lease usually more expensive than traditional loan.

No way around the costs to own this car. But cold start is awesome!

I like what you have said.

Me personally, I didn't buy my M5 to worry about depreciation though. I knew what I was getting into from the start. I knew it was going to be bad. Just like all M5 generations before the F10. E39 M5's sell for 17% of their original value 12 years after production. E60 M5's sell for 30% of their value 8 years after production. I know that F10 M5's will be worth less than 40% of their original MSRP's in 5 years.

Other cars like the M6 Gran Coupes are worse. I've seen some M6 Gran Coupe depreciate by about $40,000 in less than a year.

One of the few car companies that really helps to try to fight depreciation is Ferrari. They produce so few each year and that is the key. Mercedes, Audi, and BMW are some of the worst when it comes to depreciation because they are all competing against each other in sales numbers and thus make high volumes of cars. Not to mention that they would like to produce the kinds of numbers of Toyota or Honda, but that is unrealistic.

I'm just glad that I wasn't the sucker who paid MSRP for a 2007 Mercedes S65 AMG.

[PhilT3]

Originally Posted by Bro-m5

Wow. There is so much bad financial advice in this thread. Leveraging a depreciating asset to buy junk bonds? Not a very wise move on the balance sheet.

The fact is that the m5 is a 100k car that has a 20 to 30% salvage value 5 to 6 years out. Even if we assume 40k resale, depreciation runs at least 10 to 12k a year. Plus if you finance, have to pay whatever lending costs are. Lease usually more expensive than traditional loan.

No way around the costs to own this car. But cold start is awesome!

I know this man personally... He knows what he's talking about.

[Fantasm]

Too bad no one talked about junk bonds.

[infamousdiz]

the average AMG purchaser makes 500k a year.. it was in a Car and driver article

[Eric]

Passive income is the only way to responsibly own luxuries like an M5, aircraft, vacation home, or yacht. (IMO, of course)

If your only dollars are paid to you by "the man", and if those dollars have a linear relationship with time traded for them, then its very likely you can NOT afford $100k+ toys.

You CAN, however, purchase a cash-flowing piece of real-estate. That way, you get to keep your capital and enjoy the cash that your investment throws off. You'll probably end up with some nice tax advantages while you're at it.

For the record, my household W2 income is north of $300k. I don't use one penny of it to pay for my vehicles, airplane, boat, or other toys. My real-estate pays for all that stuff.

And I still drive a 535 because I chose to re-invest a large portion of rental income in 2014. The good news is the investment will pay for my ED 2016 M5 as well as the trip to Munich, and I still have the capital I started with.

Wealth is not accidental, nor is it directly tied to your income. Ownership of expensive things, ALSO, does not indicate wealth.

If it's your dream to own an M5, then go for it. Just don't be surprised in a decade when you are still contemplating whether you can afford the next one.

[Schnell_1]

Originally Posted by Eric

If your only dollars are paid to you by "the man", and if those dollars have a linear relationship with time traded for them, then its very likely you can NOT afford $100k+ toys.

This was a very clever comment.

[BavariaExclusive]

No doubt!! Thanks for the advice.

Originally Posted by Eric

Passive income is the only way to responsibly own luxuries like an M5, aircraft, vacation home, or yacht. (IMO, of course)

If your only dollars are paid to you by "the man", and if those dollars have a linear relationship with time traded for them, then its very likely you can NOT afford $100k+ toys.

You CAN, however, purchase a cash-flowing piece of real-estate. That way, you get to keep your capital and enjoy the cash that your investment throws off. You'll probably end up with some nice tax advantages while you're at it.

For the record, my household W2 income is north of $300k. I don't use one penny of it to pay for my vehicles, airplane, boat, or other toys. My real-estate pays for all that stuff.

And I still drive a 535 because I chose to re-invest a large portion of rental income in 2014. The good news is the investment will pay for my ED 2016 M5 as well as the trip to Munich, and I still have the capital I started with.

Wealth is not accidental, nor is it directly tied to your income. Ownership of expensive things, ALSO, does not indicate wealth.

If it's your dream to own an M5, then go for it. Just don't be surprised in a decade when you are still contemplating whether you can afford the next one.