What does everyone do to afford these M5's?

[TasteOfPower]

Im a software dev. Make about 120K right now. But Im going to have to settle for a 2010 or 2009 M5. Smh. I know I can afford something later but I have super bad credit...so I figure I would just do the 2010 for now and trade it later for a newer one. But I was trying to find atleast a 2011 somewhere. Seems impossible.

[ezmaass]

Originally Posted by TasteOfPower

Im a software dev. Make about 120K right now. But Im going to have to settle for a 2010 or 2009 M5. Smh. I know I can afford something later but I have super bad credit...so I figure I would just do the 2010 for now and trade it later for a newer one. But I was trying to find atleast a 2011 somewhere. Seems impossible.

At $120k a year, my personal opinion is that the M5 (new one) is too expensive unless you're paying more than half in cash. I agree with you that an 09/10 is probably more along the lines of what I'd be spending in that range if you're taking a loan.

If you have other obligations, especially with poor credit, I'd take care of those first before buying any M5 though.

[Propofoln]

I am an anesthesiologist. Make significantly more than that, but have a wife and her new X5, 2 kids and a mortgage. Its all relative. I lease my cars and write off 95% of the payment through my business. Don't buy more than you can afford. All cars lose their new car charm after a year, then your stuck with a big payment.

[HXS]

In the wise words of rapper E-40: "Don't buy a $85,000 car before you buy a house."

[TasteOfPower]

Yeah, I guess it is smart to stay around the $40K mark.

Ill be paying about $10K w/cash so I dont think a $30K debt is too bad. And yeah, I do have a condo...so Im good in that area. Kinda wish I never got the condo though. Its worth less than it should be, but eh. I figure in about 2yrs of saving...I could sell that 2010 M5 and put about $30K w/it and get a newer M5.

I think everyone should have a CAR FUND, and a HOUSE FUND. And you basically just put money into those...and when its time to spend you spend...and upgrade slowly but surely.

[M5Rlz]

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.

[Fantasm]

$500 on food a month is not lavish lol.
I spend $150-$200/day on food for 2 people.

[TasteOfPower]

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.

i could def afford a $1500 payment. i just dont want it. most i want to do is $1000. i mean i dont even really have bills. i have like a mortgage...and its $800. my bills are like $1500/mo or so. i hate bills, so i dont make them. haha. smart, huh?

Originally Posted by Fantasm

$500 on food a month is not lavish lol.
I spend $150-$200/day on food for 2 people.

damn. i wish i would. I WISH. I WISSSSSSSSSSH I WOULD!

[Schnell_1]

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.

Lavish if he is a reclusive and celibate hermit that does nothing but only drive to and from work.

[ezmaass]

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.

It's not that the math couldn't work - it's just not smart. I'm not sure you're taking home $7k net @ $120k a year - I'd assume something closer to $6500, but admittedly haven't taken the time to calculate it for NC. But even at $7k, you'd be talking about over 21% of your income going towards a car - more than twice what's recommended for your entire car budget (which includes operating expenses, such as insurance and gas). Add in these costs, and you can be spending 25%+ of your income on a car.

Now take ~$16k off the top of that income - can't forget to save for retirement - maxing out the 401k at a minimum. After-tax savings of ~10% minimum... and you can start to see how things dwindle quickly. I think we can all, as car people, appreciate a splurge... but I wouldn't recommend it at the expense of long-haul financial soundness.

Sounds like the OP is doing the right thing and going for a used one that fits better into his budget.

[Schnell_1]

Originally Posted by ezmaass

It's not that the math couldn't work - it's just not smart. I'm not sure you're taking home $7k net @ $120k a year - I'd assume something closer to $6500, but admittedly haven't taken the time to calculate it for NC. But even at $7k, you'd be talking about over 21% of your income going towards a car - more than twice what's recommended for your entire car budget (which includes operating expenses, such as insurance and gas). Add in these costs, and you can be spending 25%+ of your income on a car.

Now take ~$16k off the top of that income - can't forget to save for retirement - maxing out the 401k at a minimum. After-tax savings of ~10% minimum... and you can start to see how things dwindle quickly. I think we can all, as car people, appreciate a splurge... but I wouldn't recommend it at the expense of long-haul financial soundness.

Sounds like the OP is doing the right thing and going for a used one that fits better into his budget.

He's actually right-on, with 2 allowance and being single it's spot-on 7k in NC.

[TasteOfPower]

Originally Posted by Schnell_1

Lavish if he is a reclusive and celibate hermit that does nothing but only drive to and from work.

=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. ahha...so i do mostly just chill and relax.

i could make it work though. i mean........its all about sacrifice. i figure if i really want to get a newer m5.........best thing i can do now is just save for the super down payment. i really dont spend money i just save it unless it goes to bills.

[PhilT3]

All great advice... Esp what @ezmaass has to say. He's a solid member and knows his stuff from what I've read from him over the past 10 months or so.

I would agree... At $120k / year, you are making the right move.

To answer your question, I work for a large well-known software company... Selling to Fortune 500 enterprises. It's not your typical 'cold-calling salesman' job. And my wife is in medical device sales for a large well-known manufacturer.

HOWEVER... Remember... Tomorrow isn't a guarantee. And as far as I know...you only live once. So, a good mixture of living for today and planning for tomorrow is the key IMO.

[Schnell_1]

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. ahha...so i do mostly just chill and relax.

i could make it work though. i mean........its all about sacrifice. i figure if i really want to get a newer m5.........best thing i can do now is just save for the super down payment. i really dont spend money i just save it unless it goes to bills.

Touche. My point was that he didn't leave much room in your budget for gas, entertainment, Misc expenses (gym, haircuts, entertainment, Christmas presents lol, anything misc really), and no money for savings, retirement or household needs/repairs. Basically that proposed budget had you living check-to-check, which is so stressful.

Life is short and tomorrow is not guaranteed, so if an M car is dream that makes you happy and content - and you can design a budget that supports your lifestyle and responsibilities - then I say go for it. Personally, I get more satisfaction from cars than I do vacation, boats, etc., so I have no issues spending more money on the automotive genre of my budget.

[JoM3z]

I'm 35 and own a condo in NYC that I rent out. It is by far the best investment I've ever made. Purchasing the M5 was a compromise since I now have a baby girl. In my opinion driving a M3, M5 and M6 is a luxury. Majority of the M5 owners in here make upwards of $150k a year and owning one can be justified. To be honest if you can afford and save 40% of your income you are good.

[Propofoln]

If your single, why not get an M3? I only have an M5 because I have a 4 person family

[Loft23]

Of that $120k are you contributing the max to 401k or company ESPP? I contribute the max in both, guaranteed 15% on my money with ESPP, and also receive RSU stock grants yearly. With my net income, after all these deductions, I need to not sacrifice quality of life. I need to dine out, enjoy time with friends, travel, pay my mortgage and bills, and have money for the unaccounted for expense. What ever is left, that's play money or M5 money. I'm done buying nice cars for now and my goal is to buy a bigger house/condo and rent my current one for $4,500/month.

I manage two teams of software engineers btw. What these kids make today is over 2x what I made when I graduated. They're all leasing BMWs straight out of school.

[shahano]

Originally Posted by Vanditz

If your single, why not get an M3? I only have an M5 because I have a 4 person family

Absolutely.... Would be wayyy cheaper.

[M5Rlz]

Originally Posted by shahano

Absolutely.... Would be wayyy cheaper.

Not the same car though. I've had the e92, m4, m5 [granted I'm in my twenties ] and the m5 truly is a much more noticeable luxury experience from the button configuration to the B&O, even seat design. SO maybe he's looking for more of that experience rather than maximizing performance per dollar.


I will say I get wayyyyyyyy more looks in the m4 in less than 10k then I got in 20k with the m5.

[Propofoln]

Originally Posted by 335iRlz

Not the same car though. I've had the e92, m4, m5 [granted I'm in my twenties ] and the m5 truly is a much more noticeable luxury experience from the button configuration to the B&O, even seat design. SO maybe he's looking for more of that experience rather than maximizing performance per dollar.


I will say I get wayyyyyyyy more looks in the m4 in less than 10k then I got in 20k with the m5.

I realize that, but he's single, no kids, and on a tight budget. The M4 would be perfect for his needs. He should even consider a slightly used 2012-2013 M3 convertible.

[Ex_Stig]

Originally Posted by TasteOfPower

... but I have super bad credit...

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.

[RPiM5]

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.

That's what I did way back when before I bought my first BMW. I paid off all of my debt before I even thought about getting into a new car, let alone an M car. I had been driving a Chevy for 7 years before I bought my first BMW.

Follow Gnaluzu's advice, he's a good dude.