M5 as the next car!

[Squddie]

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 !!

No kids, no student loans, a bit luck in the up and down housing market. Sets you off with one $100,000 or some of those extra relative to your peers in the same life situation.

Then there are people with gambling problems, bad credit, 76 vintage guitars. You don't know where their money goes.

[BavariaExclusive]

Yeah that would be the smart thing to do. But owning one of these has been my long term dream since I was a kid, which holds a ton of value. I remember of dreaming to own one and now I actually can. Which will motivate me to work harder and achieve even higher grounds and attain success. It will be a reward for my hard work. I think those values have no price for it.

Originally Posted by 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!

[M6-Coupe]

Originally Posted by BavariaExclusive

Yeah that would be the smart thing to do. But owning one of these has been my long term dream since I was a kid, which holds a ton of value. I remember of dreaming to own one and now I actually can. Which will motivate me to work harder and achieve even higher grounds and attain success. It will be a reward for my hard work. I think those values have no price for it.

So, there is no need to question. Go for it! No doubt, no delay.

[gmfive]

Wondering why do the income - affordability - advice threads tend to go on for pages.. seems to be a trend.

[mrainv23]

One last caution from experience...factor in mods to your monthly budget. Believe me you will get the itch! You will start out slow tinting your windows, changing out side markers....you will them want an exhaust, a tune, etc. These cars are too fun to leave as is. I have told myself with each bimmer, "this one I will leave stock, it is perfect." Lol

[BavariaExclusive]

Thanks you're right. I wouldn't do much to a M5 though but just put a DINAN logo on the back lol :X

Originally Posted by mrainv23

One last caution from experience...factor in mods to your monthly budget. Believe me you will get the itch! You will start out slow tinting your windows, changing out side markers....you will them want an exhaust, a tune, etc. These cars are too fun to leave as is. I have told myself with each bimmer, "this one I will leave stock, it is perfect." Lol

[Squddie]

Modifying a leased M5 when on a not tight but limited budget seems... unwise.

You can also look at this another way: maybe this gets the Expensive Car bug out of the person' system early on. While not cheap the lease puts a cap on the total expenses. The person is young so recovery from the whole thing going south is likely. Afterwards it is maybe Honda time for the next 40 years. Might save a lot of money overall.

[DrewM5]

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.

Damn! My personal chef charges $50/HOUR!

[AT LAW]

Originally Posted by Squddie

Afterwards it is maybe Honda time for the next 40 years. Might save a lot of money overall.

If only this philosophy worked.

This would be like buying and wearing $1,500 - $2,000 Hickey Freeman / Brooks Brothers suits for a few years and then switching to $299 Kenneth Cole / Calvin Klein suits for the remainder of your purchases.

I started wearing Allen Edmonds and Alden dress shoes when I was about 16 years old. There is no way I am going to step into a Johnston & Murphy or Florsheim shoe now.

Once you experience a fine quality product, you cannot go to a lesser product.

In fact, you usually start looking at what else is available that is even higher quality.

[Bönz]

Originally Posted by DrewM5

Damn! My personal chef charges $50/HOUR!

Mine costs a lot more than that. She even makes me sleep with her

[stealth.pilot]

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.

If you pay $1300 in rent then I see another issue. It's shameful to spend more on your car than on your home. Plus renting rather than owning, while blowing money on a $100k car. Think about this.

[DrewM5]

Originally Posted by Bönz

Mine costs a lot more than that. She even makes me sleep with her

LMAO. It is actually my doctor who makes we sleep with her. At least she isn't an OBGYN. Not sure my ego could handle being intimate with a woman who has more of them than I have!

[Bönz]

Now I'm LMAO.

[BavariaExclusive]

Well not every M5 owner is living in a million dollar crib. It all comes down to money in vs money out at the end of the month. Some might be making 20k spending 16k on bills.

Originally Posted by stealth.pilot

If you pay $1300 in rent then I see another issue. It's shameful to spend more on your car than on your home. Plus renting rather than owning, while blowing money on a $100k car. Think about this.

[grendel88]

Originally Posted by BavariaExclusive

Yeah that would be the smart thing to do. But owning one of these has been my long term dream since I was a kid, which holds a ton of value. I remember of dreaming to own one and now I actually can. Which will motivate me to work harder and achieve even higher grounds and attain success. It will be a reward for my hard work. I think those values have no price for it.

Seriously, we are talking about a $100K car. For someone who is making the money you do, it is a 4 year blip of your earning life. Could you invest the $100K and see it return 3-5% for 4 years? In the grand scheme of your "expected" and "anticipated" working career, this is speed bump...but...it can turn into a problem that a lot of car people have: 335, M3, M5, 911s, 911TTS, 458, and so on and so on...if that is the case, then you better be ready to make a lot of scratch.

[soooma]

Originally Posted by BavariaExclusive

Yeah that would be the smart thing to do. But owning one of these has been my long term dream since I was a kid, which holds a ton of value. I remember of dreaming to own one and now I actually can. Which will motivate me to work harder and achieve even higher grounds and attain success. It will be a reward for my hard work. I think those values have no price for it.

I'd say do it -

[soooma]

Originally Posted by grendel88

Seriously, we are talking about a $100K car. For someone who is making the money you do, it is a 4 year blip of your earning life. Could you invest the $100K and see it return 3-5% for 4 years? In the grand scheme of your "expected" and "anticipated" working career, this is speed bump...but...it can turn into a problem that a lot of car people have: 335, M3, M5, 911s, 911TTS, 458, and so on and so on...if that is the case, then you better be ready to make a lot of scratch.

Yet this is a wiser fatherly advice -

[NightStalker]

A lot of mature advices here.

I know your asking as a general question related towards your income.

But keep in mind as others have mentioned everyone's situation is unique. Only you can decide for yourself if it's right. If it is then go for it.

Good luck

[PhilT3]

IMO...your total car expense shouldn't be more than 10-15% max of your monthly net income. Period.

And I would also agree with Stealth, spending more on your car than your 'roof'. Not advisable.

Also... It seems very odd to me how people look to an Internet forum focused on automotive enthusiasts for financial advice. That tells me the person asking has much to learn of personal finances, yet they want to drive/lease/buy a $100k car. Which in the case of this specific thread is more than the OP's annual income. Seems very 'off' to me.

[Bönz]

If he's netting 7k per month, he's grossing more than 100k.

My car lease payment is more than my roof, because my roof is zero. But I get your point.

Ultimately it's the OPs decision. I was also really surprised that anyone would come to a forum like this to ask financial advice, let alone disclose his income. Weird.

[mainly]

is your income 7k after taxes or before?

if 7k before taxes then absolutely you can afford it.

especially if your expenses are only 2k.


its a no brainer if you asked me.

if its 7k before taxes, then it would be a little but of a stretch, but still doable.

[paddy335]

Originally Posted by stealth.pilot

Sounds like a very high percentage of your income to spend on cars. I spend closer to 5-7% and that covers both my cars.

I think spending up to 10% on cars is okay, but above that and I would really be concerned about saving enough money, investing, opportunity cost, wrong balance between house and car, etc.
.

+100.....I wouldn't go anywhere near the kind of ratio you are proposing. Lots of other great cars around that will be a lot cheaper.