What does everyone do to afford these M5's?

[E90potentialbuyer]

Well said. I am in finance and I make quite a few multiples higher than you. I don't have any loans except for a mortgage on a condo. I have a wife and a baby. I love cars and I love bmw's. I have never purchased a car >35k and all my cars have been a lot of fun to drive (1987 Honda Accord, 2001 325i, 2004 m3, 2009 335). I just turned 31 and I am finally looking at buying a M5 since we need a bigger car than a 3 and this is my excuse for getting a car of my dreams.

For you to be even thinking about buying a m5 at 120k annual salary is insane. Repairs on this car are quite expensive, but if you need to think about how to pay and when to service your car based on your budget, you are way over your head whether buying new or used. I have seen someone who bought a Ferrari 355 used because it was so cheap, but the moment you got in his car, it was clear he didn't belong in his car - his dash was lit up with warning lights since he could not to afford to service the car.

My 2 cents: buy a used car. Nothing wrong in buying even a used Non - luxury car like a Subaru, Mazda, golf gti etc. or buy new like a Mazda 3 etc.

[wisesoul]

Originally Posted by 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.

My sentiments exactly. We have some heavy hitters on this forum who make fat $$$ and others like myself who make a meager amount in comparison. If you want something bad enough, I'm a firm believer you can make it work. When I bought my RS4 4 years ago, I was renting a room in a sh*tty 2 bedroom apartment making <$75,000 a year. While that was probably naive, my rent was fairly low, I saved up a decent amount of money through investments and general frugality, and paid off the car loan in 2 years time. Granted I was single, childless, and accumulated not much debt. Do I regret doing that? Not in the slightest bit. I guess I was willing to compromise a little luxury for a little horsepower

[Seanmag]

Originally Posted by 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.

A lot of good sound advice throughout this thread. OP - thanks for kicking this one off.

Personally, I am 18+ years in sales and sales leadership at a software tech company and financially stable and mindful of the legacy that I want to leave for my family. With that said, I (again personally) would rarely want to own a depreciating asset like the M5 (New or Used).

OP - have you considered leasing a vehicle?

Note: you still need good credit ratings just as you would if you purchased a car.

I attempted to attach a very crude cost comparison of a reasonably spec'd New M5 Euro Lease vs. a Used Car (stressing crude as I put it together in ~2 minutes and by no means a comprehensive comparison). The AVERAGE monthly cost is not much different OVER 36 MONTHS... $111 per month.

I understand that additional cost variables would need to be factored in with a Euro Delivery lease such as cost of the trip, whatever the BMW CCA rebate may be plus no charge maintenance (aside from tires!). Similarly, such cost variables should be factored in for buying a used vehicle such as extended warranty, maintenance and "I'm owning vs. renting a depreciating asset" considerations.

I'm not attempting to hijack your post and turn it in to a Buy vs. Lease thread. Just a thought on a Saturday night after dinner and a few glasses of wine w/ the wifey

[Fantasm]

Hahaha. Good post @Seanmag

Too many people don't realize the benefits of leasing if you don't want to or plan to keep your car that long.
In CA there's even an added benefit that if you finance, you pay sales tax on the entire sale amount; however if you lease, you only pay sales tax on the monthly lease amount every month. That's saving $5-8K right off the bat.

I used to switch cars like every 6-8 months -- so leasing was definitely the better choice for that.

[wrsbmw]

Originally Posted by E90potentialbuyer

Well said. I am in finance and I make quite a few multiples higher than you. I don't have any loans except for a mortgage on a condo. I have a wife and a baby. I love cars and I love bmw's. I have never purchased a car >35k and all my cars have been a lot of fun to drive (1987 Honda Accord, 2001 325i, 2004 m3, 2009 335). I just turned 31 and I am finally looking at buying a M5 since we need a bigger car than a 3 and this is my excuse for getting a car of my dreams.

For you to be even thinking about buying a m5 at 120k annual salary is insane. Repairs on this car are quite expensive, but if you need to think about how to pay and when to service your car based on your budget, you are way over your head whether buying new or used. I have seen someone who bought a Ferrari 355 used because it was so cheap, but the moment you got in his car, it was clear he didn't belong in his car - his dash was lit up with warning lights since he could not to afford to service the car.

My 2 cents: buy a used car. Nothing wrong in buying even a used Non - luxury car like a Subaru, Mazda, golf gti etc. or buy new like a Mazda 3 etc.

A new M5 includes service in the price up to 50k miles. It also includes roadside assistance. The used car will need the repairs.

Ah well, when I was 31 I was driving a 1979 Volvo 264 with 135k miles on it. I bought it for $4k cash (1987) and set aside $1700 for repairs. I ended up having to put in a new transmission which I bought used at a junkyard for $400 and got the labor done for $700. Later I had to do a water pump the only other maintenance was oil. I traded the car in 1991 and still got $2200 for it even though it was 12 years old and had 160k miles.

The first nice new car I could call my own after I got married was the Volvo 960 I bought in 1993. I paid it off in two years and my 16 year old daughter totaled it in 1997. I really liked that car. Oh well, I rolled the insurance check into a down payment on the house I live in now. After a year of only having one car and 5 kids, I bought 3 year old Lexus LSXXX cars that came off lease. I had two of those in 10 years. These cars I have now are the most expensive and fun cars I have ever owned but I have a hole in the ground that pours out money so I can afford them for now.

I ended up with cancer at 50 after working my ass off for 25 years and running my own business in the pursuit of making more money. I was told not to make any plans beyond two years and that I had a 45% chance to live 18 months. It's been 8 years and I now have more money than I ever dreamed of having when I worked and I made more money last year than my business ever grossed in any year and it's best year was 2001 when we grossed $1.3m. The most I ever paid myself in my business was $248k and my wife made $120k that year so we did really well and my family sold some timber and my total income that year was $658k on which I paid $165k income tax.

I never thought of owning a bmw or porsche back then and I was at the top of my career. You just never know which way the ball will bounce. I beat the cancer and got richer than I ever thought I could be. My family had no idea we had oil in West Texas or that our East Texas land would have oil under it. We are not in the area of the East Texas field, we just sell timber. It makes money but not like oil and gas does so that is how I can afford these cars. If the oil stuff hadn't happened, I would still be driving my 2010 535i with Dinan Stage 2 and my wife would be holding onto the 2013 X5m.

I just hope the price of oil holds up and we get a few more wells out there in the Wolfcamp.

[ezmaass]

Originally Posted by wrsbmw

A new M5 includes service in the price up to 50k miles. It also includes roadside assistance. The used car will need the repairs.

Ah well, when I was 31 I was driving a 1979 Volvo 264 with 135k miles on it. I bought it for $4k cash (1987) and set aside $1700 for repairs. I ended up having to put in a new transmission which I bought used at a junkyard for $400 and got the labor done for $700. Later I had to do a water pump the only other maintenance was oil. I traded the car in 1991 and still got $2200 for it even though it was 12 years old and had 160k miles.

The first nice new car I could call my own after I got married was the Volvo 960 I bought in 1993. I paid it off in two years and my 16 year old daughter totaled it in 1997. I really liked that car. Oh well, I rolled the insurance check into a down payment on the house I live in now. After a year of only having one car and 5 kids, I bought 3 year old Lexus LSXXX cars that came off lease. I had two of those in 10 years. These cars I have now are the most expensive and fun cars I have ever owned but I have a hole in the ground that pours out money so I can afford them for now.

I ended up with cancer at 50 after working my ass off for 25 years and running my own business in the pursuit of making more money. I was told not to make any plans beyond two years and that I had a 45% chance to live 18 months. It's been 8 years and I now have more money than I ever dreamed of having when I worked and I made more money last year than my business ever grossed in any year and it's best year was 2001 when we grossed $1.3m. The most I ever paid myself in my business was $248k and my wife made $120k that year so we did really well and my family sold some timber and my total income that year was $658k on which I paid $165k income tax.

I never thought of owning a bmw or porsche back then and I was at the top of my career. You just never know which way the ball will bounce. I beat the cancer and got richer than I ever thought I could be. My family had no idea we had oil in West Texas or that our East Texas land would have oil under it. We are not in the area of the East Texas field, we just sell timber. It makes money but not like oil and gas does so that is how I can afford these cars. If the oil stuff hadn't happened, I would still be driving my 2010 535i with Dinan Stage 2 and my wife would be holding onto the 2013 X5m.

I just hope the price of oil holds up and we get a few more wells out there in the Wolfcamp.

Good to hear that you've beaten the cancer. And congratulations on the good fortune with your oil find!

This is exactly why, in my mind, you do need to balance what you do in life. As I said, great financial planning is essential... but you do need to "give a little" to ensure you're utilizing what you have TODAY... because you don't know what tomorrow holds. In my mind, it's silly to hoard every penny for tomorrow, just as it's silly to spend every penny like there's NO tomorrow... the right answer is somewhere in between.

[E90potentialbuyer]

Originally Posted by ezmaass

Good to hear that you've beaten the cancer. And congratulations on the good fortune with your oil find!

This is exactly why, in my mind, you do need to balance what you do in life. As I said, great financial planning is essential... but you do need to "give a little" to ensure you're utilizing what you have TODAY... because you don't know what tomorrow holds. In my mind, it's silly to hoard every penny for tomorrow, just as it's silly to spend every penny like there's NO tomorrow... the right answer is somewhere in between.

Well said.

And great to know that you beat cancer - well wishes for many more years to come.

My point is exactly what you said - balance it out. How much you err on the side of caution is upto you. But buying a car this expensive or used (with potentially hefty repair bills) is not prudent given OP's 120k gross - less than 80k post tax (but pre 401k and other investments). Good luck either way

[M5Rlz]

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.

Its not harsh in my op... Big difference between financing an m5 at 2.99% through BMW or less through a credit union than doing it at 6%+ because you just wanted it now.

Especially on a 100k car lol.

Originally Posted by wrsbmw

A new M5 includes service in the price up to 50k miles. It also includes roadside assistance. The used car will need the repairs.

Ah well, when I was 31 I was driving a 1979 Volvo 264 with 135k miles on it. I bought it for $4k cash (1987) and set aside $1700 for repairs. I ended up having to put in a new transmission which I bought used at a junkyard for $400 and got the labor done for $700. Later I had to do a water pump the only other maintenance was oil. I traded the car in 1991 and still got $2200 for it even though it was 12 years old and had 160k miles.

The first nice new car I could call my own after I got married was the Volvo 960 I bought in 1993. I paid it off in two years and my 16 year old daughter totaled it in 1997. I really liked that car. Oh well, I rolled the insurance check into a down payment on the house I live in now. After a year of only having one car and 5 kids, I bought 3 year old Lexus LSXXX cars that came off lease. I had two of those in 10 years. These cars I have now are the most expensive and fun cars I have ever owned but I have a hole in the ground that pours out money so I can afford them for now.

I ended up with cancer at 50 after working my ass off for 25 years and running my own business in the pursuit of making more money. I was told not to make any plans beyond two years and that I had a 45% chance to live 18 months. It's been 8 years and I now have more money than I ever dreamed of having when I worked and I made more money last year than my business ever grossed in any year and it's best year was 2001 when we grossed $1.3m. The most I ever paid myself in my business was $248k and my wife made $120k that year so we did really well and my family sold some timber and my total income that year was $658k on which I paid $165k income tax.

I never thought of owning a bmw or porsche back then and I was at the top of my career. You just never know which way the ball will bounce. I beat the cancer and got richer than I ever thought I could be. My family had no idea we had oil in West Texas or that our East Texas land would have oil under it. We are not in the area of the East Texas field, we just sell timber. It makes money but not like oil and gas does so that is how I can afford these cars. If the oil stuff hadn't happened, I would still be driving my 2010 535i with Dinan Stage 2 and my wife would be holding onto the 2013 X5m.

I just hope the price of oil holds up and we get a few more wells out there in the Wolfcamp.

Much respect... Probably just as good a guy in person Dad was the same way lol bopped me on my head once or twice when entitlement started to seep in

[jmr986]

Originally Posted by chong0

as a side note

at our income level each kid through college will be about 250k each

I picture each of my kids as my Ferraris that I will probably never attain. (probably break even on the upkeep!)

Driving through town my daughter see a beautiful Porsche Panamera. I was looking for a car at the time. Hey dad why don't you get that car? Well I can pay for your private college tuition, or you can pay for it and I can buy the car ... cash. Let me know which option you want.

Ended up with a 535ix so no complaints really.

[Tom C]

I am surprised no one mentioned anything about what a questionable choice an E60 M5 is for someone with financial concerns. Yes, the initial cost is going to be nearly 1/3 the price of an F10 M5, but what about the maintenance and repairs? A 2010 M5 is likely about to have its factory warranty expire. Some of the common repair costs on an V10 E60/E63 can be pretty significant (especially SMG equipped models). I priced an E63 M6 aftermarket warranty a few months ago. Most aftermarket warranty companies will not touch a V10 BMW. The ones that will provide coverage asked for nearly $7K... which was about 15% of the price of the car I was looking at. So you should probably factor in the cost of the warranty or research and set aside funds for some very common repairs.

[RPiM5]

Originally Posted by Tom C

I am surprised no one mentioned anything about what a questionable choice an E60 M5 is for someone with financial concerns. Yes, the initial cost is going to be nearly 1/3 the price of an F10 M5, but what about the maintenance and repairs? A 2010 M5 is likely about to have its factory warranty expire. Some of the common repair costs on an V10 E60/E63 can be pretty significant (especially SMG equipped models). I priced an E63 M6 aftermarket warranty a few months ago. Most aftermarket warranty companies will not touch a V10 BMW. The ones that will provide coverage asked for nearly $7K... which was about 15% of the price of the car I was looking at. So you should probably factor in the cost of the warranty or research and set aside funds for some very common repairs.

Yeah as great as the E60 M5 is, it's a nightmare to maintain once the miles are high and out of warranty. $7,000 just for a clutch change if you take to a dealer. So many things break in that car it's really like a ticking time bomb. 2008 and below model years engines have intermittently died because of bad rod bearings, warranting an entire engine replacement. If you buy a used 2006 E60 M5 for $25k and your engine blows, the cost of replacing the engine might be more than the entire value of the vehicle if you buy a brand new engine. I'd factor in $5000-$10,000 a year just for maintenance and repairs on an E60 M5.

[Northern X5M]

To the OP, buy a nice low mile E39 M5. Loving mine, I drive it more than the F10. The luxury is still better than most cars today and the electronics are easily upgradeable. (Not a serious response but an option) Save the E39s!!!

I guess it depends on the OP's life style. 120K per year goes a long way if you don't have a mortgage, savings plan, children, and so on.

That being said, I'd priority buying a house and an established savings plan before buying a 70-100K vehicle.

[bodonx]

Simple rule:

Do you have > $1M liquid that can generate income to cover daily living cost?

If no, then start with 3 series first

[Yay-Z]

Great thread. Some of y'all should come to the 3 series thread and save some of these guys from themselves.

[David 12]

Originally Posted by Yay-Z

Great thread. Some of y'all should come to the 3 series thread and save some of these guys from themselves.

Sorry Yay-Z, the 3 series guys are beyond saving!!!

Former car: 2007 335i JB3 DCI

[M6-Coupe]

Originally Posted by bodonx

Simple rule:

Do you have > $1M liquid that can generate income to cover daily living cost?

If no, then start with 3 series first

Does it mean you have that >$1M liquid income generator since you drive M5 ?

[bodonx]

Originally Posted by M6-Coupe

Does it mean you have that >$1M liquid income generator since you drive M5 ?

No, I just like to advise people to do that. I assume 99% of the members here qualify for that.

For me YOLO
I just live paycheck to paycheck to afford M5

[Scott@Radar-Mirror.com]

I'm a financial advisor and own Radar-Mirror.com. It's much easier to get into one of these cars through a lease but just make sure you can commit to the lease terms. I leased a E60 M5 and was lucky to find someone to take over the payments after the global financial meltdown in 2008.

[M6-Coupe]

Originally Posted by bodonx

...For me YOLO...

100% Agreed

[Mbdurham17]

That how

[RPiM5]

Originally Posted by Mbdurham17

That how

Boom! :

[BIGW0RM]

Adult film producer.