Financing Help on an M4/M6

[C1Boston]

Originally Posted by yourcakeisready

This is including monthly insurance on both cars as well as paying off the mortgage? (if you have one?) What is your salary?

I live @ home and not moving out until my parents kick me out...living in Boston thats about $1700 I dont have to shell out each month for rent/bills, that 1700 goes toward my 401k or my savings account once my 401k is maxed. I also have a very insignificant amount of student loan debt so my monthly payments are no were near what you're paying.

One of my cars still has a loan, between insurance and the monthly payment for my 3 series it comes to 717/month, though I usually pay 817 because I add 100 extra to my monthly car payment in order to pay it off faster.


As mentioned above, if youre going to make payments on an M making 70k you're going to struggle financially, especially if you're paying rent/living expenses. Even if you don't quite "struggle" you will barely get by which isnt the best feeling. I make about 3-4 grand under 70k but again, I do not have any significant student debt, and I live at home and do not need to relocate for work.

My advise? Buy a CPO sports package e92 or a 4 series. Put 10k down and finance the rest so the most you end up owing on the car is 15k or a little less, do not finance 30k for a car. Its also cheaper than owning an M maintenance wise. Do not get an M unless mom/dad can bail you out if you find yourself not being able to make payments on your car, your rent, etc. You're making 70k now, I'd like to think you can only make more money from here on so If I were you....I would not even think about buying an M series BMW. I personally will not be dumping money into an M until I make at least 150k/yr and even then...I would highly contemplate as I like not having to look at my account balances, you sleep like a baby at night.

[fcman]

Originally Posted by C1Boston

My advise? Buy a CPO sports package e92 or a 4 series. Put 10k down and finance the rest so the most you end up owing on the car is 15k or a little less, do not finance 30k for a car. Its also cheaper than owning an M maintenance wise. Do not get an M unless mom/dad can bail you out if you find yourself not being able to make payments on your car, your rent, etc. You're making 70k now, I'd like to think you can only make more money from here on so If I were you....I would not even think about buying an M series BMW. I personally will not be dumping money into an M until I make at least 150k/yr and even then...I would highly contemplate as I like not having to look at my account balances, you sleep like a baby at night.

This is almost exactly what I did, I was about the same age, same income as OP when I bought my car, but my loans are only $350/month. Car payment $550. OP is a little nuts to spend that much on a car. Will he starve? no, but hopefully a used M4 now makes him smile more than the potential new 911 S he could have bought in 5 years if he would have been more sensible.

[sonic1]

Solid advice. In theory you won't go broke buying the a 50k+ car given the numbers, but it's a depreciating asset and think you'll get an even better deal if you hold off a few months. There are a ton of M4s on the market, once lease returns start flowing in prices will have to drop. Would allocate more of your money to personal development and experiences. Wouldn't be a bad idea picking up an LCI 335i as they are so cheap.

Bottom line: Keep saving your money, hold off on buying as prices will soften further, wait until you get promoted before making the jump.

Originally Posted by MGM135is

I don't count my chickens until the eggs hatch. I would wait until those pay increases come in. Nothing is in concrete until then. There will always be another M4/M6 dillemma later on. These are mass-produced cars. When you're ready, you'll be jonesing for something even more betterer.

[BayMoWe335]

I bet the money you're putting down is most of your net worth and your salary isn't enough to support a car going to $0.

You can't afford it and it's idiotic to buy at your age.

Invest the money for your future self.

Edit: You're an idiot. Just saw you're hopeless bc you think you earn 15-30% on your investments (LOL if you think that will continue for any length of time and with any large amount of money). And LOL at your salary vs car purchase price.

You're 23...you don't know anything, so don't act like you don't want to hear good advice. You're not doing as well as you think.

Edit2: AND you have loans? Oh man, you are too funny.

$750 car payment, $1500 in loans, $1k apt and you take home like $3k/month. Just no dude.

[Lups]

Originally Posted by KnightedBMW

I mean...

Sorry. I don't want to flame, but come on.

EDIT: I realize you're young (I'm not much older - 32), but these cars are a luxury. People have every right to do whatever they want with their money, but you came on here asking, so you'll get opinions. I know you have the car fever; I've been there, but I think you're stretching it way too tight! You need to leave money set aside for unforeseen events (both positive life events as well as negative life events). Although I am older, I wouldn't consider myself much older than you. I'm not going to go full on "dad" but I think you should seriously reconsider. You have plenty of time to get into one of these cars.

I'm two years older than you and when I bought my M4 my financial situation was roughly hubby making 300k per year, me making 100k per year, kids had free education to look forward to and I had roughly enough saved to put them through university even in the states on my account. Inheritances were not included in my calculations.

Then, the grandma in me saw the situation fit for a 75k car. When we moved back to Europe, the whole family wanted me to bring it over/ to buy one here but I rather walk than pay 200k for the same car/ 40k euros in taxes for my beloved old car
just to bring it over.

I'm very conservative with finances BUT I totally get the op. If I could've bought one at 23, I totally would've.

At this stage of my life, I'd say go for it op, since after the kids, their hobbies, their everything and after you basically spend all your life looking for their shoes or buying new ones... Fuck.

I truly love my kids but because they annoy me to bits by losing their stuff, I appreciate more the open roads I have seen.

[BayMoWe335]

Originally Posted by yourcakeisready

No - I am currently making around 85-90k with my reselling abilities. This is not factoring in the 'potential' promotion.

I don't need to hear about putting my money into a low-risk mutual fund earning 6% over the next 30 years or whatever. I'm already investing and throwing money into my 401k and Roth which is why I threw it in there.

Given your income/expenses, you aren't putting enough into your 401k and Roth.

Love how you just poo poo 6% return over the next 30 years. It's going to be more like 8-10%...The $60,000 today is $700,000 at a reasonable 8.5% return in 30 years.

[csu87]

Do it. I financed $30k for 3 years making about the same amount while paying 1.5k/rent, no student loans, but lots of going out and nice vacations as well as investing/saving a a decent percentage at 22. Didnt go broke, and ended up paying it off quicker than 3years.

Im also the type of person that no matter if im paying a $500 monthly payment on something or not, it probably wouldnt make much of a difference financially. Id just blow that on something else.

Also, do it before you get tied down. GFs/Wives dont tend to let you blow money on fun things. I bought my last fun car before I got married. Had to convince the wife that a 335 was the family sedan version when i bought it.

[Lups]

Originally Posted by BayMoWe335

Given your income/expenses, you aren't putting enough into your 401k and Roth.

Love how you just poo poo 6% return over the next 30 years. It's going to be more like 8-10%...The $60,000 today is $700,000 at a reasonable 8.5% return in 30 years.

You do realize this is a bmw forum and most users just pretend to be able to count to ten?

[yourcakeisready]

Originally Posted by BayMoWe335

I bet the money you're putting down is most of your net worth and your salary isn't enough to support a car going to $0.

You can't afford it and it's idiotic to buy at your age.

Invest the money for your future self.

Edit: You're an idiot. Just saw you're hopeless bc you think you earn 15-30% on your investments (LOL if you think that will continue for any length of time and with any large amount of money). And LOL at your salary vs car purchase price.

You're 23...you don't know anything, so don't act like you don't want to hear good advice. You're not doing as well as you think.

Edit2: AND you have loans? Oh man, you are too funny.

$750 car payment, $1500 in loans, $1k apt and you take home like $3k/month. Just no dude.

I'm sorry but you're being rude because of what exactly? I do earn 15-30% on all tangible assets I invest in, and if I don't, I don't invest. I've been doing it for 5 years, so? Even after those expenses, I don't pay much for anything else besides food really, which I allocated to be about 150 a month. Even with my 4k take home every month, this leaves me with around 500 more or less, not including the additional money I make on the side.

I make 70k pre-tax through my real job, and an additional 15-20k through my hobby.


If any read my post - it was already stated I have 35k liquid, 85k potentially if I sold everything. The money I would be putting down is 15k alone from my car and modifications along with 10-12k of my own personal money, which isn't even a lot lol

[yourcakeisready]

Originally Posted by csu87

Do it. I financed $30k for 3 years making about the same amount while paying 1.5k/rent, no student loans, but lots of going out and nice vacations as well as investing/saving a a decent percentage at 22. Didnt go broke, and ended up paying it off quicker than 3years.

Im also the type of person that no matter if im paying a $500 monthly payment on something or not, it probably wouldnt make much of a difference financially. Id just blow that on something else.

Also, do it before you get tied down. GFs/Wives dont tend to let you blow money on fun things. I bought my last fun car before I got married. Had to convince the wife that a 335 was the family sedan version when i bought it.

This is exactly my train of thought which is why it's making it more difficult. I want to be able to get this now before I can't in a few years anyways because of fucking life. I'm not planning in 30 years when I can't appreciate shit anyways, I'll be damn well near 65 y/o.

If I have a wife/kids forget it

I don't think me paying $650 per month is going to stop me from doing anything. Vacations aren't important to me, spending 100's on wine isn't important to me, buying the freshest cow that was just killed off the plaintain strictly fed by grass isn't important to me.... the only thing that the car payment would cut me down on is the small investments I do make on the side, which isn't even really a big deal. It just means I'll be spending less money lol

[Delta0311]

Originally Posted by yourcakeisready

I'm sorry but you're being rude because of what exactly? I do earn 15-30% on all tangible assets I invest in, and if I don't, I don't invest. I've been doing it for 5 years, so? Even after those expenses, I don't pay much for anything else besides food really, which I allocated to be about 150 a month. Even with my 4k take home every month, this leaves me with around 500 more or less, not including the additional money I make on the side.

I make 70k pre-tax through my real job, and an additional 15-20k through my hobby.


If any read my post - it was already stated I have 35k liquid, 85k potentially if I sold everything. The money I would be putting down is 15k alone from my car and modifications along with 10-12k of my own personal money, which isn't even a lot lol

"Hobby", ok what sort of fetish porn are you doing...

You spend $150/month on food? WTF do you eat peanut butter and Ramen Noodles?

[EALm4]

Just buy it. Who cares it's your money do what you like with it and live it up. Come time to move out or you're in a pinch, just sell it. Lots of people would like to scoop up a M car.

[BayMoWe335]

Originally Posted by yourcakeisready

I'm sorry but you're being rude because of what exactly? I do earn 15-30% on all tangible assets I invest in, and if I don't, I don't invest. I've been doing it for 5 years, so? Even after those expenses, I don't pay much for anything else besides food really, which I allocated to be about 150 a month. Even with my 4k take home every month, this leaves me with around 500 more or less, not including the additional money I make on the side.

I make 70k pre-tax through my real job, and an additional 15-20k through my hobby.


If any read my post - it was already stated I have 35k liquid, 85k potentially if I sold everything. The money I would be putting down is 15k alone from my car and modifications along with 10-12k of my own personal money, which isn't even a lot lol

Oh, don't even respond if you're just going to argue. Why do you post here if you want to be enabled to do something stupid? The people telling you it's dumb are giving you good advice.

1) Your income isn't high enough.
2) You have very little savings.
3) $35k is not a lot of money.
4) You have student loans. What's your net worth if you pay off the loan?
5) If you get a car loan, your net worth probably is negative.
6) Don't talk about "potential" money if it's not in hand. I don't know what you do, but a bunch of crap isn't $85k until it's all sold (which I'm sure has costs and probably is optimistic).
7) Even if you have $85k, at $60k car leaves you with $25k minus whatever you owe on student loans (which I suspect is quite a bit if you're paying $1,500/month).
8) You don't even own a home yet (and won't anytime soon if you liquidate your assets to buy a depreciating asset that will be essentially junk in 6-7 years).

Bottom line, you can't afford the car....but in America, you can afford anything.

[aozer]

could you afford the car if you moved out on your own? seems like establishing yourself outside of your parents house should take priority over buying a new car. driving an m6 while living at home with your parents is not a good look imo.

[Delta0311]

Originally Posted by BayMoWe335

Oh, don't even respond if you're just going to argue. Why do you post here if you want to be enabled to do something stupid? The people telling you it's dumb are giving you good advice.

1) Your income isn't high enough.
2) You have very little savings.
3) $35k is not a lot of money.
4) You have student loans. What's your net worth if you pay off the loan?
5) If you get a car loan, your net worth probably is negative.
6) Don't talk about "potential" money if it's not in hand. I don't know what you do, but a bunch of crap isn't $85k until it's all sold (which I'm sure has costs and probably is optimistic).
7) Even if you have $85k, at $60k car leaves you with $25k minus whatever you owe on student loans (which I suspect is quite a bit if you're paying $1,500/month).
8) You don't even own a home yet (and won't anytime soon if you liquidate your assets to buy a depreciating asset that will be essentially junk in 6-7 years).

Bottom line, you can't afford the car....but in America, you can afford anything.

And of course you got the "possibly making $90k/yr" part. It's just empty promises till you have it in writing.

[Delta0311]

Originally Posted by aozer

could you afford the car if you moved out on your own? seems like establishing yourself outside of your parents house should take priority over buying a new car. driving an m6 while living at home with your parents is not a good look imo.

I believe he will rent once he moves back to VA.. So right there you're throwing money down the drain.. Priority number 1 should be to get a house, condo, or townhouse.

This is doable if he stays in NJ with the parents; will be hard if he moves to VA... But now come the fuck on.. You're driving an M4/M6 but you live with mom and dad. It gets a bit embarrassing when you got to sneak your date in or have ninja sex to not wake up mom's.

[yourcakeisready]

Originally Posted by Delta0311

"Hobby", ok what sort of fetish porn are you doing...

You spend $150/month on food? WTF do you eat peanut butter and Ramen Noodles?

Nope - good ole Giant. I make a lot of food myself. I buy and resell stuff. For example, I bought a crewneck the other day for $300 and will be selling it for $450 today. I bought a hoodie a month ago for $265 and will be selling it for well over 1k.

Originally Posted by BayMoWe335

Oh, don't even respond if you're just going to argue. Why do you post here if you want to be enabled to do something stupid? The people telling you it's dumb are giving you good advice.

1) Your income isn't high enough.
2) You have very little savings.
3) $35k is not a lot of money.
4) You have student loans. What's your net worth if you pay off the loan?
5) If you get a car loan, your net worth probably is negative.
6) Don't talk about "potential" money if it's not in hand. I don't know what you do, but a bunch of crap isn't $85k until it's all sold (which I'm sure has costs and probably is optimistic).
7) Even if you have $85k, at $60k car leaves you with $25k minus whatever you owe on student loans (which I suspect is quite a bit if you're paying $1,500/month).
8) You don't even own a home yet (and won't anytime soon if you liquidate your assets to buy a depreciating asset that will be essentially junk in 6-7 years).

Bottom line, you can't afford the car....but in America, you can afford anything.

You act like I'm going out and shelling out everything I own for the car lol. I would be financing strictly 30k. I would get 15k for my car + mods, along with putting down 12k of my own money.

Originally Posted by aozer

could you afford the car if you moved out on your own? seems like establishing yourself outside of your parents house should take priority over buying a new car. driving an m6 while living at home with your parents is not a good look imo.

Yes.... which is what I posted above of my breakout lol

[Mr Tonka]

Prior to 1996 i was only making $35k or less each year. But in 1996, at age 23 i was making $75k for the first time and I bought a 1995 M3 without a second though. It only cost $32k at the time. I'd likely have more money in the bank if i didn't do that, but i don't regret it. Or the several other M3s that followed.

[Delta0311]

Originally Posted by yourcakeisready

Nope - good ole Giant. I make a lot of food myself. I buy and resell stuff. For example, I bought a crewneck the other day for $300 and will be selling it for $450 today. I bought a hoodie a month ago for $265 and will be selling it for well over 1k.



You act like I'm going out and shelling out everything I own for the car lol. I would be financing strictly 30k. I would get 15k for my car + mods, along with putting down 12k of my own money.




Yes.... which is what I posted above of my breakout lol

$30k loan when you're making $70k and living at home with minimal expenses would be a piece of cake to pay off and have money left in your pocket. You're mind is set just get the car.. Plus if you can sell some retard a hoodie for $1k then dude you are a fucking genius.

[yourcakeisready]

Originally Posted by Mr Tonka

Prior to 1996 i was only making $35k or less each year. But in 1996, at age 23 i was making $75k for the first time and I bought a 1995 M3 without a second though. It only cost $32k at the time. I'd likely have more money in the bank if i didn't do that, but i don't regret it. Or the several other M3s that followed.

So fuck it? lol

[sygazelle]

Originally Posted by yourcakeisready

No - I am currently making around 85-90k with my reselling abilities. This is not factoring in the 'potential' promotion.

I don't need to hear about putting my money into a low-risk mutual fund earning 6% over the next 30 years or whatever. I'm already investing and throwing money into my 401k and Roth which is why I threw it in there.

Good for you. That's excellent for being only 23.

Have you thought about buying real estate? Living at home is not a long term strategy. Neither is paying rent. My advice to my kids was to get the house first and get the fancy car second. They both listened to me and thank me all the time. It's all about priorities. You are the only one that can decide that for yourself. You can make the payments based on the figures you provided. You are an accountant so you probably already knew that. What you are looking for is validation of your purchase. If you've thought it through and its the right thing for you, do it. They are both fine cars. Good luck!

[Lups]

Originally Posted by Delta0311

I believe he will rent once he moves back to VA.. So right there you're throwing money down the drain.. Priority number 1 should be to get a house, condo, or townhouse.

But think how much he will save if he buys one now rather than when he hits the M owner age group?

My dad used to fuck around with bikes when he was a teenager. They tuned them up to a point where they flew. He got his drivers license for a car when he was 40, died at 60 and I swear to god never bought a car that wasn't a complete joke.

He never let me near motorcycles, and if not for my mildly inappropriate friends, I wouldn't bother with cars even. But instead of being reasonable, I have a track car, rally car, an fucking dog hauling car and none of them are not even remotely street legal, and I'm a fucking mother! The reasonable member in the family.

You give a kid an M4 and this happens:

http://f80.bimmerpost.com/forums/sho....php?t=1064462

And I can say for sure I would've done worse at his age, so I get what my dad did there.

When I bought one I was a mom, and my nightmare driver years were done. Mostly.

But Darwin's work is something to study before entering a dealership. I got lucky.