[mcsquared]

Originally Posted by NorCalAthlete

Ok, that makes more sense lol. I was sitting here like "this dude's either 16 and got an M3 as his first car thus crazy high insurance, or he has a 3 hour commute one-direction..."

Haha, neither applies to me. I’ll be half a century completed, in a couple of months, so, the decision to order an M3 manual was the only ‘gift’ I wanted.

[vinha916]

paid cash.

[IDKBRO]

Originally Posted by Likeanowl

A rule of thumb I always went by for any purchase I ever made in life with the exception of a home was if you cannot afford to buy whatever it is in cash, at the time of purchase, 2 times over, then you cannot afford that item.

I am not saying you have to pay for it in cash, but if in your savings/investments/liquid assets, you do not have enough to pay for it twice over and still have a good cushion left, then I say don’t buy it. Again, only exception is a house.

With that being said, I make a very modest salary but because of that rule I have plenty of money saved, was able to buy it in cash, and currently have $0 in debt, and owe nobody anything outside of standard monthly bills. But to each their own.

100% this

[Nick800]

Originally Posted by Delmoney335

Are you just making numbers up? 50k a year dedicated to this car is excessive.

Let's assume you are in the highest tax bracket. So of the $50,000 of salary earmarked for covering an M3 annually (say out of your total $300k/year salary)...Let's be generous and say you are only taxed $19,000 on that $50,000 of salary.

That leaves $31,000 after tax.

$1,500/month car payment = $18,000/year
Insurance = $6,000/year

Now you are at $24,000 already without any gas, tires, maintenance, property tax. Adds up fast.

Did you put PPF on, window tint....there's another $2-6k.

[iviegatron]

Originally Posted by Nick800

Let's assume you are in the highest tax bracket. So of the $50,000 of salary earmarked for covering an M3 annually (say out of your total $300k/year salary)...Let's be generous and say you are only taxed $19,000 on that $50,000 of salary.

That leaves $31,000 after tax.

$1,500/month car payment = $18,000/year
Insurance = $6,000/year

Now you are at $24,000 already without any gas, tires, maintenance, property tax. Adds up fast.

Did you put PPF on, window tint....there's another $2-6k.

$6000 per year on insurance!? I was paying $1400/yr on the M3 alone.

[geko29]

Originally Posted by iviegatron

$6000 per year on insurance!? I was paying $1400/yr on the M3 alone.

Yeah there's definitely a bit of a disconnect there. Someone who has $50k worth of income taxed at the highest rate (meaning annual income of at least $640k single, $770k MFJ) is extremely unlikely to be a high-risk 19-year old that is going to pay through the nose for insurance.

I'm a very long way from the 37% bracket, and my insurance looks a lot like yours. $1,337/year for the M3.

That said, I do spend almost $6,000 a year in total on insurance. But that's full coverage on 4 cars, homeowners, 2 personal articles policies and a $3M umbrella. Not all attributable to the M3 by any means.

[bri1042]

Originally Posted by iviegatron

$6000 per year on insurance!? I was paying $1400/yr on the M3 alone.

Even with the price increase I got hit with this year, my insurance on the M3 is barely over 1k a year. No idea where he lives, but...wow...

Property Tax isn't an issue except in a few States. Heck, some of us didn't even pay sales tax on our cars. Maintenance isn't an issue for 3 years. Gas depends on mileage. MSRP depends on options and model and has a $25k+ spread.

Etc...

Nick may need 50k to support an M3, but that's his personal circumstances, not a general figure.

[Likeanowl]

Originally Posted by bri1042

Even with the price increase I got hit with this year, my insurance on the M3 is barely over 1k a year. No idea where he lives, but...wow...

Property Tax isn't an issue except in a few States. Heck, some of us didn't even pay sales tax on our cars. Maintenance isn't an issue for 3 years. Gas depends on mileage. MSRP depends on options and model and has a $25k+ spread.

Etc...

Nick may need 50k to support an M3, but that's his personal circumstances, not a general figure.

My insurance is $1100 a year, $2,000 for ceramic coat, $8,000 a year for gas, and that’s on the heavy side. $11,000 is a huge leap from $50k…

[bri1042]

Originally Posted by Likeanowl

My insurance is $1100 a year, $2,000 for ceramic coat, $8,000 a year for gas, and that’s on the heavy side. $11,000 is a huge leap from $50k…

8k for gas? Cleary doing a lot more miles than I do! :-)

[Likeanowl]

Originally Posted by bri1042

8k for gas? Cleary doing a lot more miles than I do! :-)

Tbh I have no idea what I spend on gas lol. I do about 9-10k miles a year. Price is around $4.30/gal here

[geko29]

Originally Posted by Likeanowl

Tbh I have no idea what I spend on gas lol. I do about 9-10k miles a year. Price is around $4.30/gal here

That would be about $2200/year if you're getting the rated 19mpg, up closer to $3k if you're way down at 15mpg.

[NorCalAthlete]

$8k for gas seems ludicrous

[Th3DarkSide]

Originally Posted by iviegatron

$6000 per year on insurance!? I was paying $1400/yr on the M3 alone.

Right. I’m sitting here like WTF are you guys smoking. I pay $270 a month for a 2022 X3 and 2023 M3

[kfresh]

Originally Posted by Th3DarkSide

Right. I’m sitting here like WTF are you guys smoking. I pay $270 a month for a 2022 X3 and 2023 M3

6k is not outside the realm of possibility. I'm paying 4.3k per year for my wifes and I 18' m4 and 22' x5. We have had 0 accidents, 0 tickets in the last 5 years and both cars are registered as pleasure vehicles since we both work from home. Switching to commuter cars will easily put the policy over 6k per year.

[Th3DarkSide]

Originally Posted by kfresh

6k is not outside the realm of possibility. I'm paying 4.3k per year for my wifes and I 18' m4 and 22' x5. We have had 0 accidents, 0 tickets in the last 5 years and both cars are registered as pleasure vehicles since we both work from home. Switching to commuter cars will easily put the policy over 6k per year.

I live in NY. Where do you live? That seems crazy to me

[iviegatron]

Originally Posted by kfresh

6k is not outside the realm of possibility. I'm paying 4.3k per year for my wifes and I 18' m4 and 22' x5. We have had 0 accidents, 0 tickets in the last 5 years and both cars are registered as pleasure vehicles since we both work from home. Switching to commuter cars will easily put the policy over 6k per year.

I guess it's not if you're an Asian woman driver or a 16yr old.

['Cane]

Originally Posted by Th3DarkSide

I live in NY. Where do you live? That seems crazy to me

South FL is pretty bad for car insurance too. I pay $3200/year (50+ year old, no accidents, no ticets, only drive ~3000 miles/yr) and $6500 for homeowners insurance.

[kfresh]

I live in SoCal in a major city. Insurance factors are heavily dependent on your zip code, coverage, and type of cars you drive. I'm sure if I bring down my 100k/300k policy to state minimum I can cut my payments by half, if not more

[Delmoney335]

Originally Posted by Nick800

Let's assume you are in the highest tax bracket. So of the $50,000 of salary earmarked for covering an M3 annually (say out of your total $300k/year salary)...Let's be generous and say you are only taxed $19,000 on that $50,000 of salary.

That leaves $31,000 after tax.

$1,500/month car payment = $18,000/year
Insurance = $6,000/year

Now you are at $24,000 already without any gas, tires, maintenance, property tax. Adds up fast.

Did you put PPF on, window tint....there's another $2-6k.

You’re throwing a lot of numbers at me. Property tax , income tax. All I know is I make well less than 350k and can afford the car just fine. Some of the figures thrown around in this thread are.. interesting

[Delmoney335]

Originally Posted by 'Cane

South FL is pretty bad for car insurance too. I pay $3200/year (50+ year old, no accidents, no ticets, only drive ~3000 miles/yr) and $6500 for homeowners insurance.

Absolutely. We are the insurance fraud capital of the country and the premiums reflect it.

[Tyga11]

Originally Posted by Delmoney335

You’re throwing a lot of numbers at me. Property tax , income tax. All I know is I make well less than 350k and can afford the car just fine. Some of the figures thrown around in this thread are.. interesting

Just because you make less than $350,000 doesn't truly mean you can 'afford it'

Are you maxing out your 401(k)? Do you have an IRA? 6 month emergency savings etc?

[flsupraguy]

If you only make 50k a year you need an old camry to be your only car....