[mlover789]

Gs 12 and I'm getting one cuz my next car is gonna be some electric suv/sav. I'm only 32 once.

[Larry2021]

I don't own an M3 yet but am looking into it. Here's another related question but from a different angle. Assuming you have the money to pay cash for it, do you still opt to finance some of it? What's your thought process?

[astroricardo]

Originally Posted by Larry2021

I don't own an M3 yet but am looking into it. Here's another related question but from a different angle. Assuming you have the money to pay cash for it, do you still opt to finance some of it? What's your thought process?

That's like whole other argument. I'd say if you have the cash laying around to buy it and still have a 6-12 month cushion of living expenses laying around then why not. Provided you're not paying higher interest on something else like a credit card/line of credit, always get rid of those first.

But another side of me thinks that interest is low so why not use someone else's money. No payments is nice though.

It's a tough one

[Nkr15]

Originally Posted by Larry2021

I don't own an M3 yet but am looking into it. Here's another related question but from a different angle. Assuming you have the money to pay cash for it, do you still opt to finance some of it? What's your thought process?

0.9% is free money why give them your cash. Read up on net present value. You are better off dumping $100k into some risk adverse investment account that gains 5%+ and taking out the loan. That's what I am doing.

[vetteflier]

Originally Posted by lazybones18

I bought my first used m3 for $65k OTD - slightly used

Now fully loaded m3 2022 is around $100k

Huge price tag curious how much income justifies this ?

I can afford the car but having a hard time justifying the $100k OTD price tag

Or maybe it's just inflation

I can't see paying 100k for a car, when you can get virtually every option that makes sense for 10-15k less. But, to each his own. Personally, don't like the CF seats for comfort--look great, and have no need for ceramic brakes. Dropping 10k off that price is easy.

[Larry2021]

Originally Posted by astroricardo

That's like whole other argument. I'd say if you have the cash laying around to buy it and still have a 6-12 month cushion of living expenses laying around then why not. Provided you're not paying higher interest on something else like a credit card/line of credit, always get rid of those first.

But another side of me thinks that interest is low so why not use someone else's money. No payments is nice though.

It's a tough one

Yeah, good point on the low interest. I can put the money to other uses.

[Larry2021]

Originally Posted by Nkr15

0.9% is free money why give them your cash. Read up on net present value. You are better off dumping $100k into some risk adverse investment account that gains 5%+ and taking out the loan. That's what I am doing.

The .9% is not quite free, but I get your point. It's very low. But at the same time, it's low interest rates all around for low risk or fixed income investments, so I'm not sure where you can get 5% at low risk.

[forza1976]

Jesus. Didn't we already have a dumb thread like this???

https://g80.bimmerpost.com/forums/sh...highlight=Dumb

[Tyga11]

I didn't think children were allowed to post on this forum - isn't there an 18+ rule or something?

[AndroidRobot]

Originally Posted by AhsanU

About tree fiddy.

And every time I go to a dealership and think "oh wow they have an allocation", I realise the CA is actually the GODDAMNED LOCH NESS MONSTER TRYING TO TAKE AWAY MY TREE FIDDY.

Originally Posted by MavRick

a goddamn succubus!!!!

I'm glad people here actually get the reference. Here I was thinking it was just me.

[Trojan4evr]

People really need to do a little search on the existing threads before posting duplicates of other worthless threads. There was exactly another thread as this that fizzled out quickly.

[bhmax16]

Income is irrelevant. What generally matters is your net worth and your overall particular financial situation. There's plenty of people who are high earners who are actually poor or middle class. We call these people HENRYs (High Earners Not Rich Yet). They may make a lot of money but they also spend every dime of it and would be in a world of hurt if they ever lost their jobs. These people should not be buying an expensive vehicle regardless of how much money they make. Meanwhile, there's folks who are single with no kids who keep their living expenses extremely low and perhaps only make $50k a year but have a few $100k in the bank. These people can often pay cash for an expensive vehicle and still have plenty of cash reserved even if their income is very low compared to a HENRY.

[BRAKE!]

Originally Posted by Larry2021

I don't own an M3 yet but am looking into it. Here's another related question but from a different angle. Assuming you have the money to pay cash for it, do you still opt to finance some of it? What's your thought process?

I want to preface this post by saying that there is no moral, mathematical, or ethical right answer to this question. Money is just a medium of exchange and financial viability is up to the individual. There are plenty of ways to achieve the same goal and I respect everyone's opinion. The below is my perspective.

I would definitely pay cash for it if you have the money to do so. There are many who think using the bank's money at a low interest is a safe thing to do. Any time, you borrow money from the bank/financial institution, they charge you what's known as interest - AKA a fee you pay to use THEIR money. So not only are you buying one of the biggest depreciating assets in life (a car), but you ultimately pay MORE for it because you opted to use someone else's $ (when you had your own). Talk about being upside down. Not to get too biblical, but the phrase "the borrower is a slave to the lender" comes to mind.

Conversely, the (theoretical) mathematical argument that your money is better spent in the market, "safe" investment, etc. while using someone else's money to fund your car hobby is incomplete at best and misleading at worst. It forgets to take into consideration beta (risk) into the equation. We all live in the real world, not the theoretical one. Assuming one is investing their money into the market, there is no guarantee of return and the only "safe" bet is on the one we can make about long term gains on well-diversified portfolio (years in the market). The stock market is quite volatile when looking at a short term perspective, even when you look at "safe" investments like index-based, passive, no-load, low-turnover mutual funds. Meaning you may end up in scenario where you lose a lot of your own money in the market in the duration of your finance/lease period of your car (where you're also losing money). Additionally, if you're picking individual stocks, good luck trying to consistently out beat the index with broker fees, taxes on capital gains, operating expenses, not to mention the risk you take with gambling your money... picking individual stocks is gambling isn't it lol

I would also venture to say that those who are prodigious investors, tend to reduce their costs when it comes to depreciating assets, they usually don't spend $ on new cars as it has been one of the fastest ways to lose money. Pandemic supply-demand issue aside, what do you think an average used g8X car will be worth in 5-10 years? More than MSRP?? Doubt it.

So taking all that into consideration - if I have enough saved where I can spend $100,000 on a car - I would pay cash. Assuming this amount isn't your entire life savings, but additional funds you have on top of securing the financial aspect of you/your families' life.

[2011ninja]

Originally Posted by lazybones18

I bought my first used m3 for $65k OTD - slightly used

Now fully loaded m3 2022 is around $100k

Huge price tag curious how much income justifies this ?

I can afford the car but having a hard time justifying the $100k OTD price tag

Or maybe it's just inflation

Pay is not that great but it is what it is…

[tmilnthorp]

You guys get paid?! I work for M3s…

[2011ninja]

Originally Posted by tmilnthorp

You guys get paid?!

And just weekends…

The trust fund makes up most of my net worth

[edofloat]

Still the same.

Man, I make like $2 an hour and ALL THE FRESCA I CAN DRINK!

I can't believe we drove around all day, and there's not a single job in this town. There is nothing, nada, zip! Yeah! Unless you wanna work forty hours a week.

[2011ninja]

Originally Posted by edofloat

still the same.

Man, i make like $2 an hour and all the fresca i can drink!

I can't believe we drove around all day, and there's not a single job in this town. There is nothing, nada, zip! Yeah! Unless you wanna work forty hours a week.

🤣😂😆

[M4CXPBM]

Originally Posted by lazybones18

I bought my first used m3 for $65k OTD - slightly used

Now fully loaded m3 2022 is around $100k

Huge price tag curious how much income justifies this ?

I can afford the car but having a hard time justifying the $100k OTD price tag

Or maybe it's just inflation

Just my opinion but for a 100k car you should be making min 150k/yr. Your car payment shouldnt exceed 10% of your income imo. Also, luxury cars should only be bought after all your other financials are in check for ex maxing out your ira/401k every yr, buying a house, other investments/priorities such as savings for kids etc. In other words, you should be comfortable with the monthly payments. Thank GOD im in my 30s with a house thats paid for and no kids/wife.

[themnmd]

Originally Posted by Odinsrighthand

I'm a 34 year old Automotive Technician "mechanic" certainly not wealthy. I would not consider my ability to purchase a $97k car necessarily due to my income but more so having made the correct life choices. I own my home, have no bills outside of the basics and work my butt off after starting with less than $1000 in my pocket after leaving the military in 2010. So in short, I don't think income is the sole factor in being able to afford a large purchase. It's all about planning for it in advance.

Thank you for your service sir. ooorah

[2011ninja]

Originally Posted by M4CXPBM

Just my opinion but for a 100k car you should be making min 150k/yr. Your car payment shouldnt exceed 10% of your income imo. Also, luxury cars should only be bought after all your other financials are in check for ex maxing out your ira/401k every yr, buying a house, other investments/priorities such as savings for kids etc. In other words, you should be comfortable with the monthly payments. Thank GOD im in my 30s with a house thats paid for and no kids/wife.

Yeah

[KiloCo]

Originally Posted by lazybones18

I bought my first used m3 for $65k OTD - slightly used

Now fully loaded m3 2022 is around $100k

Huge price tag curious how much income justifies this ?

I can afford the car but having a hard time justifying the $100k OTD price tag

Or maybe it's just inflation

I purchased a 22 G82 M4 Comp Brookly Grey. I thought Sales Tax (California) was the issue. Not the cost!