[brandoningram14]

I don't really have as much real life experience and no plans/projections I ever make ever come true, so I have come here for advice. I am thinking about purchasing an F80 M3. I originally started off wanting a E92 M3, but I didn't want to have one without warranty as my first euro car (I guess I could always purchase third party or get a CPO, but they're all near 50k) and at that price point, I could just buy an M2, right? I should be getting an allocation in September, but the interior just felt cheap to me and if I'm already spending the 53k MSRP on an M2, I might as well get a proper M and get the 2017 M3. I test drove the E92 and F80 back to back and fell in love with the F80. I optioned out an M3 (only option I wanted was the upgraded wheels), and it came out to 65k (63.5k invoice, best price I could find in California was 1.5k over invoice). Plus taxes and misc, it will come out to 71k.

I'm 25, graduated college 2 years ago and have been aggressively paying off my student loans since (wanted to wait until I finished paying them off before I purchased a car) and now have ~40k in the bank. I'm sure with most car enthusiasts, we purchase cars with our emotions more than our brains, but is buying a car that's twice my net worth an okay idea? My annual income is ~130k, rent is around 1700 and I don't have much other expenses except I buy a lot of groceries because I like eating. If I put 20k down (pre-approved @ chase for 2.49% @ 48months), I'm paying $1117 a month. What do you all think? Thanks in advance for the advice

[RjR]

I would buy a house first, then the car. IMO...our goals may be different though.

[brandoningram14]

Originally Posted by RjR

I would buy a house first, then the car. IMO...our goals may be different though.

I'd love to buy a house first, but the SF Bay Area housing market is insane and I'm not sure if it's coming down any time soon

[kprocivic]

You only live once.

[zx10guy]

Other than saving for a house, I would be socking away as much money as I could in retirement savings.

Also, there are plenty of people who would take issue with your statement about the M2 not being a proper M car.

[Joe240]

Honestly, it all depends on your situation if a house is the right thing before a car. I went with the car, but that's because I move every 3 years for the military and I'm currently overseas where I could save even more money on the car. Living in Cali will always be expensive. I don't think it will ever go down because of all the high paying jobs in that general area, plus the insurances and stuff. COL is just higher and I think always will be.

I'd say get the car. $20k down is a nice start to ease the payments and I think after 4 years when it's payed off, you will have a better idea if you'll be staying in Cali or moving elsewhere. That would be when to look at a house in my opinion. You're young so live a little.

[rcracin]

Don't buy new. Think about how good that $40k in the bank feels and how hard it was to get there. Then think about how fast most of it will disappear in depreciation on the new car. Get a used f80 at least. I'd say start with a $30k e92 and then take it from there.

[J.M]

You should always have these doubts when buying something "expensive".
I would objectively say in your case, no... do not do it right now. I would buy something nice but cheaper and maybe in 3 or 4 years get whatever you can afford by then.
A $30k e92, as @rcracin said, would be a good option.

[David70]

I would also buy something less expensive and save for a house but then I still won't buy a new M because I look at how much the money would be worth overtime in a decent investment.

Also, the excuse of housing costs in your area being insane seems like all the more reason to save for one.

[J.M]

Originally Posted by David70

Also, the excuse of housing costs in your area being insane seems like all the more reason to save for one.

+1

[ASBSECU E93]

No.

[csu87]

[BimmerRookie]

Keep on saving man. Consider something a little cheaper. Imagine the feeling of financial security and buying the car outright when you do have the money to do so. Buying and taking a 4 year loan on a car is almost like cheating yourself. It's like I really really want this, but I can't afford it yet, so let me borrow somebody else's money (with a consequence = interest) just so I can have it now?

40K is a great start man, keep growing it!

[Alfisti]

I went with the car first, an Alfa Giulia Coupe, was beautiful, drove it daily.

It has cost me circa $1M in lost housing appreciation.

Just saying.

[EJT86]

Originally Posted by RjR

I would buy a house first, then the car. IMO...our goals may be different though.

That's bad advice... You can live in a car you can't drive a house

[te37]

I'm 24 and bought a used f80 last year. Put 28k down to make my payment low as possible. If I were you I would put as much down as possible to make the payment only 3 figures. I make wayyy less than you but my house payment is less too. Must be where you live. 1700$ can get a huge house where I am. Now I am not a financial advisor so do what you want, obviously.

p.s. You can buy new when you are older. At this age we cannot afford the depreciation with driving off the lot at 5 miles on the odd.

[Alfisti]

Originally Posted by te37

I'm 24 and bought a used f80 last year. Put 28k down to make my payment low as possible. If I were you I would put as much down as possible to make the payment only 3 figures. I make wayyy less than you but my house payment is less too. Must be where you live. 1700$ can get a huge house where I am. Now I am not a financial advisor so do what you want, obviously.

p.s. You can buy new when you are older. At this age we cannot afford the depreciation with driving off the lot at 5 miles on the odd.

No, put as little money down as possible, ideally none.

Use the rest to invest or towards a house.

[M3 Number 86]

Over a thousand in monthly car note sounds a bit ridiculous. You're net take home pay is around $5000/mo after taxes and 401k right?

Minus rent $1700. Minus car $1000. You have $2300 left. Minus insurance. Minus groceries. Minus bills. Minus hookers.

Or, why don't you just lease the car for three years for much less and see where you are then? I don't mind leases because I don't mind swapping cars every three years.

But I'm not the right person to be giving advice because my priorities are whack. Money goes to car first for me even with baby on the way. But as others have said #YOLO

[te37]

Originally Posted by Alfisti

No, put as little money down as possible, ideally none.

Use the rest to invest or towards a house.

I guess I like the thought of paying the least amount of interest. Plus I will make an extra payment every month or two.

[M3 Number 86]

Originally Posted by EJT86

That's bad advice... You can live in a car you can't drive a house

Especially with four doors it's comfortable. That's like the size of a one bedroom in SF.

[jtodd_fl]

The leverage conversation...

[smoosh]

Save for house. Or, at least pay off student loans first before thinking about a loan for a car.

I'm jealous man...I have -$679 in my bank account, $20,000 in student loans to pay off, $450 collections posted to my credit, and my annual income is $15K at the moment lol