Financing Help on an M4/M6

[yourcakeisready]

Hi guys - been going back and forth between an M6 and an M4 for some time now. I'm making this thread to try and see the general consensus and overall pay median for M4/M6 people and how much they bought their car for vs. their annual income.


I have found two beautiful M's, an M4 and an M6 in the price range about 56-59k. I plan on selling my G for maybe 10-11k and the aftermarket parts for another 3-4k. This leaves the mortgage down to around 42-44k give or take. I also planned on putting down somewhere between 10-12k. I would get my mortgage down to about 30k - so I am financing 30k over 4/5 years?


Here's my predicament: I'm 23 years old, I'm an accountant making close to 70k, (associate), will more than likely get a promotion by the fiscal year-end. I probably make around 90k pre-tax. I don't want any "save your money and throw it into a portfolio" type bull****. I save my money and I invest my money in tangible objects and make a decent return, (anywhere from 15-30%). I don't have any additional expenses to pay besides students loans.


I'm paying student loans at $2k a month, which is currently my only expense due to me living at home in NJ. I lived in VA for 8-9 months paying rent at Arlington which absolutely sucked. I will more than likely have to move back to VA by fiscal year-end to receive the promotion. If I DO get this car, this is how I was planning to budget:


$1.5k - student loans
$700-750ish total for car payments, (including insur)
$1k - apt


I'm taking away just around $4k a month pre-tax, which doesn't include my side hobby which I probably can take away anywhere from $1-2k additionally a month. I have about $35k in liquid assets and can get to maybe $85k if I sell all my inventory.


Even if I do stop my side hobby, to pursue the housing market, (which is my long-term dream and stop accounting), I will have a buffer of around $800 leftover a month - if I pay rent in about a year at VA. I don't plan on living in VA or plan on investing in housing in VA. I plan on moving back home again if I do get promoted. If they don't allow me to move home, I will need to either switch departments (I'm in governmental work - would switch to commercial), or find another job, which I don't anticipate would be that difficult in accounting.


I posted this same topic on personal finance forums and was absolutely slammed, (obviously - not sure what I was expecting), so I'm posting here because I feel like other people have been/are in my shoes. Also would like to know how much people generally make and how much they are financing for these cars.



TLDR: 23 y/o kid wants to buy a 2014 M6 or 2015 M4 for 57-59k, putting down 27k, (his own money - 14k from sale of car, 13k from own money)

[Supra2k6]

IMO an M4/M3 would be much worth it looks like m6/m5 depreciate too quickly.

i live in Arlington there is no such thing as a 1k apt. a studio on my building starts at $1400. i have a 2bed and it gets up there in price.

House market in VA is still a great place to invest it's not as saturated as other places.

I would wait until you get that promotion and winter is almost over before you buy anything unless you find an extremely great deal

[shadow191]

Does your budget include food? Didn't see it in your math...

Of course if you go to a car enthusiast forum, there are lots more people who probably bought more car than they can afford so the answers will be skewed just like they are on a personal finance forum.

[lowside67]

What will your insurance cost? A simple $30,000 loan over 5 years at 4% yields a monthly payment of $552.50. If you put a bit less down and borrow $35,000 at the same rate and amortization, you will be at $644.58. Doesn't seem to leave a lot to insure a nearly new $60k car.

Mark

[yourcakeisready]

Originally Posted by Supra2k6

IMO an M4/M3 would be much worth it looks like m6/m5 depreciate too quickly.

i live in Arlington there is no such thing as a 1k apt. a studio on my building starts at $1400. i have a 2bed and it gets up there in price.

House market in VA is still a great place to invest it's not as saturated as other places.

I would wait until you get that promotion and winter is almost over before you buy anything unless you find an extremely great deal

I've found a great deal - which is why I'm posting. I don't plan on living in Arlington directly again. I paid around 1.5k for my last apartment and I don't plan on doing that again. I'm hoping to live on the outskirts and find something cheap.

Originally Posted by shadow191

Does your budget include food? Didn't see it in your math...

Of course if you go to a car enthusiast forum, there are lots more people who probably bought more car than they can afford so the answers will be skewed just like they are on a personal finance forum.

Originally Posted by lowside67

What will your insurance cost? A simple $30,000 loan over 5 years at 4% yields a monthly payment of $552.50. If you put a bit less down and borrow $35,000 at the same rate and amortization, you will be at $644.58. Doesn't seem to leave a lot to insure a nearly new $60k car.

Mark

I'll be roughly paying $120 a month in insurance. I rather put more money down to pay less on interest on the loan.



Is roughly 85-90k a year enough to finance a 30k loan for 5 years? M6's do depreciate rather quickly, car has around 10k mileage. Technically I don't need the M6 and my G37 is already paid off. I'm just getting tired of the G and want something new and exciting I guess, and unfortunately, a house won't do that for me lol

[lens]

Originally Posted by yourcakeisready

Hi guys - been going back and forth between an M6 and an M4 for some time now. I'm making this thread to try and see the general consensus and overall pay median for M4/M6 people and how much they bought their car for vs. their annual income.


I have found two beautiful M's, an M4 and an M6 in the price range about 56-59k. I plan on selling my G for maybe 10-11k and the aftermarket parts for another 3-4k. This leaves the mortgage down to around 42-44k give or take. I also planned on putting down somewhere between 10-12k. I would get my mortgage down to about 30k - so I am financing 30k over 4/5 years?


Here's my predicament: I'm 23 years old, I'm an accountant making close to 70k, (associate), will more than likely get a promotion by the fiscal year-end. I probably make around 90k pre-tax. I don't want any "save your money and throw it into a portfolio" type bull****. I save my money and I invest my money in tangible objects and make a decent return, (anywhere from 15-30%). I don't have any additional expenses to pay besides students loans.


I'm paying student loans at $2k a month, which is currently my only expense due to me living at home in NJ. I lived in VA for 8-9 months paying rent at Arlington which absolutely sucked. I will more than likely have to move back to VA by fiscal year-end to receive the promotion. If I DO get this car, this is how I was planning to budget:


$1.5k - student loans
$700-750ish total for car payments, (including insur)
$1k - apt


I'm taking away just around $4k a month pre-tax, which doesn't include my side hobby which I probably can take away anywhere from $1-2k additionally a month. I have about $35k in liquid assets and can get to maybe $85k if I sell all my inventory.


Even if I do stop my side hobby, to pursue the housing market, (which is my long-term dream and stop accounting), I will have a buffer of around $800 leftover a month - if I pay rent in about a year at VA. I don't plan on living in VA or plan on investing in housing in VA. I plan on moving back home again if I do get promoted. If they don't allow me to move home, I will need to either switch departments (I'm in governmental work - would switch to commercial), or find another job, which I don't anticipate would be that difficult in accounting.


I posted this same topic on personal finance forums and was absolutely slammed, (obviously - not sure what I was expecting), so I'm posting here because I feel like other people have been/are in my shoes. Also would like to know how much people generally make and how much they are financing for these cars.



TLDR: 23 y/o kid wants to buy a 2014 M6 or 2015 M4 for 57-59k, putting down 27k, (his own money - 14k from sale of car, 13k from own money)

If you can save 1000$+ per month after getting the car+insurance. Then get it. As long as you have a good chunk of money you can save in the bank per month, you're set. I'm financing my 335i and I make about 60k yearly pretax, 5k a month, or 3200$ after tax monthly, after all my bills, rent, car, insurance, I'm able to save 1200$ monthly in my pocket for just in case expenses or car parts or whatever.

Oh and I'm 23 as well

[walnuttea]

Originally Posted by shadow191

Does your budget include food? Didn't see it in your math...

Of course if you go to a car enthusiast forum, there are lots more people who probably bought more car than they can afford so the answers will be skewed just like they are on a personal finance forum.

Don't know about you, but there are quite a few additional expenses beyond those 3 you listed. Food is a huge, often overlooked item. You'll go out to restaurants on the weekends, buy some drinks here and there, randomly buy clothes and other necessities. I ran the numbers just like you did but a lot more in depth. What I didn't realize is the huge chunk of $$ that goes into "miscellaneous" spending every month. Even cellphone bills and then having to spend on winter tires. I know what it's like to have the car fever, which I definitely have But that budget is awfully tight.

[yourcakeisready]

Originally Posted by walnuttea

Don't know about you, but there are quite a few additional expenses beyond those 3 you listed. Food is a huge, often overlooked item. You'll go out to restaurants on the weekends, buy some drinks here and there, randomly buy clothes and other necessities. I ran the numbers just like you did but a lot more in depth. What I didn't realize is the huge chunk of $$ that goes into "miscellaneous" spending every month. Even cellphone bills and then having to spend on winter tires. I know what it's like to have the car fever, which I definitely have But that budget is awfully tight.

I don't plan on buying clothes, haven't in a year or so as I still have a closest full of stuff with tags still. I do buy and resell enough things a month where I do make an easy additional $800-1000. I don't know. I just figured if I could keep up with reselling things on the side, I could make it work. Food is big sure - but I spent maybe $100-135 a month on groceries when I rented. I typically didn't go out to restaurants on the weekend - (don't have a girlfriend)

Grabbing a few drinks certainly won't break my bank lol

[BEM-S4]

You can sleep in your car, but you can't drive your house...

That said factor in maintenance nothing you're looking at is cheap from that perspective. Also not sure if you drive to clients or office or whatnot, but those cars are a little aggressive for someone your age. Had a guy show up his first day at my office in an SL600 (which he borrowed from mom while car shopping) and everyone just assumed he was a spoiled lazy ass. Depending on your work situation maybe something to factor in. People like to see young and hungry.

[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.

[C1Boston]

You're going to be paying more than 750 in car payment total. Assuming you're insuring an M under your name insurance is going to cost you A LOT at the age of 23. I pay 316 a month for my non M 3 series (im 24) and for my other car, which is also a non M, I pay close to 600/ month.

[yourcakeisready]

Originally Posted by C1Boston

You're going to be paying more than 750 in car payment total. Assuming you're insuring an M under your name insurance is going to cost you A LOT at the age of 23. I pay 316 a month for my non M 3 series (im 24) and for my other car, which is also a non M, I pay close to 600/ month.

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

[aozer]

I make more than that with no student loans and would never consider getting a car that expensive at this point in my career. Doesn't seem like a smart decision to me. At 27 with no accidents or tickets I'm paying 160 a month for insurance on my 228i. At 23 your insurance on an M car will be a lot higher.

[lens]

Originally Posted by C1Boston

You're going to be paying more than 750 in car payment total. Assuming you're insuring an M under your name insurance is going to cost you A LOT at the age of 23. I pay 316 a month for my non M 3 series (im 24) and for my other car, which is also a non M, I pay close to 600/ month.

Wow your insurance is ridiculous, I pay 120$ a month and I'm 23 for my 335i.

[c1pher]

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.

[Delta0311]

You're setting yourself up to go broke and shit you are an accountant!!! I'm right in the six figure range pre-tax. I wouldn't even think about buying an M4 and M6.. My only other expense is my mortgage but I like the feeling of having money in my pocket and not worrying about possibly going broke.

Oh and you are NOT making $90k UNTIL you see it in writing..


EDIT: Ok I see it's not a NEW M4 or M6.. Yeah it's doable but IF I was you I'd wait till you actually start seeing that $90k come in.

[sygazelle]

Good for you that you have a unique salary situation with your employer. The pay scale for an associate accountant in Virginia is lower that you are projecting after you get your raise. High salaries in that job are $70k, not the 90K you are projecting that you will make with your raise.

Can you afford this transaction if you don't get that raise?

Nobody wants to hear advise that goes against their ideas, but for you to label the advice you got on the finance as bull$hit is not very mature.

Look, you can manmath your way into any decision you want to make. You will have a great car and living for today. That's not necessarily a bad thing. It will just slow up your path toward financial independence if that is important to you.


Good luck with whatever you decide.

[yourcakeisready]

Originally Posted by Delta0311

You're setting yourself up to go broke and shit you are an accountant!!! I'm right in the six figure range pre-tax. I wouldn't even think about buying an M4 and M6.. My only other expense is my mortgage but I like the feeling of having money in my pocket and not worrying about possibly going broke.

Oh and you are NOT making $90k UNTIL you see it in writing..

I'm not worried about going broke when I have 35k liquid and potentially 85k in assets if I sold everything

[C1Boston]

Originally Posted by chaungo

Wow your insurance is ridiculous, I pay 120$ a month and I'm 23 for my 335i.

Insurance rates are ridic in the US for younger kids, in my area anyways. I cry every time the auto payments hit my account.

[yourcakeisready]

Originally Posted by sygazelle

Good for you that you have a unique salary situation with your employer. The pay scale for an associate accountant in Virginia is lower that you are projecting after you get your raise. High salaries in that job are $70k, not the 90K you are projecting that you will make with your raise.

Can you afford this transaction if you don't get that raise?

Nobody wants to hear advise that goes against their ideas, but for you to label the advice you got on the finance as bull$hit is not very mature.

Look, you can manmath your way into any decision you want to make. You will have a great car and living for today. That's not necessarily a bad thing. It will just slow up your path toward financial independence if that is important to you.


Good luck with whatever you decide.

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.

[Delta0311]

You didn't list your monthly spending.. I'm sure you eat and step out of the house everyone in a while.

Don't really see the point of this thread.. You ARE in finance and claim to bank almost 6 figures.. You are buying a car that's less than $60k. I'm sure you already did the math on that, plus you already outlined in this thread that are you going to get the car. Sooooo umm you want a pat on the back, like what are you asking here?? Just get the car already.

[StatenEye]

You'll be fine. Get the car. Enjoy your life.