JohnnysG

iTrader: (14)

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 G37 people and how much they bought their car for vs. their annual income.


I have found a beautiful 2013 M6 fully loaded with 12k miles for 57k from a private seller, clean title, etc etc. 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.


Here's my predicament: I'm 23 years old, I'm an accountant at GT making close to 70k, will more than likely get a promotion by the fiscal year-end, and I've worked hard to try to get to this point. 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%). The G was my passion, and now (maybe) I will have a new passion in this M.


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. 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 think 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.




TLDR: 23 y/o kid wants to buy a 2013 M6 for 57k, putting down 27k, (his own money) - do I do it

Ricio1991

Definitely would be nice to have a nice car like that but putting down such a huge amount on a depreciating asset doesn't sound that good. Have you thought about buying a home you have a nice salary and with that much down payment you would be good on a investing choice. I bought my house at 24 which was just recently and don't regret it I hated paying rent. Think about it but good luck with whatever you decide.
I don't make much 35k a year average and my G was 22k now it's about down to 18k and my house is worth 210k and bought it for 192k and ended up owing 184k due to a program down payment assistance granted by the govt.

JohnnysG

iTrader: (14)

Well - the way I think of it is that 14k of the 27k or so down payment is coming from my actual G sale and parts. I'm putting about 12k or so of my own money down which isn't nearly enough to even get me remotely started in the housing industry. Plus - I kind of figured I'm young now and might as well try and get something I like before I really get financially stuck if I ever get married/own a home or two, etc,etc.


Plus - if push comes to shove, I can always sell the car. I know it's a depreciating asset obviously, but I don't know how much longer I can hold onto the G

JohnnysG

iTrader: (14)

Please help - I need some guidance on what types of deals and leases you all did for your cars and what the average salary is more or less.

z 2 g

iTrader: (4)

Check with Dave Ramsey but you might not like what he will tell you. He has a radio talk show and web site. Just a little advise from a older guy how gets by on little income, debt free, and drives a 13 G coupe.

Waste86

I was roughly in the same position when I bought my G in my mid 20s. I financed a little over 30k for 5 years. I made a little less, probably mid 60s but had no student loan debt. My payments were around $550, and that is without insurance. I was living comfortably at the time paying around $750 for my house, then utilities on top of that. If you could get an extended warranty, I would make sure you can do that as repairs can easily chew into a monthly budget. At the end of the day, it is your call as to what you want to do, just always leave yourself a way out.

telcoman

Don't do it!

You should have at least 9 mos salary cash in a saving account as well as having cash to invest during stock market downturns preferably in a ETF S&P 500.

Telcoman

JohnnysG

iTrader: (14)

Yes I do, I have over 9mos salary in my savings. I thought I said I currently have 35k in liquid assets? lol

Lego_Maniac

iTrader: (3)

You're an accountant, and your asking financial advice on a car forum???

My .02 cents......move out of your parents house and don't tie up all your money in a car at 23. My FIL had a M6, and while it was a fabulous car, maintenance was expensive. I also think you're under budgeting rent. $1k wouldn't go far in Charlotte, let alone Arlington, unless you don't mind living in the ghetto.

JohnnysG

iTrader: (14)

Just because I'm an accountant doesn't mean I can't ask for advice on a car forum to see what they make and what they financed?

Lego_Maniac

iTrader: (3)

You've gotten plenty of advice. You just don't like it. As an accountant, you should know this isn't the best financial idea.

If you want the car go for it, but I don't think anyone is going to actually recommend that.

Finance/Real Estate guy here

ANMVQ

iTrader: (13)

I wouldn't do it , You cutting this to close. You said you make close to 4k Pre-Tax (Before tax). Then paying 2k student loans, 750 car payment( HIGH) with ins and 1K for a place to live. That's $3750 that's probably more than you are taking home a month? No? You will be in the "Red" every month, you have not even accounted for , Gas, food, lights and or heat?

Not bashing but you sound 23? unless your not going to eat, put gas in the car( It will NEED it), go out anywhere, and live in the dark with no heat. I'd say wait till you make closer to 100k to get a car that cost that much, BTW the car is 75% of you income :/.

Take it from a guy who was there did that and watch his cc debit grow casue everything went to the car, food and gas. An I was making more than 70k.( 20 years ago). Took 10 years to clean up that mess.

Finance guy also

Selym

$2000/mo for student loans? I'd pay those down before buying a car.

JohnnysG

iTrader: (14)

Please note I am not required to pay 2k - I pay 1k additionally to pay it off quicker.

sharkey

iTrader: (1)

To add....

You know what's best for you, that's the main thing.
Cars come and go, better ones come after you buy a car you thought you would be satisfied with.

My opinion, don't do it

My further opinion, get out of the parents house

My last opinion, you are indeed smart as it seems from what you typed. You should know the answer for yourself