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-   -   Poll: Salary to afford a new E46 M3? (http://www.bimmerfest.com/forums/showthread.php?t=115501)

TracerHawk 10-16-2005 10:08 AM

Poll: Salary to afford a new E46 M3?
 
Just wanted to do a quick poll, how high do you feel someone's salary should be before purchasing a new 2005/2006 BMW E46 M3?

EdCT 10-16-2005 10:34 AM

Quote:

Originally Posted by TracerHawk
Just wanted to do a quick poll, how high do you feel someone's salary should be before purchasing a new 2005/2006 BMW E46 M3?

It's not a matter of "k", it's "iq" and pick one.

Seriously dude, what a dumb question!!

There are so many factors: do you live at home with mommy and daddy, do you take trips, do you save money or just piss it away, do you have a girlfriend....

Just asking a question like this shows your priorities are, to put it kindly, out of whack.

Ed

Pinecone 10-16-2005 05:13 PM

Wife, kids??? Other hobbies?

LOTS of variables.

SONET 10-16-2005 05:51 PM

Agreed, far too many variables to put a set number on it. Location (cost of living), marital status/dependents, investments/assets, etc.

If you're thinking about it and the question is really weighing on your mind, chances are you shouldn't do it IMHO. This holds true for any depreciating asset.

--SONET

Robsa 10-16-2005 05:54 PM

Ignoring all the variables, I looked at it as cost of an M3 versus a years pay. Should you spend a years pay on a car? How about 6 months pay for one. I would have a hard time justifying spending more than 6 months pay on a car.

sunnykk 10-16-2005 10:37 PM

When you say a years pay or 6 months pay. I look at it as what other obligations do you have. If you have no other payments then yeah, you don't have to make that much. I am sure that no matter how much you make if you have loans, you have to take that into account.

I don't think I could answer that question as there are so many variables.

jvquattro 10-16-2005 10:47 PM

1 Million Dollars muahahahahahahh :D

liuk3 10-17-2005 10:33 AM

I think your scale needs to go almost twice as high.

BayAreaBMWFan 10-17-2005 11:51 AM

You need to make the salary/dependent to account for the variables.
A single guy making 60K can easily plunk down the $700-800 a month to lease the M3.
A married guy making $150K will have to think twice.
Throw in kids and your survey is meaningless.

liuk3 10-17-2005 12:54 PM

Quote:

Originally Posted by BayAreaBMWFan
You need to make the salary/dependent to account for the variables.
A single guy making 60K can easily plunk down the $700-800 a month to lease the M3.
A married guy making $150K will have to think twice.
Throw in kids and your survey is meaningless.

I thought he was talking about buying (as opposed to leasing).

I think this is just an opinion survey. IMO, a single guy making 60k should think twice as well about plunking down 700-800 to lease an m3.

De_UnKnOwN_1 10-18-2005 01:08 PM

dont forget maintenence

and all the gas, becuase this car was not made to be fuel friendly

(sorry if spelling is off somewhere)

TracerHawk 10-18-2005 01:32 PM

Lets keep it simple guys. I bet less than 1% of M3 owners live with Mommy and Daddy, what a dumb statement. What a dumb statement Ed. It doesnt have anything whatsoever if MY priorities are out of whack, I'm just curious what others view as an acceptable range to be able to afford an M3? Simple enough? Fair enough? Sheesh.

I agree, there are many independent factors like if you have a wife/kid/family to feed, if you have a second income, etc etc etc. I mean for a regular, single, 1 income earner man or woman. IF you were single and wanted to get an M3, how much salary would say you should have to afford this car. I don't mind the gas/insurance/maintenance aspects. I figure if you can afford the car, you can afford what goes with it in terms of costs.

I liked the rule of thumb suggested that your annual income should be twice the cars value, thats a good general barometer I think.

Thanks for the votes on the survey. Just opinions guys, no need to stress. :D

Pinecone 10-18-2005 04:51 PM

You would be surprised. A LOT of very young kids driving them, they are either a present from the folks, or the kid is a drug dealer. :)

If you wanted to use those parameters, then you should have stated them, not asking such an open ended question.

But the bottom line is can you afford some $800 - $900 a month payment? Plus insurance? Plus operating costs? Maintenance is included if you buy a new one for the first 4 year, 50K miles. So not costs there. But you still have tires (figure about $1000 - $1500 per 20K miles, could be a LOT less miles, could be a bit more, but seldom over 25K per set of rears). In town , driving kindly, 18 - 20 MPG. On te open road, crsuing steady state, I have seen as high as 27.5 MPH. Most drinv somewhere in between. Track from a high of 9 (loafing) to a low of 4.8 MPG. :)

Oh, and don't forget rent or house payment (and that varies greatly by area), food(some areas cost more than others), clothing, and any other expenses you may have.

Are you willing to eat out less? Eat cheaper? etc?

Still too many variables. Figure how much you spend now, and figure the cost of the car and opearting it, and if the two added together are less than your takehome, you can easily afford it. If not, is there stuff you are willing to sacrifice to have the car? If so, you can do it. If not, too bad.

Moderato 10-18-2005 09:24 PM

Quote:

Originally Posted by TracerHawk
Lets keep it simple guys. I bet less than 1% of M3 owners live with Mommy and Daddy, what a dumb statement. What a dumb statement Ed. It doesnt have anything whatsoever if MY priorities are out of whack, I'm just curious what others view as an acceptable range to be able to afford an M3? Simple enough? Fair enough? Sheesh.

I agree, there are many independent factors like if you have a wife/kid/family to feed, if you have a second income, etc etc etc. I mean for a regular, single, 1 income earner man or woman. IF you were single and wanted to get an M3, how much salary would say you should have to afford this car. I don't mind the gas/insurance/maintenance aspects. I figure if you can afford the car, you can afford what goes with it in terms of costs.

I liked the rule of thumb suggested that your annual income should be twice the cars value, thats a good general barometer I think.

Thanks for the votes on the survey. Just opinions guys, no need to stress. :D

No money down on a 50K loan from BMWFS you are looking at 1K a month for 60 months. Can you afford that yes or no? It's as simple as that.

ktc 10-19-2005 03:54 PM

Quote:

Originally Posted by BayAreaBMWFan
You need to make the salary/dependent to account for the variables.
A single guy making 60K can easily plunk down the $700-800 a month to lease the M3.
A married guy making $150K will have to think twice.
Throw in kids and your survey is meaningless.

Seriously. Trying to buy a home in the Bay Area to garage that new M3 and you'll never afford much else. :)

chuck92103 10-19-2005 04:00 PM

Don't forget that some folks are fortunate enough to get stock options, and when they come due, and the company has performed well, an employee can walk off with 25k, 100k, 500k, in cash after a few years in addition to their regular income.

These folks would typically put a lot of money down on a car or just pay cash outright.

For me, regardless of how much I make, for the past few years, $600 per month has been my pyschological limit for a car payment even though I can afford much more.

Just something wierd about a car payment potentially being larger than a house payment.

Jeff_DML 10-19-2005 04:59 PM

Quote:

Originally Posted by chuck92103
Don't forget that some folks are fortunate enough to get stock options, and when they come due, and the company has performed well, an employee can walk off with 25k, 100k, 500k, in cash after a few years in addition to their regular income.

These folks would typically put a lot of money down on a car or just pay cash outright.

For me, regardless of how much I make, for the past few years, $600 per month has been my pyschological limit for a car payment even though I can afford much more.

Just something wierd about a car payment potentially being larger than a house payment.

when did you buy your house in SD? :yikes: my house is quite bit larger then 600 a month and I think my mortage is a lot smaller then most san diegans. I have issues buying expensive cars :(

chuck92103 10-19-2005 05:03 PM

My house payment is more the $600, just not as much as some of these $1000-$1500 lease payments.

LA525iT 10-19-2005 05:20 PM

I know a starving actor living in a $700 per month apartment that he pays for scraping together substitute teaching assignments who drives a 996 (paid for with inheritance money, leaving him no change).

I also know a multi-millionaire (talking about net worth over $25M here) who drives a 15 year old Toyota half-ton pickup with no air-conditioning (yes, that's her primary car).

My opinion: So what? To each his own.

There 's lots of variables, but no one should ever buy a car up to the limit of what they can afford each month. Doesnt make any sense on a depreciable asset that can be substituted with a much cheaper and equally functional, albeit less fun, alternative.

ed325i 10-19-2005 06:13 PM

Quote:

Originally Posted by TracerHawk
Lets keep it simple guys. I bet less than 1% of M3 owners live with Mommy and Daddy, what a dumb statement. What a dumb statement Ed. It doesnt have anything whatsoever if MY priorities are out of whack, I'm just curious what others view as an acceptable range to be able to afford an M3?...

Obviously, you have not been to Vancouver. Lots of teenagers in M3, AMG C55, various Porsches. :) Anyone want to adopt me?

Where you live makes a huge difference to which car you can afford. What is your monthly rent / mortgage bill? Condo payments around here start at significantly over $1000. House? I am dreaming again.

Ed

chuck92103 10-19-2005 06:24 PM

Not sure I would buy the "twice annual income", since the rule of thumb for mortages is 2-1/2 times annal salary. Granted in some parts of the country this is unrealistic, I would just get my house in order prior to upscale cars.

Robsa 10-19-2005 06:48 PM

In my original post I mentioned not spending more than 6 months pay on a car. As a caveat I live in Texas where you can purchase a very nice home for one years pay :D

Ci2Eye 10-19-2005 06:55 PM

Probably not the answer you are looking for but my Dad would say it doesn't matter how much money you make or will make in the future. The only thing that matters is how much money you have right now that you can allocate towards the purchase of a car and still have some left over. He'd say, if you can't pay for it without borrowing, then you can't afford it.

ClubSpec330i 10-21-2005 01:37 AM

I make very little. Somehow, I was able to make house payment, paid off my '03 ZHP (daily beater), M3 payment, and little money left for modification budget every month. To tell u the truth, I don't even know how much I make every month. My secretary just deposit money into my account and she makes all payment for me. All I know is, I don't make that much money...that I know of anyway.

fso_BamBam 10-21-2005 03:42 PM

I'll 2nd the suggestion that you make 2x the value of the car.

So, the $80-100K range sounds reasonable. I fit in the middle, $90K a year, single, no debts other than the mortgage on my house.

I could afford as much as $900/month but I put down $23K, and financed the rest ($33K).

My payments are about $590/month for a 5 year loan. I always take 5 year loans to keep the payments down, but I have this habit of paying an extra $50-75/month, and so my cars always get paid-off in about 4 years.


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