Looking to purchase my dream BMW which has depreciated nearly 50% and is practically new (2-3 years old). This car would be my daily driver. I am a car enthusiast and work on all my cars so I don’t mind spending more than what the typical person would on a vehicle.
I currently follow the 50/30/20 rule. With 20% down and sell my paid off and heavily modified BMW (much more value than trade-in), monthly payments would be approximately $850-$900 at 7.5%. I may have to stomach a $1250 monthly payment for a few months until my car sells. Insurance $100 a month full coverage on new car. I love my current vehicle, no need to sell as I have recently completed some major maintenance items…but mileage is getting high nearly 100k now and I have owned this vehicle for 4 years. I typically switch cars 3-5 years but this BMW I see myself owning forever.
With a $900 monthly car payment (~14% of take-home salary), my fixed costs for all necessities (rent, groceries, bills, insurance, gas, etc) total ~50% of my take-home while still saving at least 20% (excluding 401k match). +20% promotion in 1-2 years. I currently rent a nice cheap condo and have a 20% down payment ready for a house purchase which I have decided to hold off until prices or rates go down. No plan for kids for at least 5 years.
The numbers all make sense on my budget spreadsheet and follows the 50/30/20 rule. It is tough thinking about going from $0 car payment to $900. Although it is not needed, it is my dream car and seems like a good time for me to pursue (young, stable job, heavily depreciated, no kids, no debts, house down payment ready, etc). Someone talk me out of buying this car!
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7.5%? Put more money down unless you can reliably get better than that on investments over the life of the loan.
M850? M550? Or X5m50?
M8 coupe is the sexiest looking car BMW makes right now, I’d just cop it tbh.
M8 coupe is the sexiest looking car BMW makes right now, I’d just cop it tbh.
Which model?
Which model?
“This BMW I see myself owning forever”There’s always something newer/shinier/ faster around the corner, so take the “keep it forever” rationale out of the equation.
You’ve decided to hold off buying a house until rates go down, so why not do the same for your car? There’s an argument that low interest rates are more important in a depreciating asset, like a car
I think you know it’s a bad idea, so you have come here to get talked down off the ledge?
If it’s an emotional decision, that’s fine, life is short, get the car!! but don’t try to convince yourself it was the logical thing to do
Just buy it man
My first thought is $900 at 7.5% is a high payment
My first thought is $900 at 7.5% is a high payment
The burning question is: What’s your dream BMW though??
One thing to consider/think about is selling your current car. No mention of what you currently have but you say it’s heavily modified. Mods don’t automatically increase resale value. Some people don’t like buying modified cars or aren’t willing to pay a premium for them. Some will, but it may take additional time to sell. Just compare what you have (with all the mods) to some recent sales of comparable cars (ideally with similar mods/builds) to get an idea of what you could realistically expect.
As a car addict as well, I’ve told myself “I’ll keep this one forever” multiple times. That has yet to happen lol.
Good luck whatever you choose!
I almost have an m8… lol m850i and I love it so much ❤️❤️❤️
The burning question is: What’s your dream BMW though??
One thing to consider/think about is selling your current car. No mention of what you currently have but you say it’s heavily modified. Mods don’t automatically increase resale value. Some people don’t like buying modified cars or aren’t willing to pay a premium for them. Some will, but it may take additional time to sell. Just compare what you have (with all the mods) to some recent sales of comparable cars (ideally with similar mods/builds) to get an idea of what you could realistically expect.
As a car addict as well, I’ve told myself “I’ll keep this one forever” multiple times. That has yet to happen lol.
Good luck whatever you choose!
“This BMW I see myself owning forever”There’s always something newer/shinier/ faster around the corner, so take the “keep it forever” rationale out of the equation.
You’ve decided to hold off buying a house until rates go down, so why not do the same for your car? There’s an argument that low interest rates are more important in a depreciating asset, like a car
I think you know it’s a bad idea, so you have come here to get talked down off the ledge?
If it’s an emotional decision, that’s fine, life is short, get the car!! but don’t try to convince yourself it was the logical thing to do
I almost have an m8… lol m850i and I love it so much ❤️❤️❤️