Quote:
Originally Posted by Flying Ace
all this talk, yet nothing on the other side of the equation...Income. What's your monthly DTI bruh?
I'm going to give it to you straight here, unless you make over $100k+, you can't afford a $71k car...not in the Bay Area. Hell my wife and I both make over $100k each, and we can't afford a $71k car.
Do you even care about things like retirement, tax advantaged savings like a Roth IRA, building equity in property, passive income sources and having a brokerage/investment account?
My household has checked every box above and contributed for it and the max we're willing to spend on any car is still in the $50k range. And I had to dig hard into convincing my wife I can sell my M3 for $30k to come out of pocket $20k. Hell the most I've paid for any car to date is $46k (for my M3 in 2010), and that's after selling a car worth $13k to come out of pocket $33k. Our monthly debt-to-income is roughly 3%, likely less. I want to say, after basic living expense (including taxes), we bank and invest about 90% what's left. And yes, we own a house, in SF no less.
Let me put it this way, your goal in life is to set up a retirement where you monthly income is $1000...and you can afford a $71k car EVERY YEAR when you retire, how does that sound?
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^Truth here.
I actually had to convince myself to splurge on buying the 2013 135i I have now. I was always a car enthusiast but could never break down and spend the cash for a really nice car. Could I have gotten into a marque brand sooner? Sure. But what made me change my mind was some recent life changing events which made me step into the YOLO camp for a bit. My previous cars were a 2006 Ford Focus, 1994 Cavalier Z24, and a 1994 Camaro Z28 bought used.
One thing I wished I had done was to take more advantage of a Roth IRA. By the time I wanted to do more with that account, I was disqualified from contributing based on IRS rules.