[Boosted_8]

I figure people will want to spend a higher proportion of income on personal transport than one logically *should if you a) need a status symbol to compete with those around you b) you are enthusiastic about motorcars. Most cars are a shockingly bad investment but if they are your hobby I guess it's money you would spend on golf clubs / watches. I'm in the b) camp but don't blame anyone in the a) camp as advertising and social media is damn powerful (as is peer group competition).

[SorinMecanicul]

around 100k/yr

[nazali]

I'm on income support, pay child support, food stamps, live in a basement apartment, I work in a restaurant and I rely on every tip I get......

But then at night I sell dope/crack & E's, I have a side hustle in numbers and do an occasional bit of protection.

What the CRA don't know won't hurt them

[nazali]

approx 98 gross, self emp. 1st year, so not sure how much my CPA will scavenge for me last year and all preceding years
I was on about half that, I still could afford a BMW

I saved my money back home had some smart saving and bought my first porsche and house (with less money than I'm earning now)
I went 10 years without any holidays or vacations. After that I giot a break in my jobs and for like about 4-5 years I was going on vacation, flying business and staying in 5star hotels.

Got married, immigrated, sold the house, brought over about $250k cash, took a year of, got a factrory job for a year, then got a better job, pay range for the next 8 years was the same, only this year did my wahes go up, prior my OH made more than me.

It's NOT about how much money you make, I had a house a Porsche (for the weekend) and a daily ride. on less money than I make now.

It's WHAT you do with your wages, if your a "piss it up a wall on a friday night Tony" , "OR gamble it away and gone on a sunday betty" then your not going to achieve ANYTHING.

Unless you decide what you want to do and whats important and SAVE then you'll be driving Neon's

My only rule of thumb, ONLY borrow money for a house, EVERYTHING else save for.

My current car is a loan, because I didnt want to take money outta my bank, so I pay like 6% over 5 years.and thats fine, I have that money and can pay for my car tommorow.

MAKE SMART CHOICES and the world is yours

and BTW I still have $100k in liquid assets after 10years of immigration

[2022M550i]

People live outside their means. Everything is a lease…. Don't believe half of what you see. Most people are freaking broke, credit cards maxed And will work till their dead. I see people all the time strapping themselves with monthly payments. They fell into the trap

It took me to earn an annual income over 400K to want to spring for $100k car…. without vomiting. In addition to having significant savings. When I was making 100 grand a year, Over 20 years ago, I wouldn't want to spend more than 20 grand.

I never gave a shit what people thought. I drove the biggest junks throughout my life. I saved all my money, invested wisely, never lived outside my means and I was able to retire very early in life. now I get to enjoy the fruits of my labor.

[nazali]

my first Porker was £10k back in 2000, and I paid that cash
my first BMW was around $36k I wanna say (CPO 3.5 years old 22k on the clock), I took out money from my investments after landing I would say 2-3 years and paid for it.

Now the 2'er (I was on around 30-40k I wanna say, doing a customer services job in IT)
I didn't and OH advised I should get a NEW car due to g'tee, parts etc etc, but I couldnt get the 2er I wanted, had to be a vert, nice color with CA

I was looking around the $30k ish mark and everyone I saw were dog's,then Covid hit, and life changed, I also had a heart attack and was on disability for about a year.

I was just about to give up as the 1'er was just starting to grind up with problems.
Then I tried to work out PX, down payment and loan (As I said I had the money but didnt wanna use it)

Then I saw a 2020 with 211km on the clock (in 2021) must been a demo, fully stacked, but black on black, wasnt keen but I went anyway, it was essentially a new car and the drive sold me.

I got a measly 10k for the PX and it was MORE than I really wanted to pay, but it was essentially a new 2, listed at around 50 something, after the PX, I had to play with payments, didnt want 5 yrs but I did as the car was just to good to miss.

Since then with the chip shortage, you cant get a car you want.

I took around 40k on 5yr finance, with about 10k deposit I wanna say, then I went self employed pretty much within a few weeks and my salery jumped to 90k or so (I recently got a raise to 98)

Some people do live beyond there means and a lot dont.

TBH I'm not really sure the point of the thread in so far as asking why or why not people can afford cars ? The same can be said about houses, some people buy mansions and live on spam.

If someone wants to live beyond there means, I don't know what the issue is ? At least they aint going out and shooting people are dealing drugs ? LOL or maybe they are.

I'd like to think I am not special in how I handle my finances, and I'm sure I'm not

[Piper1]

Had a millionaire in the family ask me shortly after I got my 03 Z4 in 2011, him knowing absolutely nothing about the car said to me “That’s an $80k car how can YOU afford that?” I was working retail at the time making around $36k. I just smiled and shrugged my shoulders and let him ponder.

[X4MComp]

So I do agree with people saying it's a horrible investment, but in my opinion coming home to a nice house and jumping into my 100k car feeling good gives motivation to push and work harder and smarter. If you can only afford a civic then u settle for what you get, but if you buy a little above what you can afford you will wake up and figure a way to pay for it. Life is short and to wait for the right time may never come. The richest people lease cars, mortgage houses and don't own, they take the liquid cash and invest it. Money is not a means to end but a motivation to get more. We live comfortably and enjoy everything we buy making life worth pushing. Safe doesn't get you anywhere.

[S65M3AL]

Just be grateful that you can afford one or more.

[Randy Johnson]

Originally Posted by Patton250

I think I was like eight years old when I asked my father how much money he made. It didn’t go well.

rough childhood....

[440i6MT]

Originally Posted by X4MComp

So I do agree with people saying it's a horrible investment, but in my opinion coming home to a nice house and jumping into my 100k car feeling good gives motivation to push and work harder and smarter. If you can only afford a civic then u settle for what you get, but if you buy a little above what you can afford you will wake up and figure a way to pay for it. Life is short and to wait for the right time may never come. The richest people lease cars, mortgage houses and don't own, they take the liquid cash and invest it. Money is not a means to end but a motivation to get more. We live comfortably and enjoy everything we buy making life worth pushing. Safe doesn't get you anywhere.

Great words.

My current job is p*ss-poor in the inspiration department, nor do I make much, but simply getting to get & leave here in an ENJOYABLE ride is more comforting than if I made double and drove an old Lexus.
We're all gonna make it.

[nazali]

Very good post, I whole heartly agree.

And NO car is an investment, want one of those get an RSP/TFSA or a house.

But an RSP won't get you laid, nor make you feel as good as driving around with the wind in your hair, yeah a house will get you laid, I'll give it that. LOL

Depends what you want in life, if you want a nice car and a house you can actually do it, I remember when I was a teen, getting the bus, there was a mazda showroom and boy I looked at thoes boxy 323's or whatever and they were shiny in the showroom at about 10times my salery and I never thought I could afford one of thoes

30 years later, house, BMW, and 200k in the bank, you can do it, dont let no-one tell you otherwise

Originally Posted by X4MComp

So I do agree with people saying it's a horrible investment, but in my opinion coming home to a nice house and jumping into my 100k car feeling good gives motivation to push and work harder and smarter. If you can only afford a civic then u settle for what you get, but if you buy a little above what you can afford you will wake up and figure a way to pay for it. Life is short and to wait for the right time may never come. The richest people lease cars, mortgage houses and don't own, they take the liquid cash and invest it. Money is not a means to end but a motivation to get more. We live comfortably and enjoy everything we buy making life worth pushing. Safe doesn't get you anywhere.

[SteezeforMyBimmerMon]

no chance 99% make that much in my opinion. I'll bet the number who make less than 50k would surprise you. Simply the number who drive a BMW that their parents own is probably way more than 1% alone.

[nazali]

No rough is after asking your dad how much he makes he turns round and says "shadup, pick up lunch , were heading down the mines"

Originally Posted by Randy Johnson

rough childhood....

[TheMaxXHD]

Originally Posted by ladkii

I don’t see how $100,000 allows a younger person to comfortably purchase a $80,000 car if they have a family and normal living expenses.

If we assume United States, joint/total household income = $100,000, and atleast one kid, and either rent or have a home mortgage (doubtful) forget the $80,000 car, forget $60,000, or even $40,000. A $20,000 car is likely even pushing it. A young family at $100,000 household income is likely renting and/or making ends meet with only a little to spare, or living with parents.

A $100,000 younger (20s) single income even with no family and no child and very little living expenses won't get you a proper place that isn't a LCOL area unless you have significant cash reserves for 20%, if not greater than, downpayment on a home. A decent MCOL to HCOL place will start at $300,000 if you are lucky. In my area (about about an hour-ish outside of Philadelphia) decent townhome "starter" homes will START at basically $400,000. Crazy.

On the other hand, in a LCOL, like Mississippi, a decent starter home can probably be had for $200,000.

On the flip side, a younger (in their 20s) person, single, living at home with parents, with no debt, making $100,000, can probably afford an $80,000 car. Whether they should is entirely a different topic.

TLDR; there are a ton of variables to consider, income is only a small portion.

[eyeslikelines]

Originally Posted by TheMaxXHD

These conversations imo miss the point. You can afford whatever car fits your financial situation and your risk tolerance. Notice how I said financial situation and not simply just how much one makes. You can make quite a bit less than one might think to afford a BMW. Salary/wage for sure matters, but expenses and liquid cash situation matter just as much, if not more. Ultimately, it comes down to wage relative to obligations.

I am just out of college, I do make good money for being just out of college, but I am below 6 figures. That is probably less than many of you. Have a 2023 M340i xDrive on order currently, MSRP ~67,000.

There is a reason BMW has the recent college grad program (that I am taking advantage of), grads have a higher chance of lower obligation, even if they make less. If there was a very low uptake of that program, they wouldn’t be offering it.

By the time I receive the vehicle I could probably swing a 50% downpayment if I wanted to (and might with interest rates) with a bit of room to spare for emergencies, after years of saving a lot and the past few months of saving with my new job. In addition, providing nothing else happens, I will likely within 1 year or so of receiving the vehicle have the ability to pay off the car entirely if I so chose (also in part because interest rates). I also have a some cushion in the bank if something goes wrong within the first few months of receiving it, to give me time to find another job (also helped by doing a 5 year loan which would also buy me time).

I’m lucky. I can afford what is practically my dream car for the next 10+ years. I can do this because I save, and have no other major obligations. Many others will make much more than me, but also find it more difficult than me due to other obligations like mortgages, taxes, bills, taking less risk due to family, etc. Do your research, understand the risks, understand your situation, and make an informed decision. That is all you can do. It is so much more than just how much one makes pre/post-tax.

Also finally, buy the car you want, at the price that makes sense for you. Nobody needs a BMW, a Honda Civic is still an acceptable vehicle. If that is what you can afford or all the you want, that is perfectly fine. Don’t overstretch for the sake of a status symbol or a want. If you can afford it and want a BMW, great, if not, one has plenty of great options for much less.

Risk tolerance is key. Also opportunity cost of putting money into a depreciating asset. I just bought the exact same car, make about $700k/yr. Felt like I was stretching.

[Mosaud1998]

I sell *ss full time

On the flip side, why is it anyone's business here? Got me feeling like I'm getting married and the girls parents are asking me what I make a year and stuff

[TheMaxXHD]

Originally Posted by Mosaud1998

I sell *ss full time

On the flip side, why is it anyone's business here? Got me feeling like I'm getting married and the girls parents are asking me what I make a year and stuff

Yeah. While this thread is thought provoking for sure, not much point in it, and it isn't anyone's business what one does with however much money they have. This isn't a financial advice forum. This is a car forum.

You know as the saying goes, there is always someone richer than you in this world, and always someone that is poorer than you in this world.

There will always be someone driving a more expensive car than you making less than you. There will always be someone driving a cheaper car than you making more than you.

Nothing more to be really said

If you want to be critical, you could say we are all the dumb ones driving BMWs, meanwhile the investor dude making more than us driving a Honda Civic is the one laughing at us.

[Piper1]

Originally Posted by nazali

And NO car is an investment

I whole heartedly disagree. Both of my Z4s are an investment on my happiness and joyful experience to get behind the wheel. It’s not a financial investment it’s an investment on my enjoyment in life. Take the average working commute time and add it to an annual amount of hours spent and if you’re not enjoying the time being in the car you drive then you’re not enjoying those many hours/days of your life wasting it away.

Being a musician one of my previous cars that was used was not an expensive car by todays standards but was for me back then, I had a stellar system to enjoy tunes during the drive. Now I drive the cars I can afford within my means that give me joy just to get behind the wheel. Why else would you be on a message board where the slogan of the car company is “the ultimate driving machine” and not actually enjoy the drive?

[Mosaud1998]

Originally Posted by TheMaxXHD

Yeah. While this thread is thought provoking for sure, not much point in it, and it isn't anyone's business what one does with however much money they have. This isn't a financial advice forum. This is a car forum.

You know as the saying goes, there is always someone richer than you in this world, and always someone that is poorer than you in this world.

There will always be someone driving a more expensive car than you making less than you. There will always be someone driving a cheaper car than you making more than you.

Nothing more to be really said

If you want to be critical, you could say we are all the dumb ones driving BMWs, meanwhile the investor dude making more than us driving a Honda Civic is the one laughing at us.

Exactly!

[nazali]

There are different types of investments, this thread is purely about money/wages and earnings, so the implication on terminology is financial.
The reply was to a post to a person why said the car was not a financial investment.

Were not talking about soft choices (i.e. feelings) we are talking about hard ($$$'s).

For this thread the argument of how good or bad something makes you feel is irrelevant, a Bugatti Charron or whatever will make me feel good but it will depreciate.

Also when I bough my 1er for $36k right out the door I asked just curious, how much they trade the car in today if I changed my mind

They gave me a figure in the 20's. I hadn't even driven the car.

Cars and Crack both bad investments



Post is about can you afford said car.

Originally Posted by Piper1

I whole heartedly disagree. Both of my Z4s are an investment on my happiness and joyful experience to get behind the wheel. It’s not a financial investment it’s an investment on my enjoyment in life. Take the average working commute time and add it to an annual amount of hours spent and if you’re not enjoying the time being in the car you drive then you’re not enjoying those many hours/days of your life wasting it away.

Being a musician one of my previous cars that was used was not an expensive car by todays standards but was for me back then, I had a stellar system to enjoy tunes during the drive. Now I drive the cars I can afford within my means that give me joy just to get behind the wheel. Why else would you be on a message board where the slogan of the car company is “the ultimate driving machine” and not actually enjoy the drive?

[2008M36MT]

Originally Posted by Mosaud1998

Exactly!

Are you joking? Lol you share your salary or allude do it in off topic constantly, it's like a running joke on there. Why the change of heart?