f80 M3 vs Student Loans

[coloradoe92m3]

I say live now and get the car. Make payments and enjoy m while young.

[georgia_dawg]

Originally Posted by Sapper_M3

Depends.

6MT vs DCT? Color?

Lol

[Falafel Combo]

^^^

You bumped a year old thread, to add ... Lol?

[Falafel Combo]

Welp, my accountant advised me to get the car. His words were, if I recall correctly, "student loans can get bent". Makes sense. Who am I to argue!


.

[MatthewDavid]

Technically unless you carry some level of debt at interest rates less than investment return then you're not operating at the efficient frontier of capital optimization and thusly not optimizing the enjoyment in your life. Friedman would agree. People complain about national debt, but don't understand the servicing costs of the debt are incredibly if not historically low. Now that doesn't mean I condone leveraging yourself to the hilt - I have no real debt except my lease payment and occasional low interest expense margining of long stock for cash flow - but you'd really be doing the economy and my investment portfolio a favor if you all went out and spent, spent, spent.

Originally Posted by Falafel Combo

Welp, my accountant advised me to get the car. His words were, if I recall correctly, "student loans can get bent". Makes sense. Who am I to argue!

[MatthewDavid]

Originally Posted by Rated R

The economics of the US is a mess. Anything can happen and nobody knows what that will be. Another argument could be that you should spend it all now before it's worthless...

How can you possibly say the economics of the U.S. are messed up?! I think there's pretty massive historical precedent for what will be, a few bear markets aside

Stop watching CNBC haha

[evanescent03]

Originally Posted by Falafel Combo

Welp, my accountant advised me to get the car. His words were, if I recall correctly, "student loans can get bent". Makes sense. Who am I to argue!


.

6.8% are what my unpaid dental school loans are at, also. 9.5% are all paid off ... 6.8% is painful enough..

your accountant is the man. I have colleagues who get excitement out of driving 20 year old cars and eating ramen while paying their loans off really fast. I'm happy them but also don't want that myself. I'll actually be sad when I'm done paying off loans .. they are a part of me and I never wanna say goodbye (and may never at this rate, haha jk).

don't get me wrong I have a financial plan and it's going quite well.. but some of the guys out there think you're crazy for buying an unnecessary TShirt before being debt free. nothing wrong with that, obviously, but no thanks!

[georgia_dawg]

I would have done the same thing. Heck, I just traded in my 6 months old 428i to get m4.. Lost a few grand in the process. Both financed... And I am very happy with my car(for the time being..)

[dmk08]

Well since this thread has been revived. College doesnt make you smart it makes you more knowledgeable. Plenty of dumb people went to college and plenty of smart people didnt.

[ASBSECU E93]

Originally Posted by Falafel Combo

I hear you. Besides, everything is a payment nowadays. Mortgage, car, insurance, business loans, credit cards. Not a lot of people "buy" stuff. You either finance or lease it. Besides, why would I tie $70,000 cash in a depreciating asset? I prefer to use someone else's money, low interest rates and let inflation work to my advantage. Maybe i'll hold off until interest rates on the f80 become more competitive, and finance it then?


The 6.8% just kills all the fun, and wants me to get out of that loan ASAP!

if you don't pay...it's not like they come and repo the 5 years of college...

...seriously though, 6.8%???

[evanescent03]

someone posted this today (one of my classmates).. perfect.

[Falafel Combo]

Originally Posted by evanescent03

someone posted this today (one of my classmates).. perfect.

OH MY GOD! This cracked me up! Hysterical!!!

[Falafel Combo]

Originally Posted by evanescent03

6.8% are what my unpaid dental school loans are at, also. 9.5% are all paid off ... 6.8% is painful enough..

your accountant is the man. I have colleagues who get excitement out of driving 20 year old cars and eating ramen while paying their loans off really fast. I'm happy them but also don't want that myself. I'll actually be sad when I'm done paying off loans .. they are a part of me and I never wanna say goodbye (and may never at this rate, haha jk).

don't get me wrong I have a financial plan and it's going quite well.. but some of the guys out there think you're crazy for buying an unnecessary TShirt before being debt free. nothing wrong with that, obviously, but no thanks!

Absolutely! It's all about leveraging the debt, maximizing cash flow and investments ... and whenever possible, using other peoples money for depreciating assets!

[Falafel Combo]

Originally Posted by ASBSECU E93

if you don't pay...it's not like they come and repo the 5 years of college...

...seriously though, 6.8%???

The only reason I have 6.8% loans, is because I already paid off the 8.5% ones!


Can't refinance them, can't consolidate them. Oh, they had me good. But you know what? I am only grateful for the opportunity it has provided me, and I am forever indebted to the American taxpayers, who made such an investment in my career early on. Because God knows, I didn't have two dimes to rub together. Going to graduate school has provided me and my family with a vastly improved lifestyle, higher income, opened the door for me to become a business owner and being my own boss, and has just generally improved my standard of living. I would do it all over again at 10%.



In other words, I have no ragrets.

[simpelton]

Buy the car, end of conversation. at zero rates across the world, debt has no meaning. Get the car, work hard, you'll be fine. Two types of people in the world, the ones that save money and the ones that make money. You want to be the one that makes. I know because I am the unfortunate one having to save money... Although, I am constantly looking to make more... Don't let the world stop you or tell you can't do something!!

[Vincz]

Obviously you bought the car and are enjoying it. There is a lot of financially sound advice in here, I won't add my 2 cents, but I will add my experience briefly. In my profession, I see a lot of people die unexpectedly, at all ages. Most of them read the "healthy living" book or were too young for this to even apply when they passed, given that I have opted to enjoy the day because tomorrow is not promised to anyone. See enough death and you realize what a gift everyday is, only then do you truly appreciate it for what it's worth. Live within your means, but do what it takes to enjoy your time here, whatever that is for you.

Sorry for the rambling, it's early and I am only 1 cup of coffee in...

[MKParris]

I think that before you get this car, you should have at least:
$100K in home equity
$100K in bank
$100K in retirement

and no debt (fixed or CC) aside from the mortgage if you are younger than age 30. Tack on $50K to any of the above numbers for every year over 30.

[ridin135]

Originally Posted by MKParris

I think that before you get this car, you should have at least:
$100K in home equity
$100K in bank
$100K in retirement

and no debt (fixed or CC) aside from the mortgage if you are younger than age 30. Tack on $50K to any of the above numbers for every year over 30.

Wishful thinking, not sure of to many 20 year olds who can accumulate 300k of extra cash.

[Falafel Combo]

Originally Posted by MKParris

I think that before you get this car, you should have at least:
$100K in home equity
$100K in bank
$100K in retirement

and no debt (fixed or CC) aside from the mortgage if you are younger than age 30. Tack on $50K to any of the above numbers for every year over 30.

This is horrible horrible advice. It doesn't apply to anyone. Where do you get these numbers from?

[GMe90]

If you have any loan other than a mortgage, you cannot afford an M3/4.

[Bahn360Photo]

Originally Posted by jc1654M4

I thought college made people smart :/

best comment!!!

how about pay out the loans and lease the M. no debt, no interest no problems

[Jojipoji]

Originally Posted by GMe90

If you have any loan other than a mortgage, you cannot afford an M3/4.

Lol what? I have student loan debt from law school, a note on my GTR and my honda oddessy a home mortgage and a commercial property mortgage totaling close to 7 figures. Trust me my m3 lease is the least of my debts. I finance because my roi > then the 2-3% on my car/student loan debt. I have over 50% equity in my commercial building plus enough cash on hand to not work for a long while. I own my own business and don't expect to get fired soon.