[wuzhatning]

Originally Posted by Biggie335

Funnily enough almost any salary range these days get approved for premium car loans. I kind of feel I'm fortunate this wasnt the case when I was starting of my career - back then I was young AND stupid and probably would have gone under by pulling the trigger on a car way over my salary at the time if it was as easy to qualify as it is nowadays.

some lenders dont bother checking for your proof of income when you have a solid credit history and a good fico score.

[eluded]

Doesn't everyone just pay cash ???

[MadBimmeRad]

Originally Posted by eluded

Doesn't everyone just pay cash ???

What is CASH?

[Vivek.]

Originally Posted by King Rudi

I used to catch even more shit in my $10k E93. It's hilarious. People only see a brand and have no clue of market value.

My first two cars were e30 convertibles. 99.9% don't realize that convertibles are the cheapest used 3er to buy

Originally Posted by AlpineBoost

Salary is $95k in GA. Prior to this last year I made between $65k-75k for awhile. Started working at 15, currently 37, no college ed., no cc debt, only loan is a mortgage, no kids. I drive a '09 335i approaching 150k miles lol

This is the most honest answer in 12 pages lol

[Cos270]

Originally Posted by jailonacs99

No kids

There it is!

[erickonphoenix]

Originally Posted by King Rudi

Comically, I get called out daily on my Lexus and how everyone thinks it cost me a fortune, from people I work with. I got asked by one of the maintenance guys the other day, why I don't buy a truck. My response was two part - 1.) I can't afford one. (I make slightly more than median income for this area, my home is paid for and my monthly expenses are relatively low) and 2.) Why would I pay twice as much as I did for the Lexus to buy a truck when everyone I know has a truck. If I need to move or haul something, all I have to do is call anyone I know and borrow their truck.

A woman I work with just bought a new Ford Escape. She paid more that thing than I did for my Lexus.

When I bought my second Corvette it was right at $40k and holy crap you would have thought I was JD Rockafeller the way my co-workers reacted.

A few months later I was at a party and a buddy of mine wanted to check out the new "to me" Vette. His GF asked me what kind of raise I got and I told her it was a base model and not that expensive. My buddy said "yeah, it's a base C6 Corvette a year old what did you pay.... ~$40's?" I said "spot on" then he reminded her his Ford F250 diesel was about that, then she turned around and said "You paid what for that truck?' lol

and he said yeah, diesel trucks are expensive.

[FCX5]

Originally Posted by AlpineBoost

Salary is $95k in GA. Prior to this last year I made between $65k-75k for awhile. Started working at 15, currently 37, no college ed., no cc debt, only loan is a mortgage, no kids. I drive a '09 335i approaching 150k miles lol

Great!

[Socaldriver]

Originally Posted by wtwo3

I feel like you could afford a lot more than an X5 if you were a narco in South America.

You have to lay low and the X5 will be the perfect vehicle for me. What would be a good narco vehicle?

[erickonphoenix]

Originally Posted by Socaldriver

You have to lay low and the X5 will be the perfect vehicle for me. What would be a good narco vehicle?

all the narco's I know drive Mercedes coupes.

[wtwo3]

Originally Posted by Socaldriver

You have to lay low and the X5 will be the perfect vehicle for me. What would be a good narco vehicle?

Definitely a g wagon.

[VisualEcho]

Originally Posted by erickonphoenix

When I bought my second Corvette it was right at $40k and holy crap you would have thought I was JD Rockafeller the way my co-workers reacted.

A few months later I was at a party and a buddy of mine wanted to check out the new "to me" Vette. His GF asked me what kind of raise I got and I told her it was a base model and not that expensive. My buddy said "yeah, it's a base C6 Corvette a year old what did you pay.... ~$40's?" I said "spot on" then he reminded her his Ford F250 diesel was about that, then she turned around and said "You paid what for that truck?' lol

and he said yeah, diesel trucks are expensive.

This is the absolute spot-on conversation I've had 30+ times with my Exige since buying it in 2009, as the car appeared then, and still appears to this day to be much more expensive than it actually was/is.

[Ricochet48]

Oh a spicy thread!

As others noted, there's lots of background information that needs to be highlighted before making any sound assessment. My FP&A background forces me to focus on each individual's current balance sheet and P&L as well as future forecast.

Specifically, on the BS side, does the buyer have any outstanding debts (student loans, medical bills, CC, etc.) and how robust are their investments (6mo. emergency fund, maxing out 401K, ROTH IRA, etc.)?

Then in terms of their P&L, I would obviously look at their current salary but also analyze its 5-year projection. Moreover, current expenses are key, but major future purchases must also be planned out (house purchase, wedding, children, etc.). Finally inheritance is a wildcard too (but its projection is likely less clear).

If you're single making $110K (but expect to make $150K+ in 5-years based on your background), with no debt aside from a condo mortgage, a $40K CPO BMW might be okay.

If you're engaged making $150K, still have $20K in debt, and need to save for a wedding and down payment on a home in the suburbs, $40K is likely much more of a stretch.

If you're married with 2 kids and make $175K, $40K may or may not be doable depending on how much you're spending on your children & investing in their future education, etc.

[Socaldriver]

Originally Posted by erickonphoenix

all the narco's I know drive Mercedes coupes.

There was a Narco that had a black Dodge Charger V8. I heard through the grapevine that he's enjoying the "big house" for the next 20 years.

[MadBimmeRad]

Originally Posted by Ricochet48

Oh a spicy thread!

As others noted, there's lots of background information that needs to be highlighted before making any sound assessment. My FP&A background forces me to focus on each individual's current balance sheet and P&L as well as future forecast.

Specifically, on the BS side, does the buyer have any outstanding debts (student loans, medical bills, CC, etc.) and how robust are their investments (6mo. emergency fund, maxing out 401K, ROTH IRA, etc.)?

Then in terms of their P&L, I would obviously look at their current salary but also analyze its 5-year projection. Moreover, current expenses are key, but major future purchases must also be planned out (house purchase, wedding, children, etc.). Finally inheritance is a wildcard too (but its projection is likely less clear).

If you're single making $110K (but expect to make $150K+ in 5-years based on your background), with no debt aside from a condo mortgage, a $40K CPO BMW might be okay.

If you're engaged making $150K, still have $20K in debt, and need to save for a wedding and down payment on a home in the suburbs, $40K is likely much more of a stretch.

If you're married with 2 kids and make $175K, $40K may or may not be doable depending on how much you're spending on your children & investing in their future education, etc.

Moral of the story, if you're married, divorce - if you're single, stay that way

then you can afford a BMW

Originally Posted by Socaldriver

There was a Narco that had a black Dodge Charger V8. I heard through the grapevine that he's enjoying the "big house" for the next 20 years.

I wonder how much his Charger will be when he gets out given it won't have been driven for 20 years - must be a good investment in that sense

[Tyga11]

Originally Posted by Ricochet48

Oh a spicy thread!

As others noted, there's lots of background information that needs to be highlighted before making any sound assessment. My FP&A background forces me to focus on each individual's current balance sheet and P&L as well as future forecast.

Specifically, on the BS side, does the buyer have any outstanding debts (student loans, medical bills, CC, etc.) and how robust are their investments (6mo. emergency fund, maxing out 401K, ROTH IRA, etc.)?

Then in terms of their P&L, I would obviously look at their current salary but also analyze its 5-year projection. Moreover, current expenses are key, but major future purchases must also be planned out (house purchase, wedding, children, etc.). Finally inheritance is a wildcard too (but its projection is likely less clear).

If you're single making $110K (but expect to make $150K+ in 5-years based on your background), with no debt aside from a condo mortgage, a $40K CPO BMW might be okay.

If you're engaged making $150K, still have $20K in debt, and need to save for a wedding and down payment on a home in the suburbs, $40K is likely much more of a stretch.

If you're married with 2 kids and make $175K, $40K may or may not be doable depending on how much you're spending on your children & investing in their future education, etc.

This is horrible advice. I have no idea what your background is but you would probably tell Bill Gates he can't afford a Tesla.

[KiloCo]

Originally Posted by Tyga11

This is horrible advice. I have no idea what your background is but you would probably tell Bill Gates he can't afford a Tesla.

Great Advice if you live in Southern California. ( Highest Taxes of all 50 states.)

[Bimmersandmopars]

Originally Posted by erickonphoenix

When I bought my second Corvette it was right at $40k and holy crap you would have thought I was JD Rockafeller the way my co-workers reacted.

A few months later I was at a party and a buddy of mine wanted to check out the new "to me" Vette. His GF asked me what kind of raise I got and I told her it was a base model and not that expensive. My buddy said "yeah, it's a base C6 Corvette a year old what did you pay.... ~$40's?" I said "spot on" then he reminded her his Ford F250 diesel was about that, then she turned around and said "You paid what for that truck?' lol

and he said yeah, diesel trucks are expensive.

Shit.... used 10yr old diesels with 200k+ miles are $40k these days. New decked out ones are basically $90k-100k.

[jmase248]

This is all subjective as there are many variables, but I found this interesting article..

https://luxurycarsa2z.com/which-inco...w-vs-mercedes/

Here's a notable pull quote:

"BMW demographics are a little bit more "reasonable," as many BMW models are being bought by enthusiasts that stretch their budgets to be able to afford a BMW. Which in turn lowers the average income class of BMW to about $130k per household."

Anyways, back to reading the rest of the comments.

[psyrd]

Originally Posted by jmase248

This is all subjective as there are many variables, but I found this interesting article..

https://luxurycarsa2z.com/which-inco...w-vs-mercedes/

Here's a notable pull quote:

"BMW demographics are a little bit more "reasonable," as many BMW models are being bought by enthusiasts that stretch their budgets to be able to afford a BMW. Which in turn lowers the average income class of BMW to about $130k per household."

Anyways, back to reading the rest of the comments.

The person above mentioned "per household" income. Is that new on this threat?

We only have 1 car, the 745e (see my other threads for info, if you care), and I pay for it and all running costs but we as a couple both make good use of it.

In another twist, I was going to ask not what everyone makes, as that's crass, but what job you do.

I think that's more interesting, especially as we're all over the world in this forum.

[jmase248]

Originally Posted by psyrd

The person above mentioned "per household" income. Is that new on this threat?

We only have 1 car, the 745e (see my other threads for info, if you care), and I pay for it and all running costs but we as a couple both make good use of it.

In another twist, I was going to ask not what everyone makes, as that's crass, but what job you do.

I think that's more interesting, especially as we're all over the world in this forum.

Agreed, that's definitely more interesting (occupations).

[grannyknot]

I always buy used but then I'm handy with a wrench, traditionally, used BMW's have been quite affordable only until recently. I wait until they are in the $5,000 to $10,000 range, buy the best one I can find, put another $1,000 into it immediately in belts,hoses,wires and fluids and then proceed to drive it into the ground. I usually get 6-9 yrs out of them before the rust consumes them.
I'm an old fart now, house is paid off, no debt and could afford a new BMW but really don't see the point.

The 08 Z4MC is the newest and most expensive car I have ever owned.

[Ricochet48]

Originally Posted by Tyga11

This is horrible advice. I have no idea what your background is but you would probably tell Bill Gates he can't afford a Tesla.

Finance is my background.

A quick google search recommends 10-15% of your take-home income spent on transportation. Say you make a 10% deposit on a $40K Bimmer and finance for 5 years at 3%, it'll cost ~$800 a month... add additional maintenance expenses, and of course gas then you're easily at over $1K a month (not including parking, which some people in high rises like me pay $200+ for). NOTE--this is assuming no trade in.

If you make $110K, after taxes and putting some away your 401K, etc. you'll be at about $6K net take-home a month. 15% of this is $900 (under the $1K cost estimate).

I've also seen estimates of 30-35% of your gross income to be spent on the total initial purchase (which would similarly cap our $110K salary at $38,500 at the high end).

New cars have gotten a lot more expensive and used cars are at an all-time high now for many reasons. In general Americans seem to way overspend on their cars as it's part of their identity and an extension of their 'freedom' (allowing them to move freely), I get it. At the same time, the numbers don't lie.

Once again, situations are unique though (debt, children, mortgage, inheritance, etc.)