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Been reading personal finance websites, FWF, etc for a while.. see the same things over and over: buy a car that is cheap and you can run into the ground, never lease a car, don't buy a home over xxx% of your income, and various frugal living advice.

I have been on my own, financially, about a year now, but still living on a college budget. I'm making very good money (130,000) , and I am considering 'splurging' on a nice BMW 535i or Cadillac CTS-V.

I have never been one to waste money, and I saved about 75% of my after tax income this year. My current car payment is about $200/mo, but I'm thinking "screw it" - I'm 24, what's the point in making lots of money if you don't live a little. Looking at cars in the $30k - $40k range.

Am I young and foolish for wanting to blow some of my disposable income on an awesome car? This purchase would bump my "transportation - car/gas/insurance" costs from ~4% of my '12 income to ~10%. My rent/utilities are 6%.


FWF, What do YOU splurge on?

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DINK4LIFE said:   Been reading personal finance websites, FWF, etc for a while.. see the same things over and over: buy a car that is cheap and you can run into the ground, never lease a car, don't buy a home over xxx% of your income, and various frugal living advice.

I have been on my own, financially, about a year now, but still living on a college budget. I'm making very good money (130,000) , and I am considering 'splurging' on a nice BMW 535i or Cadillac CTS-V.

I have never been one to waste money, and I saved about 75% of my after tax income this year. My current car payment is about $200/mo, but I'm thinking "screw it" - I'm 24, what's the point in making lots of money if you don't live a little. Looking at cars in the $30k - $40k range.

Am I young and foolish for wanting to blow some of my disposable income on an awesome car? This purchase would bump my "transportation - car/gas/insurance" costs from ~4% of my '12 income to ~10%. My rent/utilities are 6%.


FWF, What do YOU splurge on?


Your rent / utilities are artificially low, enabling you to save that much of AT income. I personally splurge on fine dining, but that's me. A BMW 535i might seem a bit odd to your coworkers so I would caution you on that basis, but if that is what you're really into, then go for it - it sounds like you've thought this out (car, gas, insurance, maintenance costs, etc.)

Your rent / utilities are artificially low, enabling you to save that much of AT income. I personally splurge on fine dining, but that's me. A BMW 535i might seem a bit odd to your coworkers so I would caution you on that basis, but if that is what you're really into, then go for it - it sounds like you've thought this out (car, gas, insurance, maintenance costs, etc.)

What do you mean artificially low?

And yes I've thought about future coworkers (have my own business right now) or worse, future bosses. "Never have a nicer car than the boss"

This is not the Suzi Orman show

LordEcount said:   A BMW 535i might seem a bit odd to your coworkers so I would caution you on that basis

Agree here depending on what you do this seems kind of weird. A 5-series at 24?

Also, you talk a lot about your income, how does your net worth look? Any college debt, etc? Are you paying cash for this car?

ellory said:   This is not the Suzi Orman show

Thank you for clarifying. I clearly got confused. Thought it was a forum for people to discuss personal finance topics.

debtinator said:   LordEcount said:   A BMW 535i might seem a bit odd to your coworkers so I would caution you on that basis

Agree here depending on what you do this seems kind of weird. A 5-series at 24?

Also, you talk a lot about your income, how does your net worth look? Any college debt, etc? Are you paying cash for this car?



I owe 10k on a car loan (current car) which I would pay off when I sell it and would finance the new car to help my credit.

Net worth is some saved up through college + 4k in car equity + savings for this year, ~ $90,000

Haven't looked into those cars specifically, but you can normally get really great deals on low mileage, 1-2 year old 5 and 7 series BMWs and I wouldn't be surprised if the CTS-V fell into the same bucket.

- If you're sold on those cars, I'd soften the blow by looking for a great condition, certified, and inspected car at a bargain - take your time and wait until you find a great deal (talking about a 1 year old car with 10K miles that looks and drives brand new and saving 10K).
- At 24, I'm a bit surprised you're interested in those cars as they have a more middle-aged vibe. Guys your age and making money are normally big on the M3, S4, and the like. Personally if I'm in your shoes, I'd get myself a sports car like a lightly used Cayman or 997 911. You'll have plenty of time to drive a big ol sedan for the rest of your life. I didn't make nearly your money at 24 but buying an S2000 and having a whole lot of fun in my mid-20s was totally worth it.

I splurge on adventures and memories. I drive crap cars and I don't buy myself a lotta toys, but when it comes to travel and experiencing things, I don't hold back. My theory is this: in 10 years, I won't remember the car I'm driving. it'll just be one of the many cars I have driven. Background noise. The climb up Mauna Loa and going 50M deep into Loch Ness tho? I'll remember that.

So splurge on memories. They're all you really have, anyway.

dawheat said:   Haven't looked into those cars specifically, but you can normally get really great deals on low mileage, 1-2 year old 5 and 7 series BMWs and I wouldn't be surprised if the CTS-V fell into the same bucket.

- If you're sold on those cars, I'd soften the blow by looking for a great condition, certified, and inspected car at a bargain - take your time and wait until you find a great deal.
- At 24, I'm a bit surprised you're interested in those cars as they have a more middle-aged vibe. Guys your age and making money are normally big on the M3, S4, and the like. Personally if I'm in your shoes, I'd get myself a sports car like a lightly used Cayman or 997 911. You'll have plenty of time to drive a big ol sedan for the rest of your life. I didn't make nearly your money at 24 but buying an S2000 and having a whole lot of fun in my mid-20s was totally worth it.


Thanks for the insightful post

I really want an AWD Sedan. I'll check out the M3 and S4, but I really liked the 535i I test drove.

If I were single.. I would definitely be all about a Porsche

If you are going to do it do it now because once you get married and have kids .... You know.

KYBOSH said:   If you are going to do it do it now because once you get married and have kids .... You know.According to OP's screen name, this will never happen.

you obviously have made your mind.....just go buy the car to show off your e-epen1sDINK4LIFE said:   dawheat said:   Haven't looked into those cars specifically, but you can normally get really great deals on low mileage, 1-2 year old 5 and 7 series BMWs and I wouldn't be surprised if the CTS-V fell into the same bucket.

- If you're sold on those cars, I'd soften the blow by looking for a great condition, certified, and inspected car at a bargain - take your time and wait until you find a great deal.
- At 24, I'm a bit surprised you're interested in those cars as they have a more middle-aged vibe. Guys your age and making money are normally big on the M3, S4, and the like. Personally if I'm in your shoes, I'd get myself a sports car like a lightly used Cayman or 997 911. You'll have plenty of time to drive a big ol sedan for the rest of your life. I didn't make nearly your money at 24 but buying an S2000 and having a whole lot of fun in my mid-20s was totally worth it.


Thanks for the insightful post

I really want an AWD Sedan. I'll check out the M3 and S4, but I really liked the 535i I test drove.

If I were single.. I would definitely be all about a Porsche

Buy it. What's the point of posting on an internet forum and asking anonymous people? To make yourself feel better?

NewGuy said:   Buy it. What's the point of posting on an internet forum and asking anonymous people? To make yourself feel better?


Asking for opinions. Lots of people on personal finance forums are frugal and swear by driving older used cars that won't depreciate. I'm 24 and am asking if what I'm thinking of doing is within my means to splurge a bit while I'm young, or if I should save $$ until I'm older.



Apparently asking for advice is NOT OK, based on the red I'm seeing at the top.


What's the point of an internet forum anyway then, if asking anonymous people on the internet for advice is stupid?

yup he sent me a pm with a very derogatory message. If you want something, buy it............if you have stable income and can afford it more power to you. You don't need our permission; we aren't your parents. NewGuy said:   Buy it. What's the point of posting on an internet forum and asking anonymous people? To make yourself feel better?

HB&CVs

just buy it....if you can afford it buy it. I blew 30+k on a mini cooper but don't ask for people's approval especially when your situation is different and what you would do is not what people would do here. Yes...it costs more...yes it's not the rational thing to do for a FWF member but if you can afford it and want it badly enough....do it.DINK4LIFE said:   NewGuy said:   Buy it. What's the point of posting on an internet forum and asking anonymous people? To make yourself feel better?


Asking for opinions. Lots of people on personal finance forums are frugal and swear by driving older used cars that won't depreciate. I'm 24 and am asking if what I'm thinking of doing is within my means to splurge a bit while I'm young, or if I should save $$ until I'm older.



Apparently asking for advice is NOT OK, based on the red I'm seeing at the top.


What's the point of an internet forum anyway then, if asking anonymous people on the internet for advice is stupid?

I am 24 and am on my fifth BMW. I currently drive a 2007 X5 (sticker was $75k). I've had two M3s, another X5 and another 3-series. Personally, I NEVER get judged (good nor bad) on my vehicle choices. In fact, I convinced two people to buy certain cars (non-BMW, surprise surprise) because they respect my taste in vehicles. I never felt that the whole "never drive a nicer car than the boss" thing was valid. It's my money, I choose to do what I want with it. I work my ass off and can pay all my bills...frankly, no one should worry about what I do with my money--it's only my business. If you have $90k cash and you're making $130k at our age, you certainly should buy whatever car you want...IF you have ran the numbers and thought about it. I don't advise just going out and doing it because you "have the money." I am simply stating that you're asking us if you should spend your money a certain way, and I think that one should spend their money however they wish. However, I think a valid thought process should take place before ANY purchase, big or small. Good luck and let us know what you do.

By the way, I just gave back a 2012 5-series X-Drive loaner and I hated it. I'd really consider your other options before settling on a 5-series. The 535 really isn't even all that quick, either.

Edit to add: the CTS-V is faster than the M3 on the 'Ring...in case you weren't aware.

ETA2: I bought a timeshare, have had numerous vehicles, love "expensive" timepieces, and have other "expensive" hobbies. I do it all because I want it and I can afford it. I've thought about each transaction before going through with it and don't regret a single one. Maybe now is the time to utilize your salary, utilize your savings, and to do something for you. You never know what tomorrow will bring.

Every time I go on a cruise, I buy diamonds. BA-ZINGGGGG!!!

qcumber98 said:   Every time I go on a cruise, I buy diamonds. BA-ZINGGGGG!!!
Was that supposed to be funny?

jaytrader said:   qcumber98 said:   Every time I go on a cruise, I buy diamonds. BA-ZINGGGGG!!!
Was that supposed to be funny?
you bought alexandrite on a cruise to the Bahamas too??

qcumber98 said:   jaytrader said:   qcumber98 said:   Every time I go on a cruise, I buy diamonds. BA-ZINGGGGG!!!
Was that supposed to be funny?
you bought alexandrite on a cruise to the Bahamas too??

alexandrite is the best hedge against the coming apocalypse

Dude, if you want the car, just buy it. Don't try to justify it in any way other than you want it. There's nothing wrong with buying things you want if you can afford them. I don't know what kind of responses you were expecting, but no one is going to present a logical case for you buying that car. There are also a lot of people here who either make/have much more money than you so that the 5 series isn't going to impress them, or don't think that buying expensive cars is a good use of money. That really shouldn't matter to you though, right? You're not doing this for anyone but yourself let alone a bunch of strangers on the internet.

DINK4LIFE said:   NewGuy said:   Buy it. What's the point of posting on an internet forum and asking anonymous people? To make yourself feel better?


Asking for opinions. Lots of people on personal finance forums are frugal and swear by driving older used cars that won't depreciate. I'm 24 and am asking if what I'm thinking of doing is within my means to splurge a bit while I'm young, or if I should save $$ until I'm older.



Apparently asking for advice is NOT OK, based on the red I'm seeing at the top.


What's the point of an internet forum anyway then, if asking anonymous people on the internet for advice is stupid?
You've mistaken FWF - an investment strategy forum for your personal spending adviser

You already know the financially astute decision is to drive a beater. You're not asking if you can afford it. Nor have you provided enough information for anyone else to evaluate the decision

You want affirmation that this is good financial decision? You won't get it here. You want a Suzi Orman decision that you can afford it? "Approved, boyfriend"

Oh yeah, and don't pose your question as it being a springboard for further discussion on spending. That's not what your intention was, and no one is fooled.

DINK4LIFE said:   dawheat said:   Haven't looked into those cars specifically, but you can normally get really great deals on low mileage, 1-2 year old 5 and 7 series BMWs and I wouldn't be surprised if the CTS-V fell into the same bucket.

- If you're sold on those cars, I'd soften the blow by looking for a great condition, certified, and inspected car at a bargain - take your time and wait until you find a great deal.
- At 24, I'm a bit surprised you're interested in those cars as they have a more middle-aged vibe. Guys your age and making money are normally big on the M3, S4, and the like. Personally if I'm in your shoes, I'd get myself a sports car like a lightly used Cayman or 997 911. You'll have plenty of time to drive a big ol sedan for the rest of your life. I didn't make nearly your money at 24 but buying an S2000 and having a whole lot of fun in my mid-20s was totally worth it.


Thanks for the insightful post

I really want an AWD Sedan. I'll check out the M3 and S4, but I really liked the 535i I test drove.

If I were single.. I would definitely be all about a Porsche

I'm 51 and would not want an old man car like the Caddy or 535i, if you want a BMW AWD get the 335ix. But better would be a new S4. And I'm married with kids but drive an R8. Also have splurged on cars since I was a teen, made me work much harder to make sure I could get better and better ones.

I splurge my disposable income on fast women, cheap booze and eBay. But that's just me. OP should spend his how he likes.

DINK4LIFE said:   NewGuy said:   Buy it. What's the point of posting on an internet forum and asking anonymous people? To make yourself feel better?


Asking for opinions. Lots of people on personal finance forums are frugal and swear by driving older used cars that won't depreciate. I'm 24 and am asking if what I'm thinking of doing is within my means to splurge a bit while I'm young, or if I should save $$ until I'm older.



Apparently asking for advice is NOT OK, based on the red I'm seeing at the top.


What's the point of an internet forum anyway then, if asking anonymous people on the internet for advice is stupid?

Because this isnt Dear Abby. You post ideas and opportunities for others to read about. Threads like this are called "clutter" or "noise".

But anyways, you say you have a car payment already. So does this mean you are splurging and spending your disposable income now, or are you spending what you expect to be disposable income in the future? Because if you plan to have another car payment being paid for from your paycheck, this isn't 'splurging', it's called "digging a hole"...

Buy a used 550. I have a 545 and love it. No regrets here. You only live once.

I splurge on my kids education and drive crap cars. Cars are only for a few years and people that are on welfare seem to have nice rides.

I don't disagree with any of the points you make here. I only want to point out that I had plenty of experiences and memories related to the Viper that I bought when I was 24 kenblakely said:   I splurge on adventures and memories. I drive crap cars and I don't buy myself a lotta toys, but when it comes to travel and experiencing things, I don't hold back. My theory is this: in 10 years, I won't remember the car I'm driving. it'll just be one of the many cars I have driven. Background noise. The climb up Mauna Loa and going 50M deep into Loch Ness tho? I'll remember that.

So splurge on memories. They're all you really have, anyway.

Short version: "I'm only 24 and already married. It's Saturday night and instead of being out and about with my friends, I'm home. Will a flashy car help to compensate for my quarter-life crisis?"

I say, sure, why not. You're good enough and you're smart enough ... and I'm sure if we look hard enough people like you.

Buy AR15's

Home prices (mostly sub $100k) are starting to rise slightly, as are interest rates. I recommend you looking at owning your own HOUSE (NOT A CONDO!!!), paid off, and possibly a second place as a rental or a vacation/weekend property. I also recommend silver American Eagles. You're too late to get into guns & ammo.

Experiences > material goods. Teh sciences prove it. Also, I'd like to point out that it's almost NEVER a "can I just splurge this once" thing - sure, you might tell yourself "I earned this car" but then it'll be "oh what's the big deal, I earned this $100 dinner weekly" or "I earned that bottle service." It becomes part of your lifestyle. Note that this isn't necessarily *BAD*, per se, if you realize what you're doing, but it's a lot easier to scale up on living high on the hog than to go backwards. Just my $0.02 - do some reflecting and good luck with your decision. Make a reasoned decision and don't look back.

Don't do it. I was in the same boat. Bought a Lexus IS250. While I love the car's performance, there are better ways to spend money. (trips, concerts, sporting events) Wish I just bought a Camry.

kenblakely said:   I splurge on adventures and memories. I drive crap cars and I don't buy myself a lotta toys, but when it comes to travel and experiencing things, I don't hold back. My theory is this: in 10 years, I won't remember the car I'm driving. it'll just be one of the many cars I have driven. Background noise. The climb up Mauna Loa and going 50M deep into Loch Ness tho? I'll remember that.

So splurge on memories. They're all you really have, anyway.


Great part about memories are you won't remember when you have forgot them.

Other peoples spending is completely relative. I've seen people "blow" money on things I consider ridiculous. I'm sure people think some of my spending is the same. It's about what makes you happy and what you can afford. Don't buy something because it's the latest and greatest or it will make you look better to others.

One tip I'd like to offer is this...... when I am contemplating a large purchase I do all the research first then sit back and wait. Sometimes the wait is a week, sometimes maybe a year. If I can't get it off my mind then it's something I really want. If I forget about it, then I didn't really need/want it in the first place.

Skipping 106 Messages...
TravelerMSY said:   I'm going to get lynched for using the L word, but maybe the OP could lease the luxury car for 2 years and send it back at the end if it's not the life-changing car experience everyone is expecting.Lesbian?



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