Hi guys, I recently landed a job at Grant Thornton, (out of college). I'm making a decent amount of money and I've saved quite a bit over the years. I've also had a side hobby buying and selling shoes which has made me some decent money as well.

Here's the thing, I want an upgrade. I've had my G37 for quite some time and for some reason it's lost its luster with me. I test drove the M4 the other day and automatically fell in love.

However, I'm at a cross roads. This is my first major purchase. I'm currently paying rent of around 1.5k, I'm paying off 1k a month in student loans, and the car payment will be roughly $760 a month. It'll leave me with a little over $300 a month to "play" with. I know this doesn't sound like a lot and it most certainly isn't, but I also don't plan on living at my apartment for more than a year. I'm also under my parents insurance, etc.

The car payment will be for 6 years. The car is basically fully loaded, white exterior with red interior, 1k miles and it's a convert. I'm putting my G37 down and around 17k. If I sell all my inventory in shoes, I will still have around 15k left. So it's not like I'm throwing everything away.

Someone please talk sense to me. Please no bashing, just someone whose young seeking friendly advice. Another reason I want to make this purchase is because I feel like in the future I won't be able too if I want to start a family and everything down the line.

I'm financing not leasing.

TDLR -- Buying M4 need advice, will only have $300 a month after all expenses are paid, still do it?

 

Not bashing-hear me out.
Absolutely not Ridiculously unwise. You don't eat? Car doesn't get gas? Possible tolls? Basic maintenance on the car perhaps?

Also I'm inclined to believe your salary after adding up all your expenses and seeing what's left is not nearly enough to comfortably buy this car

Perhaps if the G has been and is still great to you consider to keep saving for a house of your own. While you're at it the price of your dream M will just continue to drop. Win win

 

$300 a month expendable income? Just...no..

 

I won't do it. There are too many future unknowns. If it were me I'd mod the G37 and save for a house or maybe since your buying and selling shoe business is doing well. I'd open my own store. The M4 will always be there but, business opportunities sometimes come around once in a lifetime. Also. You won't be on your parents insurance for ever. The redesigned Q60 is dropping next year and so far it sounds promising. Be patient. Do let that money burn a hole in your pocket.

Plus, think about this. You'll have $300 left over each month. That will have to cover gas, maintenance, treating yourself to the finer things in life, buying things you'll need, and God only knows what else. Do you really want to have that small of a safety net.

 

I'm goint to go with no here. Regardless of what sort of car this is, that is a massive car payment to take on for 6 years.

You stated you want to do it now because you don't know if you can do it when you start a family, but if you bought this car you'd be pretty much handcuffed for the next 6 years with a huge payment.

$1K in student loans is a major hurdle you will need to overcome. This will cripple you in terms of buying a house and starting a family. Don't hinder it more in adding to it for a depreciating asset like a car. I'm assuming the student loans will last more than 6 years....so you have at least $1800 in debt payments each month for the next 6 years. What if you lose your job 3 years from now?

Now that you've started working, do you have a safety fund? Do you have 6 months worth of expenses that you've saved up and can access instantly if needed?

Also...time to grow up and cut the cord from the parents insurance. They've supported you through college, and now you are working so it's time to take on your expenses 100% rather than have them subsidize you further so you can buy a fancy car. Eventually that will need to end as your parents now need to focus on their retirement.

$300/month is not enough to "play" with at all. That's pretty much $10/day in misc expenses. I spend at least that on coffee each day.

Plus what about misc expenses that may come up? Are you sure you are accounting for all expenses here? What about retirement savings? Putting 10% of your pay into a 401K/IRA? HAs this all been factored in?

 

Oh hell, when you said "M-4"' I thought you were talking about a rifle....

 

I was hoping it was an AR as well Tex haha Full Auto FTW
Joking aside, agree with everything above. Do not go through with the purchase. Get a good feel for your new job, maintain a steady savings each money, monitor how much you spend and then make a financial plan for a few years from now on where you want to be at.
And seriously, get off your parents insurance ASAP. You're a grad and working boy now, develop some self-reliance bruh.

 

I did too actually

 

Like others said, $300 per month is nothing. You can easily spend that on some unforeseen expenses.
Get a few promotions and a higher salary before you commit to 6 years of debt.

I would use the $760 to pay off the school debt faster so you can free up that 1k.

 

$300/mo is nothing. You'll be driving that nice M4, but you will crying inside.. You lose all of your flexibility and will be limited to an occasional car meet and playing video games in your room.