|
|
|
2010 2011 BMW 5 Series Forum F10 Your Salary |
|
View Poll Results: Your salary? | |||
Under 50,000 | 13 | 9.29% | |
Between 50,000 - 100,000 | 34 | 24.29% | |
Between 100,000 - 150,000 | 37 | 26.43% | |
Between 150,000 - 200,000 | 11 | 7.86% | |
Between 200,000 - 300,000 | 19 | 13.57% | |
Over 300,000 | 26 | 18.57% | |
Voters: 140. You may not vote on this poll |
Post Reply |
|
Thread Tools | Search this Thread |
07-10-2014, 03:24 AM | #67 |
Second Lieutenant
41
Rep 242
Posts
Drives: BMW
Join Date: Apr 2014
Location: Atlanta
iTrader: (0)
Garage List 2015 Range Rover Ma ... [0.00]
2010 S550 AMG-Sport [0.00] 2014 335i M-Sport [0.00] 2014 650i M-Sport C ... [0.00] |
I pay cash for all my cars (all that stripper money!). Never leased anything before.
__________________
2015.5 Range Rover Mark IV L405 V8 Supercharged, Aruba, Almond, Espresso, Meridian, Vision Assist, Driver Assist
2014 335i M-Sport .CO.ZA / ZCW / ZDA / ZPP / ZTP / 2PE / 441 / 2TB / 5AC / 688 / 2NH / DHP / 2VF† 2014 650i M-Sport Convertible / 7MH / 337 / ZDB (DAP) / ZEC / Adaptive Full LED Headlights / B&O |
Appreciate
0
|
07-10-2014, 07:10 AM | #68 | |
Major
614
Rep 1,133
Posts |
Quote:
__________________
It's good to be bad
|
|
Appreciate
0
|
07-10-2014, 07:26 AM | #69 |
Second Lieutenant
159
Rep 251
Posts |
Such an interesting discussion and like religion and politics there usually is no way to draw a conclusion as everyone has their own value system.
Personally, I lease 1 car (small business) and own 2 others. I find all of them to be a massive financial drain. My toy car (2009 Porsche 911): Depreciates while sitting idle in the garage. It was purchased with only 20k miles at the young age of 4 for nearly 55% of its original MSRP value so depreciation is slowing but still active. After sales tax and dealer fees a trade in tomorrow would probably net a great loss. Is it worth having? Probably not, but it makes me happy. Girls car (2013 Mercedes C250): Purchased brand new. Negotiated an attractive purchase price but add taxes/fees and depreciation and we should be in for a big hit when we unload this thing as the warranty wraps up in a few years. My guess is we will lose roughly 60% while having to go through the hassle of trading it in or the less likely yet more cost effective route of selling ourselves. Does it make it right? Would it have been better to lease? Probably easier, but who knows? For now it makes her happy. Work car (2014 550): I look at the constant payment of a lease with all the various fees that make up that payment and see the overall loss. BUT between my personal tax benefits and BMW's maintenance program, my 550 and the 38% loss over 3 years is essentially free. Its a constant payment but after write downs it pays for itself. Does this make it the right thing to do? Not sure but it makes me happy. My non-car centric buddy bought a 10 year old Lexus. Drove it for 2 maintenance free years and just sold it for what he paid (including taxes and fees). FAR better investment than any of mine. We can all say, he was financially responsible and lived well within his means. Sounds boring. I too agree that a car value should never be near or above annual earnings. I also don't think someone should wear $350 sunglasses while driving a $350 car. Everyone has their own value system. |
Appreciate
0
|
07-10-2014, 07:56 AM | #70 | |
Colonel
99
Rep 2,323
Posts |
Quote:
|
|
Appreciate
1
|
07-10-2014, 09:25 AM | #71 |
Lieutenant Colonel
268
Rep 1,597
Posts |
I have never previously leased a car, always bought them straight cash. I'm a little old school and like to own my vehicle, I don't like lots of monthly payments.
When I bought my previous X5 I took out a £10k private loan to help fund the £65k cost of the vehicle, but I paid this off within a year. Last year I left my company job to go self employed and had to hand back my company car. This left me having to buy my wife a new car and after two BMW 1 Series she wanted a change. So we settled on the new Mercedes A Class and due to me having to put money into the new start up I decided to partially fund the car with a loan. However after looking at nearly new cars with a loan my dealer suggested a lease. After doing the calcs the lease was a lot cheaper than buying used as the interest rate on offer was nearly half that on the used car and Mercedes were offering 3 years free servicing on top. Someone wrote off my X5 this year and I bought a F10 to replace it, bought this straight cash. So I guess what I'm getting at is there is no straight answer, the purchase method depends on so many variables. Do your calcs, decide what is best for your particular circumstances, live within your means and enjoy! |
Appreciate
0
|
07-10-2014, 02:58 PM | #72 |
Second Lieutenant
56
Rep 209
Posts |
|
Appreciate
0
|
07-10-2014, 06:07 PM | #73 |
Second Lieutenant
32
Rep 258
Posts |
If folks don't have at least $70k saved up, then it's probably financially reckless to be driving such an expensive car. If one is always living beyond their means or mostly check to check, they will never get ahead.
|
Appreciate
0
|
07-11-2014, 08:25 AM | #74 |
Colonel
99
Rep 2,323
Posts |
Heck, I have $70K cash in my wallet right now. I would say if you don't have a few million dollars cash under your mattress, you should really drive a Hyundai instead of a BMW
|
Appreciate
0
|
07-11-2014, 08:49 AM | #75 |
Major General
5428
Rep 8,801
Posts |
This has turned into an interesting discussion. It is pretty spread out in terms of how everyone feels is the right way to spend your money. Age, education level, family back ground all plays a big role in how each person comes up with their formula. There is no wrong or right way really. Each situation is unique and to me the bottom line is as long as you get to live your life (as well as your family) happy that's all that matters. Someone making more money isn't always "better" in life or more "happy".
An a side note I love reading ezmaass responses. Long but very educational if you get into it. Lots to learn from him and a few other on this board imo. Alan
__________________
Last edited by Alan l.; 07-11-2014 at 10:33 AM.. |
Appreciate
0
|
07-12-2014, 08:46 PM | #76 | |
Captain
361
Rep 815
Posts
Drives: G05 X5,G20 M340,Infiniti Q50RS
Join Date: Mar 2013
Location: Queens,NY/Palm Bay, FL
|
Quote:
Money laundering...right there.. you can drop the 60K by me and the feds wont trouble you..
__________________
2020 G05 MSport 40i--Phytonic Blue Metallic/Vernasca Coffee Leather/Multi Contour SeatsTrim/Executive Package/MSport Brakes/Icon Adaptive Led HeadlightsW/Laserlight/Harman Kardon/Heated Front Seats Armrests & Steering
|
|
Appreciate
0
|
07-12-2014, 09:48 PM | #77 |
Major
478
Rep 1,363
Posts |
Ezmaass' posts are always well worded and informative.
I've come to the conclusion that Ezmaass posts long well thought out responses at all times of the day so he has a job that allows him to have a decent amount of down time......and pays him extremely well. |
Appreciate
0
|
07-13-2014, 05:07 PM | #78 | |
Lieutenant Colonel
370
Rep 1,698
Posts |
Quote:
__________________
2017 BMW 650xi Gran Coupe | MSport | Exec Package | Driver Assist Plus | ACC Stop & Go | Adaptive Drive | B&O | Night Vision | Cold Weather | Active Seats
2015 Audi R8 V10 | Brilliant Red on Black | S-Tronic | Carbon Sideblades | Carbon Trim | Full Leather | Sport Exhaust | Illuminated Doorsills | I-Pod | Contrast Stitching Previous: '14 550xi, '07 335i, '01 325i |
|
Appreciate
0
|
07-14-2014, 11:30 AM | #79 | |
First Lieutenant
58
Rep 337
Posts |
Quote:
Also, I think there's a big difference in 50 to say 75k than 75-100k. If I were in the former category still I would in no way have this car. I'm an (almost) CPA, single, reasonable house expense so I can afford it. I wanted to get it now and paid off before I have to start forking out for the eventual (maybe) family type stuff. I work some light OT every week a month, which I do anyway, and that alone pays my car note. However this thread is insightful. And shows me just how far away I am from owning that Murcielago by the time I'm 50...
__________________
2012 550i///M-Sport///Carbon Black Metallic///Oyster+Black Dakota///ZCV+ZLS+ZMP+ZPP+ZPS+ZSP+ZTP...M5 exhaust///iND Tricolor grilles///H&R Sport Springs///Turner Motorsport 12mm+15mm spacers
Last edited by RSBro; 07-14-2014 at 11:36 AM.. |
|
Appreciate
0
|
07-14-2014, 03:26 PM | #80 | |
Private
1
Rep 51
Posts |
Quote:
I’m not saying owning something is bad, I rent but paid off both of my cars. But IMO, as long as I have a comfortable place to live, I don’t give a f*** who owns it, same goes for cars. |
|
Appreciate
0
|
07-14-2014, 04:38 PM | #81 | |
Lieutenant Colonel
370
Rep 1,698
Posts |
Quote:
The most financially responsible thing you can do with a property is to own it outright. Mortgages, as you mentioned, will bleed you for many years with interest, causing you to pay nearly double, even with great interest rates, in the long term. Then again, don't forget that inflation is also occurring each and every year, and even paying double for your home in 30+ years-from-now dollars may still be a bargain. Many financial experts will contend that, if done conservatively (not over-extending), a low-interest loan on an appreciating asset isn't so bad all things considered. And if you're an aggressive investor who wishes to leverage their cash, it may even be preferable at today's interest rates. After all, you can have a place to live using OPM @ 3.5% while remaining much more liquid with your own cash making 6 - 8%. As for the argument about maintenance costs, taxes, etc - don't be fooled. Even if you're a renter, you're still paying for it. Or do you think the owner, your landlord, is simply forgiving their expenses? No, it's baked into your rent. If you're renting in a multi-tenant complex (e.g. condo/apt complex), you're paying a fractional share of all of those expenses in your rent. If you're renting a single family home, you may be cover 100% of the costs regardless. At the same time, you're not only paying for these expenses, but you don't get to realize any of the tax benefits. Your landlord, for instance, can write off the property and school taxes, along with any interest they may be carrying on a mortgage. You? Nothing. Renters have no deductions there, even though you may theoretically be carrying the full load of those expenses in your rent payment. This can mean many thousands per year of lost tax savings. At the end of the day, remember this - being a landlord is one of the oldest professions on the planet. It's a business. And like every business, it exists because there's profit to be made. So for every cost-avoidance argument someone can make for renting, I'll maintain that there are MORE cost avoidance arguments to be made for owning... and hence why a profession exists to own property and rent them to others for a PROFIT. Now, if you look at lifestyle choices, similar with leasing a car, you can make some very valid arguments for renting a property versus buying. You've made some here already - flexibility, for instance. If you need to remain flexible to pick up and leave every 1 - 3 years, owning a home may not be for you. It'll impact both your finances (cost of sale through a realtor) as well as your lifestyle flexibility. Likewise, if you just don't want the responsibility, renting may be a better option. When you rent, someone else can worry about fixing a broken water heater, a leaky roof, etc. There's a certain level of "hands-off" lifestyle that comes with renting. But again, don't for a minute believe that because you're hands-off it's somehow free-of-charge. It's a service being provided by the landlord - it comes at an expense. For those of you who have operated as a landlord, you'll know that a property management company, for instance, may skim ~10% of the rent to provide this service... so it IS usually baked-in. From a financial perspective, I think the best thing you can do is: 1. Buy in a historically highly-desirable area. Land is finite, and the population of the US is growing. Pick a major metro area with strong, diverse business opportunities, access to waterways, airports, etc, and make sure you're in a good school district. Everything else is simple due-diligence on the property that a realtor and inspector can help with. 2. Be very conservative with what you mortgage. I think the old school max 80% LTV is still sound advice, regardless of what a bank may give you. It may not have helped EVERYONE who went upside-down in the last few years, but it surely would have helped many. 3. Keep the mortgage, regardless of LTV, to less than 3x (preferably 2.5x) your annual household income. More conservatively, keep it to that of just one income if possible. 4. Getting a 15-year or shorter mortgage can dramatically drop the amount you pay in interest (better rates AND short repayment time contributing there). Of course there are a ton of additional tips and tricks, but if you do it the right way, home ownership can be a source of great financial wealth. If you do it poorly, it can also be the death of you (reference our recent bubble). In the long run, though, renting is a losing financial proposition - like I said, it's a business, and the owners (landlords) are making money off your back. But it's not all about finances, and lifestyle choices do need to be considered. If renting is the right LIFESTYLE choice, so be it. But as I said at the very beginning of this post, we shouldn't confuse the two.
__________________
2017 BMW 650xi Gran Coupe | MSport | Exec Package | Driver Assist Plus | ACC Stop & Go | Adaptive Drive | B&O | Night Vision | Cold Weather | Active Seats
2015 Audi R8 V10 | Brilliant Red on Black | S-Tronic | Carbon Sideblades | Carbon Trim | Full Leather | Sport Exhaust | Illuminated Doorsills | I-Pod | Contrast Stitching Previous: '14 550xi, '07 335i, '01 325i |
|
Appreciate
0
|
07-14-2014, 06:37 PM | #82 | |
Private
0
Rep 80
Posts |
Quote:
|
|
Appreciate
0
|
07-14-2014, 10:12 PM | #83 |
Second Lieutenant
24
Rep 273
Posts |
Man, this thread is so off-topic now. It is amazing to see how many people think their choices are the best and everyone else should follow their examples. I strongly disagree with the one-size-fits-all approach. It is up to the individual to be responsible and make the decisions they can live with in regards to their finances.
|
Appreciate
0
|
07-15-2014, 09:52 AM | #84 | |
Private
1
Rep 51
Posts |
Quote:
Oh yeah? Then why don't you break down my analogies and let me know why they're so dumb? I think you should stop playing monopoly... Last edited by BigK; 07-15-2014 at 09:59 AM.. |
|
Appreciate
0
|
07-15-2014, 12:54 PM | #85 | |
Lieutenant Colonel
370
Rep 1,698
Posts |
Quote:
All of the arguments I've ever heard for renting versus owning usually boil down to LIFESTYLE choices, such as: 1. I'd like the freedom to move at a moment's notice. 2. I don't want to waste my Saturday afternoon mowing the lawn. 3. I don't want to worry about fixing the roof if it leaks. 4. Etc. These are lifestyle choices, and there's nothing wrong with them. But as I said, don't confuse them with financial choices. By the way, if someone is renting you a $2M condo for only $2,400/mo, you're getting quite a deal.
__________________
2017 BMW 650xi Gran Coupe | MSport | Exec Package | Driver Assist Plus | ACC Stop & Go | Adaptive Drive | B&O | Night Vision | Cold Weather | Active Seats
2015 Audi R8 V10 | Brilliant Red on Black | S-Tronic | Carbon Sideblades | Carbon Trim | Full Leather | Sport Exhaust | Illuminated Doorsills | I-Pod | Contrast Stitching Previous: '14 550xi, '07 335i, '01 325i |
|
Appreciate
0
|
07-15-2014, 01:23 PM | #86 | |
Private
1
Rep 51
Posts |
Quote:
1. I'd like the freedom to move at a moment's notice. Tenants sign rental agreements with terms, in most cases we can't move freely without a big penalty. Homeowners on the other hand can decide whenever they want to move. 2. I don't want to waste my Saturday afternoon mowing the lawn. Not likely an issue anywhere in the world but suburbs in America, we simply don't have lawns... 3. I don't want to worry about fixing the roof if it leaks. This I agree, but again, I think usually your insurance takes care of that. 4. Etc. As far as my rent goes, that's the downside of paying $2M for a property that doesn't really worth that much. But since I rent, it's not really my problem... Last edited by BigK; 07-15-2014 at 01:39 PM.. |
|
Appreciate
0
|
07-15-2014, 01:47 PM | #87 | |
Private
0
Rep 80
Posts |
Quote:
BigK theres two types of people in this world. 1. People who pay rent - can't afford to own and racking up in debt 2. People who are financially sound and have money in the bank. The first guy is trying to floss like the second guy. The second guy laughs at the first. Don't get it twisted! One! Last edited by noixd; 07-15-2014 at 01:54 PM.. |
|
Appreciate
0
|
07-15-2014, 02:12 PM | #88 | |
Private
1
Rep 51
Posts |
Quote:
If you have paid off your houses, cars etc., more power to you! But don’t go around and insult other people like you’re some kind of superior being. |
|
Appreciate
0
|
Post Reply |
Bookmarks |
|
|