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  • Analyst 1 in IB - Gen
Nov 6, 2021 - 9:06pm

I drive a garbage Honda from like 2002 and I'm in a LCOL area even too. I don't give a fuck I rather invest the money into TQQQ UPRO and crypto and escape the shackles of the rat race ASAP. It's also funny letting people assume I'm a broke bum when in reality I have enough cash to buy a whole house right now. I let all the mid-20s dudes in my area take all the chicks with their leased BMW and 80k salary

Nov 9, 2021 - 5:56pm

Youve been watching too many "sigma grindset hustlealpha financial independence girlboss" content on Instagram and TikTok, bozo.

Good luck affording 3 meals a day when TQQQ experiences a 99.2% drawdown like it has 3 times in the past 11 years.

  • Intern in IB - Cov
Nov 6, 2021 - 9:22pm

I would probably make a very poor financial decision and purchase a Tesla Model 3.

I do know a few analysts who have a Mercedes CLA

  • Analyst 1 in AM - Equities
Nov 6, 2021 - 9:24pm

Generally the "lower end" cars. All the 1st, 2nd, and most of the 3rd years drive a honda, toyota, mazda etc. with a 1st and 2nd year couple of rich kids driving parent paid BMWs and Audis. Some of the 3rd years have decent to nice cars - lexus, acuras, bmws, e class. 

  • Analyst 1 in IB - Gen
Nov 6, 2021 - 9:31pm

It's funny because most regular people who make 100k base salary (not even counting bonus here) in a middle cost of living city would probably drive a decent benz BMW, Tesla or something but analysts seem like they typically don't despite making even more income? Maybe because they're just out of school, but it's still interesting when you think about it or maybe I'm wrong since most analysts are in NYC anyway and there's not a large enough sample size. 

  • Analyst 1 in AM - Equities
Nov 6, 2021 - 10:25pm

Well you also need to look at a typical analyst expenditure. I grew up in the UWS and have plenty of friends who grew up in households with less than 100k income and did not struggle at all - some even lived in Manhattan. 

From what I have seen with my analyst cohort - eat out at lunch everyday. Will get dinner expensed and go home. So lets tack on say 15 bucks a day for lunch unless people decide to get fast food or chipotle everyday. I get the dinners but for lunch, I will usually just bring something small from home like yogurt and fruit etc. 

Weekends - this is the killer, go out buy drinks, pay covers, dates, etc. - I am using my own example but a decent weekend out where you go to bars and clubs generally runs a 100-150 a week. This includes pregamed alc that I will buy with friends. 

People also like going out to brunch (don't get this craze) and drop 50+ on that. Also in general just eating out. I grew up here so I don't really explore/I have my spots picked out for when I want to go out to a restaurant with friends so I do not do this that often. My analyst buddies eat out quite often sometimes even after getting a dinner on weeknights and pretty much every meal on weekends. 

Regular people don't really drop 100 weekly going out or eat out excessively. I find going out expenditures unavoidable and generally just stick to a couple of restaurant meals a week. 

  • Prospect in RE - Comm
Nov 8, 2021 - 12:15pm

Isn't it 9 dollars to go through the holland tunnel and like 500 a month to park in nyc? Does the lower COL in jersey make up for that cost? Or do you park in jersey city and take the path train to manhattan?

Nov 8, 2021 - 5:56pm

Can you talk about your commute from jersey? I'm planning to do something similar like living in Newport and take the path. Does bank reimburse for the late night uber?

  • Assistant PM in AM - FI
Nov 6, 2021 - 9:29pm

My dad luckily had just finishing paying off the finance on his Wraith and got a G-Wagon so gave me the Wraith. Was a kool car.

  • Analyst 1 in IB - Gen
Nov 7, 2021 - 1:24am

I don't think anyone should care what others decide whether it be high-end or low-end cars. Everyone knows each others pay in banking exactly there's no secrets. Obviously different with a random person on the street since they'll make assumptions but everyone you work with knows exactly what you are taking home each paycheck. Just how you decide to allocate your money...your choice.

  • Associate 1 in PE - LBOs
Nov 7, 2021 - 1:00pm

not at all. this is what I thought as well, but you'll quickly realize that in the LA banking scene (I'm sure it's similar in NY, SF, etc.), a lot of kids' parents are well off. Tesla, BMW, Audi, Mercedes, etc. are all pretty common cars / you will not stick out having one

Nov 7, 2021 - 9:15am

While I was in SoCal (have since been 3 years removed) I was driving a Tacoma. Absolutely loved that car and would throw my boards in the back for a weekend trip down to San O, bikes for a trail run or long ride along the beachfront, and the crew cab was actually pretty comfortable.

Sold it while I was in NYC (now Chicago) and looking at getting a TRD 4Runner. 

Nov 7, 2021 - 9:59am

VP. ~30 year old here. Take it from me, don't waste your money on a nice car when you're in your 20's. Just don't. I did it and regretted it. Lease a Honda for $250/mo or buy a used car.

Wait till later on in your career, after you hit some big financial goals, and when your net worth isn't comparable to the value of the car you want.

  • Analyst 1 in AM - Equities
Nov 7, 2021 - 3:04pm

I leased a CRV because of how expensive used car prices are. The lease itself is only 275 no money down. The issue comes with insurance + taxes which basically make it 550 a month to own a car excluding gas. I wish I was in a position where I would not need a car because that is an extra 6k that could be invested. 

  • Intern in HF - Other
Nov 8, 2021 - 12:58am

I'm graduating this semester and will probably lease a Benz c class coupe. I'm making like 175k base though so have a bit more room.

  • Intern in HF - Other
Nov 8, 2021 - 2:37pm

Usually, you can see what other people are paying for the make + model you are looking for on reddit/leasehackr.  I would just do it through certified dealers.  Used/new car market is a bit overpriced these days, so I'm planning on just leasing.  When I get more money saved up, I'll probably buy a nicer car after the lease term is up.  

Nov 8, 2021 - 12:52pm

I've noticed in these threads there's always a discrepancy between people who are/have been analysts and college students. Take that FWIW. Also, as an enthusiast, the answers to these threads always greatly confuse me. Different strokes for different folks I suppose.  Buy what you want. Will take sacrifices to some extent ($400/month car payment means $400/month less money to spend elsewhere or invest) but as an analyst I'm thinking anything <$75k would be considered fair game. Jus remember: buy used. New cars are a scam.

Nov 8, 2021 - 3:27pm

Eh, with the way the used car market is these days you'd probably be better off buying new (assuming you can get one at MSRP), depending on what you're looking for. Used truck and SUV prices are through the roof. 

  • Analyst 2 in IB-M&A
Nov 8, 2021 - 2:39pm

Don't even think about what other people say. If you enjoy cars, splurge on something you'll enjoy (within reason). Being a huge car enthusiast myself, I can't imagine how depressed I would be if I had to drive a boring car after grinding for 90 hours a week. I won't judge anyone that does, but at this point, cars are my only hobby. Some people like to go out to a steak house each weekend, others love to golf a new course every week, some people like to drive a nice car. I'd rather go out once or twice a month and I'll put the other $500+ a month toward a car payment instead. It all comes down to what you value. After being diagnosed with an auto immune disease in the past years, my life flashed before my eyes and made me wonder "wtf is the point of working so much and not having something to show for it? What if I die next year? I'll have lived a miserable life and never rewarded myself, but thank god my family could inherit my 6 figure investment account... nah". I'm still maxing out my 401k, saving more than half my TC, and investing on the side, while rolling around in a 600hp car which makes every long hour so much more worth it. Learn to live a little people - life is too short. Enjoy it before it's too late.

  • Associate 1 in VC
Nov 8, 2021 - 5:57pm

I drive 2015 automatic mustang v6 black. It's nice enough but nothing crazy. I alwags liked mustangs as a kid

  • VP in IB - Gen
Nov 8, 2021 - 8:06pm

Bought a brand new Toyota Camry when I was 19. I financed it at 0%, but I think my dad co-signed. I paid the monthly loan + gas. My parents paid the insurance since it was a family plan. 

Paid the car off in 4 years. Have now owned it for 10 years total. Have been tempted to upgrade, but the damn car won't give me a single excuse to do so. Have spent exactly $0 on major repairs, car is fuel efficient (25 mpg), environmentally acceptable, RELIABLE, and low maintenance (unlike my gf). 

With that being said, there is something gratifying about running a car into ground and getting your full money's worth.

LOVE the $0 monthly payments and ironically, my car has gone up in value over the past few months, so my cost of ownership has gone done (after accounting for residual value).

Nov 8, 2021 - 10:01pm

Bought in 2016 a 2016 Honda Civic LX black color, basically the base model, and added a $175 tint job to it and I love the car. There is a whole online community for the car called civicx.com Bought the car in 2016 for $18,400 and today if you glance at my car and a $40,000 Tesla Model 3 quickly they look similar. 

We're not lawyers. We're investment bankers. We didn't go to Harvard. We Went to Wharton!
  • 1
  • Associate 3 in ER
Nov 8, 2021 - 8:27pm

Live in SoCal, own a 2021 Jeep Wrangler and can't imagine owning any other car in my 20s. Take the top down to cruise, and get some fresh air. Rugged enough to go to the beach, the mountains and everything in between.

  • Analyst 1 in IB - Cov
Dec 25, 2021 - 5:23pm

New jeeps are dumb expensive for no reason. Prefer the older ones, look more authentic less try hard. Just tend to be stick which isn't ideal

Nov 9, 2021 - 2:12pm

When I started as an analyst I made the mistake of purchasing a new car.  That said I had been driving old beaters for a long time and the lack of mechanical headaches has been quite enjoyable.  Nothing special, 2018 Ford Fusion right when they put the 2019's on the lot, second lowest trim.  Still paying on it and as of right now hardly use it, since I moved cities.  That's a $650 a month cost for it to sit there including parking, comprehensive insurance, and the car payment.  I wish I had just bought a 2005 civic.  Other than avoiding maintenance, a new car is just a flex, a pricy one at that that is probably not worth it unless you are driving around for sales.  And who am I trying to impress anyway?

  • VP in S&T - FI
Nov 10, 2021 - 1:17am

Don't get anything too fancy, what you need is something that is reliable (avoid used cars especially with how expensive they are right now) and looks decent.  A couple of things you need to think about before doing any car shopping. 

1. Do you like sedan's or SUVs?  Its mostly a preference thing, I have always been a sedan guy and think they drive better but some people just enjoy the SUV feel more, but if you need more storage for whatever you are into it might make more sense to get an SUV.    
2. You mention LA so I assume not going to be driving much in inclement weather but if you are be sure to get a car with front wheel drive and seriously consider 4 wheel drive  
3. Another LA thing is that you might want to consider a hybrid especially if you are going to be driving a lot as some hybrids allow you to go in the HOV lane which can save a ton of time.
4. What is the parking situation at your home/office? if its tight or on the street you are going to need to consider that.  

Think that leaves you with 2 options here

1. Buy whatever the basic Honda/Toyota entry level sedan or SUV is.  Don't need to go crazy with upgrades or whatever, just see what the various dealers in your area have and buy one that you like.  I would avoid buying an American car, they just don't last and have awful resale value. 
2. LEASE the entry level luxury sedan (BMW 2/3 series, Mercedes CLA, Audi A3, Infiniti Q50, Lexus IS) or SUV.  Do not buy this. 

Personally I lean toward option 1, own that for a few years/until you pay if off and then upgrade your car to the next step up of luxury sedans/SUVs (BMW 4/5 series, Mercedes C/E class, Audi A4-A6) when you get promoted.  Will give you something to look forward to/work towards.  You are actually paying for more than just the brand at this level.                                               

  • Intern in IB-M&A
Nov 13, 2021 - 3:29pm

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Nov 22, 2021 - 2:48pm

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  • Intern in IB-M&A
Dec 25, 2021 - 5:54pm

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